6 Signs It Could Be Time to Buy A Home

6 Signs It Could Be Time to Buy A Home

Have you been renting for a period of time wondering when would be a good time to buy? The answer isn’t as straightforward as you think–it’s a mix of both what’s happening in your personal life and what’s happening in the real estate market.

Whether you’re simply ready to settle down or you’re facing increasing rent, this article explores signs that may let you know it’s time to start the home buying process.

When you're prepared to settle down. Time to Buy

1. You’re ready to settle down

What “settling down” looks like changes from person to person, but generally, if you’re ready to commit to one home and one location for the foreseeable future, and you’ve grown tired of renting, you may be ready to buy. While the home buying market can be tough to enter at times, when you compare rent with mortgage payments, in some cases you could be saving money with homeownership—or at least building up your equity.

“Even with high interest rates, when you’re paying a mortgage, a portion of that is going into your own equity in comparison to rent which all goes to paying someone else’s equity,” explains Sunny Duggal, a REALTOR® and broker with RE/MAX Excellence Real Estate in Mississauga, Ontario.

Buying a home when you're financially prepared. Time to Buy

2. You’re financially ready

Buying a home is one of the biggest purchases someone can make in their life. The transaction involves a lot of moving pieces including a good credit score and a sufficient down payment. Plus, after the sale, there are many costs from property taxes to mortgage payments, to new furniture and maintenance.

Depending on your purchase price, down payments can be as little as 5% or as high as 20% of the home price. With pre-construction, you can put down 5%, and then pay in installments at a later time which can be ideal for people hoping for some extra time to save.

bank, lender and/or mortgage broker will also make sure you have a good credit score. So, if you’re paying your bills on time, have a good debt-to-income ratio, and your credit score is steadily increasing—these are all good signs it’s the right time to buy.

Long-term thinking can signal you're ready to buy, providing stability amid market changes. Time To Buy

3. You’re comfortable with the long game

“The real estate market, like any other, can and will continue to cycle,” says Alex Strothard, a REALTOR®  and sales representative with Sage Real Estate Brokerage, in Toronto, Ontario.

One sign you’re ready to buy is you’re thinking long term, which helps to eliminate some fear that comes along with market turbulence. Having a long-term strategy can ensure you’re not waiting on the sidelines for the next best time.

When interest rates go down, home prices typically go up, so getting in the market now may help you to see larger gains in the next few years. You may be ready to buy if you’re looking to build equity and believe in the market growth of the area you’re…

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Right at Home Realty, Ottawa

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Ottawa, ON K1S 1V9

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Len Harris, CD Real Estate Agent

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