Spring Housing Market Countdown: Are You Ready?
Spring’s housing market will be here before we know it! If you or someone you know is considering buying a home, now is the perfect time to start preparing. Taking steps early can make the process smoother and less stressful. Here's how to get ready:
Start by understanding your financial picture. Partnering with a financial specialist can help you review your income, credit, and down payment options. I can connect you with trusted professionals who will highlight areas for improvement and clarify your maximum purchase price. Planning now helps avoid last-minute hurdles and gives you time to make any necessary adjustments.
Hold Off on Big Purchases: Large purchases (like a new car) can reduce your purchasing power—save those for after your home purchase.
Reduce Credit Balances: Outstanding credit balances impact your mortgage qualification. Lowering them can help increase your maximum purchase price.
Build Credit History: Two credit accounts with a two-year history and at least $2,000 in available credit are ideal. Need help improving your credit? I work with lenders who offer flexible solutions.
File & Pay Your Taxes: Lenders often require proof of filed and paid taxes. Keep these deadlines in mind:
April 30: Deadline for most Canadians.
June 15: Deadline for self-employed individuals.
Self-Employed? Lenders usually average your income over two years. If 2024 was a strong year, file your taxes early. If
not, consider closing your purchase before tax deadlines to use 2022 and 2023 income instead.
Open an FHSA: Maximize your savings by contributing up to $8,000 to a First Home Savings Account (FHSA) before year-end to claim a 2024 tax deduction. Contribute again in 2025 to save even more.
Avoid Account Transfers: Lenders require a 90-day history of all accounts contributing to your down payment. Large transfers or deposits over $2,500 will need documentation, so try to keep funds stable as you approach your purchase.
Let’s Get Started! Thinking about buying a home next year? Reach out today to start planning. Together, we’ll ensure every detail is in place, so you can step into the spring market with confidence. Let’s make your homeownership dreams a reality!
