Could the worst be over for Canada's biggest housing market?
Correction seen tapering off in Toronto
Regional real estate reports out last week showed Canada’s housing markets continue to deflate under the weight of rising interest rates.
No surprise there. The Bank of Canada has hiked rates by three and a half percentage points since March, thoroughly dousing the nation’s overheated housing market. And more hikes are expected.
Sales in most markets are now well below pre-pandemic levels and prices continue to slide. Still, RBC economist Robert Hogue noticed “interesting nuances” in some of last week’s reports.
In Toronto, Canada’s biggest housing market, there are signs that the sharp decline of recent months may be stabilizing, wrote Hogue in a recent note.
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Correction seen tapering off in Toronto
Regional real estate reports out last week showed Canada’s housing markets continue to deflate under the weight of rising interest rates.
No surprise there. The Bank of Canada has hiked rates by three and a half percentage points since March, thoroughly dousing the nation’s overheated housing market. And more hikes are expected.
Sales in most markets are now well below pre-pandemic levels and prices continue to slide. Still, RBC economist Robert Hogue noticed “interesting nuances” in some of last week’s reports.
In Toronto, Canada’s biggest housing market, there are signs that the sharp decline of recent months may be stabilizing, wrote Hogue in a recent note.
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Sales on a seasonally-adjusted basis were just about flat between September and October. And while rising rates have cooled demand there is no sign they are heating up supply, he said.
“So far there’s no indications higher rates are triggering any distressed selling wave,” said Hogue.
The decline in prices is also slowing. Hogue said the composite MLS Home Price Index fell for the seventh straight time in October from the month before. But the 1.1 percent drop is less than a third of the 3.4 percent average fall between April and August.
Torontonians might take some comfort in this. Since the March peak in this market, prices have now fallen 18 percent or $237,000, wiping out almost half of the pandemic gains.
Meanwhile in Montreal, “the downturn isn’t letting up,” said Hogue. More buyers are staying out of the market, inventories are rising and prices keep heading south. RBC estimates sales dropped 2.6 percent in October from the month before, but that too is less than the average of 7 percent in the previous three months.
Calgary is one of the few markets in Canada that has remained well above pre-pandemic levels. RBC estimates that sales here actually increased by almost 5 percent month over month in October. Prices have come down, but the 4.2 percent decline since the peak in May is a fraction of the correction seen in other markets.
Across Canada price declines appear to be slowing, said Hogue. Nonetheless, “whether activity is stabilizing, will soon stabilize or slump further, our view is the market will stay generally soft over the coming months.”
RBC does not expect Canada’s housing to hit bottom until next spring at which time the national benchmark price will have dropped 14 percent from (quarterly) peak to trough.
It’s what BMO chief economist Douglas Porter calls a “nasty side effect of inflation.”
Monday, striking education sector workers in Ontario agreed to return to work only after the provincial government offered to rescind a controversial law outlawing strikes. The same day GO Transit workers walked off the job, shutting down regional bus service across the Greater Golden Horseshoe and leaving commuters scrambling.
Seems it’s no coincidence that when inflation spikes, labour strikes aren’t far behind. Over the past 70 years, the only bout of serious labour unrest in Canada was in the mid-1970s to the mid1980s, Porter wrote in a note about the BMO chart above. That was also the last serious stretch of high inflation — up until now.
“So far there’s no indications higher rates are triggering any distressed selling wave,” said Hogue.
The decline in prices is also slowing. Hogue said the composite MLS Home Price Index fell for the seventh straight time in October from the month before. But the 1.1 percent drop is less than a third of the 3.4 percent average fall between April and August.
Torontonians might take some comfort in this. Since the March peak in this market, prices have now fallen 18 percent or $237,000, wiping out almost half of the pandemic gains.
Meanwhile in Montreal, “the downturn isn’t letting up,” said Hogue. More buyers are staying out of the market, inventories are rising and prices keep heading south. RBC estimates sales dropped 2.6 percent in October from the month before, but that too is less than the average of 7 percent in the previous three months.
Calgary is one of the few markets in Canada that has remained well above pre-pandemic levels. RBC estimates that sales here actually increased by almost 5 percent month over month in October. Prices have come down, but the 4.2 percent decline since the peak in May is a fraction of the correction seen in other markets.
