Answers for all of your Real Estate Questions
Home Buying Tips for Barrie ON
Buying a home is a big decision. Ask yourself 5 questions before you decide if you’re ready to own a home.
- Am I financially stable?
- Do I have the financial management skills and discipline to handle this large a purchase?
- Am I ready and able to take responsibility for all the costs that come with being a homeowner?
- Can I devote the time to regular home maintenance?
- Am I new to Canada? There are several extra home buying resources for newcomers to Canada.
Also consider the many pros and cons of owning versus renting a home.
|Freedom to renovate||Ongoing costs including property taxes and insurance|
|Ability to build equity in a safe and secure investment||Increased monthly payments if interest rates go up|
|Potential for rental income||Possibility of unexpected and costly repairs|
|Less maintenance and repair costs||Monthly payments may increase year after year|
|Lower monthly upfront costs||The risk your lease won’t be renewed|
|Shorter-term commitment||Paying someone else’s mortgage|
Are you financially ready to own a home?
Look into these 5 calculations and questions before you meet with your broker or lender.
- Compare how much you currently spend on expenses and debt payments with the amount you have saved or invested.
- How much can you afford to spend on housing each month without risking your financial health?
- How much do you need to save to pay for the upfront costs of buying a home?
Upfront costs include:
- the down payment
- home inspection and appraisal fees
- insurance costs
- land registration fees
- prepaid property taxes or utility bills (the buyer reimburses the seller or builder)
- legal or notary fees
- potential repairs or renovations
- moving costs
- GST/HST/QST on a newly built house or mortgage loan insurance
- How much would you be spending each month with home ownership expenses added to your current financial situation?
- What is your credit score? You can demonstrate your ability to consistently pay bills and debts with a copy of your credit report.
There are 2 affordability rules that determine how much you can spend on housing without risking your financial situation.
As a new homeowner:
- your monthly housing costs should be at or under 32% of your gross monthly income
- your monthly debt load (including your mortgage) should be at or under 40% of your gross monthly income
You can explore your budget options with the mortgage affordability calculator.