5 Things to Keep in Mind When Buying a Home This Summer
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Summer is one of the most popular seasons for home buying in Canada, but it’s also one of the most competitive. With more listings hitting the market, buyers often feel pressured to act quickly, especially when mortgage rates are uncertain and inventory varies across regions.
Whether you’re a first-time buyer or upgrading your current home, entering the housing market during peak season requires careful planning. From understanding the summer market to protecting your budget from rising costs, these five tips can help you buy a home this summer.
Key Takeaways
- The summer market moves fast; be ready with a strategy that won’t put you over budget.
- Securing a mortgage pre-approval and rate hold can help you stay competitive in the market.
- Seasonal risks make budgeting beyond the purchase price essential when factoring in closing costs.
1. Understand the Summer Housing Market in Canada
Real estate activity typically heats up in the summer, and so does the competition. Many sellers list their homes between late spring and early summer, which can create more choice but also attract a larger number of buyers.
While urban centres like Toronto, Vancouver, and Montreal often experience bidding wars year-round, smaller cities and rural markets tend to move at a steadier pace. Keep an eye on recent data from trusted sources like the Canadian Real Estate Association (CREA) to understand what’s happening in your desired area.
Summer weather also makes it easier to inspect properties and plan a move. Be prepared to act quickly when necessary, but don’t let the pressure of the season push you to rush your decision.
2. Get Pre-Approved and Lock In Your Rate Early
In a fast-paced summer market, getting pre-approved for a mortgage isn’t just helpful, it’s essential. A pre-approval provides a clear understanding of what you can afford, strengthens your negotiating power, and demonstrates to home sellers that you’re a serious buyer.
More importantly, a rate hold can protect you from rising mortgage rates during your home search. The summer months often coincide with increased market volatility, especially when inflation or Bank of Canada rate announcements are in the news. Even a slight increase in rates can significantly impact your monthly payments and overall affordability.
Whether you’re leaning toward a fixed or variable mortgage, having that rate secured gives you time to shop without the added pressure of rates increasing while you shop.
3. Know the True Cost of Buying a Home
It’s easy to focus on the listing price or down payment, but there are many other costs to factor in before you buy. In the summer, you may also encounter seasonal risks, such as increased competition and bidding wars, which could lead to higher home prices. Setting aside a realistic buffer can protect your finances and reduce stress once you’ve moved in.
Some common home buying expenses include:
- Property inspection and appraisal fees
- Land transfer taxes (vary by province and city)
- Legal and closing costs
- Moving costs and new utility setups
- Mortgage default insurance (if your down payment is under 20%)
Depending on where you buy and the type of property, you may also need to consider additional costs such as lawn care equipment and air conditioning installation. You may also need to factor in additional home insurance premiums for seasonal weather risks, such as wildfires or flooding. These additional insurance protections are worth the added expense if you are purchasing in an area where weather-related risks could pose a serious threat to your new home.
Red hot rates impacting your housing market experience?
With nesto, you can get a low rate with a 150-day hold.
4. Don’t Skip Key Steps in a Hot Market
With homes selling quickly in the summer, some buyers may feel tempted to waive conditions, such as financing or home inspections, to make their offer more attractive. While this can strengthen your bid, it also carries significant risk.
Buyers should remember that waiving conditions isn’t just a gamble; it can lead to long-term financial strain. Home inspections provide a comprehensive picture of the property’s condition, helping you avoid costly surprises, such as a leaky roof or outdated wiring.
Another risk is assuming your financing will go through without final lender approval. Waiving your condition of financing can mean you not only lose your deposit, but you can be liable for additional costs if the seller sues you for damages due to losses they incur from your failure to complete the transaction.
A home appraisal ensures you’re not overpaying based on the current market value, which is especially important in fast-changing markets. If you make an unconditional offer and your financing falls short, you may be liable if you are unable to complete the purchase.
5. Plan Your Move and Possession Date Strategically
Summer offers ideal moving conditions, but it also comes with scheduling challenges. Movers book up quickly, and costs often increase during peak times, such as long weekends or the start and end of the month.
Try to negotiate a possession date that gives you time to transition smoothly. That might mean avoiding the busiest moving dates or overlapping your current and future homes by a few days to move slowly and reduce stress. If you’re selling a home at the same time, coordinate both closings carefully to avoid the need for bridge financing, temporary housing or storage, which will add to your moving or closing costs.
If you have kids, summer moves can align with school breaks, but you’ll also want to factor in vacation schedules, work obligations, and childcare needs. Planning ahead can help ensure that children have time to adjust to a new neighbourhood and start school when the academic year begins.
Don’t forget the administrative details: arrange utility hookups, internet installation, and home insurance in advance to avoid last-minute issues. If you’re moving to a different city or province, confirm how long you have until your driver’s license, health card, or insurance policies need to be updated. Proper planning can help you settle into your new space without rushing or overlooking critical steps that could create unnecessary stress later.
Frequently Asked Questions (FAQ) About Homebuying in the Summer
Should I get pre-approved before house hunting in the summer?
A mortgage pre-approval gives you a clear budget, speeds up the offer process, and shows sellers you’re a serious buyer, which is crucial in a competitive summer market.
How can I protect myself when buying in a hot market?
To protect yourself when buying in a hot housing market, avoid waiving conditions, such as home inspections or financing, without licensed professionals to confirm the associated risks.
Are home prices always higher in summer?
Home prices often rise in response to increased demand, especially in highly sought-after regions. Spring and summer tend to see increased demand in the Canadian housing market, so expect prices to be higher during these seasons when compared to fall and winter.
Final Thoughts
Buying a home in the summer means navigating one of the busiest and most active times in the Canadian real estate market. From securing your financing early to understanding the full costs of homeownership, having a solid plan and a clear financial strategy will prepare you to take on the busy summer housing market.
If you’re ready to take the next step, nesto mortgage experts are here to help you secure your most suitable mortgage solution, compare rates, and create a mortgage strategy that fits your long-term goals. Contact us today to start your summer homebuying journey.
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