Across Canada price declines appear to be slowing, said Hogue. Nonetheless, “whether activity is stabilizing, will soon stabilize or slump further, our view is the market will stay generally soft over the coming months.”
RBC does not expect Canada’s housing to hit bottom until next spring at which time the national benchmark price will have dropped 14 percent from (quarterly) peak to trough.
It’s what BMO chief economist Douglas Porter calls a “nasty side effect of inflation.”
Monday, striking education sector workers in Ontario agreed to return to work only after the provincial government offered to rescind a controversial law outlawing strikes. The same day GO Transit workers walked off the job, shutting down regional bus service across the Greater Golden Horseshoe and leaving commuters scrambling.
Seems it’s no coincidence that when inflation spikes, labour strikes aren’t far behind. Over the past 70 years, the only bout of serious labour unrest in Canada was in the mid-1970s to the mid1980s, Porter wrote in a note about the BMO chart above. That was also the last serious stretch of high inflation — up until now.
With record Canadian immigration targets, housing fears soar, but anxieties are unfounded, experts say
Builders needed to construct homes, say officials at construction plants, who welcome new immigration targets
Finding enough workers to assemble pre-built walls and floors at the Etobicoke plant where Paul Askett manages manufacturing is a grind.
He's hoping that a record wave of new Canadians expected over the next three years will help. Demand for the factory's product — installed in Ontario housing — is surging, but Askett says the assembly floor crew is usually short by about 10 percent.
"It's definitely been a hurdle. That's for sure. The pandemic has kind of changed everything for us," said Askett, the vice- president of manufacturing for Brockport Home Systems.
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Builders needed to construct homes, say officials at construction plants, who welcome new immigration targets
Finding enough workers to assemble pre-built walls and floors at the Etobicoke plant where Paul Askett manages manufacturing is a grind.
He's hoping that a record wave of new Canadians expected over the next three years will help. Demand for the factory's product — installed in Ontario housing — is surging, but Askett says the assembly floor crew is usually short by about 10 percent.
"It's definitely been a hurdle. That's for sure. The pandemic has kind of changed everything for us," said Askett, the vice- president of manufacturing for Brockport Home Systems.
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This construction business is one of many sectors struggling to find workers, with about one million jobs sitting vacant across the country.
To help, Canada has just announced record immigration targets — 1.5-million new Canadians within the next three years — with plans to bring in 500,000 people in 2025. Federal officials say that will help boost the economy, but the targets have also spiked anxiety about where all these new citizens will make their homes, given the country's ongoing housing crisis.
Newcomers need more than just housing
Askett says he's encouraged by the new targets as his company often hires and trains new Canadians.
"For us, it's definitely positive news," he said. "Yeah, we look forward to any newcomers because we can coach, we can train and advance people, and hopefully give them gainful employment."
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To help, Canada has just announced record immigration targets — 1.5-million new Canadians within the next three years — with plans to bring in 500,000 people in 2025. Federal officials say that will help boost the economy, but the targets have also spiked anxiety about where all these new citizens will make their homes, given the country's ongoing housing crisis.
Newcomers need more than just housing
Askett says he's encouraged by the new targets as his company often hires and trains new Canadians.
"For us, it's definitely positive news," he said. "Yeah, we look forward to any newcomers because we can coach, we can train and advance people, and hopefully give them gainful employment."
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Vancouver property tax expert Paul Sullivan, of Ryan ULC, a global business tax software, and real estate consulting firm, says Canada needs a better plan to both boost a battered economy and ensure there's enough housing and services for incoming Canadians.
"We build approximately 265,000 homes per year. And here we are talking about 500,000 immigrants coming in per year. We're undersupplied before we even talk about this immigrant influx," said Sullivan.
"It's not just housing, it's daycares, it's transit, it's hospitals. What's the plan, guys? Like, you can't just keep throwing people at it."
New immigrants won't impact home prices: expert
While some worry that a record influx of new citizens will spike house prices even higher — data experts say that fear has no solid foundation.
Murtaza Haider, director of the Urban Analytics Institute at Toronto Metropolitan University, studies the data around immigration and real estate in Canada.
