The answer to that depends entirely on you. How would you answer these questions? What is my lifestyle? Am I willing to manage my expectations and do I understand how my finances impact how much mortgage I can afford? Now that you’ve answered them, let’s break it down!
Define your Lifestyle: Do you love the hustle and bustle of city life, shun owning a car, hate cleaning, and are someone who spends little time within your home? Then a condo in Metro Vancouver or one of the other urban centres near transit (think Coquitlam, Burnaby, Surrey) could fit the bill for you. You don’t need to pay the huge prices of a home or townhome when a cozy condo would suit you just fine.
Growing Family or Backyard Lover? Then expect to live outside of Vancouver and be happy to do so because you are buying the community and home rather than proximity to the city. Today’s statistics shows that living close to family, schools, transit and family are a bigger determinant of where we want to live, versus living close to your job in the city .You may have to commute but you will get the house size and a smaller mortgage and expenses. Learn to love listening to audio books, music and podcasts!
Manage Your Expectations: You may have a dream home in mind but it pays to be flexible and understand that for most, if buying a first home, is just that; a first home that will get you into the market. In todays market the largest obstacle people face is not having a realistic understanding of what to expect and this leads to most of the frustration as they come face to face with the reality of what their dollar will get them. Addressing this head on at the onset sets up Buyers to make realistic and reasonable decisions.
The Money Talk: Firstly, speak to a mortgage broker and find out how much you can afford based on your income, job, credit, savings and debts. Work with them and other related professionals to set a plan on how to achieve your financial requirements if you haven’t already.
Know the math: How much down payment do I need, what are monthly payments, and can I afford them?
Chances are your rent is similar to a mortgage payment because your lifestyle and income have already determined where and what you live in. So, now it comes down to the down payment. This can come from your own savings, a gift from parents or immediate family member, the new First Home Savings Account or RRSP. There are options out there if you are willing to remain open; Can you live with your parents for a year and take what was your rent payment and put it towards a down payment? Consider on a $500,000 home, you can put as little as $25,000 down.
Knowing your options and preparing your finances and your expectations prior to house hunting can make your journey a much smoother and more enjoyable one! Keep an open mind and speak to your mortgage broker and real estate professionals today!
Need a professional and reliable mortgage broker on your side. Of course you do, so give me a call at 604-725-1607 or email firstname.lastname@example.org