Best time to buy a home

The best time to be in the market to buy a home

This year is one of the best times to be in the market to buy a home. Price trends are as favourable as they have been in a long time, and interest rates are at record lows. As a realtor, you offer homebuyers a professional approach to finding and acquiring the right property. As a mortgage specialist, I offer your clients a professional approach to financing the property, and making it fit within their overall financial picture. Here are just a few of the things I can do to assist you and your client:



Stress the importance of pre-approval



Pre-approval is one of the best steps a homebuyer can take. Not only will it help your clients make offers, but it also gives them a clearer idea / picture of what financial life will be like after the purchase. For example, they will know in advance what price range they can afford, and what their payments will be. Pre-approval costs nothing, and does not obligate your client. It also lets your clients guarantee the current mortgage rate for 90 days while they look for their new home.



Find sources for the down payment



Not all homebuyers have been ready and waiting for opportunity to knock. I can help your clients understand their down payment options: a low down payment mortgage, a gift from parents or other relatives, or borrowing from their own RRSPs through the Federal Homebuyers Plan to help them get into homeownership sooner. For example, the withdrawal limit on this plan increased to $25,000 this year, which enables a young couple to borrow up to $50,000 if they have the RRSP savings.



Help clients use the First Time Homebuyer (FTHB) Tax Credit



The government is clearly trying to help first time homebuyers, and I want to make sure they take full advantage of offer and programs that help them save money when buying their home. First time homebuyers who purchase a qualifying home after January 27, 2009 will be able to claim a new 15% non-refundable tax credit based on an amount of $5000, for a maximum credit of $750.



Provide educational materials and resources



I offer your clients personalized advice, but sometimes a little general education can supply important context. Here are some publications that I can offer to help you and your clients…



· Buying a Home - A Step by Step Guide to Buying a Home

· 8 common mistakes most first-time homebuyers make and how to avoid them

· Are you ready to make your move from renting to owning?



…as well as the following online calculators to help them understand their own financial situation.



· Rent or Buy?

· How Much Can You Afford?

· Mortgage Payment Calculator

· How long will it take to pay off my mortgage?


Source: Lysander, RBC mortgage specialist