When Should I Buy A House? 6 Factors To Consider

So you’ve been asking yourself the age-old question:
Should I buy a house?
When’s the best time to buy?
What do I need to know before buying?
There’s never a perfect time to buy, but there are a few steps you can take to prepare for homeownership.

Deciding whether it’s the right time to enter the market often depends on you and your financial situation more than the state of the market in any given month.

Here are 6 key factors to consider before buying a home:
1️⃣ You have plenty of savings
2️⃣ You’ve paid off your debts
3️⃣ Your income outweighs your monthly payments
4️⃣ You’re staying put for a few years
5️⃣ You’ve found the right mortgage
6️⃣ You have a good real estate agent

1. You Have Savings on Top of Savings

The number one sign you’re ready to buy a house is having a healthy savings account. Homeownership comes with many costs, and you’ll need money set aside for:
✅ A down payment – 5-10% is common, but 20% or more helps avoid CMHC insurance.
✅ An emergency fund – Covering 4-6 months of expenses is ideal.
✅ Moving costs – Professional movers, truck rentals, and supplies add up quickly.
✅ Closing costs – Typically 3-4% of your purchase price, covering inspections, appraisals, and more.

2. You’ve Minimized or Eliminated Your Debt

It’s tough to save for a home while juggling credit card debt, student loans, or car payments. A mortgage is a big commitment, so being debt-free (or close to it) will make homeownership far less stressful.

3. Your Total House Payment Is Less Than 25% of Your Take-Home Pay

To avoid being house-poor, aim to keep total home expenses (including mortgage, insurance, and taxes) under 25% of your take-home pay.

Breakdown of costs:
🏠 Principal – The amount you borrowed
💰 Interest – What lenders charge to finance your loan
🔒 CMHC Insurance – Required if your down payment is under 20%
🛡️ Homeowners Insurance – Protects against fires, floods, and more
🏡 Property Taxes – Supports schools, law enforcement, and public services

4. You’re Planning on Staying in Your Home

If you plan to stay in your home for at least five years, you’ll likely build enough equity to make it a smart investment.

Equity Formula:
📈 Your Home’s Value – Your Mortgage Balance = Equity

The longer you stay, the more you benefit from appreciation and mortgage payments lowering your balance.

5. You’ve Chosen a Mortgage That Fits Your Needs

Most people don’t pay 100% cash for a home, so a mortgage is essential. A mortgage broker can help you compare rates from different lenders, negotiate better terms, and find the best fit.

Look for a mortgage broker who has:
✔️ Experience & professional credentials
✔️ Positive online reviews & testimonials
✔️ A wide network of lenders
✔️ Transparency & good communication

6. You Have a Good Real Estate Agent

A knowledgeable real estate agent will guide you through the process, negotiate on your behalf, and ensure a smooth transaction.

Key qualities of a great real estate agent:
🏡 Local market expertise
💬 Strong communication skills
🤝 Excellent negotiation skills
🔍 Attention to detail

Final Thoughts

Buying a home is a big step, but if you’ve checked off these six factors, you’re well on your way to becoming a homeowner!