There are many advantages to homeownership. In this blog, we’ve highlighted both the financial and functional benefits of owning a home, so that you can be more informed if you make the decision to buy.
The advantages of homeownership come primarily from its financial benefits. Right from the start you’re paying off a mortgage, not rent towards a landlord. This means that you’re getting an eventual return on investment, as you’re working towards more equity and living payment-free. You also have the option of selling down the road if your neighbourhood appreciates in value. Through a legal process, you can also become a landlord and rent out a room or floor of your home. This can either help you pay off your mortgage or act as a secondary source of income.
There are government financial assistance programs that can help you buy your first home. The “Home Buyers’ Amount” allows those who qualify to claim $5,000 in order to help with legal fees, disbursements and land transfer taxes. The “Home Buyers’ Plan” allows you to withdraw $35,000 per calendar year from your retirement savings, (RRSP) also allowing you to recoup some of the costs associated with buying your home. The “GST/HST New Housing Rebate” allows you to recover a portion of the GST or HST you paid upon purchase of the home. If you're new to Canada, there are many programs available that can help you buy your first home.
When you buy a home, there are also strong functional benefits that present themselves. First, you know where you’re going to be for the foreseeable future. There are no landlords or potential evictions to worry about, as with ownership everything is under your control. Owning also allows you to modify or renovate parts of the home, install new appliances or demolish at will. Click here for a blog highlighting some home improvements you can make to keep you busy over the winter months.
Buying a home should ultimately be a long-term goal for everyone. Not only does it provide functional stability, but there are many tax benefits and eventual financial rewards that you can look forward to down the road. Be sure to consult with a professional before you make any decisions, so that they can help guide you through the process.