On April 10, the Governor of the Bank of Canada, Tiff MacKlem, announced that the key interest rate would remain at 5% to cool the economy and ensure a decrease in inflation. As the real estate market continues to favor sellers due to the limited number of properties for sale, those wishing to buy a property this year are wondering: is it better to wait for mortgage rates to drop before buying?

The Best Time to Buy a Property

In recent months, the pace of real estate transactions has slowed due to the influence of the key rate on mortgage rates. Moreover, the rapid increase in housing prices during and after the pandemic has deterred many potential buyers. However, contrary to what one might think, these factors, which seem to have slowed the market's momentum, can actually benefit Quebec buyers. In fact, the majority of brokers and real estate strategists believe that the best time to buy a property is now. Why?

It is believed that a decrease in the key rate could occur as early as this summer. If this materializes, there is a strong likelihood of an increase in competition among buyers, resulting in a second rise in house prices. Therefore, experts agree that a qualified buyer who finds a suitable property should seize the opportunity, without waiting for rates to drop. Indeed, buying now means securing a mortgage at a slightly higher rate, but to address this concern, opt for a loan with a shorter duration. Consider this: it may allow the purchase of a house at a better price.

Steps to Buying a House in Quebec

To become a homeowner, the first crucial step is to establish your budget. You can find out the exact amount you can borrow to buy a property by obtaining a mortgage pre-approval from a financial institution. This exercise will help you anticipate all the inevitable expenses associated with buying a house: the down payment, inspection and notary fees, transfer duties, taxes, and other expenses.

Next, you will need to define your tastes and needs. After deciding where you want to live—close to a school, work, or public transportation?—consider the type of property. Single-family home, semi-detached, condominium, plex? Also, think about the number of rooms (bedrooms, bathrooms, etc.), the storage needed, etc. In short, it is crucial to know what you want to find the house that best suits you, as quickly as possible.

Then, the search can begin. Spotting properties for sale and exploring the desired neighborhood are among the methods to favor in the search for a property. But above all, find a trustworthy broker. Ask your relatives with whom they have dealt in their project; the recommendations of your loved ones will guide you to an experienced professional.

Once you find the perfect property, you should visit it at least twice and ideally have it inspected by a professional. Before signing a purchase offer, it is essential to carefully check the location certificate and all other documents related to the property. After submitting a purchase offer with or without conditions, negotiating the price, securing the mortgage if the purchase offer is accepted, and fulfilling all the conditions of the offer, you will need to proceed with the property transfer at the notary's office.

To Succeed in Buying a Property: The Importance of Being Supported

As a buyer, if you choose to be represented by a real estate broker, you will enjoy numerous advantages, including legal protections. You will be supported by an expert who has the necessary expertise to estimate the property's value and ensure you pay a fair price. Moreover, this professional will prepare all the legal documents, negotiate on your behalf and in your interest, and accompany you at every step: from searching for the property to signing the contract at the notary's office. Do not doubt, signing a purchase brokerage contract with the real estate broker of your choice remains the ideal solution to buy a property, safely and with peace of mind.

Are you looking to become a homeowner? Let's discuss your project today! 📲 (514) 961-4332 📩 This email address is being protected from spambots. You need JavaScript enabled to view it.