Interest rates have a vital role to play in property cycles. It is therefore important for potential homebuyers like yourself to always have an idea of how high or low the interest rates are at any point in time. This will give you a clue of what is going on in the market.
Ever since the start of the coronavirus pandemic, there has been a decline in interest rates. Such low-interest rates present homebuyers with a huge opportunity which they can take advantage of.
Now the question you may be asking yourself is, “how do low-interest rates favor a homebuyer like myself?” That's a great question, and we'll look at how advantageous it is below.
Firstly, low-interest rates tend to encourage prospective homebuyers to get into the market. This is because it is more affordable to obtain finance. So if you were on the fence about purchasing a home, you are more likely to buy it now by taking a loan at a low-interest rate.
Now you may be wondering if this is the perfect time for you to buy a home. Of course, it is. This is because, in this present economy, we are experiencing historically low-interest rates. The current financial climate, therefore, makes this a great time for homebuyers to purchase a property.
Low-interest rates also allow you to put as little as 3% to 5% down. This means you stand a chance of getting more for your money with regards to your home. So instead of getting that tiny apartment, you had in mind, you can now get something bigger and better. So you tend to afford more home. This will be great in helping you plan your future. You may have considered starting a family or living together with your siblings. Now, with low-interest rates, that dream will come true.
Regarding your mortgage, low-interest rates help keep it lower than it would have been otherwise. This leaves you with more money to consider upgrade options, purchasing a better-built home, or saving up that extra cash. Buying such homes for less can give you a higher resale value, making it a great return on your investment.
From every angle you look at it, low-interest rates will favor homebuyers. So with the interest rates as low as they are now, this is the time to buy that home you’ve always dreamt of.