This year, I’m becoming a homeowner!
Major decisions are often made in the New Year. At this time, we reflect on future projects, and we make important resolutions. In 2018, would you like to become the owner of your first condo? Here are the four questions to ask yourself before taking the plunge!
1- Am I meant to be a homeowner?
Becoming a condo owner comes with several responsibilities and significant expenses. Indeed, the purchase involves quite a few costs that are not necessarily expected. This includes notary fees, the famous welcome tax, the down payment, and so on. And gone are the days when you would call your landlord if a problem arose; you are now the person responsible for any issues! Being aware of these expenses and new responsibilities, the question is: are you ready and are you cut out for this new life?
2- Do I have the means to purchase a condo?
It’s a common misperception that access to home ownership is not for everyone. Think again! The first step before making the purchase is determining how much you can afford. It’s budget-making time! Write down your net monthly income and deduct your expenses for food, clothing, hobbies etc. Also add credit and debt repayments as well as your savings or investments. It’s estimated that your monthly occupancy costs should not exceed 32% of your average gross monthly income and that the total amount of your debts and loans shouldn’t exceed 40%. So the maximum amount you can afford for your future condo depends on these numbers and the amount of your down payment.
3- How will I finance this project?
To discuss options and terms for your mortgage and financing the purchase of your condo, mortgage brokers are there to guide you. For example, they will tell you that a small down payment can increase the loan insurance premium. Also, when planning your condo financing, it’s best to prepare for financially difficult times like losing a job or spiking interest rates (if you choose a variable rate). Try to assess the impact this rate increase could have on your payments and try to get out of your mortgage loan as soon as possible
4- Which condo model would suit me?
Now that you’ve determined how much you can afford for a new condo and how you can finance it, you can start looking for the model that suits your needs and wants. Are you planning to stay there long? Do you prefer having one or two rooms? Does the open layout style appeal to you? List the features you’d like and then make a sensible choice.
So, will you become a condo owner this year? Phase 2 of the ESTWEST Project is being launched in the spring! We’ll be right here, waiting for you.