Buying a home is a big decision. Ask yourself 5 questions before you decide if you’re ready to own a home.
- Am I financially stable?
- Do I have the financial management skills and discipline to handle this large a purchase?
- Am I ready and able to take responsibility for all the costs that come with being a homeowner?
- Can I devote the time to regular home maintenance?
- Am I new to Canada? There are several extra homebuying resources for newcomers to Canada.
Also consider the many pros and cons of owning versus renting a home.
Buying examples:
Pros
- Freedom to renovate
- Ability to build equity in a safe and secure investment
- Potential for rental income
Cons
- Ongoing costs including property taxes and insurance
- Increased monthly payments if interest rates go up
- Possibility of unexpected and costly repairs
Renting examples:
Pros
- Less maintenance and repair costs
- Lower monthly upfront costs
- Shorter-term commitment
Cons
- Monthly payments may increase year after year
- The risk your lease won’t be renewed
- Paying someone else’s mortgage