The Toronto housing market has witnessed a cooling trend over the past few months since reaching all time highs in spring, which reveals that Toronto is edging into a buyer's market. The dream of owning a house in Toronto is still far fetched for many, but it's at least come back over the last few months.
With housing prices faltering recently, and interest rates on the rise, is Now a good time to buy a house in Toronto?
If your intention is to buy a home that you will live in for the long-term, then the current valuation of the real estate market does not matter to you. If you are considering the purchase of a home that you don’t see yourselves living in for the long-term, you may want to revisit the decision.
If you can live in for a long time, buying something that you can afford will always be sensible. Putting 20 per cent down on a home is a good idea for most people. Not only does it allow you to eliminate the need for CMHC coverage, which can be costly, but it forces you to save aggressively for a down payment. An aggressive savings plan to reach a 20-per-cent down payment is excellent practice for your eventual mortgage payments.
A home purchase with short-term intentions will trigger large real estate, tax and legal costs, and it exposes you to the price risk of the real estate market. If the price of the house falls, you might end up taking a loss, or feeling like you’re stuck with the home (to avoid taking a loss).
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