Buying a home you can afford sooner rather than later can be very beneficial. This is because a home allows you to build equity. When you make a mortgage payment each month, you build equity in a place of your own (unlike a rent payment). Equity is the difference between the value of the home and your outstanding mortgage. The longer you stay in your home (and the more payments you make), the more equity you’ll have. And, unlike most things you buy, a home will almost certainly increase in value over time – which builds even more equity.
Investing in a home can have a significant payoff over time. And the sooner you begin, the sooner you’ll start building equity. Here’s a historical look at how houses in Canada have appreciated in value since 1987.