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"We build approximately 265,000 homes per year. And here we are talking about 500,000 immigrants coming in per year. We're undersupplied before we even talk about this immigrant influx," said Sullivan.
"It's not just housing, it's daycares, it's transit, it's hospitals. What's the plan, guys? Like, you can't just keep throwing people at it."
New immigrants won't impact home prices: expert
While some worry that a record influx of new citizens will spike house prices even higher — data experts say that fear has no solid foundation.
Murtaza Haider, director of the Urban Analytics Institute at Toronto Metropolitan University, studies the data around immigration and real estate in Canada.
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Haider says previous studies suggest the federal plan to up immigration by about 150,000 to 200,000 extra people per year (living in households of three or four), will have little impact.
"My guess is that most new immigrants will … not have cash or enough savings to go and start buying homes," he said.
"I don't expect them to exert pressure on housing prices as much, but more so on the rental demand."
Haider said it takes about two or three years for new immigrants to become active in the ownership cycle.
"So if we're bringing in half a million immigrants in 2023 and another half a million in 2024, I would assume that they would be putting pressure on ownership or owned housing in the year to 2026, 2027."
He said past studies — and the experience during lockdowns when housing markets overheated during the pandemic when immigration was frozen — prove immigration is not what spikes housing costs.
"By December 2020 we had an unprecedented increase in housing prices in Canada at a time when there was almost zero immigration because airports were closed."
The housing shortage goes back decades
Haider believes the real cause of the housing shortage is a systemic failure to ensure enough stock was constructed, a problem he says goes back decades.
"Governments have woken up to the realization that we have not built enough housing at the bottom," he said.
BuildForce Canada, an organization that studies labour force data for the construction industry, forecasts that the Canadian construction industry will need more than 1.2-million workers and need to recruit 171,850 workers by 2027. They expect to be short by 29,000 workers once baby boomers retire.
"My guess is that most new immigrants will … not have cash or enough savings to go and start buying homes," he said.
"I don't expect them to exert pressure on housing prices as much, but more so on the rental demand."
Haider said it takes about two or three years for new immigrants to become active in the ownership cycle.
"So if we're bringing in half a million immigrants in 2023 and another half a million in 2024, I would assume that they would be putting pressure on ownership or owned housing in the year to 2026, 2027."
He said past studies — and the experience during lockdowns when housing markets overheated during the pandemic when immigration was frozen — prove immigration is not what spikes housing costs.
"By December 2020 we had an unprecedented increase in housing prices in Canada at a time when there was almost zero immigration because airports were closed."
The housing shortage goes back decades
Haider believes the real cause of the housing shortage is a systemic failure to ensure enough stock was constructed, a problem he says goes back decades.
"Governments have woken up to the realization that we have not built enough housing at the bottom," he said.
BuildForce Canada, an organization that studies labour force data for the construction industry, forecasts that the Canadian construction industry will need more than 1.2-million workers and need to recruit 171,850 workers by 2027. They expect to be short by 29,000 workers once baby boomers retire.
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◾️کاش آزادی ابر شود و ببارد …
Building Type:
1. House (66.4%)
2. Row / Townhouse (16.9%)
3. Apartment (13.4%)
4. Duplex (1.2%)
5. Triplex (0.6%)
1. House (66.4%)
2. Row / Townhouse (16.9%)
3. Apartment (13.4%)
4. Duplex (1.2%)
5. Triplex (0.6%)
Residential Property Type:
1. Residential (87.4%)
2. Condo/Strata (5.0%)
3. Any (3.1%)
4. Vacant Land (2.1%)
5. Multi Family (1.0%)
1. Residential (87.4%)
2. Condo/Strata (5.0%)
3. Any (3.1%)
4. Vacant Land (2.1%)
5. Multi Family (1.0%)
High-interest rates bring winter gloom to Canada's housing market
Canada’s housing market has gone cold, with buyers sidelined by soaring borrowing costs and sellers holding off listing in hopes of a spring rally, while higher interest rates mean prices need to fall more before any rebound materializes, experts say.
