Buying a new home this year?
A home or cottage is one of the few major investments you can personally use and enjoy. It's also likely the biggest investment you'll ever make, so we recommend you take time and care to plan your next move.
Among the key strategies to consider off the top:
Picture your dream home. Start by assessing your needs and wants. Where would you like to live? What type of home and features are you envisaging? As homebuyers rarely find everything they need and want in a property, it may be helpful to rate your priorities on a scale of 1 to 10.
Get a handle on your finances. At the same time, you should review your current situation in the context of your wealth management plan. This will help you determine a reasonable budget for your new home, given your other short- and long-term goals.
Build in a cushion. Because housing prices are cyclical, and today's economic environment remains fragile, it's wise to build in a cushion and choose a home you can comfortably afford, even if personal or economic circumstances should change. In fact, the federal government is ensuring more of a cushion through new rules, effective April 19, which will require borrowers to qualify for a five-year fixed-rate mortgage, even if they choose a lower variable rate.
Obtain a mortgage preapproval. Getting preapproval on a mortgage not also confirms how much you can afford, but may also give you an edge over other bids when you put in your offer. What's more, it lets you lock in interest rates for a set period (e.g., 120 days), providing certainty and enabling you to focus on buying the ideal home.
Weigh borrowing options. Mortgage options are constantly expanding and changing, and they're often more complex than they initially appear. Two mortgages with the same interest rate may be quite different. It pays to consult an expert to better understand and evaluate your options.
Before you start your house-hunting, we invite you to come in for a financial review. We can help you incorporate your dream home as part of your overall plan and then shop the market to bring you the best possible rates and terms available to us for your needs.
Return to Newsletter
The information contained herein is for ON residents only and does not constitute an offer to sell or solicit sales in any other Canadian or foreign jurisdictions.
If you wish to unsubscribe from this newsletter, click here.