So what are some of the advantages of becoming a homeowner today?
1. Home ownership is the single largest source of savings for Canadian households.
2. Your payments build equity (as opposed to renting, where your money goes to the building owner).
3. 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.
4. The return on investment for a house can be substantial. In Canada, there has not been a recorded 10-year period where average house prices have not increased.
5. Homeowners can use the equity in their homes as security for other loans.
6. Buying a home and building equity is the first step on the property ladder. It gets you into the housing market, keeps you in touch with increasing house prices, and puts you in a good position to trade up to bigger and better homes as your circumstances allow.
If you are purchasing your first home, you may qualify for an exemption from property transfer tax. To qualify, you must be a first time home buyer and your property must meet certain requirements.