Buy New And Buy Now To Take Advantage Of Recent Rate Cut

I have offered this advice many times over the years, but frankly, it is always a good time to buy a pre-construction condo. Canada’s recent policy rate cut to 4.5 per cent (https://www.bankofcanada.ca/2024/07/fad-press-release-2024-07-24/) may seem like a small step in the right direction, but remember that even a fractional cut can have substantial financial ramifications over the course of a mortgage amortization. Some potential purchasers may wait to find out whether there will be more cuts in the near future, but while you wait, prices may rise, and incredible incentives may be gone.

If you are thinking of right-sizing from a large, detached home, realize that in a condominium suite, there is no wasted space for hallways or stairways. You can likely do with a lot less square footage and still be comfortable. Building amenities under your roof eliminate a lot of traveling time to gyms and movie theatres. Buy early in the selling cycle, and you can select the features and finishes that will place a personal stamp on your surroundings. Buying pre-construction means you also have time to sell your existing home and/or save toward your down payment. Plus, your mortgage will not be locked down until just before you move in, which could be a few years away.

If you are able, consider buying now, keeping in mind that real estate always comes back with a vengeance.