This past week, the federal government announced changes that will help some buyers enter the Real Estate Market. If you are a first-time home buyer or if you are considering purchasing a brand new build, these changes are for you.
Here are our major takeaways from the announcement
30-Year Amortizations: The expansion to 30-year amortizations can lower monthly payments, making homeownership more accessible. These are now available to all first-time buyers and anyone purchasing new builds.
Higher Insured Mortgage Cap: The increase to $1.5 million allows buyers in high-priced markets to access insured mortgages with lower down payments. So in otherwords you can now purchase a more expensive home with a lower down payment.
It is always important to analyze your personal situation and your Real Estate Goals before knowing if any of these changes will even make a difference for you. Here are a few things to keep in mind when thinking of buying Real Estate.
Market Conditions:
Interest Rates: Consider current interest rates. Lower rates can make borrowing cheaper, but if rates are high, it might offset the benefits of the longer amortization period.
Housing Prices: Evaluate if home prices are trending up or down. In a hot market, prices increase faster than the benefits from these changes.
Personal Financial Situation:
Affordability: Assess your own financial situation, including your ability to handle mortgage payments, property taxes, and maintenance costs.
The recent changes to the mortgage market can create favourable conditions for buyers, but whether it’s a good time to buy depends on several factors:
Long-Term Plans: Think about how long you plan to stay in the home and whether the longer amortization aligns with your financial goals.
Overall, if these changes align with your financial situation and the local housing market conditions are favourable, it could be a good time to buy. However, it’s always wise to consult with a financial advisor or mortgage professional to ensure it’s the right move for you.
