Buying a new home is a big decision and timing is an important consideration. Here are three reasons why you should buy now!
1. Interest rates are low. As economic activity is stimulated in the coming months and the federal government leads our country through the pandemic, interest rates are likely to rise. A slightly higher interest rate can make a significant difference in your monthly payment or the time it takes to pay down your mortgage.
That means on a $400k mortgage, a difference of less than 1% in the interest rate equals over $100 per month. That’s $1,200 annually! That’s a bump-up on your RRSP, a good chunk towards new furniture or extra spending money for clothes and shoes. Be selfish and keep that money for you!
2. Get more house for your money. Construction costs are on the rise which translates into higher costs to build a house and, you guessed it, house prices will reflect the increase as well. While it might seem prudent to hunker down in times of uncertainty, you’ll get more house for your money if you buy now.
3. Home sales are rebounding. According to the Canadian Real Estate Association, July 2020 posted the highest level of sales in any month in history. Likely some of this has to do with making up for lost time during the lockdown. And, these are national numbers. Western Canada saw a more modest increase than provinces east of Saskatchewan, but activity is still up. In the Creekwood Collections neighbourhood, for instance, the number of sales were higher than average in the months of June and July 2020. This trend will more than likely continue. Don’t delay – you’ll have more choices and more options if you act now.