Steps you can take to start preparing for home ownership

(NC) Even in the face of rising real estate prices and a rocky economic environment, many Canadians are unwavering in their desire—and goal—to buy a home, according to a recent survey by TD.

It revealed that nearly three quarters of respondents are hopeful they’ll be able to purchase a home within five years. But half also said a challenging market means it will take them at least two years to be financially ready to buy.

Two years might feel like a long wait for home ownership. But 24 months can be enough time to make a solid financial plan, fill your knowledge gaps, get familiar with the mortgage and home buying process and manage any feelings of anxiety or stress by seeking advice from a mortgage professional. Here are some tips on how you can help prepare your finances:

Make a personalized financial plan

How much income does your household bring in? How much are you saving? How do your monthly expenses stack up against your income? What about investing?

One of the best ways to help answer these questions is to create a personal or household budget. Use it to evaluate your spending, make changes to your habits and create a financial plan that includes saving for a home.

The first step when buying a home is knowing how much you can afford to spend. In addition to how much mortgage you’re comfortable with, you’ll also want to consider your expenses, plus the new ones that come with home ownership. By looking at your budget, you’ll get a better idea of what’s possible and achievable for you.

By regularly revisiting your budget to factor in any changes to your circumstances, like a new job, a vehicle loan or the birth of a child, you can better determine if you will need more or less time to reach your goal. Tools like the TD mortgage affordability calculator can help with planning.

Seek guidance about your options

Part of getting ready to purchase a home should include getting more information about your financing options. If you’re a prospective buyer with concerns about mortgage rates and the home buying process, you’re not the only one.

To feel better equipped to keep up with the housing market, seek advice from a professional. Working with a mortgage specialist can help you better understand your unique financial situation and home financing options.