First-Time Homebuyer FOMO
I’m at that age where so many things seem to fall into FOMO and I’m not talking about music festivals. Now more than ever, I long to make my first big purchase and become a first-time homebuyer. Part of it I must admit is because I feel that I am missing out and that I am late in owning my first home. While we can all agree that owning property holds many rewards, a recent survey conducted by TD found that 19% of Vancouver and Toronto homeowners purchased their first home because they were afraid of missing out. Rushing the process to avoid missing out, buying too fast because they are concerned about winning a bidding war and rushing the process because they are worried about being pushed out of the market. These are some of the concerns first-time buyers have when thinking about making their first big purchase.
Here’s the thing about rushing into a big decision without being well informed, you risk missing out on crucial information regarding all the associated costs involve with buying your first home. Did you know that 40% of Canadian prospective first-time homebuyers are worried they don’t understand the full cost of ownership?
I can say that even I have a lot of questions when it comes to home buying. It isn’t an easy decision to make and it’s best to be well informed before having any regrets. I currently bank with TD Bank and found it very helpful to sit down with one of their mortgage specialists for some tips. Here are some key takeaways I learned, you can also check out more tips from them on here:
- Understand all the costs that come with buying a first home inside and out, read the fine print, do your research and make sure you know as much as you can. The TD site provides a great calculator to help you cost out your down payment.
- Budget for your big purchase, I found this cash flow calculator ad budget template helpful as well. Take a look at them here.
- There are so many factors to consider beyond the cost of purchasing, interest rate and the monthly mortgage. Make learning about home purchasing a goal before making the purchase, learn as much as you can about mortgage rules and the long-term commitment of owning a home before going to visit new homes. It’s much easier to get wrapped up in FOMO of a new home when you are visiting the home of your dreams. Instead of having to burst your bubble of excitement after your visits, make sure you are well equipped with all the information you need beforehand.
- Sit with a real professional, while your friends and parents may have some great advice – each person’s situation is different and it helps to sit with a professional to walk through your situation. A mortgage specialist can help guide you through the process and financial aspects of buying a home, making your dreams a reality you can comfortably afford. They can discuss the overall costs of home ownership you will face, the different mortgage options available to you and of course the many benefits of a bigger down payment.
All this information can be overwhelming but imagine not being informed and making one of the biggest decisions of your life. Take the necessary steps to make a plan that works for you and you’ll be so much happier that you did. I found the team at TD bank very helpful and knowledgeable, they help me set realistic expectations for when I am ready to make my first-home purchase. Sometimes missing out means you are better prepared for the right opportunity.
*Post sponsored by TD BANK