Can a crisis be the best time to buy?
When current world events may lead to an economic slow down, one tool the Canadian Government has on its belt is reducing the interest rate. Making it easier for people like yourself to continue living life as normal as possible. The interest rate on things like mortgages goes down during an economic downturn, which makes the cost of borrowing much more affordable.
If you are a first time home buyer, have been thinking about making a move to upgrade, or considering a downsize, now might be the right time for you.
With interest rates hovering at historic lows, and a predicted recession looming on the horizon, banks are eager to sell mortgages, but less people are buying.
While the actual price of homes hasn’t seen much of a drop (some areas have even seen increases), buyers are hesitant to buy for a variety of reasons, like:
- Fear of the unknown. How long will this crisis last?
- Recent loss of job, or employment uncertainty
- Health concerns. Going to showings can put you at risk, and few trust pictures alone
- With government isolation rules, friends and family cannot help in the move
- Buying a home is stressful, and they do not want to add to the stress the crisis has caused them
Meanwhile, sellers haven’t stopped selling. This creates a buyers market, where those who are not discouraged by the above, are able to take advantage of low rates, and a huge choice of homes on the market.
Mortgages have long been considered among the safest of long-term investments. It is important to assess your own financial situation and determine you have the job security, and longterm financial ability to afford a mortgage. In the current market, some areas are seeing the monthly mortgage payment on a home be less than rent would be!
At Mortgage Station we help you find the best mortgage for you, and also have personal loan offerings.
Reach out to us if you have any questions about your eligibility, or whether you may be in a position to buy.