Considering buying in 2023? Start with these questions

Considering buying in 2023? Start with these questions

If interest rates were back to the low rates they were this time last year, would you want to buy a home? 

If you answered yes, then you need to look past interest rates. 

Rates are significantly higher than the low rates we saw in the last couple of years, but interest rates alone should not keep you from buying a home if that’s what’s right for your timeline and finances. 

Why? Because every month you wait to buy a home is another month of appreciation that you’re losing out on. 

That’s another month of equity that you don’t get to build. 

And another month of paying your landlord and having that money disappear. 

I’m not sure about you, but if I had to choose between paying a landlord and paying  a mortgage payment, I would 100% go with the mortgage payment.  

If you’re still stressed about high rates, I get it. But keep in mind that you have no control over what the Bank of Canada does with the overnight rate. What you do have control over, however, are things like your credit score, your down payment, and the type of loan you choose, which can all affect your monthly payment.

Are your expectations realistic? 

Get really honest and clear with yourself on what your expectations are. What kind of payments would be comfortable for your lifestyle? What kind of area do you want to live in? What type of home would work best for you? 

Then, you need to look at your expectations from the perspective of the current market, your budget, and your lifestyle—and make a decision on what’s realistic for you.

Do you understand how much purchasing power you have?

If you’re not sure where to start, sign up to get automatic search notifications for areas you would love to live in. This is a great way to get a sense of your purchasing power in different neighbourhoods. 

If you have a budget of $500k, then you might get a lot more for your budget in an area like Sackville than in Downtown Dartmouth. 

Start your search by comparing your budget and your home needs with locations you’d be comfortable in. If your expectations don’t line up with the market, your budget, or your lifestyle, you’ll need to adjust your expectations.

Are you looking at the right homes or areas? 

How many houses have you looked at? If you have been spending every spare moment touring homes, you may need to reevaluate your wants and needs. 

Seeing a large number of properties uses a lot of your time and energy as a buyer, especially if you’re not any closer to finding your dream home. 

If this happens to you, it’s a good sign that you need to reevaluate your wants vs your needs. What do you really need to be happy in a home? What are some wants that, while important to you, are less of a priority? 

Once you are clear on your real wants and needs, you’ll have an easier time finding the right home for you.

What are your absolute needs? 

What are you ok settling for? 

Chances are that you won’t get everything you want in a home from the get go. But once you buy a home, you’ll be able to do whatever you want to it—design the backyard of your dreams or renovate the kitchen to be exactly what you want. 

So ask yourself: what do you absolutely need to have and what can you wait on? Can you redo the kitchen in a couple of years and get the home with the good bones now?

If you take the time to ask yourself these questions and are honest with your answers, you’ll be able to find a home that works for your wants, needs, and lifestyle for the long-term. You won’t end up stuck in a home that looked great in the showing but doesn’t end up aligning with your life.