Have you decided that it is time to move on from renting? If you are single and living alone, you may be wondering whether or not homeownership is right for you. Let's have a look at a few key factors that you will need to be aware of when taking out a mortgage as a single person.
It's A Commitment – But Not For A Lifetime
Some single people shy away from the idea of buying a home as it is a significant financial commitment. When you are single, especially if you are young and early in your career, flexibility can be valuable. You might decide to move to a new city to take a new job, or you may find a partner and decide to start a family.
Keep in mind that homeownership – and your mortgage – aren't permanent. If you decide to buy a house, condo or apartment, you can always sell it later if you need to move or upgrade to a larger home.
You'll Need To Be Disciplined
As you will only have one income stream coming in to support you in managing your monthly finances, you will need to be disciplined. Living paycheck to paycheck is not really an option as you will end up in trouble if an emergency occurs. Some financial experts advise having at least 6 to 12 months of monthly expenses saved up, in case of a job loss or an unexpected health issue that takes you out of work.
Don't forget that there are also mortgage insurance products that can help to cover some of your costs in the event of an emergency. These may be an option to consider as a backup plan.
Starting Small Versus Going Big
Do you need a lot of space? If not, investing in a small 'starter' home is an excellent option. You can buy just enough home to suit your needs without buying anything extravagant. A helpful advantage that you gain purchasing a less-expensive home is that it comes with a smaller mortgage that can be paid off faster.
Questions? Get Professional Advice
If you have questions about borrowing and maintaining a mortgage as a single person, you're not alone. Give our professional mortgage team a call today. We will be happy to share our guidance and expertise in helping you choose the mortgage product that suits your financial goals.