The Bank of Canada has signaled its historic tightening campaign is nearing an end, though economists expect the central bank’s policy rate to remain at a 15-year high of 4.25 percent or 4.5 percent throughout 2023, putting downward pressure on prices.
At the same time, Canada needs to build 3.5 million more homes by 2030, according to the country’s national housing agency, to address a current shortage as well as rising demand from millennials and newcomers to the country as the government boosts immigration targets.
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Canada’s housing market has gone cold, with buyers sidelined by soaring borrowing costs and sellers holding off listing in hopes of a spring rally, while higher interest rates mean prices need to fall more before any rebound materializes, experts say.
The Bank of Canada has signaled its historic tightening campaign is nearing an end, though economists expect the central bank’s policy rate to remain at a 15-year high of 4.25 percent or 4.5 percent throughout 2023, putting downward pressure on prices.
At the same time, Canada needs to build 3.5 million more homes by 2030, according to the country’s national housing agency, to address a current shortage as well as rising demand from millennials and newcomers to the country as the government boosts immigration targets.
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Bank of Canada says higher interest rates still needed to tame inflation
We are getting closer, but we are not there yet
Inflation in Canada remains too strong, and higher interest rates will be needed to cool the overheating economy, Bank of Canada Governor Tiff Macklem said in testimony at the House of Commons on Wednesday.
“We anticipate that (inflation) will stay quite high for the rest of this year. It will start to decline next year,” Macklem told members of parliament. “We are resolute to get inflation back to our target.”
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We are getting closer, but we are not there yet
Inflation in Canada remains too strong, and higher interest rates will be needed to cool the overheating economy, Bank of Canada Governor Tiff Macklem said in testimony at the House of Commons on Wednesday.
“We anticipate that (inflation) will stay quite high for the rest of this year. It will start to decline next year,” Macklem told members of parliament. “We are resolute to get inflation back to our target.”
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The Bank of Canada raised rates by 50 basis points last month, lifting the policy rate to 3.75 percent, the highest since four percent seen in January 2008. It also forecasted growth would stall from the fourth quarter of this year through the middle of next year.
Money markets have fully discounted 25 basis points of further tightening at the Bank of Canada’s next policy decision on Dec. 7 and see a 20 percent chance of a 50-basis-point hike.
Conservative lawmakers pressed Macklem to explain what the bank should have done differently to avoid the spike in inflation.
Macklem reiterated that “with hindsight,” the bank would have started tightening monetary policy sooner, adding the bank would review how monetary tools have worked during this period.
“When we get inflation all back down to two percent, I think we are going to have to have a thorough review of how all our tools worked,” he said.
Conservative Party leader Pierre Poilievre has said he would fire Macklem and blames quantitative easing for having fueled price increases.
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Money markets have fully discounted 25 basis points of further tightening at the Bank of Canada’s next policy decision on Dec. 7 and see a 20 percent chance of a 50-basis-point hike.
Conservative lawmakers pressed Macklem to explain what the bank should have done differently to avoid the spike in inflation.
Macklem reiterated that “with hindsight,” the bank would have started tightening monetary policy sooner, adding the bank would review how monetary tools have worked during this period.
“When we get inflation all back down to two percent, I think we are going to have to have a thorough review of how all our tools worked,” he said.
Conservative Party leader Pierre Poilievre has said he would fire Macklem and blames quantitative easing for having fueled price increases.
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Ontario Housing Market Snapshot for October 2022
Home sales are down 42.7% across Ontario, with 12,436 units sold in October 2022, compared to 21,717 in October 2021.
The average price of homes sold across Ontario in October 2022 was $835,090, down 8.5% from $912,597 in October 2021.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-Residents of Canada
☎️ Ways to contact us via Phone, Email:
+1 (647) 772-9502
hoizady@yahoo.com
.
Home sales are down 42.7% across Ontario, with 12,436 units sold in October 2022, compared to 21,717 in October 2021.
The average price of homes sold across Ontario in October 2022 was $835,090, down 8.5% from $912,597 in October 2021.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-Residents of Canada
☎️ Ways to contact us via Phone, Email:
+1 (647) 772-9502
hoizady@yahoo.com
.
Housing Market Snapshot for October 2022
Home sales are down 36% across Canada, with 33,698 units sold in October 2022, compared to 52,678 in October 2021.
