By: Brown Nutan

4 Signs That You’re Ready To Buy A Home

Owning a home is a great way to build financial security and equity. While renting gives you the freedom to move when you want, owning a home has many benefits that you can’t get from renting. Here are 4 signs that you’re ready to buy a house.


You Have Good Credit


Low credit scores are one of the most common reasons that renters don't buy a home. But, if your credit is good, then it is likely you will be approved for a mortgage. The better your credit score, the better rate you will get on your mortgage. So start building it now if you haven't already.


You Have A Down Payment


A down payment is absolutely necessary when buying a home. You will need a minimum of 5%, but the larger your down payment is the more you will save over the lifetime of your mortgage. Even if you've saved a down payment for your ideal home, you still need to consider additional costs such as closing costs, land transfer tax, etc.


Your Rent Is Increasing


Rent is continuously increasing in the Toronto area, which makes it difficult to budget and pay your bills over the long term. Owning a home builds equity, and the monthly costs can be cheaper in many cases, even with the extra expenses like property tax and maintenance.


Your Lifestyle Can Support It


You want to make sure you have strong job stability when you are deciding to own a home. Since you can’t just move out whenever you want, it is important to know you have the cash to pay your mortgage every month. You also want to make sure you are stable in your relationship, if you are planning to buy a home with your partner.