Now is a great time to buy, the interest rate is super low. The market is down a bit. I believe it has hit the bottom and is going to start going up. Technically it already has started to rise incrementally. Now is the time to find a deal. You can get a low fixed term 5 year rate right now. A variable term means that when the prime rate goes up so does the interest that you have to pay on your mortgage. The deals are out there to be found still. The government has tightened up the lending requirements but, it is still possible to get money for the purchase of homes. The stress test is meant to protect consumers from over extending when buying a home.
As a first time buyer you qualify for the Property Transfer Tax exemption. PTT is 1% on the first $200,000 and 2% on the balance. If you are purchasing a $400,000 dollar condo that would be 6 thousand dollars. A first time buyer would be exempt from that. The lawyer or notary would apply for that discount at the time of conveyancing. There is a threshold to apply for that exemption and it is $525,000 dollars. (Although there is talk in the works of raising that threshold to $789,000.00 it is not active yet.) There is a new first time buyers program being offerred by the government. If you have 10% down and are getting your mortgage insured they will give you 5%. You have to pay it back in twenty five years. This is an incredible deal. If you or someone you know can do it. Take advantage and let me help! The only hitch is that the government would have a second mortgage for 5% which means that when you sell the home you would have to give them the value of 5%. Chances are that home will be worth a lot more in the future then when you bought it. But, your payment would be lower for years.
Trading up in the same market is always a good idea. As a seller you lose a bit if the market is softish/down, but as a buyer you often have more to gain in a soft market. The price between trading up lessens.
When searching for your dream home, it’s important to be well informed of the Real Estate market. To help you with this process, consider the following factors: What features do you require in a home to satisfy your lifestyle now? Five years from now? Will your needs change? What’s your budget? These are decisions only you can make, but I can help and will do everything possible to match you with your dream home.
Give me a call, I would love to help you!