Given the current state of affairs, this is a popular question I hear.
My not so simple answer is yes, no, and maybe...
A lot depends on your personal situation.
- Are you a first time home buyer?
- Are you looking to move up the property ladder?
- Are you buying an investment property?
- Are you worried about your employment?
- Have you taken into account down payment + closing costs?
As hard as it is to not factor Covid into your decision, you have to ask yourself these questions:
- Do you understand your personal budget?
- Do you understand all the moving parts to your upcoming property purchase?
- Are you pre-approved? But, actually pre-approved? Meaning, someone has done a consultation on your situation, reviewed credit, income documents, etc.
If you have your ducks in a row and your quality of life will improve, then yes, the time is good.
Truth be told, I always think real estate is a sound investment.
Covid did different things to different markets all across Canada. For example, condos in downtown Toronto have taken a large hit due to the borders being closed which means less immigration, coupled with tenants of rentals no longer having employment and people leaving the city. But, most markets are thriving...some are business as usual.
Here are a couple of things I know to be true.
- It’s tough to time the market. That goes for real estate values and interest rates.
- Rates will be low for the foreseeable future. BUT...I wouldn’t base a home purchase solely on that. Rates will inevitably increase and you need to be prepared for when they -do.
The banks stress test your potential mortgage payments as if the interest rate were 4.79%. This gives them comfort in case rates do rise when your renewal comes up in the future.
I can’t answer with one broad statement if buying a property makes sense for you right now, but I can help you figure that out.
Please let me know if you’d like to chat.
I’m here to help.