Preparing To Own Your First Home?
Are you presently renting? Then you may have a dream to own a house of your own. A space in which you can decorate and furnish according to your wishes. Owning a house could help you settle down and stabilize in a comfortable, welcoming neighborhood. However, this decision is quite serious and you may be uncertain whether you are ready to move from renting to owning a home. Maybe you haven’t started saving yet! Thanks to the low mortgage rates these days and the flexible requirements for down payments, your first home may already be within your reach.
There are many reasons why you may want to own a house. It could be you are getting married, moving somewhere for a new job, leaving your parents’ home or even having children. Owning a house helps you feel at home and establish yourself in a good neighborhood. In addition, buying your own house can be a smart investment. It could provide you with a substantial return in the long run. Considering the value of Canadian homes is increasing quite steadily, invest in one as early as possible. You can redirect the money that you are paying as rent into your down payment or mortgage.
Another important thing about moving from renting to owning is that there is an advantage in terms of taxes for purchasing a house. When you sell your home for more than what you actually paid for it due to the increase in value, this becomes your tax-free income. You do not have to pay any tax to the government for that. If you are selling your home at a price that is 25% more than what you paid, then the entire profit will go straight in your pocket. At the end of the day what matters more than the investment value is the joy and pleasure of owning your own house and enjoying your privacy. You will have peace of mind. The best time to stop renting and instead buy your own house is when you are ready to invest that amount.
Keep in mind that the amount of your mortgage payment will vary from one house to the next. In order to calculate the prevailing mortgage rate, you can use a reliable mortgage calculator online. It will help you easily obtain an estimation of the amount. Also, depending on the amount of your down payment, you have options. You can opt for a low mortgage payment if you pay less than 20% as a down payment for your house. In addition to a low down payment, you will need to have mortgage default insurance, but this can be either added to the amount you borrow or paid right away.
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