Single home buyers face different challenges than couples
According to recent statistics, an increasing number of Canadians are choosing to purchase a home alone. What are some of the different challenges single home buyers face?
Recently released data from Statistics Canada shows that a larger percentage of Canadians are choosing to purchase a home independently. According to the figures, 27.6% of Canadian households are singly occupied. Changing lifestyles, combined with low mortgage rates, are believed to be influencing the increase. This article from the Globe and Mail details the additional due diligence for those planning on applying for a mortgage on their own.
Budgeting for the unforeseen is one of the most important factors in home ownership. Home maintenance, repairs and emergencies are costly and can add up. Not having the support of a second income makes having emergency savings even more important. Purchasing a home also brings a significant lifestyle change. A larger percentage of income will likely be allocated to mortgage payments, making it the number one priority. Some individuals will forgo larger expenses like travelling or owning a vehicle, or make small changes like cutting down on evenings out.
Building a down payment is another hurdle for first time buyers. A larger down payment means less interest over the term of the mortgage, so experts suggest saving as much as possible. In addition to the down payment, closing costs, legal fees and other miscellaneous expenses must be accounted for. To find out more about the process of purchasing a home, contact an Ottawa Mortgage Broker.