Buying your first home before 30

2 things to think about when it comes to housing.

Marie-Christine Daignault | Desjardins Group

The dream of owning your own home starts early in adulthood, but we all have to start somewhere, and knowing what to do and when isn't always clear.

We used your questions and comments as inspiration to talk about 2 things that especially concern young adults when it comes to housing.

1. I'd like to buy a home within 5 years, should I make sure to pay off my student loan first?
No. In fact, accelerated repayment is rarely advantageous because student loans are generally amortized over 10 years, the rate is low, and interest is tax deductible. 

The debt you should prioritize is consumer debt (credit cards, lines of credit, personal loans, etc.). You can reconcile your big plans with debt repayment: Follow the guide.

2. I'd like to start saving up for a down payment, where do I start?
Saving can be relatively painless. The earlier you start, the faster you get used to it (and the better it pays off). It just takes a little planning and a lot of discipline to put away a few thousand dollars.

You need to put down at least 20% of the selling price to qualify for a mortgage. If you don't have 20%, you can take out mortgage insurance and you'll only need to put down 5%. In both cases you need to prove you have 1.5% of the selling price to cover start-up costs. 

Do you have other questions? Send them to us.

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