Despite rising mortgage rates, experts are urging Canadian home buyers not panic.
While increased rates are always cause for concern, RBC’s recently announced 25-basis point hike has sent prospective home buyers into a frenzy. Many Canadians are worried that they won’t have enough time to lock into an affordable rate as the market continues to heat up.
First-time buyers are even more likely to rush into a sale without fully thinking it through, but a number of steps can be taken to prevent you from doing anything drastic.
To start, it’s important to figure out exactly what you can afford, and the easiest way to do this is by getting pre-approved for a mortgage. This will help you break down your monthly payments and home buying costs. Once you’ve gotten your finances in order, it’s essential to choose the right property — all too often buyers fall in love with a home before realizing it needs a complete overhaul.
Coming up with an offer strategy and being prepared to close are other recommended tips.