There was recently it was reported that many young women buying their first home alone. It is no longer love, marriage and a house with a baby carriage. More single, young women are opting for the home first.
I am all for the forced saving, nest-egg growing opportunity that home-buying offers. I wouldn’t be in real estate otherwise. I would like to present a little bit of the devil’s advocate position to caution young people before they jump in with both feet. Make sure you have all the information that you need.
Here is some helpful information:
A 40–year amortization means that you are paying over $736,000 for a $300,000 house. That is $436,000 in interest payments.
Canada has taken some precautions to ensure that our housing market does not follow the US down. Higher risk mortgages are only available to buyers with good credit. However, buyers who are stretching themselves into buying a home make themselves susceptible to financial difficulties if the housing or job markets soften or if interest rates climb again.
Do you have questions about what mortgages are right for you, or when to buy into the market? I can help.