With the balancing of the market we have been experiencing since late Mar/early Apr this year, we have also now encroached on new territory, or more optimistically, what I like to call – new opportunity.
For first time homebuyers, the 1million dollar threshold is a critical one. This is because here in Canada, if you purchase a property under 1million you can put as little as 5% down, as opposed to the requirement for 20% down if you are purchasing for over 1million.
To provide some more context to this, in Q1 of this year when I was looking for properties that were 1million and under for many my first time homebuyer clients, it was slim pickings to say the least. However, since May the options for buyers looking for 1million and under has increased drastically.
Those that were priced out earlier this year, are finding they now have more and more options in our current market. With that said, the rising cost of interest rates will and has had an effect on higher monthly mortgage payments. This means, no matter what your budget may be, it is always a wise decision to speak to your mortgage representative to understand your buying power, affordability and how your monthly payments are structured.