Buying a home is a big and very important decision, but it isn’t one to be entered into lightly. While many of us would love to take advantage of the current Edmonton real estate situation, it doesn’t necessarily mean now is the best time for you to buy a home. Here are just a few different situations and reasons to hold off on buying a home.
1. You’ve Been Moving A Lot
When you rent, you tend to move around. It’s simply the nature of the situation. But when you own your own home, you tend to stay in that place for quite a long time. If you’ve been moving frequently, really consider why. Is it because your financial situation has been particularly volatile or is it because you haven’t found a place you like? If it’s financial, it’s a good idea to wait until you’re income is steady enough to handle regular mortgage payments.
2. You Don’t Have a Down Payment
In Canada, you can get some loans to help you secure a down payment, but the best option is always simply money in a bank account. Consider working up a sizeable nest egg before looking at the real estate listings. It will put you in a better financial situation overall and help you pay off your mortgage for less money overall.
3. Your Relationship Status is “It’s Complicated”
You know the saying that having a baby won’t save your marriage? Well, buying a house won’t either. If you’re in a relationship with someone and looking for a home, be certain that the relationship is built to last for a long time. While single people are buying homes all the time, many couples sign up for mortgages that rely on that dual income. So when one partner goes, the mortgage becomes too much.
4. Bad Credit
If you have bad credit, you won’t get a good deal on your mortgage. And a bad deal on a mortgage leads to higher interest rates and lower overall available funds. It’s a much better idea to spend a few years restoring your credit score than buying right away. With a better credit score, you’ll be in a better financial situation overall, and you’ll be able to find a home you love rather than one you can simply afford.
The first thing you need to do when deciding on buying a home is seeing if you can actually do so. Seriously consider all aspects of your life before looking at real estate, including your job, your financial situation, and even your relationship. If any of these things are not conducive to the longterm commitment of owning your own home, it may be a much better idea to hold off, save up some more money, and try again in a few years.