Should you Buy or Rent a Home?
With the current mortgage rates sweeping down to record lows, a lot of experts agree that now is the best time to buy a home in Canada. However, the fact remains that buying a home is a major responsibility on its own and jumping into the midst unprepared can cost you in more than just money.
So what is the bottom line? Should you buy a home in the current market or spend a few more years in a rental? And what exactly is the criterion that you need to fulfill in order to be financially and mentally ready to own a home? Keep reading to get all your queries answered!
Why Buy a Home Now?
The Canada mortgage market has never before looked so inviting for new investors. The mortgage rates are at an affordable level and the new set of revised rules by the CMHC makes a mortgage plan all the more feasible for a potential home buyer.
The point to note here is that the major risk factor that makes a lot of people wary of buying a home in Canada is the affordability of a mortgage in the coming years. However, with planning tools like mortgage calculators and the assistance of expert brokers, you can minimize many problems in the very initial stages and assess in advance how much you will have to pay for a particular Canada mortgage.
It is easier to get a mortgage now and spending dollars and dollars on rent can prove to be unfruitful for the future. Therefore, it is a smart decision to invest in a personal home instead of going on rent and make your present and future secure for yourself and your family.
What Makes You Ready for Home Ownership?
Though the prospect of low mortgage rates is indeed very enticing, it is never a good idea to lock into a rate without thinking it through. Before you decide that you are ready to buy a home, evaluate your monthly budget in detail and check whether or not you will be able to make the extra mortgage payments in due time.
Furthermore, you need to have an emergency plan intact to avoid any defaulting incase of any illness or job loss. Remember, if you miss out on payments, you not only risk losing your home but also damage your credit score for any future purchases. Thus, it is a wise decision to plan and think about your future finances before you begin your house search.
How to Get Ready for Buying a Home?
Here is the million dollar question – when do you know that you are ready to switch from renting to ownership and how do you plan for it? Well, for starters, you need to have a consistent savings plan intact. Start saving as a family so that you have sufficient funds for paying a decent down payment and affording all the closing costs that come with buying a home. Once you know that you are in a strong footing to pay for any present and future expenses with ease, go for a Canada mortgage and enjoy the comforts of living in your personal home!