Credit / Downpayment / First Time Home Buyer / Income / New to Canada / Pre-Approvals / Purchase / Qualifying / Quizzes

Should I rent or buy? Take the quiz now

All you have to do is write down the letter that best describes your current financial situation and then count how many of each letter you have. The letter that you have the most of will correspond with an answer at the end of this short quiz.

Is your income reliable and continuing?

A) I receive regular pay cheques with a set income amount

B) I receive variable pay and the amount can fluctuate

C) Neither of these apply to me

Do you have savings available to put towards a downpayment?

A) Yes

B) No

C) Maybe

How is your credit?

A) Good

B) Bruised

C) Other or not sure

Do you owe on numerous credit cards?

A) No

B) Yes

C) Not sure

Do you have pets?

A) Yes

B) No

C) Not right now, but I want to get one

Do you need to make your space your own?

A) Yes

B) No

C) Doesn’t matter to me

Are you planning a life change soon such as staring a family or returning to school to further your education?

A) Yes

B) No

C) Not sure

Do you know which neighborhood you want to live in?

A) Yes

B) No

C) Doesn’t matter

Do you have experience making any large, regular, monthly payments?

A) Yes

B) No

C) Not sure

How do you feel about property repairs and maintenance?

A) I don’t mind doing them myself

B) I’d rather call someone else to do them

C) I’m not sure yet

Are you just meeting monthly debt obligations or do you have extra funds at the end of each month?

A) I do have extra funds available

B) My budget is pretty tight

C) I’m kind of somewhere in the middle of those two depending on the month

 

Mostly A’s: It looks like a home purchase may be in your future. Your steady income and good credit makes mortgage financing a viable option.  Your need to customize your space makes ownership more desirable than renting as landlords often have restrictions on what kind of alterations you can make to your living space. If you are currently renting and thinking of taking the next step, you’re half-way there; be prepared for a mortgage payment and property taxes as well as all of the extra costs that come with home ownership such as repair and maintenance costs. Talk to other homeowners and get an idea of what you’re getting into before you commit to a large purchase.

Mostly B’s: Renting may be your best bet for now. Whether it’s your debt level or maybe your income isn’t steady, it’s better to buy when you’re ready rather than to rush into a large purchase that isn’t always easy to get out if it isn’t working out for you. If the idea of fixing your leaky tap or painting your deck doesn’t interest you, renting may be a lot more appealing as those repairs and maintenance can be done with a call to your landlord. Renting may make sense for the budget conscious and for those who may not yet be settled in their life due to just finishing school, or changes in a romantic relationship such as a break up or an engagement. It is expensive to buy a home and just as expensive to sell that home if it is not the right time for you to make the commitment to owning a home.

Mostly C’s: You fit somewhere between rent and buy and the decision comes down to you. To keep your options open, it makes sense for you to know how you look on paper. If you have a strong financial profile you should not have any issues in qualifying for financing when you find your perfect property though do look at getting a pre-approved mortgage.

This quiz is not meant to replace the advice of a professional. Knowledge is power when it comes to the housing market and before you make a decision, do your research. Don’t be afraid to ask your friends and family for professional referrals to ensure you can trust and speak freely and openly about your financial goals. Call a realtor to see what the price range is for properties you like and ask them what kind of rent you would have to pay to live in that same area as that may help you with the decision making process. After you have those two numbers, contact a mortgage professional to see if you can qualify for the mortgage and if you are comfortable with the payments required for that price range with the downpayment amount you have available.

You should have sufficient information to determine whether it is better for you to rent or to buy a home of your own. If you’re still undecided, don’t be afraid to rent until you’ve made up your mind as the real estate market will still be here whenever you’re ready.

If you need a mortgage, call the Jackie at 780.433.8412 or info@mortgagegirl.ca. Stay in the loop by following on Twitter @Mortgagegirlca.

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7 thoughts on “Should I rent or buy? Take the quiz now

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