As you stroll through your neighbourhood or drive down the streets, you may have noticed an increasing number of “FOR SALE” signs and frequent open houses. With so much activity, it may be hard to believe that now could be the perfect time to make a move.

You are not alone if you have concerns about the current market, however, instead of focusing on uncertainties, let’s explore why this could be an ideal time to take the next step, whether that’s purchasing your first home or upgrading to a bigger one. Historically, periods of uncertainty often bring opportunities, and with the right strategy, you can position yourself for long-term success.

1. Can I really afford to buy a home in today’s market?

This is one of the most common concerns, especially given current mortgage rates. Many buyers recall the ultra-low rates of the past, making today’s rates seem daunting. However, perspective is key. If you purchased a home in 2009, you likely secured a mortgage rate like those available now. While the landscape has evolved, these interest rates are not unprecedented, and homeownership remains attainable.

For buyers putting down less than 20 percent, insured (high-ratio) mortgages are available, provided the home is valued under $1.5 million. These mortgages require mortgage default insurance, which is included in the mortgage payment amount. First-time buyers can access amortization periods of up to 30 years, while repeat buyers can opt for 25 years. The required down payment is structured as follows:

•  Five percent on the portion of the purchase price up to $500,000
• 10 percent on the portion between $500,000 and $1.5 million

For a down payment, various options are available, including withdrawing from a registered retirement saving plan (RRSP), tax-free saving account (TFSA), or First-Time Homebuyer Savings Account (FHSA), as well as receiving gifts from family members or utilizing other investments. These resources provide flexibility and can help ease the initial financial burden of owning a home.

With housing demand remaining strong and inventory limited, home prices are expected to rise over time. Buying a pre-sale home now allows you to start building equity instead of paying rent or contributing to someone else’s mortgage. This is especially important for those considering upsizing. Securing a larger home today means more living space and a long-term investment that will likely appreciate in value.

2. How will I manage higher interest rates when renewing my mortgage?

The financial choices you made five years ago may no longer be the best fit for your current situation. When approaching renewal, consider: Do you plan to stay in your home long-term, or are you thinking about moving soon?

Fortunately, mortgage renewals have become more flexible. The Office of the Superintendent of Financial Institutions (OSFI) has eased requirements, meaning lenders no longer have to apply the mortgage stress test for borrowers switching lenders during renewal. This allows homeowners to shop around for better rates without the added burden of qualifying at a higher stress-tested rate.

If affordability is a concern, extending your amortization period can lower your monthly payments, providing financial relief amid higher interest rates. Alternatively, if you previously opted for a fixed-rate mortgage, exploring a variable-rate option (or vice versa) could better align with your financial goals. Rather than simply signing a renewal letter, it’s essential to explore your options.

For those looking to upsize, while your monthly payments may increase, strategic planning — such as adjusting your mortgage structure or amortization — can help make the transition manageable.

3. What if home prices drop after I buy?

Market fluctuations are inevitable, however historically, real estate appreciates over time. Even if the market experiences a temporary dip, long-term trends show recovery and growth.

If you are up-sizing, this concern may feel even more pressing. However, buying now, even amid potential short-term price shifts, still means investing in your future and securing long-term stability.

If you plan to stay in your home for several years, short-term market fluctuations will have a minimal impact on your investment. Over time, as your property appreciates, the value of your larger home will also increase.

Making your move

While uncertainty may cause hesitation, waiting on the sidelines could mean missing out on valuable opportunities. With increased housing inventory, we are currently in a buyer’s market, providing better negotiating power and the potential for favourable deals.

If your current home no longer meets your needs, securing a larger property now ensures both comfort and long-term financial growth.

It’s important to remember that home values fluctuate over time, but one thing remains constant: Every mortgage payment builds equity and invests in your future. Markets may change, but as long as you continue to make payments and hold onto your property, you are investing in yourself and your financial future.

Being proactive, asking the right questions, and exploring your options will help you make informed decisions. Whether you are a first-time buyer or looking to upsize, this is a time of opportunity. With the right approach, you can secure your future and make the most of today’s market conditions.