Your financial situation and priorities change over the course of a lifetime. As you reach different milestones, such as landing your first job, starting a family or retiring, your financial goals change – this includes your housing needs and home goals

Buying a home is undeniably one of the biggest and most important investments in your life. However, this doesn’t mean that you should settle on the first property you’ve purchased. Changing lifestyles, priorities and financial means are some factors that must be considered when upgrading or downsizing your property.

For instance, a single family home may be a good choice for a young professional who’s just starting out. On the other hand, a growing family may require a bigger home that’d be able to accommodate its growing members.

Mortgages Based on the Different Stages of Life

Regardless of what stage in life you’re in, there’s a designated mortgage strategy that may help you secure a home.

1. Rookie home buyer

Your goal: buying your first home

Being a first-time home buyer is a good time to plan ahead and build a solid financial foundation. This gives you time to build-up your savings, prepare for a down payment, establish your financial status and ultimately, build a good credit report that’ll help you secure a mortgage for your first home.

When looking for a home, think about the amenities available based on your lifestyle. You’d probably like to live in a location that’s more accessible or closer to work. If you’re living alone or you’re newly-wed, you can be a bit more flexible with your living space. Do you need to have a yard or a swimming pool in your home? These are some of the questions that you should ask before buying a property.

Getting pre-approved for a mortgage is the first thing you’ll need to buy a home. Being pre-approved gives you the security that a mortgage provider has agreed to lend you a specified amount for the home you’d want to purchase.

2. Growing family

Your goal: family security

When you’ve got a growing family, financial obligations become even more demanding. Growing a family’s definitely a major consideration when buying a new property. But before you look for a new home, make sure to recalibrate your needs and priorities.

If you’ve got children who still go to school, the focus is to choose a place in close proximity to schools and with access to local amenities such as groceries and family-style entertainment parks. The floor plan’s also crucial when it comes to accommodating a growing household. Therefore, having enough bathrooms, indoor and outdoor space available for the family is important.

If you’re not considering moving, you could always consider refinancing your mortgage or tapping into your home equity for any major renovations. 

3. Retiring fully

Your goal: enjoy your golden years

After years of hard work, retirement’s finally on the horizon. During this period, your children are most likely living independently and with growing families of their own. You wouldn’t want to end up with too many vacant rooms nor an extremely large backyard. Thus, you may want to consider downsizing to a smaller, less expensive home with less maintenance.

The key here’s to still maintain a space in your home where you can move around freely, can accommodate your physical capacities and limitations and where there’s elderly-friendly features that can help make life easier.

Seniors in Canada may choose from these mortgage financing options as they choose a home for their golden years. These are: mortgage refinancing, home equity line of credit and reverse mortgage. If you still have years left before retiring, you can also consider buying investment properties in order to supplement income in retirement. 

There’s no doubt that you’ve worked hard for this moment for a long time, so it’s important to choose a home that best fits your needs. Choosing a home at this point in time can be tremendously intimidating. To ease the process, work with a reliable mortgage broker, who can help you plan a personalized mortgage strategy and help you make the most of your golden years.

Achieve Your Life Goals

The mortgage that’s best for you depends on many factors, including your current financial situation and priorities. It’s recommended to examine your options carefully and to plan ahead. Working with a professional can help you. 

Based just outside the Greater Toronto Area, Daisy Raouph’s a mortgage broker and financial security advisor equipped with over 30 years of experience in mortgage and financial services. Consult Daisy today.

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