How to buy a home in Canada in 2022 – tips from industry professionals

Those who wanted to purchase a property in Canada last year, have faced skyrocketing home prices amid terrible lack of supply. However, 2022 will hardly bring any relief to potential homebuyers.

According to the Canadian Real Estate Association (CREA), housing prices were up by 25% on a year-over-year basis in November. At the same time, Royal LePage believes home prices will go up by another 10% by the end of 2022.

Here are a few recommendations from industry professional and our team on how to enter Canada’s real estate market next year:

“It may sound weird, but use your imagination. Be ready to explore options that most buyers won’t. Don’t rule out poorly marketed properties with dark photos. In case there are still tenants there, it could be your lucky chance, as sometimes tenants won’t allow taking photos and could limit showings. That’s why the seller may feel desperate for anyone who gets interested in buying the property,” – recommends Nasma Ali, broker at Remax Hallmark Realty

Davelle Morrison, broker, Bosley Real Estate advises the following: “My first piece of advice to first-time homebuyers is be patient. Patience is vital when it comes to purchasing a property. Ask anyone over 40 and they will tell you they regret not buying more real estate when they were younger. They wish they would have saved as much as they could to purchase something in their 20s or 30s. You still have a bright future ahead if you are young and planning to buy a house. So don’t wait to buy real estate, buy real estate and wait.

My second piece of advice is to forget about your luxury tastes and accept and like the properties that you can afford. Entering the housing market is like taking the first step on the ladder. It should be small, something like a small condo. Then you can upgrade to a bigger condo, a smaller house and then a bigger house if you want.”

John Pasalis, president, Realosophy Realty, has the similar tip: “Don’t chase after properties you can’t afford. Most buyers spend about half a year bidding on houses out of their budget, but they don’t realize just how far above their budget the home is actually worth.”

And our own MortgageLegko.com set of advices are:

• Do your mortgage pre-qualification in advance, talk to your bank or mortgage broker if you could go “firm” (no condition on financing) on the purchase.
• Have plan B ready in case you absolutely need to go over your limit (parents as co-signors, gift, alternative financing etc.)
• There is always a good time to buy your home if you are mentally and financially ready!