We all know the property market warms up when spring and summer come around.
And 2025 could be hotter than anyone anticipated.
The Bank of Canada has reduced the interest rate for the sixth time since last April, and inflation remains low and stable at 1.8%.
For many upsizers and first-time buyers, the question is simple: “With money cheaper than it has been for several years, is this the right time to make my move?”
We believe the answer is not so much financial as personal.
The best time to buy your first or next property is when you are ready to do so.
And “ready” can mean financially, emotionally, or both.
The market is certainly in a better place now than it was 12 months ago.
With the Bank of Canada reducing the base interest rate to 3% – that’s 2% lower than last April – you’ll get a bigger loan.
But we all know what cheap loans tend to do – push up the price of homes.
So logic suggests that looking at a purchase this month or next could be a really smart play.
It’s possible you’ll enjoy low interest rates and beat the impending price rebound.
Even better news for you is that many buyers are still reluctant to bite the bullet.
If you act quickly, you won’t have to make any compromises or quick decisions under the pressure of a resurgent market.
Why is there an absence of buyers? It’s probably best explained as a bad case of nerves.
Canada’s economy is weak, we have an election around the corner and the talk of tariffs doesn’t help. This leaves many folks wondering about job security.
Conversely, the number of homes put on the market in January rose 11% compared with the December number, and there are 17% more properties for sale than 12 months ago.
Normal is returning, and owners are feeling optimistic.
And of course, they’ll be looking for a new place to buy soon, too.
Right now, home values nationally are recording flat growth, another sign a purchase now could reap rewards.
Here are some ideas to help you act quickly:
Hit List: Be crystal clear on the type of home you’re seeking. A list of “must-have” and “nice-to-have” features is going to make your search faster and deliver better results.
Neighbourhood Watch: Describe the type of area you want to live in. Do you need a large garden, or are you happy to compromise on space if it means a shorter commute or easy access to good restaurants and cafes?
Valuation assessment: If you’re an owner, it’s a great idea to ask an agent for a price appraisal. We’d be delighted to help you. You could commission a professional valuer, but they tend to be conservative in their estimates.
Credit Score: For first-time buyers especially, it’s essential to check your credit score. It will have an impact on the amount a lender will issue to you.
Get Pre-Approved: Ask a broker to find a loan most suitable for your needs. They can also help with advice on improving a credit score. Alternatively, approach a lender directly. However, they’ll only offer a loan within their portfolio.
Helping Hand: Investigate whether you qualify for a home buyers’ tax credit, the Home Buyers’ Plan (HBP) or another federal incentive. And why not? Your tax dollars are paying for them!
Keep Saving: Whatever you do, retain your savings discipline. Every penny you put away today will save you hundreds of dollars in interest costs once you have your mortgage.