Are you ready to buy your first home? What follows is a checklist to audit one’s home buying potential. Tick all of the following boxes to confirm you’re ready!
- You’re past the age of majority in your province.
- You’re a permanent resident of Canada.
- You’ve got job security and are past any probation period at work.
- You’ve got at least a 5% down payment, the minimum on a home valued up to a $500,000.
- You’ve got at least 1% of the property value for closing costs.
- You’ve built up strong credit with a 680-plus credit score, but preferably 720 or better.
- You have at least two credit accounts with meaningful credit limits.
- Your estimated housing outlay is less than 39% of your gross income.
- Your total housing outlay plus debt payments are less than the typical bank limit of 44% of gross income.
- You’re prepared for rising property taxes, rising condo fees (if applicable), rising utility costs and continuous home maintenance costs.
- You’re a disciplined spender.
- You’ve been pre-approved, meaning a lender has reviewed your application — and preferably your income and down payment documentation.
- You’ve developed an honest monthly budget (a purchase is just the beginning of ongoing home expenses).
- You’ve studied which mortgage term you’re best suited to (variable, short terms vs long term).
- You’ve got access to three-plus months of living expenses, “just in case.”
- You’ve done the math, and buying makes more sense than renting, after factoring in the monthly payment savings, home ownership costs, appreciation potential, government rebates and incentives, opportunity cost of investing in something else, and so on.
Are you wondering if it’s time for you to BUY? I want to help. Call me today!
