If you are thinking about buying a home, you are likely getting lots of advice from friends and family. They no doubt have your best interests at heart, but there are three questions you should ask yourself to decide if NOW is the right time.
1. Why am I buying a home in the first place?
This is the most important question you should ask yourself, as if will determine if you should be buying, and if so, what is most important to you in your home buying process. Financing doesn’t matter if you don’t know what you really need.
Many studies have been conducted, and 4 major reasons consistently turn up. These reasons are:
- A good place to raise children and for them to get a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of that space
What does it mean to you to own a home? What benefits will moving provide you with?
Once you have answered this question…
2. Where are home values headed?
Canada Mortgage and Housing Corporation’s outlook for 2016 indicates that the Hamilton-Burlington area will experience a moderate price increase this year. This area is an exception to the general expectation that prices will cool across Canada. For an in-depth review of the local market, be sure to speak to your REALTOR®
3. Where are mortgage interest rates headed?
A buyer must be concerned about more than just prices. The ‘long term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates. If you have been watching the news lately, you will notice that a couple of the large banks have already increased their mortgage rates. While the increases are small, and likely will have a small impact on affordability, you should ensure that your financing plans consider the possibility that rates may increase over the next few years, as that could affect the affordability of your mortgage payment when your current mortgage comes up for renewal.
Only you and your family will know for certain if now is the right time to purchase a home. Answering these questions will help you make that decision.
Be sure to speak with one of our real estate Professionals. They will advise you on the current market conditions, and help you make an informed decision.