Owning a home may be less expensive than you think!
Almost any homeowner will tell you that the purchase of their new home was the best financial decision they ever made. Yet every day many prospective new homeowners fail to take the steps necessary to learn what they need to know in order to take that first step towards home ownership.
The examples noted below show how large a mortgage your current rent would support and with a minimum down payment of 5%, your potential purchase price.
Your Rent Mortgage Amount Minimum Dwnpmt Potential Purchase
$500 $75,670.00 $3,783.50 $79,453.50
$600 90,805.00 4,540.25 95,345.25
$700 105,939.09 5,296.95 111,236.04
$800 121,073.25 6,053.66 127,126.91
$900 136,207.40 6,810.37 143,017.77
$1000 151,341.56 7,567.08 158,908.64
$1200 181,042.79 9,052.14 190,094.93
*Examples are based on a 25 year amortization, with a 5 year term interest rate of 6.35% and subject to CMHC guidelines.
Things to consider when you start wondering whether you should stop paying down the landlord's mortgage and take out one of your own instead.
If you're 35 now and just buying your first home, you'll be mortgage free by the time you're 60 and sitting comfortably on a considerable asset. It could mean financial independence as a senior and the opportunity to enjoy your golden years.
It's highly likely that your investment will appreciate considerably in 25 years. Don't buy now with the intention of making a quick profit. Think of home ownership as a sound, long-term investment.
Buying a home is a very effective way of saving regularly for 25 years. Even if you never buy into another retirement savings or investment plan, you're effectively putting money away for the future.
Owning a home of your own means you can set down roots, get to know your community and involve yourself in it. Kids can make friends in the neighbourhood, many of whom will probably go to the same school.
Discover the pride of home ownership. You can fix up the place to suit your particular needs. Knock out that cupboard under the stairs. Put a cupboard under the stairs. Put a darkroom or woodworking shop in your basement. Try those fancy paint finsihes, put a mural on the wall, build a deck, create the kitchen you've always dreamed of. You'll get at least as much out of the work as you put into it. You can have pets in your own home.
Bottom line!... The place is yours to do what you want with it! Not just a place that you hang your hat temporarily and make sure the rent is paid on the 1st of each month. Paying YOUR mortgage on the 1st of every month and not the rent is a monumental difference...it's like paying yourself a little every time you invest in your own property, even with all the interest you pay.
If you are considering buying your first home ( and you should be) instead of renting, please contact me. I'm here to help you in any way that I can.
