How to Know If You’re Actually Ready to Buy a Home

Let’s clear the confusion so you can move forward with confidence.

Thinking about buying a home, but feel stuck wondering if it’s the “right time”? You’re not alone.

A lot of first-time buyers in the Greater Toronto Area and Waterloo region feel caught between wanting stability and fearing regret — not sure if they’re financially or mentally ready. And with so much advice floating around (some of it outdated), it’s easy to overthink, delay, or miss out entirely.

So let’s simplify it.

This blog will help you check in on your mindset, your money, and the myths that might be holding you back — so you can decide with clarity whether now’s the time to take the next step.

1. You Don’t Need to Be “Perfect” to Be Ready

Let’s bust a big myth right away:

You do not need a 20% down payment, a perfect credit score, or zero debt to buy your first home.

Of course, those things help — but most first-time buyers don’t check every box. And they still become homeowners.

You might be more ready than you think if:

• You have steady income (from one or more sources)
  
• You’ve saved at least 5–10% of the home price you’re aiming for
  
• Your credit score is decent (600+ is often enough for many lenders)
  
• You’re paying off debts consistently, even if not fully cleared

   

Buying a home isn’t about being “financially flawless” — it’s about being financially prepared. There’s a big difference.

2. What Does Financial Readiness Actually Look Like?

Let’s break it down into simple signs:

You’ve run the numbers (and they don’t scare you)

If you’ve used a mortgage calculator, looked at real listings, or gotten pre-approved — and the monthly payments seem realistic — that’s a good sign you’re ready to explore.

Tip: Always include property taxes, condo fees (if any), and maintenance in your estimate. Owning isn’t just about the mortgage.

You have an emergency cushion

You don’t need piles of savings after your down payment, but having 2–3 months of living expenses as backup shows healthy financial planning — and it makes lenders more confident in you too.

You’re managing your debts (not overwhelmed by them)

Having a car loan, student loan, or credit card balance doesn’t disqualify you. What matters is your debt-to-income ratio. If you’re staying on top of payments and your total monthly debt isn’t too high compared to your income, lenders can work with that.

3. Mindset Matters Just As Much as Money

Being ready to buy a home isn’t just about numbers. It’s also about how you feel.

Ask yourself:

• Am I ready to stay in one place for at least 3–5 years?
  
• Do I want the freedom of owning — even if it means more responsibility?
  
• Can I handle a bit of unpredictability (like repair costs or rate changes)?
  
• Do I see this as a long-term investment, not a short-term flip?

   

If your answers lean toward yes, you’re probably closer to ready than you think.

Owning a home comes with real responsibility, yes — but also real reward. If the idea excites you more than it scares you, that’s a great sign.

4. Don’t Let These Myths Hold You Back

Let’s quickly clear up a few common misconceptions:

“I need 20% down to buy.”

Nope. In Canada, you can buy with as little as 5% down for homes under $500,000 — and 10% for amounts above that. Yes, you’ll need to pay mortgage insurance under 20%, but it allows more people to get into the market sooner.

“Renting is always cheaper than owning.”

Not always. Monthly mortgage payments are often comparable to rent in many GTA/Waterloo areas — but only one of those builds equity. Renting isn’t wrong, but if you can afford to own, it’s a better long-term move.

“I should wait for the market to crash.”

Market timing is tricky. In most areas — especially the GTA — prices tend to stabilize or slowly grow. While ups and downs happen, waiting for a crash could mean watching prices climb further instead.

“What if I buy and something goes wrong?”

That’s why planning is key. A good mortgage broker, real estate agent, and lawyer will guide you step by step. You don’t have to figure it out alone.

5. Signs You Might Want to Wait (and That’s Okay Too)

Let’s be honest — not everyone is ready right now, and that’s okay.

You might want to wait if:

• You have no savings yet and no plan to build some
  
• Your job situation is unstable or unpredictable
  
• You’re carrying too much debt and feel financially stretched
  
• You’re not emotionally ready to settle in one area
  
• You just started thinking about buying and feel overwhelmed

   

In that case, use this time to build a plan: budget, save, improve credit, or explore other income options. Even 6–12 months of focused effort can make a big difference.

6. So… Are You Ready? Ask Yourself This:

• Do I want to own a home in the next 1–2 years?
  
• Have I looked at what I could afford, realistically?
  
• Am I willing to take on the responsibility in exchange for long-term gain?
  
• Do I have at least a basic financial foundation?

   

If you answered yes to most of those — you’re likely ready to at least explore your options.

Let’s Figure It Out Together

Still unsure? That’s totally normal. Buying your first home is a big deal — and getting clarity is part of the process.

Let’s make it simple.

Book a free consultation at harrynaik.com and I’ll help you assess your situation, answer your questions, and guide you step-by-step — no pressure, just real advice.

Whether you’re ready now or just figuring it out, you don’t have to do it alone.