The Advantages of Being a Homeowner

Since homeownership is ranked at the same caliber as a graduation, marriage or the birth of a child in terms of life-changing events, it's no surprise that for some, taking the jump into having a home to call their own can be an intimidating process.  When all is said and done though, homeownership provides a number of benefits that not only enhance quality of life, but also improve financial stability

1. SAVINGS!

Homeownership is the single largest source of saving for Canadian households.  Not only because of the equity you are building in your home but potentially because of the income you could receive if you purchase a property you can rent.

2. BUILDING EQUITY!

Your payments build equity as opposed to renting, where your money goes to the building owner.  Therefore, every payment you make means you are building equity and own more of your home yourself.  This is in stark contrast to paying rent, which is a pure out-of-pocket expense.  Owning your own home gives you the opportunity to build wealth from price appreciation, paying down your mortgage or from both.

3. INVESTMENT STABILITY!

Unlike other investments that can be volatile, when you buy a home, the increase in its value is relatively steady.  The average price of a house for sale on the Canadian real estate market has increased every year since 1998.  Imagine the return on investment from a house you have owned since then!

4. FAMILY STABILITY and SENSE OF COMMUNITY!

When you buy a home you and your children are more likely to take an active interest in the community.  Your children will build lasting relationships with their neighbourhood friends and you will take pride in making your property look nice, getting to know your neighbours and keeping the neighbourhood safe.

5. BUILDING CREDIT HISTORY!

When you buy a home and consistently make your monthly payments on time, it demonstrates to other lenders that you are a good borrower.  This strong credit history will be helpful in the future when you need other loans for buying a car, making improvement to your home or paying other major expenses.

6. INCOME TAX DEDUCTIONS!

When you own your own home there are a number of tax credits available depending on your circumstances.  First-time Home Buyer Tax Credit, Home Accessibility & Medical Expenses Tax Credit, New Housing Rebate, Home Office Tax Credits, Ontario Energy and Property Tax Credit, Ontario Senior Homeowners Property Tax Grant etc.