Purchasing a home early in life can set you up for an early retirement
Buying and holding a primary residence is a sure win for accumulating equity that can be accessed and used as part of your retirement plan. The earlier you buy, the more equity you will gain.
So, how do you know when you are ready to buy a home?
What follows is a checklist to audit your home buying potential.
- You’re past the age of majority in your province (in Nova Scotia, you have to be 19+ years of age to purchase property)
- You’ve got job security and are past any probation period at work.
- You’ve got at least a five per cent down payment saved. (or qualify for the provincial downpayment assistance program).
- You’ve built up strong credit with a 680-plus credit score, but preferably 720 or better.
- Your total housing costs plus debt payments are less than 44% of your gross income.
- You can prove enough income, or you have a co-signer.
- You’re a disciplined spender.
- You’ve done the math, and buying makes more sense than renting.
- You’ve developed an honest monthly budget.
- You’ve got access to three-plus months of living expenses, a.k.a an emergency fund.
This is not an exhaustive checklist, but if you check all these boxes, you probably should be buying a home. If you don’t, prepare an honest budget and focus on saving a little bit each month while you work on the other items.
For more home-buying tips and advice, follow me on Instagram or Facebook or send an email to arrange a personal call. I will answer your questions and help you get started.
