Waiting til the Spring Market to Purchase – Is that the right move?
Marci • December 4, 2013
So if you have stepped outside today you can certainly feel the chill in the air but from where I am sitting it looks pretty cozy! Interest rates are still incredible low and I have lenders offering four month rate holds. If you happen to be thinking of “waiting” to buy (or sell) until the Spring, consider getting your options outlined now and get a fabulous rate hold which is valid for four whole months… I will provide you with a rate hold and then bi-weekly we will touch base and keep you up to date with the way rates are trending.
Why you should get a mortgage rate hold now?
The rates have dropped down to around the 3.39 % for a 5 Year Fixed Term in the last few weeks. Even if you are considering purchasing or selling some time in the next year, it is worth getting a rate hold at today’s rates now. As your personal mortgage advisor, I can provide a four month rate hold with rates as low a 3.45% for a 5 year term. A rate hold pre-approval is very quick and easy
- Step One- A brief chat with me over the phone where some basic information is collected including what your future, or current, needs will be or we can send you an application to complete and return at your convenience.
- Step Two – You are provided with a detailed synopsis of what you need and qualify for as well as monthly payment options, closing costs and anticipated expenses, and strategies for the Mortgage Burning Part
- Step Three – Obtain a four month rate hold and pre-approval certificate for you to keep
- Step Four – Ongoing bi-weekly rate updates provided so that you are kept informed of where rates are trending
- Step Five – You purchase and then benefit from having the lowest possible options and rates over the last four months
Benefits:
- No cost or obligation and no pressure from anyone
- You are protected, rather like an insurance policy, against rising rates in the coming months… better to have it and not need it than need it and not have it. I would hate any of my clients to miss out on these really low rates and end up paying more in interest to the lender in the future.. more money in your pocket is what I say!
- You have peace of mind knowing that you are pre-approved
- Provides excellent bargaining power when we are at the table in negotiations with your purchase
Call me today to discuss your options. 604-816-8950
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Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.
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