We have all been plunged into a new and changing real estate market with the sudden increases in mortgage interest rates. If you’re like many Canadians that are still looking to buy your first home, upsize/downsize your family home or purchase an investment property you may have felt some fear or uncertainty, not really knowing how it will affect your dreams and your decision to move forward.
If that sounds like you, rest assured that there are plenty of opportunities and reasons to be positive and continue to pursue those dreams and make them come true. With the quick rise of interest rates, inevitably the market changes and pricing of homes come down.
If you were looking at buying a home at the beginning of the year, there was an extreme level of competition for very few homes. Now the market is different, arguably it’s healthier. There are more homes to choose from, less competition and lower prices. You may even be able to get into a home type that was out of reach just last year.
An advantage of lower home prices is that your down payment you saved for may not have to be as large as you had anticipated, leaving you with more cash for furnishings and other expenses. Another advantage is you can now put down a greater percentage of the purchase price as a down payment, requiring you to borrow less and avoid premiums. For example, your 15% down payment a year ago could now be 20% and now you can avoid paying CMHC mortgage insurance premiums!
Something else to keep in mind, interest rates climb, but they will also come back down, as they do and as the waiting buyers flood back into the market increasing demand, the housing prices will go up, accelerating the appreciation and increasing value of your home or investment. As an added bonus, if you buy when prices are down, the principal owing on your mortgage will be less too!
The key takeaway is, when markets change, there can be an abundance of opportunity, you just have to seek the guidance of a full-time professional like myself to help you be successful and navigate these changes to ensure you win and make your dreams come true.
Contact me now and let’s get started today to get ahead of the next fiery hot market!
Paul Mann, www.mannestates.com