Is Now The Right Time To Buy A Home?
You might be wondering if now is the right time to purchase a home. With the real estate market and mortgage rates constantly changing, it can be difficult to make a decision. However, there are several factors to consider that can help you determine if now is the right time for you.
The first things to consider is your personal financial situation. A mortgage broker can help you assess your income, debt ratios, and credit score to determine if you qualify for a mortgage. If you want to get a quick idea of how much of a mortgage you can qualify for you can also use online tools to get an idea of how much you can qualify for here is a link to a phone app that will such as the phone app that will let you see how much of a mortgage you qualify for in 60 seconds https://www.dlcapp.ca/app/denise-budney. Additionally, if you have good credit and income but haven’t saved up for a down payment yet, there are programs available to help with the down payment. Contact us to learn more about these programs https://thebestrate.ca/
If you qualify for a mortgage and are tired of renting, the two main concerns that might hold you back are a fear of dropping home prices and interest rates. In areas such as BC and the Toronto area, home prices have increased by over 200% to where the average house is now valued at over $1.2 million dollars, so there might be concerns that home prices will drop in those regions. However, in Alberta, the average home price is $469,000, and the region’s strong economy and record-breaking population growth suggest that home prices may increase in the future.
As for interest rates, they are still relatively low compared to the historical average, despite the increase after the short period of record low rates caused by the COVID-19 economic shutdown. The world wide shut down due to covid resulted in the Bank of Canada dropping rates to their lowers level in over 60 years. Over those 60 years the average 5 year mortgage rate was 9.29%. Currently, our the five-year fixed mortgage rate is 4.49%, and you can check the current bank rates at https://thebestrate.ca/beat-the-bank/. Keep in mind that if you are renting, you are paying 100% interest and not building any equity, which can cost you $30,000 or more per year. If you currently own a home and have one of those record low mortgage rates and want to move…we can help you move your current mortgage with the low rate to your new home through the porting options.
In conclusion, the decision to buy a home is a personal one and requires careful consideration of your financial situation, the real estate market, and interest rates. By consulting with your Realtor and a Mortgage Broker, they can help you make an informed decision about whether now is the right time for you to buy a home and help you purchase the perfect home with a great mortgage.