Published November 3, 2021
IMPORTANT NEWS - Buyers & Sellers
It was announced in late October that the Bank of Canada is forecasting raising interest rates sooner than originally planned. Originally, they were saying rates wouldn't increase until at least the second half of 2022; however, they're now expecting they could be raised as early as April 2022.
So what does that mean for you?
1. Buyers:
It impacts your affordability; AKA the price of the house you can buy. If you're planning on buying a home and want to take advantage of historically low interest rates, now is the time. Lower rates means lower monthly mortgage payment and more savings in your account. I assume if your rate is locked in before April 2022 they will honor it for 90 days, but that's an assumption at this point.
2. Sellers:
Because a rate change impacts buyer affordability, this could also impact your final sell price as buyers will be changing their maximum purchase price. So, if you want to maximize your return on investment, then seriously consider listing between now and March. The benefit of listing at this time of year is that you also have the competitive advantage of fewer listings on the market to compete with; one thing we love most about the fall and winter market. (Second to way less "lookie-lous" as November-March lookers are usually all seriously motivated to buy, versus spring and summer bring more "maybe we'll buy" people looking at your home.)
Want to learn more?
Reach out for a free, no-obligation chat with us.
Nicole Darbaz, REALTOR®
Your Trusted, St. John’s Metro, Real Estate Expert
Keller Williams Platinum Realty
709-691-1373
NicoleDarbaz@KW.com
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