When is the Best Time to Buy a House?

As a prospective homebuyer, you likely have lots of questions swirling in your head, from choosing the right location, to questions about financing, and how to make an offer when you’ve found “the one.” The timing of the purchase is often an overarching theme. So, when is the best time to buy a house? The short answer is: it all depends.

When is the best time to buy a house?

An experienced real estate agent will tell you not to buy when the market is ready for you, but to buy when you’re ready for the market. Essentially, this means you could be waiting for the perfect market conditions in the future, and missing out on prime opportunities to get into the market now.

So, you think you’re ready. Now what?

The first step to buying a home is saving a down payment. To buy a home in Canada, you’ll need to pay down at least five per cent of the home’s purchase price, or at least 20 per cent to avoid the added cost of mortgage loan insurance. Keep in mind that it can take years to save up a down payment, and during that time, market conditions and the value of homes will change. Your best bet is to save as much as you can, and in the meantime, keep an eye on the market so you know what to expect. As you approach your down-payment goal, browse homes for sale to get an idea of how much you’ll need to spend on the type of home you want, at that given time.

The next step toward home ownership is getting pre-approved for a mortgage. A mortgage pre-approval let’s you know how much you can spend on a home, based on what a lender is willing to lend you. During this process, a potential lender will assess your financial viability to pay the mortgage, based on various factors, and confirm that you’ve qualified to borrow a specified amount at a specified interest rate.

Also be aware and honest about your financial reality. The decision to enter into home ownership requires more than a down payment and a monthly mortgage payment. Carrying costs and other everyday expenses can add up, so a degree of financial stability is essential to achieving financial health in home ownership. Consult a financial advisor to help with the budgeting part.

If your budget doesn’t line up with the cost of homes and living in the area you are interested in, consider expanding your search boundaries or housing options.

The third step in buying a home is to find a good real estate agent. Working with someone you trust, who has experience in the type of home you want to buy, in your areas of choice, can make all the difference. Furthermore, they may be able to present you with options you may not have considered otherwise, that can make home ownership a reality for you now. Connect with a RE/MAX agent to start your search.