Should You Buy a Home Now or Wait!

Stephen Aitcheson
Oct 29
5 min read

Updated: 6 days ago

Weighing Today’s High Interest Rates Against Tomorrow’s Potential Gains, An In-Depth Analysis for Home Buyers in the Okanagan.

Introduction: The Okanagan Real Estate Landscape in 2025

The Okanagan, renowned for its stunning lakes, vineyards, and vibrant communities, has long attracted home buyers from across Canada and beyond. In 2025, the real estate market in Okanagan has shifted to a buyer’s market, atypical for this region - characterized by increased housing inventory and more favorable negotiating conditions for purchasers. However, these advantages have occurred due to current economic conditions and higher interest rates, prompting many would-be homeowners to ask: is it better to buy now, or wait for rates to drop.

Buy NOW or WAIT — Buy now while prices are low or wait for interest rates to drop!

Benefits of Buying Now:

Leveraging the Buyer’s Market

A buyer’s market means there are more homes for sale than there are active buyers. This dynamic creates several key advantages:

Greater Negotiation Power: Sellers are often more willing to negotiate on price, closing costs, and contract terms. Buyers may secure homes below list price or request repairs and upgrades as part of the deal.
Increased Inventory: With more homes on the market, buyers have a wider selection to choose from, improving the chances of finding the ideal property that fits their needs and budget.
Less Competition: Fewer bidding wars mean you are less likely to be pressured into making quick decisions or offering above asking price.
Flexible Closing Dates: Sellers may accommodate buyers’ timelines, making the transition smoother for those relocating or selling another property.

In essence, buying in a buyers market allows purchasers to make more deliberate choices and potentially secure better value for their investment.

Drawbacks of Buying Now:

The Impact of Higher Interest Rates

Despite the advantages of the current market, today’s elevated mortgage interest rates have some drawbacks:

Increased Monthly Payments: Higher rates translate directly into larger monthly mortgage payments, reducing affordability and stretching household budgets.
More Interest Paid the term of the mortgage.
Qualification Challenges: Some buyers may find it harder to qualify for their desired loan amount due to stricter lender requirements and the stress test.
A factor that can be mitigated by finding the right lender to fit your financial position.

Should You Wait? Weighing the Pros and Cons of Market Timing

Waiting for interest rates to decrease can be appealing, but it’s important to consider both the potential benefits and risks:

Potential Benefits: Lower interest rates mean lower monthly payments and less interest paid over the life of the loan. Buyers may also qualify for larger loans, expanding their purchasing options, but in todays home financing landscape there are several options available to home buyers which can allow them to qualify for a larger mortgage.
Potential Risks: If rates drop, demand is likely to surge, leading to increased competition, more bidding wars, and upward pressure on home prices. The advantages of the current buyer’s market—negotiation power, inventory, and flexibility—will most certainly quickly evaporate.
Market timing is inherently uncertain. While some may benefit from waiting, others could find themselves priced out of the market if home values rise faster than rates fall.

Comparative Analysis:

Home Value Appreciation vs. Current Interest Costs

To make an informed decision, let’s compare the financial implications of buying now with a higher interest rate versus waiting for rates to drop, assuming a typical 3-year mortgage term.

Scenario 1: Buy Now or Buy in 6 months or Buy in 1 Year
Purchase Price: $700,000 (negotiated down from $715,000 in a buyer’s market)
Down Payment: 20% ($140,000)
Mortgage Amount: $560,000
Interest Rate: 3.99% (3-year fixed)
Assume rates drop to 3.49% in the next 12 months, but home prices increase by 4% due to renewed demand (BoC rates are predicted to drop to 2% in 2026 only a .25% decrease from today’s rates and housing demand is predicted to increase with an estimated price increase of 4-6% in the same period).

Factor	Buy Now	Wait 6 Years	Wait 1 Year
Market Price	$700,000	$714,000	$728,000
Purchase Price	$690,000	$714,000	$728,000
Down Payment (20%)	$138,000	$142,800	$148,400
Property Transfer Tax	$11,800	$12,280	$12,560

Mortgage Amount	$552,000	$571,200	$582,400
Interest Rate (3-Year Fixed)	3.99%	3.74%	3.49%
Monthly Payment	$2,632	$2,642	$2,612
Total Interest Paid (3 Year term)	$65,988	$63,953	$60,714

Interest Savings (3 Year term)		$2,035	$5,273
Down Payment increase		$4,800	$10,400
Increase – Property Transfer tax		$480	$760
Increased Costs to Wait	$0	$3,245	$5,887
Estimated Income Required	$71,785.94	$72,056.62	$71,235.99

In this hypothetical example, the difference in total interest paid decreased in favor of the buyer, but the buyer had an increase in the down payment, and Land transfer tax costs due tp the increase in housing costs which combined. The net financial impact calculated in the example above was an additional cost to the home buyer taking into account all costs and saving based on a 4% increase in home prices over the next year.

Conclusion:

Making the Right Move in the Okanagan Real Estate Market

Buy Now:

If you value selection, negotiation power, and a smoother buying process, purchasing in today’s buyer’s market may be very advantageous—even with higher interest rates. As demonstrated in the example above, locking in a home at a lower price should more than cover all of the extra interest cost. In addition, if you are in the right mortgage product you will have the option to refinance if rates drop more than predicted in future while minimizing any penalties you may face and potentially increase your saving over the lifetime of your mortgage.

While waiting could reduce your monthly payments and total interest paid, the higher purchase price and larger down payment offset these savings as shown in the example above. Additionally, the loss of negotiation power and increased competition could make it harder to find the right home or secure favorable terms.

Buy Later:

On the other hand, if your current financial position does not allow you to qualify for the mortgage you need today and you’re comfortable with the risk of waiting, you might benefit from lower rates down the road—provided home prices don’t increase before you buy. If home prices increase by more than 1% on a $700,000 home, and you loose your negotiating power, your buying power will decrease, and the income required to qualify will increase. Leaving you with less options to purchase you home.

Ultimately, your decision should be guided by your goals, budget, and risk appetite. Along with professional advice from your local mortgage expert (www.stephenaitcheson.ca) and your real estate professional. Together we can help you assess your options and navigate the Okanagan market with confidence. Whether you choose to buy now or wait, being informed is your best course of action.

There are many mortgage options available beyond the big banks to fit your unique financial requirements, with over 60+ lenders available let me can find a solution to get you into the home of your dreams today.

Call 250-299-3886 or go online and Book a time for your free consultation today at www.stephenaitcheson.ca