Client Support

A single important decision

Thinking of buying a home on your own?

MoneyTips article splash photo

A number of factors are converging these days to make buying a home much more attractive for single people.

More singles out there looking to buy; young people are getting married later (or not at all), and divorced couples are buying property on their own. This means that more condo and home developers (and home renovators) are gearing their efforts toward the one-person household. In addition, low mortgage rates are making financing easier for one person to manage mortgage payments.

According to Census Canada data, the number of one-person households is larger than ever before, increasing 10.4% between 2006 and 2011 to just over 27.6% of the total. This was also the first census in which one-person households exceeded the number of couple households with children aged 24 and under.1

Single people looking to buy a home need to consider all of the factors that couples do, with a clear understanding of what "going it alone" means for them. Having just one income can make saving for a down payment and meeting the monthly expenses of home ownership, more challenging. Owning a home costs about $500 more per month than renting; your housing costs should be no more than 30% of your gross monthly income.

Home upkeep can also be tougher on your own, which is why many singles look to purchase a condo. Condos require less maintenance, but do come with condo fees. Also, condos are often cheaper than detached homes and offer more security than detached homes, which makes them appealing to singles, especially women.

If you are on your own and considering buying real estate, take the time to consider your goals for the next five to 10 years and the housing market in your community. Talk to those who have taken the plunge and see if home ownership is right for you.

Mortgages are an important part of your financial plan. We team up an Investors Group Consultant with one of our Mortgage Planning Specialists to simplify the process, design a mortgage to suit your needs and make sure you have a debt elimination strategy that best fits your financial plan.

We offer a full suite of flexible mortgage solutions, including a variety of payment options, competitive rates, pre-approvals and no-cost transfers.*

Fixed-rate open and closed mortgages provide a locked-in interest rate for the term you select. If rates increase, your fixed rate stays the same, giving you the security of a fixed payment over your mortgage term.

A variable rate mortgage allows you to take advantage of changing interest rates while paying a fixed monthly mortgage payment. If interest rates fall, more of your payment will go toward your outstanding mortgage balance; if rates rise, more of your payment will go to paying interest costs.

We have other mortgages that combine the peace of mind of a long-term mortgage with the benefits of a short-term mortgage rate or a home equity line of credit for maximum flexibility in financing. For more information on our mortgage options, arrange a free consultation with an Investors Group Mortgage Planning Specialist to discuss your needs.

*Does not include prepayment charges if applicable.

1 2011 Census of Population: Families and households, marital status. structural type of dwelling, collectives. Statisitics Canada, The Daily, September 19, 2012.

This newsletter, specifically written and published by Investors Group, is presented as a general source of information only, and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide legal advice. Clients should discuss their situation with their Consultant for advice based on their specific circumstances.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

I.G. Investment Management Ltd. is a licensed mortgage broker, Investors Group Trust Co. Ltd. is a trust company licensed to lend money in all jurisdictions in Canada. Clients with mortgage inquires will be referred to an Investors Group Mortgage Planning Specialist.

Insurance products and services offered through I.G. Insurance Services Inc. (in Quebec, a financial services firm). Insurance license sponsored by The Great-West Life Assurance Company (outside of Quebec).

™ Trademarks owned by IGM Financial Inc. and licensed to its subsidiary corporations.

Investors Counsel is published by Investors Group
Head Office: 447 Portage Ave. Winnipeg, MB R3C 3B6
Quebec Office: 2001 University Street Suite 2000 Montreal, Quebec H3A 2A6