Buying a home is an exciting time in your life. It is also one of the most significant financial decisions you will ever make. This decision revolves around life events such as marriage, childbirth, a career move, or simply a desire to stop paying rent. It’s a worthy goal, but may not be the right move on a particular time or situation.

Why so?

Just because you can afford to buy something doesn’t mean you should buy it. Thinking about investing in a home can be a great leap of financial security or a cannonball into the river of debt and despair. So before you take that home-buying plunge, read on to discover 5 signs that it’s the right time for you to turn that realty to reality.

1. Your credit score is decent.

When purchasing a home, having a good credit score is everything. It’s an accurate gauge of your overall financial health and a huge impact on your ability to buy a house. An increase in credit score means getting a more ideal interest rate. Typically, the higher your score, the lower the interest rates you’ll be offered by lenders. If you have a poor credit rating, you are going to find it incredibly difficult to get a mortgage. So, before looking for the house you love, checking your credit report is a smart move.

2. You have a consistent income.

Being able to prove that your income is consistent and sufficient is needed in order for you to qualify for a home loan. Homebuying is something that is going to require consistent monthly mortgage repayments on your behalf. It’s important to be in a position to never have to struggle to make the monthly dues. If you have the same job with the same company for 2 years, then you are most likely to be financially stable enough to purchase a home. It’s never a good idea to get a mortgage if your source of income isn’t constant.

3. Having solid savings and emergency fund.

Emergencies will inevitably occur, right? If your home needs some work done in the future and you don’t have money set aside, things could get awkward fast. What if your income suddenly won’t support all your required mortgage expenses. Being able to deal with these unexpected costs is part of being a homeowner and that means having savings and an emergency fund is essential.

4. You have a downpayment ready.

By definition, a downpayment on a house is the money a home buyer gives to a home seller to lock in the home purchase deal. It’s suggested that you have 20% of the total cost ready. A bigger down payment can make it easier to obtain a loan and reduce your monthly mortgage payments. So be sure to do the math before you think about buying.

5. You understand the responsibility.

Owning a home means having a lot of weight on your shoulders. As a responsible homeowner, you have commitments to your mortgage company, your city or town, neighborhood, and your own home. You agree to each to pay your mortgage and taxes, upkeep maintenance, and maintain its safety and soundness. And if you feel like you can’t make these commitments, then home buying isn’t for you or at least not yet.


Do you feel the signs discussed apply to your current situation? If yes, then you’re good to go. If not, don’t be daunted. Buying a house can be a rollercoaster of emotions with moments that excite you and make you feel accomplished, and other moments where you will be stressed and worried if you are doing the right thing. But, timing is everything. Homes are always for sale, so don’t rush. Aside from having the right professionals to advise you financially and legally, it would really help if you were sure it was the right time for you to make the investment.

5 Signs You're Ready to Buy a Home, Mortgage Broker in Greater Toronto Area, Canada

Daisy Raouph, CLU, CHS, specializes in mortgage financing solutions and financial services. A Mortgage Broker and Financial Security Advisor with over 30 years of experience in financial services. Contact us today to review your mortgage financing options. We can help!