The average price of homes sold across Canada in October 2022 was $644,643, down 9.9% from $715,125 in October 2021.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-Residents of Canada
☎️ Ways to contact us via Phone, Email:
+1 (647) 772-9502
hoizady@yahoo.com
.
Home sales are down 36% across Canada, with 33,698 units sold in October 2022, compared to 52,678 in October 2021.
The average price of homes sold across Canada in October 2022 was $644,643, down 9.9% from $715,125 in October 2021.
Real Estate Buyers and Sellers:
We are with you from the beginning to the end with a professional team in the field of selling and buying your dream home.
services rendered:
- Providing loans with the lowest interest rates available in the market ( First, Second, Third Mortgages)
- Free evaluation of your home
- Finding your dream home according to location and budget
- Obtaining complete market information in order to make the right decision when buying or selling a house/condo
- Special services for:
- First Time Home Buyers
- Newcomers to Canada
- Non-Residents of Canada
☎️ Ways to contact us via Phone, Email:
+1 (647) 772-9502
hoizady@yahoo.com
.
Planning on Buying a Home? Do These 10 Things Now
From assembling your team to making your wish list, here’s how to get your home-buying journey off to a strong start.
For the first time in years, home buyers are shopping with more time and bargaining power, and even price cuts in some areas — meaning you may be facing less competition on that home you’ve been eyeing. If that’s inspiring you to make your home-buying goal a reality, it’s time to get prepared. Having your finances in order and a robust home-buying team can go a long way towards ensuring you’re well-positioned to put in a winning offer. This checklist walks you through how to prepare to buy a house, with 10 steps you can work on right now to get off to a running start.
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From assembling your team to making your wish list, here’s how to get your home-buying journey off to a strong start.
For the first time in years, home buyers are shopping with more time and bargaining power, and even price cuts in some areas — meaning you may be facing less competition on that home you’ve been eyeing. If that’s inspiring you to make your home-buying goal a reality, it’s time to get prepared. Having your finances in order and a robust home-buying team can go a long way towards ensuring you’re well-positioned to put in a winning offer. This checklist walks you through how to prepare to buy a house, with 10 steps you can work on right now to get off to a running start.
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1. Review your credit scores
Your credit scores play a vital role in whether a loan officer will approve you for a mortgage. They also affect what type of interest rate lenders will offer for the specific type of loan you want.
Many banks and other financial companies offer free credit scores to customers, based on data in your credit reports.
If your scores need a boost, make all your payments on time every month, utilize no more than 30% of your available credit and don’t apply for new credit that you don’t need. Asking the credit agencies to correct any errors in your reports could also raise your scores.
2. Choose a mortgage loan officer
When you’re thinking about buying a home, it’s never too early to talk to a loan officer. In your initial conversation, you don’t have to share your financial situation, authorize a credit check or even be ready to be pre-qualified or pre-approved for financing.
A loan officer can:
Educate you about the loan application and approval process.
Explain the down payment requirements for different loan programs.
Update you on interest rate trends and how your payment may be affected.
Help you figure out how much you can spend on buying a home.
Give estimates of your closing costs.
If you’re buying for the first time or haven’t owned a home for several years, ask your loan officer about special loan programs for first-time buyers in your area.
3. Review your debt and income with your loan officer
Having a lot of debt shouldn’t prevent you from buying a home if you have enough income to make your payments. If your income is stretched, paying off some debt could help you get approved for the loan you want.
Starting a new job, receiving irregular paychecks or quitting your job to launch your own business can make it harder for lenders to understand, track and verify your income. Keeping your income sources consistent before you purchase a home can make it easier for you to get approved.
4. Identify funds for your down payment
Contrary to popular wisdom, you don’t need a down payment of 20% of the home’s purchase price to buy a home. In fact, a Zillow survey of home buyers found that 58% of those planning to finance their home purchase intended to make a down payment of less than 20%.
Some loan programs allow you to buy a home with a down payment as low as 3.5% — or even with no down payment at all. (Buyers who choose these programs usually pay for some form of mortgage insurance, which protects the lender if the buyer doesn’t make the loan payments.)
