Clients frequently say "We've decided not to buy now. We would rather wait a year, when mortgage rates drop".
Nothing wrong with that but there are a few misconceptions that need to be corrected! Availability of homes in the Capital region continues to be low, with too many buyers for the number of homes available at a given time. This causes a multiple offer situation, which often results in houses selling for 10-15% higher than listing price.
BUT you're not going to necessarily face a better market in a year's time:
* Mortgage rates are unlikely to drop to the 3-4% levels we had a few years ago. They may drop but experts do not expect a substantial drop in rates.
* Homes in the Capital Region are continuing to grow in value (anything between 8 - 12%) depending on areas.
* Rentals are going up, as landlords have to cover higher costs
* With many buyers waiting it out, when mortgage rates do drop, its going to be a frenzy in the market
If you're going to pay rent, wouldn't you rather be paying it towards your own home, than to your landlord. There are opportunities to re finance at a later date but at least you will have got your foot in the door!
As first time home owners, there are a number of incentives you may qualify for, to assist you.
Reach out and let's chat.....