Buying a House in Low Inventory | How a Mortgage Broker Can Help

September 15, 2021 | Posted by:

Buying a House in Low Inventory

With every Winnipeg real estate news update that we release, there has been one consistent message over the last year. No, we’re not talking about the historically low mortgage rates that buyers have been enjoying, at least not directly. Instead, we’re referring to the reduced inventory of homes on the Winnipeg market, which is most certainly tied to rock-bottom rates and low prices compared to the Canadian average.

Tight inventory is indeed becoming a challenge for first time buyers, especially when the opportunity is prime with both variable and fixed rates sitting at record-breaking lows. Buyers are downright frustrated. While new construction is underway, it can take 2-5 years for homes to be ready for move-in, even with 3D printing potentially coming to the rescue. Yes, they’ve started printing houses.

So what are you, a new buyer, to do? Connect to a mortgage broker. A mortgage broker can actually help you break the barrier of buying a house in a low inventory market. Here’s how.

How a Mortgage Broker Can Help New Buyers Find a Home Despite Limited Inventory

Can Open Your Options to a Wider Price Range

Based on your own calculations of household income, savings, and credit rating you may have assumed that you can only afford a home in a specific price range. That low to moderate price range is typically where inventory is leanest. Approaching a lender on your own will absolutely restrict your options and you will have no choice but to wait for new construction homes to be completed in however many years that may take. But with a mortgage broker, you will very likely find that you can afford more than you anticipated, and without taking on significantly greater risk. How?

For one, a mortgage broker can provide you with access to first time buyer incentive programs that may effectively reduce your downpayment requirements. They also have access to RRSP home buyer plans, first-time buyer tax credits, new housing rebates, and even green home programs. View the complete list of these new buyer incentives here. In addition, they may also connect you to private lenders and alternative home financiers who do not obsess solely over your credit score. Mortgage brokers are also best renowned for getting you access to lower unadvertised rates, which can reduce your monthly expenditure requirement. Any of the above will allow you to afford a home in a higher price range. This is one of the most effective ways to beat the real estate inventory slump.

A Broker is Connected

A broker that has been a part of the community for over a decade has deep and longstanding relationships with those in the real estate industry. To put it crudely yet succinctly, they know a guy, who knows a gal, who has a cousin with intel on currently or soon to be available properties that are not yet on the local MLS feed. Think about it, a reputable broker has been working closely with real estate professionals, and it’s extremely important for the latter to keep the former in the loop about available inventory. A broker doesn’t just connect new buyers to lenders, but to a wide range of related product and service providers, including Realtors and agents that have the down low on available homes, even when inventory seems invisible.

Again, mortgage rates are sitting at rock bottom and Winnipeg real estate prices are more affordable than anywhere else in the country. Don’t let perceived low inventory get in your way. Contact mortgage specialist Ron Chan today at 204.290.9950 to get started on the hunt for your dream home.

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