How to Review your Finances Before You Buy a Home


One of the largest purchases you make will no doubt be buying a house.  Before you embark on this journey, it is important to review your finances and know that your finances are in order.  Here is how to review your finances before you buy a home.


How to Review your Finances Before You Buy a Home


If you are going to start looking for home in Ottawa, a good place to start is with reviewing your bank account history to learn more about your spending habits to see where you money is currently going.  

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Also you can see how much, after deductions (if applicable) is entering your account with each pay.

Also, if you plan to buy a home with someone else, it’s important that they review their finances as well.  

Once you have reviewed your accounts, you can ask yourself:

  • Do you have any money set aside for emergencies?  Typically it's recommended to have three months of income set aside.
  • Do you have a plan in place to pay off any debts?  When you buy a home, you also want to make sure that your other financial obligations can be managed as well.
  • Do you have savings for a down payment as well as the closing costs?  When buying a home in Canada, the typical minimum down payment is 5% of the price of the home.  However, there are also closing costs such as your lawyer’s fee that you need to budget for.
  • Do you have a stable job or income?
  • Will you still be able to save money for retirement and other goals once you have a house?
  • Are you relying too much on credit cards each month to get by or do you carry large amounts on loans and credit cards?  The less debt you have the larger home price you will be able to qualify for.

Learn more: Types of Down Payment Verification
Learn more: No Down Payment Mortgage Options in Ottawa

Contact me today to learn more about how to review your finances before you buy a home.

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About Andrew Thake

Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.

Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.

Why not make your mortgage experience a comfortable one?

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