Banks are lending up to 108% loan-to-value and their rates are exceptionally competitive, says Tim Greeff.
This means they are being “bullish” about the fact real estate agents are at the bottom of their recent market cycle, and are therefore trying to restimulate the economy by offering attractive loans.
“Now is a great time for first-time buyers to purchase as these rates may not be seen again for another nine years, going into our next market cycle.”
Lew Geffen Sotheby’s Jill Lloyd says: “I can’t stress enough that now is the time for a first-time buyer to get their foot on to the property ladder. It is a buyer’s market and they can get very good value. Banks are also hungry for business and buyers should be able to get a good rate.”
They should, however, get prequalified for a bond to have an accurate idea of what properties are within their budget, says the agency’s Marc Plastow.
“This will make choosing a property much easier and it gets a head start on the paperwork.”