Don’t kid yourself, buying your first home (let alone subsequent homes) is one of the most emotionally and financially difficult decision that you will ever make.
The first step that any prospective purchaser need to do is learn about the process of home buying and the responsibilities of home ownership.
It is important to know the differences between renting and buying a home.
Here are some basic questions you should consider.
- How financially stable are you? (e.g. are you self employed?)
- Do you have the necessary financial management skills?
- Do you understand all the responsibilities and costs involved in home ownership (e.g. mortgage payments, property taxes, repairs, and maintenance)?
The Canadian Mortgage and Housing Corporation (CMHC) provides this free worksheet to guide you.
There are pros and cons for both renting and buying, but owning a home may not be for everyone. It is always best that you take time to think through the advantages and disadvantages to you of either owning or renting.
Read over your completed worksheet and then think carefully. Are the advantages of owning your home really bigger than the advantages of renting? Are the disadvantages of owning your own home really smaller than the disadvantages of renting?
If you decide that home ownership is for you, you must be both financially and emotionally ready. Buying a home isn’t only about money. You should listen to your heart… and take an honest look at your lifestyle.