Buying a house in Canada might be one of your biggest investment in your lifetime. According to recent surveys, an average Canadian spends about $472,000 on a house. While the price of housing is booming throughout Canadian cities, Canadians are not sure when is the perfect time to buy a house.
According to agencies such as Ratehub, the perfect time to apply for a mortgage and start the buying process is in Spring and Summer. While this period coincides with national moving period, it makes sense and Banks know this.
Indeed, major banks throw very interesting promotions and compete fiercely among each other to pull clients and secure their mortgage. Competition among them tends to draw the average mortgage interest rate down up to 2-3% compared to other periods of the year. In fact, an average interest rate of 2.39% drops to 2.33% in this period of the year. While most people don’t see this as a huge saving, it is certainly good to save.
Another advantage of securing a mortgage during this period (thanks to the competition) is incentives. Banks throw away incentives reach up to $3000 to sign buyers with them. Most major banks even has a offer-match policy where they will match the offer that their competitor gives you. This is a plus for home buyers, especially in the today’s economy where every dollar matters.
In short, when shopping for a mortgage, do not settle for a single offer. Instead, it is in your advantage to get offers from several banks and choose the one that is the most advantageous for you!