Home for Christmas

It’s officially December, and everyone’s thoughts are turning to Christmas. The last thing on most people’s minds is buying a home. Many of you may be thinking “who wants to buy a home in the middle of winter?”. Believe it or not, there are a number of potential benefits to buying now.

Less competition: A lot of people are probably adverse to the idea of moving in the middle of winter, therefore they won’t be out there looking for a home to purchase right now. Use this to your advantage to be one of the few braving the snow and cold – you’ll have more selection of potential homes, and less competition from fellow buyers.

Lower prices: While getting a lower price on a home in wintertime isn’t a sure thing, prices tend to be a little bit lower (and then increase again come spring). Add to that the Edmonton housing market is cooler right now and has a substantial inventory, and you could end up with significant savings.

Low interest rates: Interest rates continue to be fairly low in the midst of Canada’s current economic uncertainty. Although we have seen interest rates rise, it hasn’t been a significant increase, and rates are still pretty good. At the time of writing (December 4, 2008), we are able to offer a 5-year fixed rate as low as 5.19%. Not too shabby considering mortgage rates in December are usually closer to the 6.00% mark.

If you’re looking at purchasing a new home right now and are planning on selling your current home, it’s a good idea to get your lawyer or Realtor to make your offer subject to the sale of your home, or choose a later possession date to give yourself time to sell. That way, you won’t end up having to pay two mortgages.

Overall, there’s great potential for a mid-winter move to pay off. If you just brave the snow, cold and blustery weather, it could be well worth it! Besides, what could be a better Christmas present than a new house?

If you’re interested in exploring your financing options for a winter relocation, please contact First Foundation!