In such a situation, it is best to begin early. The first step in the journey starts with finding a home. Most folks buy a home first and then purchase the home insurance, whereas the golden rule is to choose your home first, keeping in mind that you ADU will also have to buy insurance for it. This is the ideal approach.
With this approach in mind, it is advisable to follow the below tips while buying your first home:
Ask yourself 5 important questions
Discuss with your partner and then answer as honestly as possible.
– Why are we planning to buy a home?
– Are we financially ready to take the plunge and bear the costs of owning and maintaining a home?
– Do we jointly or individually qualify for a mortgage?
– Do we plan to stay at this location for a few years, or for the rest of our lives?
– Are we prepared for the responsibilities associated with homeownership, maintenance and repairs?
Getting answers to these questions will clear the air whether you are serious of buying a home, or not?
Compare your answers with advantages and disadvantages of owning a home
Sit with your partner and do a comparison.
Advantages:
– Value of your property will appreciate over time.
– You can rent out part of your home and earn rental income.
– You can renovate as per your needs.
– You get privacy, a sense of community and stability.
Disadvantages
– You are involved in a long-term financial commitment.
– Upfront costs are big such as down payments, closing & legal costs, and annual property taxes.
– You spend time and money in maintaining your home.
– It binds you to a certain neighborhood.
Choose your home insurance cover and provider
If after doing a comparison, you arrive at a decision to buy a home, then it is worthwhile choose the best Home Insurance Canada cover. Always remember that home insurance isn’t a legal requirement in Canada, but with home insurance in place, your property and possessions are protected in the event of fire, natural disasters, and theft or vandalism. This is the reason almost every mortgage provider will ask you to show proof of insurance before lending you money.
House insurance
House insurance covers the entire structure of your home and your belongings (contents), including your building, swimming pool, or sheds in the backyard, front yard, subject to limitations of your policy.