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Why Now Could Be The Time For You To Make a Move Into The Market

Why Now Could Be The Time For You To Make a Move Into The Market

Are you thinking about entering the housing market? Now could be the time! The first Bank of Canada Interest Rate of 2024 was announced in January, holding the overnight benchmark rate at 5%. There are 7 more announcements to be made in 2024. It is predicted that the rate may go up before it goes back down towards the end of the year, only time will tell.  

The reality is, housing prices are lower than they were at the peak of the pandemic, but we can’t predict if they will go down further, stay steady or climb back up. If interest rates do go down, then housing prices will likely go up again, thus creating competition for buyers, making it a sellers market. With the current inventory of homes available across Canada, you have more options and less competition, meaning it is currently a buyers market. Understanding this will help you make moves at the right time.  

Working with a trusted mortgage agent to learn your borrowing options is also extremely important. They will look at your finances and explore the best options for your current circumstances. With variable mortgage rates currently being both elevated and riskier than fixed mortgage rates, fixed mortgage rates will likely dictate mortgage affordability and overall housing demand this year. 
If fixed rates do go below 5% this year, buyers will likely sense an opportunity and get back into the market. The best way to get ahead of the crowd is to get pre-approved for a mortgage ahead of time. Knowing your mortgage options will allow you to make informed decisions and a pre-approval means you can start your search within your budget and make offers when you are ready instead of scrambling. 

Another important point to consider, if you have a down payment and can build on it, making it more than the minimum requirement, passing the stress test and working with lenders that require a larger down payment to approve a mortgage you can afford will put you ahead of the game. 

Accepting the reality of the market, being educated and informed, and creating a plan for yourself is the part of the home buying process. 

If you need help with creating your plan and putting that plan into action, build your team now - shop around for mortgage professionals and a trusted real estate agent. We would love to be that real estate team for you! With our knowledge, experience and connections, we will have you well on your way to realizing your dreams of owning a home and getting into the market soon rather than later. 


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