Think you are ready to be a homeowner? Here’s exactly how you can tell!
1) You have a budget
First Time Home Owner
Factor in homeowner’s insurance coverage, property tax, fees, upkeep costs, and the best available home mortgage rate.
2) You have a sizeable down payment.
Generally, you’ll need a down payment worth 20 % of the house price.
3) You have a reliable source of income.
Getting a home is a long-term financial dedication, so you’ll require a steady income to cover those month-to-month mortgage payments.
4) You have an emergency savings fund.
If you have enough money to cover three to six months of your living expenses, you’re one step closer to being prepared.
5) You have your financial obligations under control.
Lenders like to ensure you’ll have more than enough money each month to pay your living expenses. Before they’ll give you a low mortgage rate, they take a look at your debt-to-income ratio.
6) Your credit report is in good condition.
You don’t have to have best credit to become a homeowner; however a good history can help you lower the interest payments on your Canadian mortgage rate.
7) You can make a long-term commitment.
Are you prepared to stay put for a minimum of three to five years? Normally, that’s how long you’ll have to keep the house in order to recoup your trading expenses.
8) You are prepared to become your own property owner.
Don’t buy simply because you can. You have to ensure you’re ready.