Unfortunately, real estate just seems to be one of those topics that everyone has an opinion on. But, much like accepting medical advice from your neighbourhood grocery clerk, you shouldn’t just take advice from anyone when it comes to the biggest investment of your life. Have you fallen victim to any of these common Canadian home buying myths?
Your house is guaranteed to go up in value. The real estate market is vulnerable to many factors, and, in the short term, can seem a bit like a yo-yo. An overall increase in value is very common in the market, but it can take years to get there. If you’re hoping to “flip” your new home, or buy and sell within a short period, be aware that there’s no guarantee your home will go up in value during a short time.
As long as you have a down payment saved, you’re good to go. While a down payment will end up being a significant part of your home-buying costs, you will also have to factor in land transfer taxes, legal fees and other closing costs. In addition, having a sizeable amount saved for a down payment still doesn’t mean you will qualify for a mortgage. Talk to your real estate agent to make sure you’ve crunched all your numbers correctly.
You shouldn’t buy now. Some people swear there are certain times of the year you shouldn’t buy. However, if you’ve done your research, crunched the numbers and are prepared for what the process involves, there’s no such thing as a bad time to buy. It’s next to impossible to predict what the market might do next, so if you sit it out, hoping for the “perfect” time to buy, you might inadvertently end up getting priced out!
You should go with the cheapest lender. Some buyers think they’re being savvy by opting for the lowest interest rate when it comes to securing a mortgage rate. However, it’s crucial to examine your options and look at all the factors. There might be other perks that fit your situation better, even if the interest rates are slightly higher.