What’s your dream house and how does it compare to your current home? If you’re feeling cramped in your current home but dreaming of a spacious house with sweeping grounds, and a kitchen that would make a chef swoon, you’re not alone. Evolving family needs or changing living circumstances can make even the most lavish home feel inadequate. However, you shouldn’t let such shortcomings cramp your style.

Thanks to changing market dynamics, there’s never a better time to upgrade to your dream home. Let’s dig in a find out why it’s the best time to remodel your home or upgrade to a new address.

You’ve Built Substantial Home Equity

If you’ve owned a home for a few years, you may be sitting on a goldmine—home equity. A steady growth in home prices over the last few years has fueled explosive home equity gain across the board. Experts estimate the average post-pandemic equity gains could run into hundreds of thousands of dollars.

You can leverage this capital gain and upgrade to a new swanky abode tailored to your needs. After selling your house and paying off what you owe, you will likely be left with a large sum in your account.

Using the sales proceeds as your down payment gives you an edge when buying your dream house. You can effortlessly raise the down payment and escape the stranglehold of private mortgage insurance (PMI). A sizable deposit also gives you substantial negotiating power so you can secure the rates in the market.

Additionally, putting up a substantial deposit lowers the size of your mortgage—keeping your monthly payments low and affordable. As such, you can comfortably pay off your dream house without sacrificing your creature comforts.

Unsure how much home equity you’ve built in your home? Consult your real estate agent. They can help you with accurate property valuation so you can make informed decisions. Alternatively, you may use an online valuation tool to get a ballpark figure of what your home is worth.

The Interest Rates are Dropping

You may have heard it said, “When the rates fall, your wallet smiles.” With mortgage rates on the decline, it’s a buyer’s market. You have higher purchasing power because lower interest rates translate to lower monthly payments. You can easily score that dream house while keeping your mortgage payments small and affordable.

The terms of your mortgage loans set the trajectory of your homeowning experience. Low interest rates mean you can finance your dream home without running your finances. Such rates allow you to qualify for home loans that were previously out of reach at higher interest rates.

More importantly, dropping interest rates lower the interest payable over the lifetime of the loan. That drastically lowers the cost of homeownership since you only pay a nominal amount of money as interest to the bank.

If your home is dated or worse for wear, low prevailing interest rates can be a saving grace. You can refinance your mortgage at a lower rate and lower your monthly payments. You may then channel the cost savings towards remodeling and upgrading your home to suit your style and needs.

Don’t Compromise on Your Dream Home 

Experts predict that the low prevailing interest rates will hold well into the foreseeable future. Take advantage of the cost resultant cost savings and make your dream home a reality. They will work in your favor if you choose to sell and upgrade to a new home or choose to remodel and modernize your current home.

Working with a reliable mortgage broker can help you get your financial ducks in a row and secure the best mortgage rates on the market.

Ready to upgrade to your dream home? Contact us today!