Is now a good time to buy a house in Toronto?

Is now a good time to buy a house in Toronto?

With the stress test, Canadian interest rate and rental prices trending upwards, you are probably wondering if you should get into the market now. There are a few things to consider if you are thinking of buying your next home whether you are a renter, a first time buyer or a move-up buyer.

For Renters and First Time Buyers:

  • What will be your monthly mortgage payments be like if you buy compared to renting a similar unit?

  • Do you have enough savings for the downpayment and closing cost? These funds should be readily available. You will be eligible for the Land Transfer Tax rebate if you are a first time buyer.

  • Part of your mortgage payment will be towards the principal which essentially helps you build equity. Calculate how much in the long term your "forced saving" help you build wealth compared to paying rent to someone else?

  • Even with rent control, rent can still increase over time to keep up with inflation. Real property is an investment that offers an inflation hedge.

We all need a roof over our heads. Historically, a longer term real estate portfolio with appreciation over time will help an individual build wealth.

For Move-up Buyers:

If you are a move-up buyer planning to look for your next home, you should

  • If interest rates are trending up, can you port your current mortgage or will you need to refinance your current mortgage?

  • Look at how much equity you have in your currrent home and if you need to sell first before buying

  • Work out your closing costs for selling your current home and buying your next home

  • What is your home purchase timeline? In a buyer's market, ideally you would want to sell your home first.

Contact me to arrange a Buyer Consultation and a Seller Home Valuation to assess your home purchase goals.

Take a look at this interest rate chart based on the last 10 years of historic interest rates. The Bank of Canada benchmark interest rate is projected to go as high as 2% from now till end of 2019.

Anne Lok is a Toronto Real Estate Broker with over 14 years of experience in all aspect of residential real estate from modern houses, infill development from acquisition to design and construction, condos, lofts and rental properties in urban Toronto neighbourhoods. Anne aims to provide not only the best client service, but also a genuine authentic experience that will match your expectations. You can search modern listings and learn more about Anne at or linkedin.

#homebuying #homebuy #sellmyhome #homeselling #mortgage #modernhomeforsalegta

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287 Davenport Road Unit 1 | Toronto ON M5R 1J9

416-799-9632 | 416-504-6133


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