Plan your budget well
The key to minimizing financial stress when buying a home is proper preparation. This involves asking the right questions and outlining a clear path to your goal. Specifically, it’s important to determine your borrowing capacity and estimate your monthly mortgage payments using reliable tools and resources.
When planning your home purchase, you’ll need to evaluate your assets, debts, and overall financial goals. This will help you determine your buying power. Next, you’ll obtain a credit report from a financial institution to apply for a mortgage (if needed). To create a realistic budget, consult with a financial advisor. They can provide personalized guidance to help you plan for your home purchase.
There are several financing options available for single buyers:
- Mortgage loan
- CMHC Subvention
- First home savings account (FHSA)
- Home Buyers’ Plan (HBP)
- Tax credits
- TFSA
- Novoclimat program
- Municipal programs
- Home equity line of credit
- Rental with purchase option
- Personal loans
- Personal donation
In your planning, you should also take these costs into account when buying a home:
- Down payment
- Inspection
- Notary
- Home insurance
- Moving
- Real estate transfer tax
- Renovations
- Annual fees (municipal taxes, school taxes, electricity, condominium fees, internet, cable, snow removal, etc.)
- Home maintenance
- Valuation of your property
To find out more about mortgages, visit this page “Demystifying mortgages“
Listening to yourself
The beauty of buying alone is the flexibility. You have the freedom to choose the house of your dreams, which meets your needs, and this, without compromise. The first step to finding the property that best suits you is to ask yourself the questions:
- What’s the perfect place for my lifestyle?
- What do I want this space to become for me?
- Am I more of a nomad or a sedentary person?
- Is it wiser to set aside a section of the property for rental to generate income?
If the answer is yes, plan your space accordingly. Having a tenant is a great way to reduce financial stress while maintaining your privacy and independence.
Surround yourself
Another advantage of buying as a single person is that during your search, you can ask your loved ones for advice without needing anyone’s approval. You are free to make your own choice and you should trust yourself.
Moreover, to take the stress out of the process, you have access to a Proprio Direct real estate broker who can advise you on the most complex steps. A broker is the ideal partner to help you find the ideal property and guide you through the buying process.