The dream of homeownership remains a valid goal for plenty of people across the country, regardless of current trends, tariffs or the fluctuating economy. At the end of the day, many people are saving for that coveted space to call their own, rent-free. But are you actually ready for home ownership and all of the costs that entails? Or is renting a better choice for right now? Read on to learn the questions you should ask yourself before taking the real estate plunge.
Related: Everything You Need to Know As a First-Time Home Buyer
Can I Afford a Home?
Affordability is the No. 1 consideration when it comes to buying a property, since that determines what you can afford and where. Many people will jump online to mortgage calculators and attempt to figure out what they can afford, but that’s just one piece of the puzzle.
You also have to consider the size of your down payment, whether you’ve saved enough for closing costs, your long-term plans, your overall financial situation, whether you will still be able to save money on top of your mortgage, and what kind of lifestyle you want. Property taxes, insurance, utilities and debt are other things to consider when assessing your overall financial situation.
Are Things Stable?
This may seem obvious, but stability is key when assessing your readiness to buy a home. Do you have savings? A solid credit score? A long-term job and overall financial security? A solid support system for if and when things go wrong? If the answer to those questions is yes, chances are you’re ready to settle down into your own home. But if you’re unsure about any of the above, you may want to wait a while longer.
What Are My Long-Term Needs?
According to Re/Max president Christopher Alexander, many young people conjure up images of a forever home when they’re thinking about their starter home. However, expecting to buy a three-bedroom, four-bathroom home right away isn’t always realistic. Alexander suggests tapering expectations to something more affordable and eventually parlaying that into a larger property in the future.
“If you can buy a condo as your entry level or first home, you can use it down the line to move into something bigger and, eventually, get that detached,” he says. “It’s hard to pin down what that reasonable timeline is, but for more people, it’s their fourth or fifth home that ends up being their forever home.”
When deciding whether you’re ready to purchase a home, consider where you want to be in five, 10, even 15 years. Sometimes you need to start small and save more now, rather than going for the gold on your first try. After all, home ownership is a marathon and not a sprint.
Related: The Cheapest Places to Live in Canada in 2025
What Are the Market Conditions?
Another huge concern for most home buyers is the current market, and it’s no wonder. With conversations around inflation, interest rates and tariffs dominating so many headlines, these factors are impossible to ignore.
The traditional saying in real estate is that there’s no good time to buy, or the right time to buy is when you’re ready. Trying to time the market is impossible, especially if you’re waiting for prices to drop or rates to change. Instead, focus internally on your own circumstances as much as possible.
“You have to think of it as not overextending yourself,” says Alexander. “If you found the home that’s right for you, it’s within your means, you’re not overextending yourself, and you can see yourself there for five years or longer, you’re going to do really well.”
What Type of Property Do I Want and Where?
As mentioned above, the type of property you’re looking to purchase matters, especially when you’re figuring out affordability. Where you’re looking to buy also matters, because prices differ from city to city and province to province. Decide if you’re a city dweller or suburban type, where you can live with your work situation, and where you can see yourself living long-term.
“Historically, the pattern has been, kids go to university, they come home, they move in with their parents, they get a job, and they move into a city with some nightlife and entertainment,” explains Alexander. “Then, once they begin to settle down and start families, they end up moving back to the suburbs. And that hasn’t really changed.”
Related: More Gen Zs Are Choosing Home Co-Ownership – Here’s How
Have I Spoken With the Experts?
It’s one thing to go online and figure out your interest rate and affordability, but it’s another to sit down with qualified experts who can guide you on your home-buying journey. Sitting down with a financial planner is a great idea, since they can guide you on short- and long-term investments, help you to set goals, and figure out the best plan for your income based on your personality and needs.
If you are approaching home-buying territory, it’s also a good idea to sit down with a mortgage broker to lock in a rate and get a pre-approval. It makes the purchasing process easier once you do decide to put in an offer, but a mortgage broker can also give you a clear idea of what you can afford from the beginning, so you don’t waste your time or get your hopes up on something you just can’t afford.
