“Why” People Buy Residential Real Estate

Diane Buchanan • July 19, 2016

Yoda may have said, “…do or do not; there is no try”, but if you’re going to “do”— buy a home, for instance—for the love of Star Wars, know why you’re doing it.

Savvy business practice dictates that before making a decision you should know the “why?” Simon Sinek writes on this at length within his book Start with Why — certainly worth a look! This tool will serve to protect you from all kinds of pitfalls. It will allow you to objectively take stock of the situation, and it will (more often than not) keep you from entering into a scenario where you don’t have a clearly defined strategy/desired outcome.

Interestingly, the “why” in residential real estate has generally led buyers in one of two directions: either investment or lifestyle.

Investment

In a world where investing can be a tricky proposition at the best of times (not unlike walking into the MGM Grand), real estate, especially your primary residence, seems to be as close   to a sure thing as you can get. Property in Canada has pretty much always appreciated in value and depending where you live, it seems new records for house prices are being announced each quarter. It’s no wonder we feel home ownership is one of our fundamental rights as Canadians.

However as any good investor knows, past performance doesn’t indicate future results. People are starting to ask how long can this market last, as the media starts to circle back to the old “housing bubble” dialogue again. So is buying property solely as an investment a good idea today? Well, that really depends on your personal situation and is certainly worth a conversation. One we could have over a coffee!

If you are in a position to buy, and you have compared the cost of renting vs cost of the mortgage payment on a similar property, chances are you will find that buying is a good investment. The real kicker is that when (unlike traditional investments) you sell your home, the appreciation is tax-free money in your pocket.

Lifestyle

While the idea of buying in order to sell and earn a big profit is a fairly recent phenomenon, buying in order to achieve your lifestyle dreams is as old as the idea of home itself. This is what drove the entrepreneurial spirit of the wild west, and built the vast subdivisions of post-Second World War North America.

For most individuals, their home is their castle. It’s where they find privacy, solitude, relaxation, freedom, joy, pride, community, and the space to be themselves. It’s a pretty simple concept: people like to own their home.

When Worlds Collide

When considering your “why” of home buying, a lot of times it’s going to be a mixture of both investment and lifestyle. Obviously the house with the greatest potential for a large monetary return is the prudent, responsible choice. Location matters, neighbourhood matters, build matters, and potential renovations matter. You want to keep your property in great shape, as you would any investment!

But while you live there, pay down your mortgage, build equity, and see some long-term appreciation, you get to nap in your own comfy chair, in a room where you chose the paint colours.

This article was originally published in the July 2016 Dominion Lending Centres Newsletter.

DIANE BUCHANAN
 Mortgage Broker

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First-Time Buyer? Here’s How to Tell If You’re Ready

By Diane Buchanan • January 21, 2026
Ready to Buy Your First Home? Here’s How to Know for Sure Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership? Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path: 1. You’ve Got Your Down Payment and Closing Costs in Place To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments. If you’ve managed to save this on your own, that’s a great sign of financial discipline. If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order. Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership. 2. Your Credit Profile Tells a Good Story Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history. What they typically like to see: At least two active credit accounts (trade lines) , like a credit card or loan Each with a minimum limit of $2,000 Open and active for at least 2 years Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert. 3. Your Income Can Support Homeownership—Comfortably A steady income is essential, but not all income is treated equally. If you’re full-time and past probation , you’re in a strong position. If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify. A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too. 4. You’ve Talked to a Mortgage Professional Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far. If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll: Get pre-approved (and know what price range you're working with) Understand your loan options and the qualification process Build a game plan that suits your timeline and financial goals The Bottom Line: Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice. If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.

Divorce and Your Mortgage: What You Need to Know

By Diane Buchanan • January 14, 2026
Going Through a Separation? Here’s What You Need to Know About Your Mortgage Separation or divorce can be one of life’s most stressful transitions—and when real estate is involved, the financial side of things can get complicated fast. If you and your partner own a home together, figuring out what happens next with your mortgage is a critical step in moving forward. Here’s what you need to know: You’re Still Responsible for Mortgage Payments Even if your relationship changes, your obligation to your mortgage lender doesn’t. If your name is on the mortgage, you’re fully responsible for making sure payments continue. Missed payments can lead to penalties, damage your credit, or even put your home at risk of foreclosure. If you relied on your partner to handle payments during the relationship, now is the time to take a proactive role. Contact your lender directly to confirm everything is on track. Breaking or Changing Your Mortgage Comes With Costs Dividing your finances might mean refinancing, removing someone from the title, or selling the home. All of these options come with potential legal fees, appraisal costs, and mortgage penalties—especially if you’re mid-term with a fixed-rate mortgage. Before making any decisions, speak with your lender to get a clear picture of the potential costs. This info can be helpful when finalizing your separation agreement. Legal Status Affects Financing If you're applying for a new mortgage after a separation, lenders will want to see official documentation—like a signed separation agreement or divorce decree. These documents help the lender assess any ongoing financial obligations like child or spousal support, which may impact your ability to qualify. No paperwork yet? Expect delays and added scrutiny in the mortgage process until everything is finalized. Qualifying on One Income Can Be Tougher Many couples qualify for mortgages based on combined income. After a separation, your borrowing power may decrease if you're now applying solo. This can affect your ability to buy a new home or stay in the one you currently own. A mortgage professional can help you reassess your financial picture and identify options that make sense for your situation—whether that means buying on your own, co-signing with a family member, or exploring government programs. Buying Out Your Partner? You May Have Extra Flexibility In cases where one person wants to stay in the home, lenders may offer special flexibility. Unlike traditional refinancing, which typically caps borrowing at 80% of the home’s value, a “spousal buyout” may allow you to access up to 95%—making it easier to compensate your former partner and retain the home. This option is especially useful for families looking to minimize disruption for children or maintain community ties. You Don’t Have to Figure It Out Alone Separation is never simple—but with the right support, you can move forward with clarity and confidence. Whether you’re keeping the home, selling, or starting fresh, working with a mortgage professional can help you understand your options and create a strategy that aligns with your new goals. Let’s talk through your situation and explore the best path forward. I’m here to help.