On September 6, the Bank of Canada kept the key policy rate at 5%. What’s next? Are we in the clear yet? We will see what happens at the next announcement on October 25.

Homebuyers are now wondering: Am I still capable of purchasing a home?

True, mortgage rates have increased significantly creating an affordability issue among Canadians. Do you know that there are several actions you can take to make the most of the situation when purchasing a home during a period of high-interest rates?

First, research and compare mortgage options. Explore different mortgage lenders and loan products to find the best interest rates and terms available. Compare offers from multiple lenders to ensure you secure the most favorable rate possible.

Second, negotiate with sellers. In high interest rate situations, sellers might be more motivated to close deals. Negotiate purchase price and other terms to offset the impact of high interest rates.

Finally, focus on long-term benefits. Remember that homeownership offers various advantages beyond interest rates. Building equity, potential tax benefits, and the ability to customize and invest in your property can make home ownership worthwhile, even in a high-rate environment.

It’s essential to consult with mortgage professionals, financial advisors, and real estate agents (Hi!) who can provide guidance tailored to your specific situation and to help you navigate the process and explore strategies to mitigate the impact of high-interest rates on your home purchase.

I would be glad to discuss to see if it might be a good time to start your home search or home selling journey.

If you have questions or would like to discuss how you can start with the home-buying or home-selling process, feel free to reach out to me at 431.335.4285 or send me an email at info@scarletcirio.com. I would love to help you reach your real estate goals!

Scarlet Cirio, Your Winnipeg REALTOR®

431.335.4285 | info@scarletcirio.com

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Attention, First-time Home Buyers! Have you saved up for the downpayment of  your future home? If you haven't yet, let me share something with you.

The Government of Canada has introduced a new vehicle to make home ownership more accessible to Canadians. Introducing the First Home Savings Account?

What is the First Home Savings Account or FHSA? Who are eligible to open this account? How does it work and what makes this account special?

An FHSA is a tax-advantaged account designed to help Canadians save up for a downpayment for the purchase of their first home. Your contributions to the FHSA are Tax deductible when you file your taxes – meaning, the amount you will contribute to this account reduces your net taxable income, which in turn results to tax savings! Want more good news? Qualifying withdrawals from FHSA (including investment returns) are tax-free! Qualifying withdrawal means the withdrawal must be used for a 1^st home purchase.

So you see, FHSA combines the amazing powers of an RRSP and TFSA. It takes the best features of these 2 accounts to give a new and better way to save money for your first home.

You can contribute up to $8,000 per year once opened, up to a lifetime of $40,000. That is on a per person basis. To sweeten the deal, any unused contributions can be carried forward to the next year.

If you are between 18-71 years of age, is a current tax resident of Canada and have not lived in a home that you or your spouse or partner- owned in the current year of any of the previous 4 calendar years and is opening the account to save for buying a home in Canada, better contact your bank to arrange for an account opening!

If you have questions or would like to discuss how you can start with the home-buying process, feel free to reach out to me at 431.335.4285 or send me an email at info@scarletcirio.com. I would love to help you reach your real estate goals!

Scarlet Cirio, Your Winnipeg REALTOR®

431.335.4285 | info@scarletcirio.com

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