4 Signs You’re Ready for Homeownership

Zach Silverman | December 18, 2024

Buying your first home is a major milestone! But how do you know if you’re truly ready? Here are the top four signs you’re prepared to take the leap into homeownership.


1. You Have at Least 5% Saved for a Down Payment


To purchase your first home, you’ll need a minimum down payment of 5% of the purchase price. Additionally, plan to set aside roughly 1.5% for closing costs.


If you’ve saved this amount on your own, it’s a strong indicator of positive cash flow. Don’t worry if you’re short, though—a gifted contribution from a family member can also help you meet this requirement.



2. You Have Established Credit


An established credit history is key to securing mortgage financing. Lenders typically look for at least two active trade lines (e.g., credit cards or loans) maintained over two years, with a minimum credit limit of $2,000.


If you’ve faced past credit challenges, don’t lose hope. With some extra planning—or the help of a co-signer—homeownership can still be within reach.



3. Your Income Supports Mortgage Payments (and More!)


Lenders need assurance that you can comfortably handle mortgage payments. Ideally, you’ll have a permanent full-time job and be past any probationary periods. For those with variable income, a two-year history is typically required.


A general rule of thumb: keep your housing costs to under one-third of your gross income, leaving two-thirds for other expenses and savings.



4. Get Pre-Qualified


Buying your first home is a big step, and understanding your numbers is crucial. At Silverman Mortgage Group, we can help you get pre-qualified so you know exactly what you can afford. Pre-qualification gives you clarity on your budget, helps you understand your down payment requirements, and ensures you’re prepared to make an offer when you find the perfect home.


Our team specializes in guiding first-time homebuyers through every step of the process, including:


  • Evaluating your down payment options.


  • Reviewing and improving your credit score.


  • Assessing your income and financial liabilities.


  • Securing the right mortgage for your needs.


Let us simplify the process and give you the confidence to take the next step toward homeownership.




Ready to Take the First Step?


If you’re thinking about buying your first home, let’s chat! Together, we’ll explore your options, answer your questions, and create a plan to help you become a homeowner. Contact Silverman Mortgage Group today!



RECENT POSTS

What You Need to Know About Mortgages and Parental Leave

By Zach Silverman • July 22, 2026
If the title of this article caught your attention, chances are your family is growing. Congratulations. If you’re thinking now is the right time to move into a home that better fits your growing family—but you’re unsure how parental leave affects your ability to qualify for a mortgage—you’re in the right place. Here’s the good news. Qualifying for a mortgage while on parental leave is possible when it’s done correctly. When you work with an independent mortgage professional, lenders can often qualify you based on your return-to-work income , as long as you can provide documentation confirming you have guaranteed employment waiting for you. A word of caution If you walk into a bank branch and disclose that you’re currently on parental leave, there’s a chance the bank will only allow you to qualify using your parental leave income. That can significantly reduce your borrowing power. Parental leave income is typically limited to 55% of your previous earnings, up to a weekly maximum. Qualifying on that amount alone can restrict your options and impact the type of home you can purchase. Why lender choice matters One of the biggest advantages of working with an independent mortgage professional is choice . You’re not limited to one lender’s rules or products. Some lenders will allow you to qualify using 100% of your confirmed return-to-work income , which can make a meaningful difference in your approval amount and overall options. What you’ll need to qualify Most lenders will require an employment letter that includes: Employer name (preferably on company letterhead) Your job title Original start date (to confirm probation has been completed) Confirmed return-to-work date Guaranteed salary upon return Lenders want reassurance that your income will resume once parental leave ends. You may also be asked to provide income history from the past couple of years, which is standard for most mortgage applications. One important note Whether or not you actually return to work after parental leave is entirely your decision. From a mortgage perspective, qualification is based on having a confirmed position available to you at the time of approval. If you have questions about qualifying for a mortgage while on parental leave—or anything mortgage-related—please connect anytime. I’d be happy to walk you through your options and help you plan with confidence.

Bank of Canada Holds Rate at 2.25% — July 15, 2026

By Zach Silverman • July 15, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you.

Need Funds Between Buying and Selling? Here’s How Deposit Loans & Bridge Financing Help

By Zach Silverman • July 8, 2026
You’ve outgrown your current home. It no longer fits your life, so moving makes sense. And you’re not interested in juggling two properties. Selling first and buying something new feels like the right move. Ideally, you want possession of the new home before leaving the old one. That overlap makes moving easier, reduces stress, and gives you time to paint, renovate, or settle in before the boxes arrive. But there’s a common challenge. What if the down payment for your next home is tied up in the equity of the one you’re selling? That’s where bridge financing comes in. How bridge financing works Bridge financing temporarily unlocks equity from your current home once it has a firm sale . It bridges the gap between selling your existing property and purchasing your next one, allowing you to use that equity toward your down payment. What about competitive markets? In a hot market, a strong offer often means a larger deposit . If you don’t have that cash sitting in your account, but you do have equity, a deposit loan can help you compete with confidence. The non-negotiable requirement To qualify for bridge financing or a deposit loan, your current home must have a firm, unconditional sale . No firm sale = no bridge or deposit loan. Lenders need certainty to calculate available equity and manage risk. Bottom line A firm sale is the key that unlocks bridge financing and deposit loans. If you’re planning a move and want to understand how these options could work for you, let’s talk. I’m always happy to walk you through your options and help you plan your next step with confidence.