At Avi Urban, we work with some great experts to help explain all of the details around owning a new home.
We recently checked in with Laura Parsons, Bank of Montreal Manger of Mortgage Specialists and Calgary Sun Columnist, to talk things you should consider before purchasing a new place.
The right time to buy is not just about the state of the market. It’s also about your financial and personal readiness.
While tighter lending policies and economic uncertainty may be keeping some prospective first-time home buyers on the wait-and-see list, there are factors that make today an attractive time to take the plunge.
Here are five things to think about that could make this the right time to buy a new home:
- Attractive terms and interest: Not only are interest rates near the lowest they’ve been in decades, low rates are available over longer terms.
- Affordability is improving: In many markets, real estate prices have been leveling off. For certain types of properties (like condos and townhomes), that’s keeping affordability in check.
- Less pressure in the buying process: Cooling markets mean fewer bidding wards. For first-time buyers who might find the process intimidating, it’s a huge relief. Plus, this means more opportunity to pick the perfect place without the pressure of bidding.
- More selection: For certain types of homes, there may be more listings to view. A greater choice might improve your chances of finding a property that has everything you want, including the features and location.
- You’re feeling ready: At the end of the day, the ultimate trigger should be your personal situation. This means thinking about putting down roots, making space for a growing family or fulfilling a life goal.
If you’ve already put aside a down payment, ask yourself: Are you prepared to make the long-term financial commitment, and do you know what you want?
We always advise that first-time home buyers connect with a mortgage professional. They can walk you through the mortgage and financing side of the home buying process before you buy, so you’ll know what you can afford and search for a new place with confidence.
Laura Parsons is an area manager of mortgage specialists at BMO Bank of Montreal. If you have a question about home financing, reach her at firstname.lastname@example.org.