There are several reasons that home ownership can offer advantages compared to renting:
- Wealth accumulation by paying down debt in the form of mortgage payments, whereas rent pays a landlord’s mortgage down.
- Your credit rating improves when you own a home.
- Over time, your net worth increases allowing you to establish a preferred status with your bank, giving you the opportunity to make other major plans such as owning your own business.
- If you would become unemployed, the landlord still expects the rent payment; most lenders will work with you and perhaps add the missed payments to your mortgage.
- Owning your home allows you to choose how to live, what colours, what decor, what personal choices you prefer.
- If you decide not to live in your home, you can make the choice of selling and moving elsewhere, and over time you will have accumulated equity to take with you – tax free!
- If you require short-term loans, lines of credit, or other revolving credit arrangements, home ownership will provide greater opportunities to obtain the same credit arrangements at a lower cost.
- The wealth accumulation achieved by owning your home is tax free, since equity in your principal residence is not a taxable gain.
- There is a program available for homeowners only, which provides job loss insurance to cover the mortgage payments while you look for work and get back on your feet.
- A mortgage payment can be fixed for up to ten years!
- Pride of Ownership: you will be amazed how the small repairs that used to bug you in your rental are now a joy when you own your own home.
- Sweat Equity: what stocks let you add value by painting, landscaping, adding a pool, remodeling a kitchen or bath?
- Retirement Plan: every mortgage payment and every percent of inflation adds to your retirement.
- You now have an estate to pass on.
- You don’t answer to anyone (accept the bank).
- You become a respected member of the community.
If this blog is as clear as mud, call me. I am here to clarity, educate, and support you throughout the process. You may only apply for a mortgage a few times in a lifetime; I process mortgages several times a day. Lean on me.