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Is it time to buy in Ottawa?

By
Mortgage and Lending with The Mortgage Group

Renting vs. buying has long been discussed. There are many financial advisors that would argue both sides of this coin. The positions range from larger tax incentives for renters, to pride of ownership for home buyers, but what is right for you? When considering homeownership, you should first consider how important owning a home is for you? Taking pride in caring for your home, having a place for you and your family to call home can be a really motivating and uplifting feeling. Not to mention as you pay down your mortgage your equity will grow and over time your housing costs will diminish. If owning a home is important to you, then you should consider how often you expect to move? The commissions associated with buying and selling a house can exceed 5% and the closing costs vary around 1.5%. With these costs you should expect to live in your house a minimum of 3 years or you could expect a loss. Once the decision has been taken to buy a home and live there for the foreseeable future, you need to know whether you can afford it. Considering the stability of your income and the growth potential will go a long way to determine what you can afford to buy. Keep in mind mortgage lenders will look at your credit history, total income, employment stability, your total debt and the property, before issuing a commitment. Finally you should consider that the cost of owning your home, property taxes, utilities, maintenance/repair costs, etc. can all add up. You should be in a solid financial position to cover these costs if your personal or financial situation should change. Feel free to drop us a line if you would like a full step by step guide on how to purchase your first home.

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