There is a small group of Canadians who, for various reasons, prefer to rent. But a majority of Canadians dream of owning their own home. With interest rates lower than our grandparents enjoyed-combined with innovative new no-downpayment mortgages, there has never been a better time to take the plunge into home ownership.

Not sure where to begin on the home buying adventure? Set aside the issue of downpayment for a moment and consider your monthly cash flow. How much can you budget for? Consider what you are currently paying in rent and other housing fees. Look at your spending habits and ask yourself if you could comfortably pay more per month. You may, for example, look forward to cooking meals in your own home rather than dining in restaurants as often. A house purchase often entails some lifestyle changes. What about transportation, for instance: will you be moving next to the subway stop, or out of town? Remember to factor in these changes as you calculate how much money will be available each month. Finally, remember that not all that money can be spent on your mortgage payment, since you will need to allow for other costs such as utilities and property taxes. But with the low interest rates, your mortgage dollars will go further than ever before, and you may even be looking at less than you’re paying for rent!

Now, let’s tackle the biggest hurdle for most would-be homeowners: the downpayment.

Traditionally, Canadians have expected to save up 10% of their purchase price as a downpayment, plus closing costs. With today’s mortgage options, the downpayment doesn’t necessarily need to stand in the way of your home-buying dreams. If you have an RRSP, for example, you may be able to take advantage of the government’s Home Buyers Plan, or explore one of the innovative new mortgages that effectively eliminates the need for any downpayment at all. The newest mortgages, in fact, not only offer 100% financing, but also “cash back”-a real bonus for some where you need to factor in purchases such as appliances, etc., that may cost you higher interest payments. Not to mention that if the downpayment is slowing your purchase down, how much are you spending in rent to postpone?

Don’t forget to get advice. A mortgage professional can help you decide on the right path for you and make a realistic assessment of your financial situation.