How to finance your first home in London, Ontario
If buying a home in London, Ontario, is something that you’ve dreamed about all your life, then perhaps now is the perfect time to get started
BUYING YOUR FIRST home is a huge milestone, no matter what age you are. From starting to run the numbers, to searching online for suitable spaces, all the way to finding a real estate agent and viewing possible properties, this journey is one that you’ll remember forever. And while buying a property is super exciting, there are also a number of things for you to keep in mind in order to make a stellar decision, both now and for your future.
What You Need to Know Before Signing on the Dotted Line
Before diving into real estate, be honest with yourself about your investment goals. What are you wanting to achieve? Are you seeking short-term gains through flipping properties or are you interested in long-term rental income? Do you want to buy a place so that you can get out of the constant cycle of paying rent? A first good step is to write this all down and put it on paper. Sometimes it helps us to get everything out and go from there. Property is like any other endeavor: you’ll need to research and stay up to date. If you were looking into trading for example, you would also keep an eye on the stock markets and xrp price prediction 2030 to stay up to date and on the pulse. Whichever direction you go in (and you can take different routes at the same time), market research is going to be your new best friend. Also don’t hesitate to speak to any friends and acquaintances who have bought in the London, Ontario, area and who can give you some insight into their experiences.
The same applies to investing in crypto: speak to those around you who have some experience. Cryptocurrency can be a compelling investment for several reasons: one, it offers the potential for high returns, and two, it’s ideal for portfolio diversification. You’ve surely heard of investors and finance-savvy folks speaking about diversifying one’s portfolio, which essentially means not having all your eggs in one basket. And reason number three, the technology behind cryptocurrencies has transformative potential across industries and could become even stronger in future.
Getting Your Finances in Order
One of the most crucial steps in the home-buying process is obviously securing financing, but there are plenty of paths that lead to same goal, some easier and some harder. Make sure that you think ahead and calculate whether you can afford to pay your mortgage for the amount of time you’ve signed for it. Use a mortgage calculator to give you an idea of what you will be paying in the end. Life can change on a dime, and you should be able to afford the property even if unforeseen circumstances arise. Once you’ve made a decision and have run the numbers, remember to compare mortgage rates from different lenders to find the best deal for your situation.
One mistake that some first-time home owners make is to underestimate the maintenance, repair and ongoing costs that come with owning a house. From property tax and insurance, all the way to keeping up with sustainability standards and the best drainage solutions, there’s so much more to buying a house than one would initially think. Remember that you will now be the owner and not the renter, meaning that you can no longer call your landlord to have things fixed. This can take some getting used to, but having all your ducks in a row does help, as does planning your finances accordingly.
The end goal is to own your house outright as fast as possible, so the key is to have a big deposit that you can put down on the property in order to minimize the interest you have to pay back. The bigger your capital deposit, the less you are going to have to lend from the bank, and the less interest you will be paying on your mortgage loan.
Governmental Changes to Help You Buy Your First Home
On another note, the government in Ontario is doing their part to try and help people buy properties, not least by relaxing some mortgage rules for first-time homebuyers. Specifically, they extended the amortization period from 25 to 30 years (the new rules take effect December 15). The average London home goes for around $623,000, with a 10 per cent down payment and a five per cent interest rate, this would would amount to a payment of about $3,261 with a 25-year amortization. The payment drops to $2,992 if the amortization is pushed out to 30 years. Therefore, a first-time homebuyer reduces their payments by about $270 per month by reducing the mortgage principal repayment. This is just one way in which London residents can hopefully put down roots sooner rather than later.
If buying a home in London, Ontario, is something that you’ve dreamed about all your life, then perhaps now is the perfect time to get started. Remember to do your research and understand mortgage interest rates, as well as ongoing and additional costs that may arise, before putting in an offer. Speak to loved ones and also check which government aids you could possibly take advantage of and benefit from. Lastly, try to diversify your investments and think about other avenues like cryptocurrency or trading.