Are you ready to buy a house?
Are you ready to take the plunge and buy a house? The idea of home ownership is thrilling and liberating, but it’s a big decision. There are many factors to consider before you make the leap. Here are five key questions to help you decide if you’re ready to buy a house:
1) Do you have a stable job and income?
Buying a house is a big financial commitment, so it’s important to ensure you have a reliable source of income that can cover your mortgage payments.
2) How much money do you have for a down payment?
The more money you can put towards a down payment, the better. It will reduce your monthly mortgage payments and could help you qualify for a better interest rate.
3) What is your credit score?
Your credit score can significantly impact whether you qualify for a loan and the terms and interest rate of the loan.
4) Are you willing to commit to staying in one place for a while?
Buying a house is a long-term commitment, so you should only do it if you want to stay in the same place for a few years.
5) Are you prepared to handle the costs of home ownership?
Homeownership comes with many expenses, including property taxes, insurance, maintenance, and repairs. Make sure you’re financially prepared to handle the costs of not only your home, but your other living expenses and emergencies.
If you can answer yes to all these questions, you may be ready to buy a house and start building equity. However, it’s always a good idea to consult with a financial advisor to ensure you make the right decision and that a home fits into your overall financial plan.
Support for buying your first home
If you and your advisor determine that you are ready to buy your first home, consider the Home Buyers’ Plan (HBP) for first-time home buyers, which is a plan that allows you to withdraw from your RRSP up to a certain amount to buy or build a qualifying home.
When you withdraw from your RRSP through the HBP, you have 15 years to repay the amount to your RRSP. Repayment will begin in the second year after the year you withdrew the funds. These repayments do not affect your yearly RRSP deduction limit.
There are eligibility requirements for the HBP, so review them thoroughly with your Assante advisor. If you’re not ready to buy a house just yet, but are working toward it, talk to your Assante advisor about setting up a First Home Savings Account, a new savings tool you can use to fund your down payment.