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Why The Holidays Are The Perfect Time To Buy A Home

Why The Holidays Are The Perfect Time To Buy A Home

home with mortgage for the holidays

home with mortgage for the holidays

The countdown to the holidays is on and everyone is in a retail frenzy. Is a home the number 1 item on your wish list this year? Buying a home over the holidays may not be such a bad plan. Surprisingly, this is one of the best times of the year to get into your new dream home.

With all that’s happening over Christmas, it may not be the perfect time to arrange showings or secure financing. However, if you start planning ahead now, you can take advantage of the holiday home-buying season just in the nick of time.

Not sure buying a home over the holidays is on your list of priorities? These are a few reasons why it’s a good idea.

Sellers Are Motivated During The Holidays

Chances are that, if someone is trying to sell their home during the holidays, there is a good reason for it. Maybe they bought another home and need to sell or they’re relocating soon. Perhaps they can’t afford to keep their home or they’re in a relationship that’s ending and they need to split their assets. What this means for you, is that they are a little more motivated to make a deal with an interested buyer.

If the home you’re looking at is facing foreclosure then you may be able to save even a little more money. Often, a bank will want to get a property off their books before the end of the year. And, as a result, they could be willing to negotiate and accept a lower offer on the house to get the job done.

There’s Less Competition Over Christmas

In today’s real estate market, inventory is low although prices haven’t gone down much. People who were considering selling their homes may have decided that it’s not a good time to sell. During the holidays, inventory may be even lower because people will take their homes off the market to avoid showings when they’re busy with family events – although some Canadians don’t celebrate Christmas. So, there will still be homes to tour.

What does this mean for you as a buyer when you’re considering buying a home over the holidays? Because there are fewer people looking over the holidays, you’re less likely to end up in a bidding war for your dream home. Lower inventory and competition equals the opportunity to negotiate a better price and more favourable terms. Your realtor may even know of a perfect property that will be coming up in the new year and be able to arrange a showing before it even hits the market.

Most realtors and mortgage brokers are flexible in their schedules and can arrange to meet with you during the Christmas break since there will be fewer clients in the market. Having a mortgage pre-approval means you’ll be able to make your offer with minimum fuss and have your paperwork looked after quickly. You may have a bit more trouble arranging for legal advice or an appraiser but, if you have a longer closing, you can probably make arrangements in the new year while still buttoning up your offer over the holidays.

More Competitive Mortgage Rates

With the recent increase in mortgage rates, any chance for a reduced rate is welcome. Historically, rates do dip a little over the holidays since there is less demand for lending so you could get an interest rate adjustment. Plus, with the year-end approaching, some lenders may be willing to negotiate so they can meet their annual targets. This is why working with a mortgage broker is a good plan since they will do the research to find you the best rates and options. Which means you’ll have less work to do yourself.

There Might Be Tax Benefits If You Close Before The New Year

Everyone’s tax situation is unique but for those buying a home before the new year, there could be a few advantages. If you’re a first-time home buyer, you are eligible for the Home Buyers’ Tax Credit (HBTC), a non-refundable tax credit you can claim when you buy your first home. That means you could get a tax rebate of up to $1,500. If you buy a new home or one that has been substantially renovated, you may also be eligible for the GST/HST rebate.

If you’re thinking of buying an investment property, there could be even more opportunities to save. The best recommendation is to consult with a financial advisor or your accountant to see which expenses are deductible and to make sure the property you’re buying is sustainable for your budget.

It’s Easier To Get A Quick Closing

Many people who buy over the holidays are interested in a longer closing so they don’t have to move during the winter. But if you are in a hurry to get into your new home, there is a good chance you can negotiate a quicker closing. Not only will your seller be motivated, but lenders, inspectors and insurance companies may be happy to add your business to their bottom line before they close their books at the end of the year.

If You’re Thinking of Buying, Get Pre-Approved For Your Mortgage Today!

Taking advantage of the holiday housing market is a smart move but be prepared! Get pre-approved for the mortgage you need today so that the paperwork on your offer will be hiccup-free. To get started visit my website to see how much you can afford then book a consultation online so we can move ahead with your pre-approval. We can meet in person or over Zoom so no matter where you are, I’m here to help. If you’re thinking of buying an investment property, as a financial advisor, I can help you review the tax benefits, and your finances, along with the advantages and potential disadvantages. Helping you make solid financial decisions today and in future is my specialty.

Call me at (705) 315-0516, or click this link to set up a meeting with me, and let’s get ready to put your new home under the tree (well, not literally). But, I’ll find you the lowest interest rates and help you get the mortgage options you need, then we can lock in so your holiday home search is successful.

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