Is Buying a Home Scary? Only If You Wait
October 18, 2021 | Posted by: Ron Chan
All Hallows’ Eve is upon us. While there are creepy costumes and spooky movies wherever you look, one thing has a lot of households scared - the prospect of purchasing their very first home. There’s nothing to be afraid of. That is, unless you wait too long to pull the trigger on an investment in your future. In the spirit of the season, we draw your attention to the scary things that can happen if you wait until late into 2022 to buy a home.
3 Hair-Raising Events That May Occur You Delay Buying a Winnipeg Home Any Longer
Mortgage Rates Will Rise from the Dead
Canadians have been enjoying historically low mortgage rates for a year. To lenders, rates have gone so low that to date they are darn near in the grave. However, there have been reports that the 5-year fixed rate has clawed its way up through the soil. Earlier this month, nearly all of the big banks raised their fixed mortgage rates. For instance, CIBC increased their 5-year fixed (high ratio) rate from 1.99% to 2.19%.
While the cost of borrowing remains extremely low, the trend won’t last much longer as we are almost out of the economic crisis. The Bank of Canada will gradually lose incentive to boost consumer spending by being aggressive in the bond market. As a result, lenders will once again be able to charge more. Variable rates will also climb out of their coffins, and allow banks to restock their coffers. That good news, is that this won’t happen until mid-2022. If you make your move now, you can fend off undead mortgage rates.
The Only Houses Left, Will Be Haunted
The combination of rock-bottom mortgage rates and most affordable real estate pricing in Canada has trimmed the inventory of single detached houses in Winnipeg. There aren’t many dream homes left folks. If you wait to get pre-approved on a mortgage, and don’t start shopping right away, there won’t be much left aside from the ones neighborhood kids avoid on Halloween. Do you really want to get a mortgage on a haunted house?
Prices Will Gouge Your Eyes
When inventory is drastically reduced (as per above) prices invariably rise. While Winnipeg still has some of the most affordable quality real estate in Canada, those who wait will pay more. Sellers will begin to price gouge as demand far exceeds supply, and the home you had your sights set on may not longer be attainable. Act today while your dream home is still in your price range. We also encourage you to read our guide to how a mortgage broker can help you find a home during bouts of low inventory.
Pretty scary stuff, right? Let a mortgage broker help you exorcise the demons that attempt to prevent you from buying your first home. Contact Winnipeg mortgage specialist Ron Chan today to get pre-approved. Call 204.290.9950 for a friendly conversation.