Thinking About Buying a New Home? Here’s Why It’s a Good Time To Buy.

May 31, 2022

Buying a new home is never an impulse purchase. You have likely been dreaming about what you want and need in a new home for a long time.

Thinking About Buying a New Home? Here’s Why It’s a Good Time To Buy.

Buying a new home is never an impulse purchase. You have likely been dreaming about what you want and need in a new home for a long time. Maybe you’ve visited neighbourhoods you’re interested in just to check it out. You may even be saving for a down payment or crunching the numbers for a potential investment property.If you are dreaming, researching and considering buying a new home, I would say this is your year!I always say, the best time to buy a home is sooner than later (if you can afford it), especially as prices continue to rise in the city, but buying Toronto real estate in the next year or two will allow you to really reap the benefits of investing in this dynamic city. The combination of available properties, prices that are lower than they have been recently and the city’s consistent property value appreciation, make this a great time to buy!Low interest rates will definitely helpSince COVID-19 is in a second wave here in Canada, unemployment is high and many parts of the economy have been affected by government restrictions. Knowing that, The Bank of Canada has committed to keeping its overnight rate at .25% for the next two years. Here is the ArticleThere likely won’t be a further reduction in the rate but for those in a position to purchase, it is still good news. Fixed-rate mortgages are currently setting record lows, according to the Canadian Mortgage and Housing Corporation (CMHC).In 6 months, fixed rates will probably be the same or slightly higher than today, according to CMHC, so locking in a 2.00% 5-year fixed mortgage rate will benefit new home buyers financially if variable rates begin to climb. At the moment, that seems unlikely to happen until late 2022 or early 2023.In mid-January, The Bank of Canada 'Target Rate' was set at 0.25% and the Prime Rate was 2.45%. Lenders typically offer variable mortgage rates that are lower than the prime rate. My advice to my clients is to have a team of experts that can help guide you in your decision-making.Engaging a mortgage broker or a financial advisor as early as possible in your home buying journey is really important. It will help to ensure you know what you can afford. This will also really help when it comes to narrowing down the homes you look at and potentially bid on. You can lock in your mortgage rate up to 120 days before closing on a home purchase or the renewal of your mortgage.

What to buy - condo suite, condo or freehold townhome, semi-detached or detached?

Do you know what type of home best suits your lifestyle? Do you like the convenience of walking to the grocery store, underground parking and having common spaces like a fitness studio in your building? Would you rather have a big backyard, more bedrooms and be further from downtown?Some of these lifestyle questions will help you determine if you’re looking for a condominium suite or a freehold house.I predict in the coming year, the freehold market will remain strong and desirable. If homebuyers can’t afford to purchase a home downtown, they will start to look outside the city. For the condo market, investors can jump at the chance to get something that is undervalued and earn back their investment with dividends within 5 years.

Get into the real estate market now, if you can!

If you have been thinking about buying a new home in Toronto, this year could be your year!First-time buyers and investors should be honing in on their preferred neighbourhoods and looking for condominiums and condo townhomes on the market.Upsizers and empty-nesters, this could also be the right time to make a move. If you want more house outside of the downtown core, or conversely, you want walkable amenities with the convenience of elevators, underground parking and building amenities like a fitness studio - now is the time to look at what’s out there.Real estate prices in the early part of the year will be appealing and my advice is to look now and even if you don’t find your dream home or one that is the perfect fit, getting into the real estate market is a great first step to get you there!

Helpful real estate research tools

I have a few tools on my website that are helpful. I regularly post featured properties on my website here. If you like your area and want to know what is for sale nearby, I have a tool called, Streetmatch, on my website. It provides instant updates when your neighbours are selling their homes. Together, we can use this to understand your property value better. I can also send information like this to you directly.Call me anytime at 647-801-2233 or send me an email so that we can connect virtually or in-person to discuss the findings.Please forward this blog post to anyone in your network who is thinking of buying or selling a home and I encourage you and your family and friends to follow me on social media. Follow me on Instagram @properties_by_jon and on Facebook @Properties by Jon.If you have any real estate questions, I am always up for a virtual coffee chat! Let’s connect soon.


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