After a long Canadian winter, the warmer weather is finally upon us, which often signals a revival to activity in the housing market. Although rates continue to hold steady, there still aren’t any signs that interest rates are declining any time soon. As we enter into the spring season and market activity increases, there are few key things that homebuyers, especially first-time buyers, should consider before making a purchase.

1. Consider All Costs

While saving for a down payment is a significant first step, prospective buyers should also account for additional expenses. Closing costs, which typically range from 1.5% to 4% of the home’s purchase price, along with other potential expenses like home inspections, furniture, and renovations, can add up quickly. It’s crucial to factor these into your overall budget.

2. Secure a Pre-Approval

With an anticipated increase in market activity, obtaining a mortgage pre-approval can provide several advantages. It not only clarifies your budget but also offers leverage in competitive situations, such as bidding wars. A pre-approval signals to sellers that you are a committed buyer and may facilitate a quicker transaction process. At Homewise, you can apply for a pre-approval in less than five minutes.

3. Work with Experts:

Navigating a busier market with higher living costs requires expert advice. Partnering with knowledgeable real estate and mortgage professionals can help you understand market trends, assess inventory levels, and make informed decisions that align with your financial goals. These experts can also inform you about special programs, like a 30-year amortization option for new builds available to first-time buyers. 

The real estate market can fluctuate significantly based on the season, economic conditions, and local events. It's important for home buyers, particularly first-timers, to work with experts and get a grasp of these trends and market cycles and how they might affect their ability to make a purchase.

At Homewise and Homewise Real Estate, we are structured to support Canadian home buyers from start to finish. Our mortgage and real estate experts work together to find you the best property and mortgage, providing you a clear picture of the marketplace with several options to make the best investment decision. We pride ourselves on educating our clients and answering their questions at every step of the process.