(NC) Home ownership is part of the Canadian dream,
according to 90 per cent of Ontarians who participated in a recent study
by the Ontario Real Estate Association (OREA). Achieving that dream
however, requires serious planning, says Costa Poulopoulos, president of
OREA.
“Buying a home is a major financial decision and
maintaining it requires a great deal of discipline,” Poulopoulos
continues. “Home buyers should be prepared to make some tough choices in
this pursuit.”
Some of these choices include:
Condo, house or other: Before
deciding to buy a detached or semi-detached house, a condo or other form
of home, consider your lifestyle, current and anticipated needs, and
your budget. It's a good idea to create a prioritized list of features
that you are looking for. Finding the right home involves balancing your
"must-haves" with your "nice-to-haves".
Fixed or variable mortgage: A fixed
rate mortgage offers security and is guaranteed not to change for the
term of the mortgage. A variable rate mortgage, on the other hand,
offers possible long term interest savings, but with the risk of
interest rate increases. The 'right' mortgage depends on your tolerance
for risk, as well as your current goals and life stage.
More than, or less than, 20 per cent down payment: If
you buy a home with anything less than 20 per cent down, you'll have to
buy high-ratio mortgage insurance. The lower your down payment, the
more expensive the insurance. If you don't want to pay mortgage
insurance, you'll need at least 20 per cent down. A bigger down payment
also means that you'll pay less interest in the long run.
Conditional or unconditional offer:
In a multiple offer situation, some buyers might be tempted to waive all
conditions in the hope of securing the sale. Conditions are in place to
protect the buyer. If you decide to waive conditions on an offer that
gets accepted, you'll be in a bind if you have trouble securing a
mortgage, or end up with a home that needs costly repairs.
“It doesn't end there,” adds Poulopoulos. “As a home
owner, you'll be faced with choices every day. But we believe that the
sense of pride, security and the long-term investment value that comes
with home ownership, makes it all worth it.”
More information is available at www.wedothehomework.ca.
www.newscanada.com
***this article only applies for Ontario
