A series about a young family’s adventures in buying that first home.
Welcome to the first post of Adventures in Home Buying, a series about home buying where you get to know about me, my family and our decision to finally go house hunting in Ottawa’s resale market.
To tell the truth, although I’d always wanted a home of my own, I’d made peace with a life of renting.
Like many millennials, I’d had trouble landing a satisfactory job with some prospect of permanency – in my case, as an English professor – and I didn’t meet my partner, Craig, until I was 34. We’d both spent years in university, and, as relatively late starters in the job market, it seemed impossible that we would ever have enough money for monthly mortgage payments, let alone a massive down payment.
Then, in 2015, we had Tilly.
Life changes
Suddenly, our initially palatial two-bedroom apartment became crowded with toys and books, and Tilly, who is now almost two and a half, began to express her desire for a “big backyard.” I started to imagine having enough space that we wouldn’t be tripping over plastic animals and Hot Wheels cars. Enough space that Tilly could have a swing and a garden.
When Tilly was around one, we considered just renting a bigger place. But when I told Craig it would cost about $1,800 plus utilities, he said that at that price we might as well think about buying that first home. We knew by then that we planned to stay put in Ottawa for the foreseeable future, and what was the point in paying rent that just went toward a landlord’s mortgage?
A year and a half later, and we are on our way.
Read more in this series
First steps – and an unexpected gift
On the recommendations of my mom and aunt, we chose a real estate agent. He referred us to a mortgage broker who, looking at our salaries and lack of debt (we had both worked hard to pay off lines of credit and credit cards), determined that we could, indeed, easily afford a $400,000 house, which was the price point we had in mind.
The surprise was that we could buy a house like this with as little as a 5% down payment. I knew that we would never be able to afford 20% down, but I had in my mind that we should aim for at least 10%.
But once we ran the numbers, including the rent we would have to continue paying while we saved enough for 10%, it became clear that it made more financial sense to actually get a house soon with just 5% down. I had been aiming to save at least $50,000 before buying, but armed with this new information, I realized we could buy as early as this spring. As of right now, thanks to imminent tax returns and a generous gift from my in-laws, we are at almost $45,000.
In other words, we’re ready to start looking seriously. I’ll admit to some trepidation mixed with our excitement. After all, this is, as they say, likely the biggest financial undertaking of our lives. But home buying is an undertaking we’re now fully committed to.
What you can expect when buying that first home
This occasional column will tackle the steps and missteps in our home buying adventure, from factors to consider in choosing a neighbourhood to (fingers crossed) fighting the impulse that says, “We have to buy this one!” in favour of pragmatism.
By sharing these details, I hope to help others navigate the murky and complicated waters of searching for and finding a resale home.
Won’t you join me for the ride?
