Are you in the market for a new home but wondering whether you should buy now or wait to see what happens to mortgage rates?
With the uncertainty of where the interest rate will go, it is difficult to figure out whether now is a good time to buy a home. We outline practical advice on whether now is a good time to buy your next home.
Where are interest rates headed?
Right now, the real estate market is quite hot, even though interest rates have continued to rise and are much higher than in the past. Houses on the market often sell within a few days – sometimes over the asking price!
That said, houses are still selling for lower prices than last year, and the Bank of Canada has been slowing down its interest rate hikes. This decrease in increasing interest rates has led to speculation that they may even drop their rates soon, which could lead to a drop in mortgage rates later this year!
How can I find a mortgage that I can afford?
With rising house prices, finding a reasonably affordable mortgage can be challenging. These are some ways you can ensure you stay on budget:
Be flexible in where you buy and what kind of home you want. Prices will be lower outside major cities and for townhomes or semi-detached houses.
Get a fixed-rate mortgage if rates drop. If rates for Toronto-area homes do fall in the future, they will likely go up again! Locking in a fixed-rate mortgage will help you keep the mortgage for your Toronto-area home low.
Work with a mortgage broker. A broker can shop around to help you find or negotiate a low mortgage rate on your future home!
How can Northwood Mortgage help me obtain a low mortgage rate?
We are not tied to offering you just one rate like banks or credit unions are. Instead, we can shop around with various financial institutions, including private lenders, to find a low rate for you.
When researching rates, we also look at other factors, such as prepayment options. You don't have to do the complicated work of sorting out all the details attached to a mortgage rate – instead, you tell us what you need, and we find it for you!
Is now a good time for you to buy? We can help you decide!
Let's discuss where interest rates are heading and even lock in an interest rate for you with a pre-approved mortgage! Call us at 888-257-8130 or contact us online to learn more about how Northwood Mortgage can help you get a low mortgage rate!