Now more than ever, Canadians are choosing to remain unmarried and buy homes on a single income. While it may seem daunting, owning a home on one salary is achievable with proper planning and preparation. If you're considering buying a home on a single income, here are some steps you can take to make it happen:
Check Your Finances and Credit
Having good finances and credit is essential when applying for a mortgage. Work to reduce your debt and build your savings leading up to your application. Check your credit score and ensure that it is accurate, and avoid making large purchases on credit.
Look into Government Programs
Saving up for a down payment can be challenging on a single income. Consider exploring government programs, such as the First Time Homebuyers Incentive, Home Buyers Plan, and tax rebates, to help make homeownership more affordable.
Arrange a Co-Signer if Necessary
Having a co-signer or guarantor on your mortgage can help you secure a mortgage and potentially get a better rate, especially if you don't have a long credit history. Keep in mind that your co-signer will be responsible for making your mortgage payments should you fall behind.
Once you're confident that your finances are in order, contact your lending institution for pre-approval. This gives you a clear idea of how much money you can borrow for your mortgage, allowing you to start looking for homes within your budget.
Have a Plan
Budgeting for a home purchase is crucial, and having a solid plan in place can help you avoid unexpected expenses. Consider all the costs associated with owning a home, such as closing costs, property taxes, utilities, regular bills, and potential renovations. Build an emergency fund to cover unexpected expenses, and keep a list of reliable tradespeople in case of an emergency.