Are you a single person who is thinking about buying a new home? Naturally, this is a big step that requires a lot of serious thought. To help you, here's some important considerations to keep in mind.
Think About the Timing of Your Purchase
If you’re starting a new job, it’s best to wait until you’ve been working for several months before starting the buying process. You want to be sure you like your new job, so you won’t have to make a change once you've taken on a mortgage .
If you have school-aged children, consider timing your home purchase around their summer vacation. So, if they have to transfer to another school due to the move, they don’t have to start classes in the middle of a semester or year. For a young child or teenager, this can take some of the stress out of a move.
Talk with a Financial Advisor
Before buying a home, it’s a good idea to look over your finances with a trusted financial advisor. This professional can help you determine if your credit score is high enough to qualify for a loan. The two of you could discuss the type of home you can afford and what the monthly payment would be. There are a lot of emotions involved in purchasing a new home, so it helps to have an objective person looking at the facts of the situation.
Items to take with you to the meeting:
- Salary information
- Investment information
- Information on your current expenses
Choose Your Home with an Eye to the Future
Another item to consider is the type of home you want to buy. Since you’re single, you may immediately think of a low-maintenance townhome. But, there are other options that are worth a look.
Sometimes buying a home with at least two bedrooms is a good idea for a single person. The second bedroom leaves the option open to co-own a home with someone. Or, if your job situation changes, you can take in a renter to help with the mortgage. Furthermore, if you meet someone and go into a long-term relationship, you’ll have more space in your home to work with if children enter the picture.
Consider a new home in a growing new community. A flourishing neighbourhood with lots of green space, a playground and proximity to businesses is going to be appealing to buyers. So, if you ever decide to sell your home, you’re likely to have a lot of interested buyers.
Consider Taking Advantage of Special Programs
As a single, it's wise to see if you qualify for the Home Buyer's Plan (HBP). If you have RRSPs, this program allows you to withdraw funds to put towards your down payment. You must be considered a first-time buyer and can borrow a maximum of $25,000. Talk to a mortgage broker about the HBP and take the time to explore this option.
Setting a Solid Budget
A monthly budget is a must-have for a new homeowner or any homeowner for that matter. Of course, things like food costs, clothing, an emergency fund and car payments are items on the typical household’s budget. In addition to those items, a homeowner’s budget should include the mortgage, home insurance and property taxes.
Buying a home is a dream for many people. What's more, buying a brand new home allows you to dictate the design of your home, build valuable equity and more. Plus, you have the advantage of owning new appliances. Owning a home can give you a feeling of pride and help to make you feel more a part of the community you live in.