Are you financially ready to own a home? Look into these 5 calculations and questions before you meet with your broker or lender.
- Compare how much you currently spend on expenses and debt payments with the amount you have saved or invested.
- How much can you afford to spend on housing each month without risking your financial health?
- How much do you need to save to pay for the upfront costs of buying a home?
Upfront costs include:
- the down payment
- home inspection and appraisal fees
- insurance costs
- land registration fees
- prepaid property taxes or utility bills (the buyer reimburses the seller or builder)
- legal or notary fees
- potential repairs or renovations
- moving costs
- GST/HST/QST on a newly built house or mortgage loan insurance
- How much would you be spending each month with homeownership expenses added to your current financial situation?
- What is your credit score? You can demonstrate your ability to consistently pay bills and debts with a copy of your credit report.