Should I Buy a House if a Recession is Coming?
November 7, 2023 | Posted by: Ron Chan
In a TikTok video that went viral, comedian Pat Burtscher essentially solved the economic crisis in one joke. However, the powers-that-be will never let the comedian’s logical suggestions to “turn it off” and “let’s just say it doesn’t” happen. Consequently, we seem to be beholden what the Canadian government tells us regarding the state of the economy. And where exactly does it stand as we prepare to enter 2024? A recent report from Canadian Mortgage Trends states that according to a survey of “influential” economists and analysts, the odds of a recession in the next 6 to 12-months is nearly 50/50. This leads many prospective first time homebuyers to ponder “Should I buy a house if a recession is coming?”.To this we ask you to truly consider taking Burtscher’s commentary to heart. Assuming that you have a steady job and your financials in order, could you indeed disregard a supposed recession as if it were arbitrary? If you work with a mortgage broker, you most certainly could. Read below to learn more.
Why First Time Buyers in Sound Financial Standing Can Leverage a Mortgage Broker to Buy a Home Without Regard for a Potential (or real) Recession
Brokers Will Get You Better Mortgage Rates
A mortgage broker can recession-proof your home buying aspirations by getting you access to better mortgage rates than advertised by Canada’s big banks. They can accomplish this for you via bulk discount rates offered by banks to them (which get passed on to you) in addition to connecting you to first time buyer incentive programs that can take the financial “bite” out of any perceived recession. Furthermore, a well-connected mortgage broker can connect you to alternative private lenders who are less vulnerable to mild-to-moderate recessions, and will be able to help finance your mortgage if you are in sound financial standing. View more on how a mortgage broker can get you better rates no matter what’s happening in the Canadian economy. We also encourage you to reference this guide on mortgage assistance for first time buyers which will give you further peace of mind that talk of a recession may simply be a tactic employed by the government to control consumer behavior and put you further away from your goals.
We know that you probably still have questions about buying a home given the state of affairs of the Canadian economy over the last few years. That’s totally understandable, and we’re more than happy to answer any queries you may have. If interested in a mortgage for the greater Winnipeg area, simply give us a call at 204.290.9950 for a friendly conversation about YOUR needs and goals for the year ahead.
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