Choosing to purchase a home is an exciting, rewarding, and personal experience. Given its overall significance, it’s no surprise that the financial side of homeownership is often overlooked. But it shouldn’t be. Buying your first home could be one of the best financial decisions you ever make. Here’s why.

Why rent when you could own?

Whether you’re renting an apartment or paying off a mortgage, its almost certainly the case that one of your biggest monthly expenses comes from keeping a roof over your head. And with rental prices as they are, it’s no stretch to say that the monthly difference between paying a mortgage and a landlord is, more often than not, marginal.

But unlike renting, mortgage payments do more than keep you out of the rain — they help you build wealth.

Over the course of your mortgage — and at no extra expense to you — its almost inevitably the case that your home will appreciate. That means, all other things being equal, that the price you pay for your home will be significantly less than the price you eventually sell it for, should you choose to do so.

Building Equity

Each time you make a monthly payment on your home, you own a little bit more of it. Unlike rent — the value of which is used up by the 31st — the money spent on your mortgage serves two purposes. In addition to covering your living accommodations, your mortgage payments enter what is effectively a forced savings plan: that ever-growing asset that is the percentage of your home that you own.

No matter which you choose — renting or owning — much of your money will go toward your living accommodations. But, if you’ve decided to purchase a home, you might think of the money spent on your mortgage as money that you get to spend twice: first on your accommodations (just like rent), and a second time after you’ve sold your house.

The difference between renting and owning is akin to the difference between running on a treadmill and running outside: both make you sweat, but only one gets you where you want to go.

By entering homeownership sooner rather than later, you’ll be setting yourself up for a better financial future. Use the sale of your first home to jump-start the purchase of your dream home, or live for next-to-nothing in a house that’s paid off. No matter what you decide to do, you’ll have built up some stable wealth.

The point is, make your money work for you — not for your landlord.

For nearly a decade, our NewRock Team has had this in mind and worked hard to make homeownership more attainable for Canadians of all ages, wages, and lifestyles.

In doing this, we’ve designed unique programs to remove one of the largest obstacles to homeownership: the down payment.

At Meadowview Point in Saskatoon, you can purchase a well-built, affordable home without the down payment! If you’re interested in taking advantage of one of our exclusive grant programs and owning one of Saskatoon’s Most Affordable Homes, call us today at (306) 974-1501! We’ll guide you through the qualification process, help you select a home, and answer any questions you have along the way!