Melody Kilbank

November is the time of year we all reflect on our freedom in Canada. Paid for by the sacrifice of many. My dad is a WWII veteran and he just celebrated his 95 birthday in September! As I reflect on my parent’s real estate decisions over their life time, they are the prime example of how the equity snowball can work for you, in the purchase of your own home.

They started small in the early 50’s by financing their home purchase by the benefits of the Veterans Land Act. In 1950 the VLA began to provide loans to veterans who wished to construct their own homes. Their subsequent home purchases allowed them to move the equity from this original home to the next and so on. This equity is still providing a passive income to my Dad.

I think the key to building a good equity snowball is in getting into the market as soon as you can with an affordable home. It doesn’t have to be your dream home. As long as it provides for your needs, get started in home ownership and build some wealth through, market appreciation AND principle pay down on your mortgage.

With the new mortgage qualifying rate, first time home buyers are going to need to readjust their expectations. They may need to see one extra stepping stone along their path to their dream home.

My advice is to keep the big picture in mind. Your equity snowball is just going to start smaller. But you will still get to your end goal, thanks in part to the veterans who have served so we can enjoy the freedom of owning our own piece of real estate!

Grateful.