Knowing if we’re ready for an exciting change is not easy to do. What does it even mean to be ready for change? Often, life events just happen, and we never really get the chance to stop and think if we were ready for it. Unlike these spontaneous life events, however, you should know if you’re ready to buy your first house. This is a huge decision and a lot of thought should go into it. So, to help you out, here are the top three questions to ask yourself before taking the plunge and buying your first home!
Question #1: How strong is your financial position?
Owning a home is expensive. You’ll have to cover the down payment, closing costs, monthly mortgage and insurance fees, and taxes. Not to mention the costs of making any renovations or adding new furniture once you’ve moved in. These costs quickly add up, and it’s important to step back and make sure you’ll be able to afford it all. Consider any other debts you might have, your credit score, or any other major purchases that you may be looking to make soon. Are you financially secure enough to take on all these costs?
Although there may never be a perfect time to buy, being honest with yourself about your financial position is a great starting point in determining if you are ready to buy your first home. You should also be aware of the Canadian First-Time Home Buyer Incentive, which is designed to help young Canadians achieve their dreams of homeownership.
Question #2: What is your 5 to10-year plan?
Take a second to think about what you want to accomplish in the next few years. Do you want to switch jobs? Travel more? Get married? Move to a new city? If you answered yes to any of these questions, now may not be the right time for you to buy. Homes are expensive and will require you to stay put for several years. Before committing to this purchase, you must consider what you are looking to do in the next five to 10 years and make sure the responsibilities tied to owning a home align with all your other goals
Question #3: Why do you want to buy?
One of the best things you can do before purchasing a home is to step back and really consider why you want to make this purchase. Is it because you feel like you have to? Is it to assert your independence? Or, are you ready to settle down and start forming your roots? The first two reasons are not a strong argument for buying a home. It can be easy, however, to fall into the trap of feeling pressured into buying a home once all your friends start to, or your parents say you should. Don’t listen to them! Buying a home may be the single largest investment of your life, and it should not be made unless it is truly what you want.
Many considerations go into buying your first home. Using the above three questions as a starting point is a great way to determine if you’re ready to start seriously considering a purchase. However, they are not the be-all, end-all. Do your research, think about what you truly want, and take your time before you go out searching for your dream home!
Think you’re ready to take the first steps towards buying your first home? I’d love to help you on your journey! Schedule a free consultation here or give me a call anytime.