Buying your own home is a rite of passage into adulthood. It finally represents the point at which somebody has become financially and personally stable. It also reveals that the new homeowner has the requisite responsibility and self-reliance to be able to run their own household. You could do it in your early twenties if you have plenty of money, or slowly build up to it and invest in something in your thirties. Whether you buy a small apartment at the top of a tower block in a major city or a cottage in the middle of nowhere, purchasing a property does not just represent an investment of money. It is often much more meaningful. Perhaps you want to stop renting and get your own place because you want to start a family, or you just want to live independently, without the need to rely on anyone else. In any case, it is something that everybody should do. However, it is also a difficult process that can sometimes take up to twenty to thirty years. The decision about which property is right for you, and the means by which you intend to purchase it, are obviously crucial to your future contentment and happiness. Here are a few tips for ensuring that you make the right decision for you:
Many first time buyers seem to think that if they view a house and find that, with their mortgage, they can meet the asking price, then it is as simple as paying the current owner and getting the keys in return. However, they soon find themselves mired in more paperwork and regulations than they ever could have imagined. For example, the purchase of a property is subject to a tax by the government and the amount that you need to pay can depend on where your prospective new property is located and how much it will cost. Different provinces have different rates. To find out how much you might have to pay, check out this land transfer tax calculator. Being prepared for the expenses that come your way will make the process of buying a house a lot less stressful.
The reality of a mortgage is that you have to pay it off in installments for a long time to come. It may be that you do not even start paying back the amount that you borrowed right away because you sometimes have to pay off the interest first. Only then does the actual figure start going down.
If for any reason, you find that you are falling behind with your payments, or you are not able to pay them at all, you might face the prospect of having to declare bankruptcy. Your credit rating will be decimated, and you will have a difficult time even getting something as seemingly innocuous as a phone contract. Choosing the right mortgage is obviously, therefore, imperative, and you should give it a lot of thought before taking the plunge.