Benefits of home ownership
Pride of home ownership is the number one reason why Canadians desire their own home. There is no landlord looking
over your shoulder. You are able to make home improvements knowing that any appreciation that results, will be to
your benefit. Home ownership gives you and your family a sense of stability and security. It’s making an investment in
In Canada, especially in the last few years, homes have appreciated considerably and in doing so have added
substantially to owners net worth. Unlike stocks and bonds, you get to live in your real estate investment. Also, in
Canada your principal residence is exempt from capital gains taxes.
Mortgage Reduction Builds Equity
Each month, part of your monthly payment is applied to the principal balance of your home loan, which builds your
equity. You can borrow against a home’s equity for a variety of reasons such as home improvement, sending your kids to
university or college, or starting a new business. Why pay-off your landlord’s property when you can own your own?
Homeowners accumulate wealth for the future while enjoying the benefits of a shelter that they have can use, improve
and sell. Their home is a safe haven for investment.
Are You Ready to Buy a Home?
First – do you have the financial resources? You should have five percent of the purchase price of a home for the down
payment, but ideally even more. Are there other priorities in your life e.g. starting a new business, which require your
savings? If not, buying a home should be on your radar.
Second – do you expect to stay in your new home for some time? Moving can be expensive and you will want to build
some equity before having to relocate. Your job and home life should be stable.
What Can You Afford?
If you haven’t already gone through the mortgage pre-qualification process, you will need to meet with a lender or
mortgage broker. They will establish how much of a mortgage you will qualify for. Mortgage rates vary considerably and
it is paramount that you shop around for the best rate, terms and options.