It can be discouraging to look for your ideal home when the real estate market is unstable and the situation in Quebec is very different from the one in Toronto and Vancouver where the markets are heating up. However, certain cities and neighborhoods are really coveted which can be intimidating for buyers to come in the market.
What are the appropriate ways to navigate through the uncertainty and find the ideal home? How can your mortgage broker help you in the process of becoming a home owner? Here’s a few advice.
Don’t delay the initiative
If you want to become a homeowner, don’t wait for the market to “stabilize” because you could end up missing the boat and wait for years.
The first thing you should do is to get an expert opinion to better apprehend and gage the market. Needless to say, it is impossible to predict the future, but there is no downside in getting informed to gain an edge and acquire the ability to distinguish between what’s true and false.
For information purposes, the Canadian Real Estate Association publishes quarterly projections about the market and the Canadian Mortgage and Housing Corporation (CMHC) also publishes relevant articles in regards to the property buying process. Before jumping in on your house hunting, take the time to consult these neutral and unbiased resources.
Keep your cool
To survive in an unstable market you have to be able to keep yourself calm and composed. You will most likely be pressed to buy rapidly to avoid missing out on great opportunities, remember to act diligently and smart. Acquiring a property will change your life on several levels: your travels, your work, your leisure, your lifestyle and most of all your budget! It’s important that you don’t lose track of all these elements.
Your emotions will take over, but you will have to maintain a methodical approach in your search to avoid an impulse purchase that you would later regret. On this matter, your mortgage broker is a neutral party that could help you maintain your focus on the initial objectives.
Determine your borrowing capacity (with a pro!)
It’s all nice and easy to just “Google” and do your own research, but in the end, discussion your situation with a professional will give you the ability to make a giant leap. At this stage, your mortgage broker will be right there to advise you in your financing needs.
His expertise and experience can only accelerate the process, with your broker, you could determine your borrowing capacity and obtain a mortgage pre-approval to advance your home search with solid foundations.
List your priorities
Everyone wants a renovated kitchen, big backyard, large living room and spacious bathrooms… Let’s not forget that we would also want to be close to school, our leisure and work. Obviously, these attribute come at a price.
A kitchen can be renovated, but the house cannot change location. Therefore, as the old saying goes “location, location, location” is a focal point to consider. During your home buying process, it is best to make a list of what are necessities to you and what are luxuries. Making such a list will help to set your priorities to make smart choices when your emotions take over.
Be ready to act!
Once you’ve gathered the necessary information, be prepared to act when the house you desire comes your way. Keep in mind your list of priorities and the compromises that the targeted home encompasses.
You inevitably need to start somewhere to build the foundations of your heritage. Waiting too long to become a homeowner only delays your entry to the market, at some point you just have to take the plunge.
To conclude, if you’re well prepared and methodical, you will master the situation and succeed even in a very active market. The clever buyers will live the glory days!
- Don’t wait for the market to cool down
- Collect information from the coveted neighborhood
- Make a list of priorities and remain rational!