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4 First Time Home Buyer Facts To Help You Overcome Your Fears

If you’re on the market to purchase your first home, making the transition from renter to homeowner can be overwhelming and scary. Over the last couple of years it has been a challenging market for Buyers to enter into, pair that with media hype over rising interest rates and there might seem like there’s a lot to be fearful over. However, those who live the most fulfilling life base their decisions on facts, not fears. 

We’ve outlined four powerful facts to help aspiring homeowners move towards fulfilling their real estate dreams.


Fear: “I can’t afford to buy a home right now”
Fact: Until you do the math, you don’t know you can or can’t afford. 

If you are currently paying rent, generally you can afford to buy. Additionally, depending on your credit score, you can end up affording more than you realize.

Note: The credit scores used for mortgage lending tend to take on a much larger picture of your overall credit score. Finally, although there may be a higher initial cost to buying a house, if you’re planning on staying in one place for a few years, the equity you build can end up being a financial boon.


Fear: “I should wait until the real estate market gets better”
Fact: There is never a wrong time to buy the right home. 

Whether “right” means the right price or the right property for you, waiting for the perfect market timing seldom works to your advantage. The fact of the matter is, even the biggest economic downturns are, well, normal. Even when there were some events that threatened to dampen the economy, like the COVID-19 pandemic, the housing market still continued to thrive.

In the end, there are two ways to make money in real estate: timing and time. That is you happen upon the right moment to purchase your home before the price appreciates, or you hold it for a long enough time so that appreciation makes your purchase investment right. If you miss the first, you can most certainly count on the second.


Fear: “I don’t have the money for a down payment”
Fact: There are a variety of down-payment options available to you. 

While many people believe that making a home purchase requires a substantial down payment, as much as 20%, this is seldom true. Options are always available to you that require much less than this number, as low as 5%; some even less.

House-hacking can also be a great way to make homeownership a more affordable option. House-hacking is when you purchase a piece of real estate and lease out one of the bedrooms or units. This rental income can then be applied toward your mortgage.

Or, you can participate in home rental programs like Vrbo or Airbnb. While it may not be ideal all of the time, you could always make your month’s mortgage payment by renting your place while you’re on vacation.


Fear: “I can’t buy a home because my credit score isn’t good”
Fact: A less than perfect credit score won’t necessarily prevent you from buying a home. 

Although it’s valuable to have a good credit score, a poor one shouldn’t necessarily prevent you from talking to lenders to explore your options. You can expect that a

good mortgage specialist will be able to help you resolve your credit challenges, often simply by showing you how to move or consolidate your debts, or by referring you to a credit counselor who will put you on a plan.

If you’re facing the challenge of having no credit history because you are new to the workforce or have not made regular purchases on credit, there are still possible

solutions that you may want to explore. One is to secure financing with the help of a cosigner, such as a parent or close relative, who is willing to stand by your ability to make the payments. Another can be finding a lender who is willing to use alternative forms of history such as student loans, rent, and utilities.

What are some fears that you have about entering the market? Remember above all, the most important thing you can do is talking to a professional and receiving relevant, up to date information. Talk to your For Sale On Georgian Bay agent to start your path to home ownership!

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September 2022 Market Report For Our Communities

Fall is now in full swing and the market continued to cool off during September, providing many opportunities for Buyers. We saw a large decrease in sales activity where September sales were down 38% compared to 2021. For a few months in a row now, active listings continued to surge, across our communities we saw 151% rise in active listings. There’s lots of opportunities for Buyers right now but don’t forget that seller’s are still getting top dollar for their properties. Year to date, the average sale price is up 11.5% compared to this point last year.

In our local communities, we saw these trends continue, a lot more inventory in Midland with a huge 234% increase and in Penetang with a 109% increase. We also saw large inventory increases in Tiny and Tay throughout September. Whilst house prices still look very attractive to sellers, there are many opportunities for buyers too giving us an interesting market heading into the winter months.

Trust your local experts to guide you through the process and take advantage of the current market. Ask us about our FREE Home Market Analysis to determine exactly how much your Home is worth in today’s Market.

All data correct as of October 6th, 2022, data gathered by the Ontario Collective based on September 2021 vs September 2022.