The right time to buy a house has less to do with the calendar than with your budget; here is what to weigh before you decide.
Is it the Spring? Is it the Fall? Is it this year? Is it next? There’s no magic time.
The right time is when you can afford it
The safe answer: The right time to buy is when you can afford it. Home ownership can be fantastic but it can also be stressful if you’re not financially ready for it.
The costs beyond the payment
The mortgage payment is only one part of the expense of home ownership. Other expenses to consider include:
- Moving expenses
- Taxes
- Utility bills (or larger utility bills than you’re used to)
- Furnishings (indoor & out)
- Renovations
- General repairs (creating a savings account for this is extremely beneficial in the long run)
The time beyond the money
Along with additional expenses, time also needs to be taken into account. Home ownership will come with:
- More cleaning as it’s a larger space (usually)
- Mowing the lawn, shovelling the snow
- Landscaping in general
I think you get the point here. Part of the mortgage process is reviewing financial status so we can determine if you can afford the new home. The part that you need to consider is the additional wants and needs and the additional time.
So ask yourself, outside of the mortgage payment, are you ready for the move?
Three signs it is the right time to buy a house for you
The right time to buy a house has little to do with the season and a lot to do with your own numbers. First, your payment at the qualifying rate still leaves room for the rest of life; if the stress test payment would squeeze you, waiting is not losing. Second, your down payment and closing costs are in hand without emptying an emergency fund, because the first year of ownership always costs more than the spreadsheet says. Third, you plan to stay put for at least three to five years, which is roughly how long it takes for the cost of buying and selling to wash out. Rates will move either way, and the Bank of Canada does not publish its plans in advance, so build the decision on what you can control. If two of the three signs are true, it is worth a conversation.
Talk to us about right time to buy a house
Every file is different, and a ten-minute conversation usually answers more than an hour of reading. Book a call with Lisa or Kelly, or phone 289-723-2126, and we will walk through your numbers.