Is it a good time to buy a home?
Interest to remain low
On November 24th, Mark Carney, the governor of the Bank of Canada announced that the central bank will keep lending rates low to limit the impact of the global economic downturn, as financial troubles in Europe increase.
This is good news for those who want to invest in a home or in real estate. With interest rates at near historic lows, and rental rates increasing, it is a good time to buy a home.
Why invest in real estate?
While buying a home is a huge investment, there are many reasons to consider investing in real estate.
Consider the following:
- Investing in real estate means that you are putting money into something that has value
- Homes can go up in value, particularly if you are in a market with strong growth potential, such as Calgary,Edmonton, Vancouver, Surrey, or Abbottsford as well as many other cities in Alberta and BC
- It is possible to live in your investment. Why pay rent so that you pay off someone else’s mortgage?
- The cost of buying can be the same as renting. This allows you to save your money by building equity in your home. The more equity you build in your home, the better your credit rating becomes and the easier it is for you to take out a home equity line of credit in case you need to pay for your child’s tuition, invest in a business or pay off your credit card debts
- As long as you are aware of the costs of ownership, and research the neighbourhood carefully the odds are in your favour
- There are many tax benefits to owning a home
In order to make a good purchase it is important to understand the real estate market. You will need to do your homework and check out the areas of a city in which you want to live. A mortgage broker can be a big help, since they understand what is happening in the market and have access to market resources and lending sources.
Once you get a good understanding of the housing market, it is important to factor in the additional costs of ownership, such as property taxes, upkeep, condo fees, and the costs of buying such as the closing costs or property transfer taxes. Also consider the growth potential of the area. Are there new industries moving in, how stable are the interest rates, is the home you are interested in located in a desirable area of the city?
Other aspects to consider are:
- How long will you live in the home? If you are staying more than 5 years, it is possible in growth markets to see increases in the value of your home
- How healthy is your credit rating?
- Are you carrying credit card debt?
Work with a mortgage broker
Working with a knowledgeable mortgage broker can help you better understand the market and discover how you can qualify for lower rates. They will also provide different kinds of mortgages and different financing options, and most importantly, they will work hard to get you the best rates for your mortgage or loans. This removes a lot of the stress of going into a bank and asking for a mortgage and negotiating yourself, plus mortgage brokers have access to a wide range of funding options that can be customized to fit your financial needs.
The One Stop Mortgage team of mortgage professionals can help you with your investment into the real estate market. They can answer your questions and assist you in getting the best financing package to fit your needs.
Call them today at 604 874 8988 or 1-877-874-8988 and find out how they can help you buy the home of your dreams that is also a good real estate investment. Or email them at firstname.lastname@example.org and discover how they can help you in making one of the most important investments of your life.