Q. How do I know if I'm ready to buy a home?
A. If you can answer "yes" to the following questions, it's likely that you're ready for home ownership:
- Do you have a steady and reliable source of income that will allow you to pay a mortgage every month in addition to other home expenses?
- Do you have a good record of paying your bills?
- Have you minimized outstanding long-term debts, like car payments?
- Do you have money saved for a down payment on a home?
Q. What are the advantages to purchasing a home when compared to renting?
A. The main difference between the two is that when renting you are not building equity. Buying a home allows you to put a portion of your monthly expenses (i.e. mortgage) into purchasing an asset, just as you would with any other investment. Though this may not seem substantial in the short-term, in the years to come you will certainly see the benefit.
Q. How do I determine my housing needs?
A. The most important aspect to home ownership is that your home fit your lifestyle and the way you and your family live. Prioritize your needs and wants to give yourself a guide of what's important. Think about size, space, location, neighbourhood, amenities, etc., being realistic to what you estimate your budget to be. Once you have established a set of minimum requirements for your new home, it will be easier to narrow down your search.
Q. Are there any resources for me to learn more about home ownership?
A. The Canadian Mortgage and Housing Corporation has excellent resources for new home buyers. Whether you are looking for planning tools or just general information, their website is a great place to start:
Q. I have heard that the government offers tax credits to new home buyers. Is this true?
A. Yes, the First-Time Home Buyers' Tax Credit (HBTC) allows people who have never purchased a home before to borrow money from their RRSP savings. More information can be found on the Canada Revenue Agency website:
http://www.cra-arc.gc.ca/nwsrm/fctshts/2010/m01/fs100121-eng.html
Q. The idea of buying a home is overwhelming. Do you have any advice?
A. Though buying a home is a big decision it doesn't need to be overwhelming. Consider a few things:
Determine what you can afford.
A mortgage broker or a financial institution's mortgage representative can be a vital asset when starting out. Schedule a meeting to determine a mortgage amount that you can comfortably afford. If you are serious about shopping for a home you should consider getting a pre-approved mortgage, which is where your financial records will be checked. This will allow you to shop with more confidence knowing the specific amount you can afford.
Find a home and a neighbourhood that you love.
Where you live is an important part to most people's happiness. Finding a home that suits your needs and your lifestyle will be the biggest part of putting your mind at ease. Don't forget to consider your neighbourhood. You have to feel at home.
Know your builder.
Every builder is different and you should understand those differences in order to make the right home purchase. Stirling Bridge prides itself on building beautiful, environmentally friendly homes in neighbourhoods that integrate into greater communities. We work to reduce urban sprawl and our homes meet Energy Star standards, both of which contribute to our efforts at developing better neighbourhoods.