First things first: To own or not to own?

For some first-time homebuyers, the decision comes easily. For others, the decision requires careful consideration. You may have concerns about financial obligations, the responsibility of upkeep or being “tied down”. Or perhaps, like some of my clients, you’ve been renting for 10 years, and dread the thought of writing yet another cheque to help pay off the landlord’s mortgage, but you’re worried about biting off more than you can chew.

I’d encourage the fence-sitters among you to consider two overarching questions. Firstly, how strongly do you feel about owning your own home? While it’s possible to live perfectly well while renting a good space, many of us find that homeownership is important to our sense of comfort, security, financial independence and identity.

Certainly, there’s also a sense of satisfaction in watching your home equity (that is, the amount of the home that you own outright) increase with every mortgage payment. As a solid investment, a home is hard to beat. How many investments provide shelter and comfort to the investor up until the time of sale?

Finally, there’s the big payoff – ultimately, you will own your home outright, and monthly payments will be a distant memory. That’s a luxury that renters simply don’t have.

This brings us to the second, more crucial question: Can you afford it? Remember, your first home needn’t be a palace. Assuming that you’re steadily employed, and don’t plan to move again shortly, the purchase of a modest home or condominium is nearly always a smart move.

You may even find mortgage payments surprisingly affordable when set next to your rent.

With mortgage rates still quite low, becoming a homeowner is available for everyone! Kiss your landlord goodbye and build your wealth today.