Low interest rates and moderate home pricing make this an ideal time to purchase but there are a lot of other factors that may help you make the decision sooner rather than later...

While mortgage rates are at an all time low, there are already indications that these rates will head higher. If you purchase now you may be able to secure a mortgage for as low as 3.5%

Lower rates mean that you can afford to purchase more home. At 3.5% you can effectively borrow $100,000 for at a cost of $500/month. Not to long ago, a 5.5% mortgage was considered to be a great deal and would have cost you $610/month per $100K.

What you can afford will be determined in part by the cost of the home you want to buy but most importantly what it costs to carry that home.

Currently we are in a Buyer's market, which simply means that the ball is in the Buyer's court. Sellers have to present a good product to get attention and with so many more homes on the market, prices are weak if not down in some areas.

If the probability of higher interest rates is not enough, consider the possibility of higher home costs. While prices are not increasing at the same rate as they were over the past few years, the market watchers are telling us that this too will pass. In other words, prices will move higher and so will mortgages both of which will have negative impact on your potential to purchase.

To help stimulate the housing market, the government has provided some additional incentives for first time buyers. These include a tax credit of $750, a $2000 rebate on Land Transfer Tax and increased the maximum RRSP withdrawal to $25,000. A new home buyer is considered to be a person who has not owned a property for at least 5 years.

If you are currently renting, I invite you to take the test to determine if you should be seriously considering a purchase.

You will find all the information to help you make the decision on the Mortgage tab on the left menu on my home page.

Have questions? Contact me at 905-275-9400. I am never too busy to answer any questions you may have.