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Is Now The Right Time To Buy A Home?

Is Now The Right Time To Buy A Home in Edmonton?

You might be wondering if now is the right time to purchase a home, with the real estate market and mortgage rates constantly changing, here are several factors to consider that can help you determine if now is the right time to purchase a home in Edmonton[/caption]

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 thing 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 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

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 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.

Compare what a Mortgage Broker can offer to what your Bank offers

It is wise when in the market for a mortgage to compare what is being offered by your Bank with what is available through a Mortgage Broker. The Government of Canada, on their web site  states that it is best to check with a Mortgage Broker with regards to what they can offer.

The four areas you should compare are:

1) Rate:  Once you have the rate your Bank will offer you, contact us to see if we can offer a better rate from one of our over 40 lenders.

  1. Payout Penalties: No one plans to break their mortgage before the term is up but life happens so confirm with your Bank how they calculate the IRD penalty, then call us. The difference could cost you thousands of dollars.

3) Service: Compare the service you receive from your Bank vs a Mortgage Broker. The bank employee works for the Bank and its shareholders, a Mortgage Broker works for you.

4) Expertise:  Buying a home and getting a Mortgage is the biggest investment you will make.  You want to have someone with many years of experience working for you. At the Best Rate Mortgage Team we have over 20 years of experience.

You shop around and compare when you are buying anything online which saves you money and ensures you are making the right buying decision, so it makes sense to do the same when you are in the market for a mortgage.

Contact us anytime with any mortgage questions you may have

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