Wondering about when the right time is to buy a house? In this article, we go through when the best times are to move out of your rental and into your new house.
If you’re thinking about making the jump from renting to owning, you’re probably wondering when the best time to buy a home is. In Canada, there are a few things to consider before taking the plunge into home ownership, such as your credit score, how much you have in your savings account, what the current buyers market is like, and if you’re ready to make such a substantial move. To help you out, we’ve come up with a rundown of when you should buy as a first time home buyer in Canada.
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When You’re Ready to Move Out of Your Rental
Moving out of a rental and into a house of your own is a big step, and one that can be as exciting as it is intimidating. If you’re feeling the urge to move out of your rental, it’s important to ask yourself whether or not it’s the right decision for you. Consider things like job stability, financial obligations, preferred location, savings plans and lifestyle changes.
As a first time home buyer, the Government of Canada offers programs to support you with your purchase and make sure you’re feeling comfortable and confident throughout the home buying process. Before making the decision to move out of your rental, speak with a mortgage broker who can educate you on all of the options available. That way you can make an informed decision that best fits into your personal circumstances.
When You Have a Down Payment Saved Up
No matter where you’re looking to live in Canada, first time home buyers may feel like saving up for a down payment is an insurmountable task. But when you do hit that financial milestone, it’s the perfect time to start looking for your new property. Having a down payment saved up means that you won’t have to worry as much about whether or not you can afford the property.
It also means that lenders will be more likely to trust you when you apply for a mortgage. When savers reach this point, they can start looking into how much they need to budget for closing costs and real estate fees like legal fees, title searches and brokerage commissions. Just make sure you take all the hidden costs associated with moving into a new house into account. With these steps covered, you can confidently make the transition from rentals to owning your own home.
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When Interest Rates Are Low
One key factor when it comes to purchasing a first home is finding the right time in the housing market, particularly when interest rates are low. Interest rates affect how much you will pay over the term of your mortgage, and so it’s important that first-time homebuyers note exactly when is the most ideal time to purchase their first home.
When interest rates drop, this means more homes become available in the price range of first-time homeowners; however, this may also be accompanied by a variety of other factors such as restrictions on homes listed for sale and competition among buyers that can make it harder to purchase in the lower rate timeframe. Therefore, it’s important for potential buyers to stay up to date with economic news before making any decisions about moving out of a rental property into their own house.
When You Find the Right House in the Right Neighbourhood for You
Finding the right house in the right neighbourhood when you’re a first-time buyer can be an exciting, if daunting task. With the wealth of information available it’s easy to get overwhelmed, but knowing what you need and what you want should make investing in your first home easier. If you find the right house in the right neighbourhood at a price that fits within your budget, then that’s a great sign that it might be the right move for you.
It’s important to research thoroughly though — check out local amenities, crime statistics and even how quickly properties are being snapped up in the area. When all is said and done, if this house ticks all your boxes then why wait? Moving into your dream home is a major life event that marks an exciting new chapter — just make sure to do your research before committing so you can start writing your own story.
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When You’re Prepared to Maintain a House and Yard
When it comes to the important decision of when first-time homebuyers in Canada are ready to move out of a rental and into a house, both financial and emotional readiness should be taken into account. In terms of practicality, being prepared to maintain a house and yard is essential.
Depending on the size of property you buy, this could include regular lawn care, plumbing repairs, and more. While these may seem daunting initially, there are usually resources available to help equip first time homeowners with the tools they need to confidently tackle most home maintenance tasks. Ultimately, being aware of what type of responsibility comes with homeownership is key for a successful transition from renting to owning.
Moving out of your rental and into a house is a big decision. It’s important to do it when the time is right for you, which means being prepared financially and emotionally. When you’re ready to move on from your rental, have a down payment saved up, interest rates are low, and you’ve found the perfect house — that’s when you know it’s time to take the plunge into home ownership.
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