What do you need to know about your first mortgage?
Traditionally, each spring, mortgage rates start to move, followed by a spring buying rush, with a lag in the summer, and then a second rush in the fall. This past year we saw everything upended. The spring buying season started with a positive outlook and abruptly came to a complete stall as the world figured out how to cope and live through a pandemic. This pause resulted in a fall season with strong home buyer demand eclipsing numbers seen in past years, trickling over into 2021 with little relief in sight.
Increase demand, coupled with record-low interest rates is now tipping Metro Vancouver towards a sellers’ market. What does this mean for the buyer, and more importantly, a first-time home buyer?
Any time demand outweighs supply, there will be an upward pressure on housing prices, and it becomes extremely important to ensure you understand the market, to leverage your buying potential.
Homeownership is a dream many of us have, and one that is attainable, if you leverage your equity to your advantage. Working with the experts is highly recommended, as the market continues to adjust.
Speaking with HAVAN member Alisa Aragon, Financing Expert at Bridgestone Financing Pros, Alisa suggests it is not enough to look for and find the lowest posted rate, pointing to relevant information in the fine print pertaining to penalties and flexibilities surrounding mortgages terms, and the impact on your end goal.
There will also be decisions to make surrounding the type of mortgage; fixed, variable or adjustable, noting each rate comes with a specific set of terms, varying by lender, so it is a good idea to shop around. And speaking of shopping, knowing who to trust and where to look can be overwhelming.
In response to a COVID-altered market, and HAVAN recognizing the value in access to first-hand expert knowledge, the Home Buying 101 video series was launched to connect first-time home buyers with expert’s actively working in the real estate industry. Segmented into nine, easy to digest 10–20-minute videos, each presentation offers you free expert advice, packed with resources and information to help you buy smarter.
Considering buying a home is one of the largest investments you will make in a lifetime, and the impacts it can have on you and your family, both financially, and emotionally, it only makes sense to do your research upfront, before you sign on the dotted line.
Alisa’s tip: Don’t look at the maximum amount that you can afford, rather look to the maximum you want to pay each month, so you do not end up mortgage rich, and cash poor.
Check out the complete series at www.havan.ca/homebuying101