Is it time for you to make your move?
Young people throughout Georgian Bay are being asked this question as the prices of local real estate skyrocket due a shortage of listings and many people migrating north to avoid GTA lockdowns. When faced with the decision to start your next life chapter, consider these key guiding points to make your next home purchase a success -- even in a pandemic.
First, it’s important to understand what’s causing this housing price surge. The condominium market in many areas of Toronto has slowed down, which has caused growth to take place at an alarming rate in communities in - and around - Collingwood. Many listings are selling over the asking price with multiple, unconditional offers. Knowing that we are currently in a seller’s market (where those owning properties hold more pricing discretion) can help your family see the value of being fully prepared.
So, how does one prepare for an uncertain real estate market?
To start, it is imperative that you get pre-qualified or pre-approved to have a clear picture of your financial health prior to the purchasing process. This is the time to gather all your current assets and liabilities, gauge your net worth and factor in all current financial monthly commitments. Credit score will play a major part in how you obtain financing, so be sure to source out your current status. This will allow you to identify any red flags and address them before you seek out a mortgage. One positive aspect of our current situation is that interest rates are at an all-time low, meaning the cost of financing isn’t going to be most buyers’ biggest concern.
Get Experience on Your Side
Next, it will be beneficial to connect with an experienced mortgage broker. This is all the more relevant if this will be your first home purchase. An experienced broker can act as your guide to finding the best mortgage for your unique situation. Many mortgage professionals have gone through other trying periods in Canadian financial history, giving them a more balanced perspective on current events following the COVID-19 outbreak.
Knowledgeable mortgage brokers are there to keep you informed as you embark on arguably the largest purchase of your life -- at one of the most paramount times in recent history. They have access to important updates and financial regulations, aiding buyers when it comes to understanding the red tape of each individual circumstance. Further to that, they will be able to educate you in matters you may not already be aware of -- such as the process of building a home using finances from a construction mortgage. Even if you consider yourself well-versed in the world of personal finance, having a dedicated mortgage broker acting as your second pair of eyes can only protect and prepare you for the future.
Read the Fine Print
Finally, a savvy mortgage broker will be able to see the full picture of your transaction. This means not only will you clearly understand the terms and conditions you are agreeing to, but you will also be aware of fees associated with your home purchase – hidden costs and penalties that may affect the agreement above and beyond the interest rate that has been presented. In a world where rate shopping has become the norm, many have failed to recognize how each fee plays a role in the total cost of borrowing on a home purchase.
In a constantly changing market, the importance of proper preparation can make or break a buyer’s offer. Times are stressful, so any steps that ease the pressure off the process are often welcomed. Act now so you can feel confident that your next move is the right move.
Gerard Buckley, Local Owner and Mortgage Broker at Buckley Mortgage Team powered by Verico The Mortgage Wellness Group has been assisting individuals and companies to obtain mortgage financing for over 35 years. Buckley Mortgage Team offers offices in Collingwood, Owen Sound, Saugeen Shores and Toronto.