Home prices are predicted to continue seeing reductions in 2023, and interest rates may not drop until 2024. But despite this, many potential homebuyers are still looking to take advantage of the current market conditions. So, is Spring 2023 the right time for you to buy a home?

Here are five key signs to know if you’re ready to make the leap into homeownership:

1. Stable Income: For most first-time homebuyers, purchasing a house indicates that you can make regular payments to service a mortgage. It’s essential to have a secure and steady flow of income to make these payments over the length of your home loan period. While this is often thought to mean that you work a full-time job, many self-employed Canadians also have stable incomes. Alternative lenders are willing to listen to unique financial situations.
2. Down Payment Ready: Having enough money on hand for a down payment is important because it impacts the type of house you can buy, the amount you need to borrow, and the range of financing options you qualify for. It’s essential to ensure that you have enough money set aside for a down payment.
3. Area of Growth: Buying a house means putting down roots, so you need to make sure that you can buy a house in an area that suits your needs and lifestyle. You should also be able to envision yourself living in that area over the next five to ten years. Research the area to make sure it’s a good fit for your lifestyle and goals.
4. Comfortable Managing Debt: Paying for a house involves having the discipline and commitment to stick to a budget. Take some time to track your spending habits over a couple of months to find out if you are comfortable setting aside roughly 30% of your income to pay for your mortgage debt.
5. Emergency Fund: Owning a home means that unexpected home maintenance expenses, such as plumbing and electrical repairs, could eat into your budget. It’s important to have an emergency fund on hand to cover six months’ worth of expenses.

If you feel that these signs point to ‘yes’ or have more questions about purchasing a home this Spring, don’t hesitate to reach out directly for expert mortgage advice. With the right preparation, Spring 2023 could be the perfect time for you to purchase your dream home.