“To make the most of this hot buying season -- play it smart, and play it safe,” Mortgages of Canada CEO and founder Samantha Brookes wrote in an analysis piece for HuffPost Business Canada
Brookes warned that diving headlong into the bustling sector—which has been projected by CREA to grow by 1.1 per cent in terms of sales this year—is an approach rife with unnecessary risks.
“First and foremost, it is important to stay rational,” Brookes stated. “Yes, people will tell you that you have to buy quick when you are competing against several other buyers -- but you also have to buy smart.
Brookes recommended prospective market participants to balance their assumptions with the guidance of an industry professional.
“In order to do so, your best bet is to speak to a mortgage broker ahead of time and ask all the questions you can. You may have Googled anything and everything about the housing market, but a mortgage broker lives and breathes mortgages and can help you understand what information is important and what is just plain clouding your judgment,” she said.
In addition to solid advice, an expert could keep market participants up to speed on trends in the mortgage market and point consumers to the locale or property best suited to their needs.
“Get a handle on the local market without the pressure of feeling like you need to make an offer. You'll also learn more about the kinds of homes and neighbourhoods you like, or don't, and which features matter to you,” Brookes explained.
The analysis also warned sellers of the possibility of delinquent clients.
“It's also important to think ahead in order to take into account the implications of not taking the appropriate steps when navigating a hot market. Indeed, beyond not putting enough down, the other common mistake homebuyers make is not saving enough for their down payment in the first place,” Brookes wrote.
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Investment Hot Spots:
Mount Hope, Lac-Blanc, North York, Crocker Hill, Carnarvon
Canada’s red-hot housing markets have traditionally seen the strongest transaction volume during the warmer months, and the top official of a leading refinancing solutions provider advised would-be buyers and sellers to keep a cool head throughout the process to avoid any missteps.