Guys, I’m here to tell you about an affliction that I came down with after buying my house. Post-house stress disorder or PHSD. It could happen to you. It’s a real thing. (That I just made up. But trust me, it’s rill.) Continue reading “PSA: PHSD”
You’ve heard of the Home Buyers’ Plan, right? That thing that helps you buy a home by letting you use your RRSP as part of your down payment? Sure you have. But do you actually know how to use it? And if you did, did you know the plan changed when the Liberal government took over last year?
Let’s say you’ve looked at whether renting or owning is best for you, you’ve calculated the up front costs, you’ve figured out the continuing costs as part of an ongoing budget, and you’ve decided you want to join the world of home ownership. Yay you!
That’s a huge decision and you probably put a lot of thought into it. So now that you’ve decided to become a home owner, how do you actually get there?
If you’ve decided that home ownership fits your lifestyle, and you know how much you need to cover the upfront costs, the next thing you’ll need to know is whether your budget can actually support the ongoing costs of owning a home. I can hear you right now going “when does it all ennnd“.
I promise though, the pain of calculating all of these costs early on is so much easier to bear than the later realization that you’re house-poor because you didn’t factor in all of the ongoing costs. Let’s do this together, shall we? Continue reading “Can You Afford to Buy a Home? Part Two: The Monthly Costs”
So you’ve considered it and decided that buying a home fits with the lifestyle that you want. But can you afford it?
Before you start seriously looking, make sure you have an accurate budget so you have a realistic idea of what your current monthly expenses look like. Once you have that as a starting point, you are ready to develop a budget for your home purchase.
When preparing that budget, don’t forget that there are also a number of upfront costs involved with purchasing a home that go beyond the down payment.
Typically, the rule of thumb is to estimate between 1.5% to 4% of the purchase price of the home for your closing costs, but be sure to look at each upfront cost and do a bit of digging to figure out just how much you can expect to fork over.