Some buyers have enough income from their job or side hustle to save for a down payment. Others utilize monetary gifts from family members or the proceeds from selling stock or other assets they own.
5. Get prequalified for a loan
A loan prequalification, or “prequal,” is a step towards understanding how much home you might be able to afford.
In most states, a prequal is based on your submission of stated income and assets, estimated down payment, desired loan amount and possibly a credit check, explains Juan Rodriguez, a Zillow mortgage loan officer in Irvine, Calif.
A prequal isn’t a promise from the lender to give you a loan for a specific amount at a specific rate. Rather, it’s a first look or rough estimate of the loan amount and rate you may qualify for based on your stated financial information.
6. Set your price range
Before you begin shopping for a home, you’ll need to decide not only how much you can spend but also how much you want to spend. That amount — your home price range — is based on three factors:
The dollar amount of your down payment
The loan amount you’re prequalified for
The monthly payment you feel you can afford
You can shop for a house at the top of your price range. Or you can shop for a more affordable home to keep your payment lower if that’s more comfortable for you. Note that your price range may need to be re-evaluated after you’ve consulted with an agent (more on that below).
.
Your credit scores play a vital role in whether a loan officer will approve you for a mortgage. They also affect what type of interest rate lenders will offer for the specific type of loan you want.
Many banks and other financial companies offer free credit scores to customers, based on data in your credit reports.
If your scores need a boost, make all your payments on time every month, utilize no more than 30% of your available credit and don’t apply for new credit that you don’t need. Asking the credit agencies to correct any errors in your reports could also raise your scores.
2. Choose a mortgage loan officer
When you’re thinking about buying a home, it’s never too early to talk to a loan officer. In your initial conversation, you don’t have to share your financial situation, authorize a credit check or even be ready to be pre-qualified or pre-approved for financing.
A loan officer can:
Educate you about the loan application and approval process.
Explain the down payment requirements for different loan programs.
Update you on interest rate trends and how your payment may be affected.
Help you figure out how much you can spend on buying a home.
Give estimates of your closing costs.
If you’re buying for the first time or haven’t owned a home for several years, ask your loan officer about special loan programs for first-time buyers in your area.
3. Review your debt and income with your loan officer
Having a lot of debt shouldn’t prevent you from buying a home if you have enough income to make your payments. If your income is stretched, paying off some debt could help you get approved for the loan you want.
Starting a new job, receiving irregular paychecks or quitting your job to launch your own business can make it harder for lenders to understand, track and verify your income. Keeping your income sources consistent before you purchase a home can make it easier for you to get approved.
4. Identify funds for your down payment
Contrary to popular wisdom, you don’t need a down payment of 20% of the home’s purchase price to buy a home. In fact, a Zillow survey of home buyers found that 58% of those planning to finance their home purchase intended to make a down payment of less than 20%.
Some loan programs allow you to buy a home with a down payment as low as 3.5% — or even with no down payment at all. (Buyers who choose these programs usually pay for some form of mortgage insurance, which protects the lender if the buyer doesn’t make the loan payments.)
Some buyers have enough income from their job or side hustle to save for a down payment. Others utilize monetary gifts from family members or the proceeds from selling stock or other assets they own.
5. Get prequalified for a loan
A loan prequalification, or “prequal,” is a step towards understanding how much home you might be able to afford.
In most states, a prequal is based on your submission of stated income and assets, estimated down payment, desired loan amount and possibly a credit check, explains Juan Rodriguez, a Zillow mortgage loan officer in Irvine, Calif.
A prequal isn’t a promise from the lender to give you a loan for a specific amount at a specific rate. Rather, it’s a first look or rough estimate of the loan amount and rate you may qualify for based on your stated financial information.
6. Set your price range
Before you begin shopping for a home, you’ll need to decide not only how much you can spend but also how much you want to spend. That amount — your home price range — is based on three factors:
The dollar amount of your down payment
The loan amount you’re prequalified for
The monthly payment you feel you can afford
You can shop for a house at the top of your price range. Or you can shop for a more affordable home to keep your payment lower if that’s more comfortable for you. Note that your price range may need to be re-evaluated after you’ve consulted with an agent (more on that below).
.