Buying a new home is always a big decision that takes a lot of thought, no matter what the housing market is like. It is a significant commitment, both financially and personally, and you want to make sure you are making the right move.
Today’s housing market offers exceptional value and affordability. The combination of highly competitive new home prices and historically low mortgage rates means greatly reduced monthly mortgage costs.
But these conditions won’t last forever. As housing markets come into balance and economic conditions begin to improve, the cost of homeownership will rise. So right now may be the right time for you to buy a new home. Consider these factors:
- New home prices are very competitive. The current housing market is seeing tight pricing by new home builders and great value for homebuyers. New home quality, the latest technology, better energy efficiency and more features, at very competitive prices—this is an excellent time to invest in a new home.
- Homebuyers have a lot of choice right now. From condo apartments to townhouses to single-family homes, from suburban communities to urban infill, the marketplace offers a wide selection of homes, in many styles and price ranges, and available within reasonable timeframes. The time to get the best homes and locations is now.
- Mortgage rates are exceptionally favourable. The cost of borrowing money for a home purchase is the lowest it’s been for a very long time. Mortgage interest rates have fallen by more than 25% over the last two years, and this can mean much lower monthly costs for you. Now is the right time to talk with your financial institution or a mortgage specialist.
- The marketplace is less rushed. A slower housing market is a better marketplace for homebuyers. If you value being able to make important choices at your own pace, the time to buy is now.
- A sound investment for the long term. Housing is a solid investment that performs well over time. If you want to enjoy the financial security of homeownership, the time is right—start laying the foundation now.
- First-time homebuyer initiatives. Beginning this year, there is a little extra financial help available for some buyers. First-time homebuyers may be eligible for a federal tax benefit of up to $750 for costs associated with the purchase of a home. Further, under the Home Buyers’ Plan, you can now withdraw up to $25,000 from your RRSPs tax-free, or $50,000 for a couple. Take a first step towards homeownership. Visit the new home builders in your community and find out what’s available. Contact a mortgage specialist to get pre-qualified for a mortgage—it doesn’t cost anything and doesn’t obligate you to accept the loan they offer you. Now you are well prepared and ready to buy a new home anytime you decide the time is right for you.