Seasonal considerations are more important than you might realize when it comes to buying a property. Typically after the winter months, the housing market will often come alive again in the spring. In fact, April, May and June are among the busiest months for home purchases and sales in Canada. Lenders will typically recommend for Canadians to buy in the spring because it’s much easier to find a home and relocate during this time. But before you make any sudden moves, there are a few things you should know.
Current changes in the housing market
In the past, home prices have gone up throughout the spring season, however, we’re currently seeing that prices are calming down. Inventories of for-sale properties are on the lower end, leaving buyers with fewer options. With many Canadians forced to reconsider their housing needs because of the pandemic, buyers’ choices will have to adapt to accommodate the current housing market – making this a more distinctive spring than usual.
Getting pre-approved first can simplify your home search
Getting pre-approved is one of the most efficient ways to streamline your home search because it gives you a better understanding of what you can afford from the start. A mortgage pre-approval allows lenders to calculate your maximum home affordability. Taking this step will give you more clarity when navigating listings and put you ahead of the competition in the event of a bidding war. You can learn more about the benefits of mortgage pre-approval here.
Warmer weather means better curb appeal
Home maintenance is easier when the weather warms up, making the process of purchasing and selling is a lot more enjoyable. Sellers are able to enhance their curb appeal and make any necessary improvements to their home before putting it on the market – such as renovations, landscaping and repairs. This gives potential buyers the benefit of seeing the home in its best condition while helping the current homeowners sell faster at the same time.
Organizing your finances is key
It’s critical to have all of your finances in order before starting the home buying process. Make sure to keep track of any expenses in addition to your monthly mortgage payments such as insurance fees, property taxes and closing costs as well as your daily living expenses. To keep your credit score in good shape, we recommend holding off on taking out any loans or getting a new credit card before your mortgage approval is finalized. Lenders will often revisit your pending mortgage application and any sudden shift in your credit or finances can impact your chances of final approval.
Consider shopping different lenders
Many first-time buyers make the mistake of not shopping around for a mortgage. Instead, they opt for the big banks simply because that’s where their parents went to get theirs, or they think that’s where the best product is. However, there are many lenders in Canada that offer stronger products that might be more suitable to your current financial situation, such as credit unions and monoline lenders. Mortgage products and terms vary from one lender to the next, which is why it's important to do your research and find out what’s out there to ensure you’re not overpaying or missing out on great mortgage features.
At Homewise, we make the mortgage process simple for you. Working with over 30 banks and lenders, our goal is to help you find the best mortgage option that suits your needs. Apply online in less than 5 minutes and one of our dedicated Mortgage Advisors will get in touch to answer all of your questions and walk you through the process.
