Thinking About Moving? Ask Yourself These 5 Things First
Last updated on May 11th, 2021 at 12:56 pm
Is moving on your mind? With all the “For Sale” signs going up this year, it’s hard not to get excited about finding a new place to call home. But before you start house hunting, there are a few things you should consider. If you’ve been thinking about moving, ask yourself these five things first before making any decisions.
Do I Really Need to Move?
A relocation often costs more than a simple upgrade. If you’re moving for more space, you should first see how much a home addition will cost you in comparison to a full move. Exploring what renovations can be done to your existing home can help you determine whether or not a move is essential.
Will the Sale Cover My Purchase Costs?
If you’ve done all the math and feel confident that your sale price and mortgage will cover the purchase price of your new home, you may be surprised to learn there are other expenses you need to consider. When selling your home, you should also be prepared to cover the moving costs, agent commission fees, staging costs, home inspection costs, legal fees, mortgage penalty or discharge costs, and the land transfer tax. If you live in a municipality like Toronto, you may also be required to pay a city land transfer tax on top of the provincial tax. It’s best to talk to professionals who can help you calculate all the fees that need to be factored in.
Will This Move Improve My Quality of Life?
A move might just be what you need to improve your overall quality of life. For instance, if you were to move closer to work, you could spend less time commuting and more time with the family. If you want to raise a family, a move to a home with a larger backyard and more space can be an advantage. It’s important to figure out what’s important to you in your life right now, what your priorities are, and what will make you feel happy. If a move will accent all of those things, then your next step is to figure out if now is the right time.
Can I Qualify For A New Mortgage?
If you ask your lender to transfer your current mortgage to a new property, you generally have to reapply. With the recent changes in the Canadian mortgage landscape, it has become tougher to qualify. Currently, everyone who requires a mortgage will go through a stress test to ensure that they can afford the greater of the five-year benchmark rate published by the Bank of Canada or 200 basis points above their mortgage lenders rate. So even if you got your first mortgage without a problem, you’d now have to qualify for the stress test before being awarded a new one.
Do I Know the Value of My Home?
The first step in selling your home is to determine its value in today’s real estate market. If you have no idea what your home is worth, it’s wise to hire an agent who does. Our team at Geoff & Bobbie McGowan can arrange for a free, no obligation market evaluation of your home so you can make a better-informed decision.
We can help you find the perfect home, sell your house and negotiate the best price for your new one. Get in touch with our team today and let us help you turn your moving thoughts into action.