Toronto home buyers have a challenging decision ahead of them in 2023 – to buy now or wait until the market settles? There are several questions that will help determine your best course of action. Let’s take a look at the three key factors to consider before venturing into the current housing market.
How much of a down payment have you saved?
Given the high interest rates, having as big of a down payment as you can is the best way to mitigate large mortgage payments. If you had planned on using only part of the money you had saved up on a down payment and wanted to reserve the rest for renovations to your new place, the wiser option right now is to put down as much as possible up front and to save up again for renovations. Why pay interest on more money than necessary?
Will you be living in your home long-term?
If the answer to this question is “yes” then anytime is the right time to buy a house. If your plan is to buy and stay, then any market considerations are nominal. Long-term home buyers will always come out ahead in the long run, so long as they are able to meet the immediate demands of high interest rates.
Do you have good credit?
Good credit means better interest rates on your mortgage. If you have good credit then you will be in a good position to negotiate with your lender. People with good credit are always attractive to lenders as they are a safer bet than people with low credit scores.
If you have answered these three questions and find that you have enough money saved up, you will be living in the home long-term and you have good credit – then buying a house now makes sense.
Some advantages to buying now include:
You will start building equity in your home right away.
You can take advantage of the lower home prices – in some neighbourhoods thirty percent lower year-over-year!
You are in the driver’s seat when it comes to negotiating on the sale with sellers.
Regardless of what you decide, having an experienced and knowledgeable real estate agent is key – especially now. A good agent will be able to walk you through your options, find you the best houses in your chosen neighborhood and help you make informed decisions.