The current housing market has many Toronto residents completely rethinking their living situations. If you’re a renter, is it worth transitioning into buying a home? The answer to that question depends on your current circumstances and where you foresee your life trajectory going in the future. Is homeownership something you’ve always dreamed of, but never thought was financially attainable? Are you the type of person that wants to lay down roots in a specific area, but don’t know where to start?
Weighing the pros and cons of homeownership vs. renting a place can help you decide which one is the right choice for you and your lifestyle. There’s also probably a lot that you have to learn about how the housing market in Toronto works. A good real estate lawyer in Toronto can advise you regarding your options so that you can move forward confidently with a decision.
According to some of the top house closing real estate lawyers in Toronto, here are some guaranteed signs that you may be ready to buy your first home.
Paying your rent on time is always a good sign. It indicates to mortgage lenders and banks that you’re fiscally responsible and capable of balancing your monthly expenses, including bill payments without being overwhelmed. Oftentimes, first-time homebuyers will end up making monthly mortgage payments that are similar to their rent.
The biggest hurdle first-time homebuyers typically have to overcome is coming up with a down payment of about 10% to 20% of the purchase price of the home. The good news is that there are federal and provincial loan options to assist first-time homebuyers. Speak to a home buying lawyer in Toronto for more details on that.
Another sign that you might be ready to purchase your own home is that you don’t want to rent anymore. In other words, you’re tired of paying someone else’s mortgage and want to start working toward owning your own home. This is a healthy sign of growth and a sense of independence.
But with great space comes great responsibility. It’s important to live within your means so that you can maintain the type of lifestyle that you want in an area that you love.
The best part of owning your own home is that there’s no landlord or anyone else to answer to. You’re the master of your domain and you can do whatever you want to it (within reason and as long as you’re in compliance with local bylaws, of course).
Many young people have certain goals regarding at what point in their life they want to get married (if at all), buy, a house, settle down, and maybe start a family. Reaching these milestones can sometimes feel like crossing an intangible finish line.
Of course, sometimes life can throw you a few curve balls and you might not always reach these types of goals you’ve set in the back of your mind by the time you thought you would. And there’s absolutely nothing wrong with that. Plans change.
But the few times life does actually go according to plan, it’s worth celebrating in a big way. Whether it’s getting engaged and starting a family or embarking on a new life journey solo, buying a house is a great accomplishment—one that you should take great pride in.
Financial stability and independence are also great accomplishments that shouldn’t be underestimated. They’re things everyone strives to achieve by a certain point in life. No one wants to intentionally be someone’s dependent for the rest of their lives.
Once you’ve found your professional niche and have a goal to work toward, homeownership suddenly doesn’t feel like such an unattainable or farfetched pipe dream. If you’ve been working for the same company for a long time, are self-employed, or own your own business with great financial security and health benefits, then there’s no reason why you shouldn’t venture into the realm of homeownership.
Mortgage lenders and banks look for a few key factors when deciding whether to approve or decline clients. These include having a good standing credit score and proof that you can make smart and profitable financial decisions. After all, they’re taking a big financial risk in agreeing to lend you a mortgage.
Financial stability can come in many forms. It could be your ability to save money and live within your means. Or it could also come from making smart investments in real estate, the stock market, or even working a part-time job to earn a little extra cash on the side. The amount of money you have in the bank matters, but what you do with it—whether you save or invest it—also showcases your financial prowess.
Financial stability and responsibility is a good starting point when it comes to buying a house, but it’s not enough. You also need to have a good credit score to even be considered for a mortgage. Your credit score indicates to lenders how good you are at managing your debt and whether or not you’re reliable enough to make your payments on time.
TransUnion defines a good credit score as ranging between 743 and 789. A very good credit score is between 790 and 832 and an excellent credit score is between 833 and 900. Using your credit card a few times a month and paying it off in full can help boost your credit score and keep it in good standing, but don’t overdo it to the point where you’re just accumulating insurmountable debt.
Buying a house is a huge responsibility in so many different ways, not just financially. As a residential property owner, it’s up to you to take care of your home. That includes maintaining the exterior and interior and make sure everything is up to code. It also means researching the different mortgage and financial payment options that are offered by a plethora of mortgage lenders. Sifting through all of that information can get overwhelming fast for inexperienced individuals, but it doesn’t have to be that way.
Hiring a good real estate closing lawyer in Toronto can help you overcome these challenges. At Zinati Kay – Real Estate Lawyers, we have over 25 years of experience helping our clients achieve their homeownership goals. With thousands of real estate deals closed over the years, we’ve pretty much seen it all. Contact us today if you have any questions.
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