Your credit is looking healthy, you have money for a down payment and have developed a budget that has room for your mortgage payment and any unexpected expenses. Just when you’re actually ready to take the leap to buy a new home, you’re taken aback with the thought, “Is now the right time to buy a home?”

While a home at a great value can be found in any kind of market or season, the best time to buy a house still depends on every individual circumstances and goals. But let’s look at some facts to help you decide to make a move — or wait it out.

What the Data Shows

According to Moneywehave, a Toronto-based money and travel expert, the best time to buy a home in the Greater Toronto Area is January. Compared to the rest of the calendar year, it’s the time when the average sold price is $43,000 less.

Why is January the Best Time?

Most Canadians don’t get excited about buying a property in the middle of winter, especially after the high of the holidays. For us, it’s much easier to check out homes on sale during spring time when the weather is better.

Aside from the weather holding homebuyers back, it’s during the month of January when people get all their credit card bills from the holiday spending season. It’s a good parameter to tell if you’re under much debt or can really accommodate adding one, such as buying a home. Remember, high consumer debt affects your credit standing, thus affecting your possibility of approval.

Reality Check: Are You Ready?

As a homebuyer, you should understand your financial situation before deciding to buy the home of your dreams. It’s advisable for you to determine if your budget matches up with the current cost of homes in the area you are interested in. If it doesn’t, why not explore other areas or set some financial goals before making a purchase. 

Consider how the size of your mortgage will affect your lifestyle. Check out this simple home buying guide to help you get started.

Always consider all the costs when getting your dream home. Stick to a budget that would pay-off in the long run. Choose a trusted mortgage broker to help you understand your individual needs.

Conclusion

It’s good to know the right time when rates are more friendly to buy a new home. But whether it’s January or not, the bottom line of homebuying is your readiness in all aspects. The compass can tell you the right direction but it’s you who scales through the peaks and valleys and decides the way. 

Knowing your best time to buy a home is to get yourself ready — this is the best formula for getting the best deal and steering yourself away from the difficulties of home buying and onto cruising on smooth roads.


Daisy Raouph, CLU, CHS, specializes in mortgage financing solutions and financial services. A Mortgage Broker and Financial Security Advisor with over 30 years of experience in financial services. Contact us today to review your mortgage financing options. We can help!