Should I Buy in 2019?

Jackson Middleton • January 3, 2019

Is now a good time to buy a property?

If you've been thinking about buying a new home; whether that be your first home, your next home, your forever home, or your retirement home, with all the negative news leading into 2019 (plummeting house prices and rising interest rates), you might be asking yourself.. is right now a good time to buy a home? Well... what if we told you that was the wrong question?

Inevitably, the media will continue to report that housing prices are ready to skyrocket, while at the same time reporting that they have peaked, while at the same time we should prepare for a housing apocalypse. It's hard to know what is going to happen with the housing market next week, let alone in years to come.

So instead of basing your buying decision on external market factors, consider asking yourself, is now a good time to buy a home for me ?

When you stop looking at the market to determine your timing to buy a home, and instead examine your reasons for buying a home, the picture becomes clearer. Here are some things you should consider, although they are subjective, they are things you can control.


  • Does buying a new home now put me in a better financial position?
  • Do I feel comfortable with my current employment status?
  • Do I make enough money now to afford a new home and still be comfortable?
  • Have I saved enough money for a downpayment?
  • How long do I plan on living in this new home?
  • Is there any scenario where I might have to sell quickly and potentially lose money?
  • Do I really want to buy, or am I feeling pressure that if I don't buy now, I might never be able to?
  • Am I scared that if I buy now, the market will crumble the second I do?

Having a plan in place is the best course of action to help you make a good decision. By sitting down with someone to discuss your plans, and to map out what buying a new home looks like for you, you can alleviate a lot of the unknowns. Instead of looking at external market factors, focus on the internal ones. A mortgage preapproval allows you to see what you can actually qualify for. It's the best place to start.

Please contact any of our Canadian Mortgage Experts,we'd love to work with you, and answer any questions you might have.


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RRSP As A Downpayment

By DLC Canadian Mortgage Experts • December 28, 2022
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Is There A Difference Between A Deposit And Downpayment

By DLC Canadian Mortgage Experts • December 21, 2022
If you’re new to the home buying process, it’s easy to get confused by some of the terms used. The purpose of this article is to clear up any confusion between the deposit and downpayment. What is a deposit? The deposit is the money included with a purchase contract as a sign of good faith when you offer to purchase a property. It’s the “consideration” that helps make up the contract and binds you to the agreement. Typically, you include a certified cheque or a bank draft that your real estate brokerage holds while negotiations are finalized when you offer to purchase a property. If your offer is accepted, your deposit is held in your Realtor’s trust account. If your offer is accepted and you commit to buying the property, your deposit is transferred to the lawyer’s trust account and included in your downpayment. If you aren’t able to reach an agreement, the deposit is refunded to you. However, if you commit to buying the property and don’t complete the transaction, your deposit could be forfeit to the seller. Your deposit goes ahead of the downpayment but makes up part of the downpayment. The amount you put forward as a deposit when negotiating the terms of a purchase contract is arbitrary, meaning there is no predefined or standard amount. Instead, it’s best to discuss this with your real estate professional as your deposit can be a negotiating factor in and of itself. A larger deposit may give you a better chance of having your offer accepted in a competitive situation. It also puts you on the hook for more if something changes down the line and you cannot complete the purchase. What is a downpayment? Your downpayment refers to the initial payment you make when buying a property through mortgage financing. In Canada, the minimum downpayment amount is 5%, as lenders can only lend up to 95% of the property’s value. Securing mortgage financing with anything less than 20% down is only made possible through mortgage default insurance. You can source your downpayment from your resources, the sale of a property, an RRSP, a gift from a family member, or borrowed funds. Example scenario Let’s say that you are looking to purchase a property worth $400k. You’re planning on making a downpayment of 10% or $40k. When you make the initial offer to buy the property, you put forward $10k as a deposit your real estate brokerage holds in their trust account. If everything checks out with the home inspection and you’re satisfied with financing, you can remove all conditions. Your $10k deposit is transferred to the lawyer’s trust account, where will add the remaining $30k for the downpayment. With your $40k downpayment made, once you sign the mortgage documents and cover the legal and closing costs, the lender will forward the remaining 90% in the form of a mortgage registered to your title, and you have officially purchased the property! If you have any questions about the difference between the deposit and the downpayment or any other mortgage terms, please connect anytime. It would be a pleasure to work with you.
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