It’s no secret that the Canadian housing market is booming. Across the country, prices are on the rise and bidding wars are becoming commonplace. So if you’re thinking of buying a home, it’s important to be aware of when you’re ready to make the leap. Here are 10 signs that you’re ready to buy a home in Canada. Let’s get started!
1. Your job is secure and you have a steady income:
One of the most important things to consider when buying a home is your employment situation. Make sure you have a stable job that pays a decent salary before making any major purchase. A good salary to afford a home would be at least $50,000 a year.
2. You’ve saved up for a down payment:
In order to avoid being house poor, it’s important to have a good sized down payment saved up. This will help you keep your monthly mortgage payments low and give you some breathing room in your budget. A good starting amount for your down payment should be around 10-20% of the total cost of the home.
3. You have a good credit score:
Your credit score is one of the most important factors lenders will consider when you’re applying for a mortgage. Be sure to check your score before you start shopping for a home so you know where you stand. A good credit score would be anything above 650.
4. You’re prepared for the maintenance and upkeep:
Owning a home comes with a lot of responsibilities, including maintenance and repairs. Be sure you’re prepared to budget for these costs before making the jump into homeownership. Some of the main expenses to be wary of include: HVAC repairs, roofing repairs, and plumbing repairs.
5. You’re ready to commit to one location:
If you’re looking to buy a home, it’s important to be ready to commit to one location. This means being ok with the idea of living in the same place for at least five years or longer. In terms of areas with the best Housing Market includes:
- Housing Market Mississauga
- Housing Market Brampton
- Housing Market Ottawa
- Housing Market Calgary
- Housing Market Quebec
- Housing Market Downtown Toronto
- Housing Market Vancouver
6. You have a realistic budget:
When buying a home, it’s important to be realistic about what you can afford. Be sure to factor in the cost of mortgage payments, property taxes, and maintenance when creating your budget. To do this, we recommend using a mortgage calculator to get an estimate of your monthly payments.
7. You’re not looking to start a family anytime soon:
If you’re thinking of starting a family in the near future, it’s probably best to wait to buy a home . The added costs of children can make homeownership a bit more challenging. If you do decide to start a family , we recommend looking for a home with at least three bedrooms. This will help ensure you have enough space for everyone.
8. You’re ok with a little extra debt:
Mortgages are a big responsibility, and they come with a lot of debt. If you’re not comfortable taking on this additional debt, it’s probably best to wait to buy a home. The average debt of a mortgage usually amounts to around 30% of your total income.
9. You have a good handle on your finances:
In order to be prepared to buy a home, you should have a good handle on your finances. This means knowing how much debt you can realistically afford to take on, as well as having a solid savings plan in place. In order to calculate your current financial situation we recommend using a debt to income ratio calculator. This calculator will help you get an idea of how much debt you can realistically afford to take on.
10. You’re ready for the challenges of homeowners hip:
Owning a home comes with its share of challenges, from dealing with repairs to budgeting for unexpected costs. Be sure you’re prepared for these challenges before making the decision to buy a home.
If you’re thinking of buying a home in Canada, be sure to consider these 10 signs first. Doing so will help you make the best decision for your financial situation. Thanks for reading! Do you want to learn more about the Canadian housing market? Check out our blog for more great articles!
Traclet, Virginie. “Structure of the Canadian housing market and finance system.” Housing Finance in the Global Financial Market (2005).