There are many benefits to owning your own home, but it’s such a big decision that a lot of people take years to consider whether it’s the right time to buy or not. You know you want to get your own place so you can decorate and entertain the way you want to, but if you need a bit of an extra push, here are a few reasons why buying a new home in Saskatchewan makes sense right now.
Interest rates on mortgages vary over time, but they’re currently quite low. However, there are signs they will soon be going back up.
In late January, the Bank of Canada kept its interest rate at 0.25%, in the same place since the beginning of the pandemic. However, many analysts predict that the Bank’s key interest rate could be increased as early as March of this year
By purchasing now, you’ll be able to lock in that low rate over the next few years. If you wait, you could be stuck with a higher rate which limits what you can afford.
Of course, many of these points are all about the outside influences of the market. You also have to be prepared financially for the commitment of owning your own home. If you have a steady job and your credit is in good shape, start researching how much your monthly payments would be if you purchased your own home. When you see how affordable it can be, you’ll want to start home shopping right away.
It’s Still a Seller’s Market
If you currently own your home but have been thinking of moving, the market is favourable to home sellers at the moment. This is because of the lack of supply in the market, with residential listings in the province declining 5.3% percent since last year. Couple the limited supply with the demand for homes and it makes it a nice opportunity for someone wanting to sell their home.
However, according to data provided by REMAX, both Saskatoon and Regina are experiencing a slight decline in sales, meaning the market is starting to show signs of balancing. You may consider acting soon if you’re considering placing your home on the market.
Starting to Build Equity
Some people want to wait until they’re able to afford the home of their dreams, but if you’re currently renting, you’re not building up equity that you could eventually use to move up into a newer and better home. With a number of great incentives for first-time buyers purchasing your first home might be easier than you think.
Smaller homes like duplexes and townhomes are perfect for young people just getting started in life. As your family grows, you’ll be able to look into larger homes with confidence, knowing you will be able to use the equity in your current home towards the down payment of a larger home.
Post updated February 1, 2022