"Ma wee hoose." Someday soon I hope to be able to say these words with pride.
If you aren't familiar with the Scottish dialect, it means my little home. When my grandparents immigrated to Hamilton, Ontario in the 1950s, they bought a small but cozy place near the escarpment. It is here where they got their start building their lives in a city where they'd remain for the rest of their lives.
Now their grand-daughter is ready to make the same big step in her life. I'm on the hunt for ma wee hoose in Hamilton and I'm sharing some tips for first-time home buyers while on this journey. It's been a few months into my search and already I've learned some important lessons. Here is the first.
If a listing says 'cheaper than rent', don't believe the hype!
No matter how you cut it, a house will end up costing significantly more than renting; but, the pay-off is that you own an asset – you are not helping to pay off someone else's property. Find out what you can really afford. The Canada Mortgage & Housing Corporation has some great online calculators to help you figure this out.
Take into account new costs you didn't have to worry about when you were renting: mortgage insurance (if you are making less than a 20% down payment), house insurance, repairs, home maintenance (e.g. lawn mower, snow-blower), etc.
Next time...tip #2: make sure you have a 'caca hits the fan' fund.
1 comments:
That is excellent advice Ann. Don't buy above your comfort level.
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