Calculating interest is not always easy. In this blog post, we talk a bit more about differences between compound and simple interest!
CTV Morning Live: Fall into Homeownership
Ana from CTV Morning Live stopped by the office to talk about the real estate market, mortgage rates, and how fall can be a great time to consider homeownership!
Don’t feel like watching the video? Check out the transcript below. CTV Morning Live: Fall into Homeownership
Is it time to Fall into Homeownership?
Ana: [00:00:00] We’re here just outside Centum Home Lenders with Clinton and, oh, my goodness, the talk has been amongst my friends buying a home.
Clinton: [00:00:09] It’s been crazy really, hasn’t it?
Ana: [00:00:11] The market I’ve seen so many for sale signs, sold signs. There’s been so much talk about when is a good time to buy a home, would you say now going into the fall after this hot streak in the summer would be a good idea?
Clinton: [00:00:25] Well, right now it is a seller’s market and I think the fall is a great time to buy. Normally we talk about the spring market and going to the summer being very busy. But I think the fall of this year is very interesting. One, I think things are more delayed. So I think there’s going to definitely be more transactions happening in the fall. But I also think that people who are wanting to buy in the fall sellers are going to become more motivated.
Ana: [00:00:50] Yeah
Clinton: [00:00:50] They are going to want to sell their homes before the winter comes. If you think, just think if you own a home and you really want to sell it, let’s say it’s vacant and you’ve already bought another place or you’re just trying to sell the second home that you have, you may not want to shovel snow. Keep the property, maintain it all winter long. So I find that with the fall, usually sellers are a little bit more willing to negotiate and I think it’s a great time to buy.
Is it a buyers or seller’s market?
Ana: [00:01:17] That is my next question because there are so many homes, it is a buyer’s a seller’s market? Rather, how do you know what to go in with your price, your negotiations, especially when you know there’s so much competition?
Clinton: [00:01:31] I know. Well, I think the first place to start is with a pre-approval. So I think seeking the advice of an unbiased mortgage professional like me is super, super important. It’s very competitive out there. And, you know, if you come in with a really solid pre-approval, I think that you’ll have a head start compared to maybe some other buyers. But it’s also knowing what you can afford, which is so, so important.
You don’t want to make an offer and get something accepted by a seller and then learn that you can’t close on that transaction because you can’t secure that mortgage finance. So I think having the pre-approval is super important. And then once you begin the pre-approved with us or another unbiased mortgage professional, I think seeking the advice of a realtor is so important. I think having a realtor on your side is really, really key.
So when someone’s selling their home, they’ll get a realtor and they’ll have a listing agent. And as a buyer, you can use a realtor and that’s paid by the seller. So there’s no cost to you. So I think having a realtor that’s on your side is really important as well.
The real estate market in Halifax is busy
Ana: [00:02:31] Wow. That is very, very good information because it can be so overwhelming.
Clinton: [00:02:36] Totally. And I think that it’s, even more, overwhelming right now just with how many challenges there are, even with 2020.
Ana: [00:02:41] Yes!
Clinton: [00:02:41] And with the market here in Halifax, and really across Atlantic Canada, it has been very busy.
Ana: [00:02:47] But have interest rates gone down?
Clinton: [00:02:49] Interest rates are at historic lows, which I think is very interesting. It’s great for people who are buying, but it’s great for existing homeowners. You know, it’s a great time to look at maybe an early renewal or potentially a refinance because the rates are at historic lows. So it could make sense breaking your existing term early and getting into something that’s lower, because right now the rates have never been lower and chances are, at least in our lifetime, Ana, we’re never going to be able to borrow money as cheap as we can borrow.
Ana: [00:03:19] Oh really, so if we have any questions. You would be a great guy to ask.
Clinton: [00:03:23] Yeah, you can certainly check us out online. And I think checking us out at teamclinton.ca is great. Or visit another unbiased, mortgage professional in your area.
Advice for first time home buyers
Ana: [00:03:31] So, OK, and for somebody who is thinking about buying a home, this is the first time, they’re excited. What is the biggest piece of advice you would give to them? Especially we’re living through a pandemic. It is overwhelming, to say the least.
Clinton: [00:03:43] Well, I think just knowing what you can afford is important. We look at assets, income and credit and just have all your documents together. Sometimes that’s the biggest challenge. Know where your documents are and then get that pre-approval.
Ana: [00:03:56] And just start that planning process, so when you come in to talk you’re set to go.
Clinton: [00:04:00] Well it’s the biggest purchase of your life and the mortgage is your biggest debt. So you really want to have someone like us on your side.
Ana: [00:04:05] Oh, my gosh. When you put it in that way. Yeah, it is. OK, very good. Thank you so much, Clinton I really appreciate it.
Clinton: [00:04:11] Thanks for having us!
Looking for more information about changes in the market, or other mortgage application advice? Feel free to contact us!