Is now a good time to buy? On the one hand you have very low mortgage rates as the Bank of Canada (Canada Realty News reports) had cut the interest rate several times in the last few months to try and get the banks lending again. Property prices have dropped in the last year and there are many good deals to be made.
On the other hand, there is still the question whether housing market prices will hold or drop further. Potential buyers are wary about taking on such a huge borrowing to find that the dream house they have just bought may be worth appreciatively less in six months' time.
A low market is always a good time to buy even though it may be several years before the market rebounds. The property market will rebound.
If you are in a position to buy a house and can afford the repayments, buy now. Waiting to buy could result in paying much higher prices in a rising market.
It is also important to consider how long you will be in the home that you are about to purchase. Once you buy the home, it may be very difficult to resell right now.
Of course, if you have a long-term plan to be in the home, the fluctuations and potential decrease in value in the near term doesn't need to get you down, as the only price that matters is the price you are able to sell for when you need or want to move.
Another thing that you need to think about is if you can afford the home that you are considering buying. While prices have dropped recently, you want to make sure that you find a home that is going to fit your budget. As a precautionary measure you should also budget for the fact that the cost of living might rise even further, and that being able to afford these increases will be important.
If you have the funds available for a down payment and you are eligible for a mortgage, and feel comfortable about your job security, and currently meeting the rising costs of living fairly easily; then the time is probably right for purchasing property.
It is still a buyer's market, so find your dream home, negotiate your best deal and jump in. Buying property now is one of the best times in the last hundred years to get a bargain.
Here you can read more about Toronto real estate market and great Toronto mortgages - http://www.torontogreathomes.com/ONTARIO_MORTGAGE/page_929364.html
Alexandre Malkhassiants, Sales Representative and Mortgage Specialist,
Right at Home Realty, Centum Mortgage Decision
Office: (416) 391-3232
Cell: (416) 723-9383
Web site: www.torontogreathomes.com
Toronto real estate market blog: http://torontorealestate.wordpress.com/