In today’s market, many Canadian homebuyers are caught between two conflicting thoughts: Should I wait for interest rates to drop, or is now the right time to buy?

The Bank of Canada has hinted that rate cuts could continue through the rest of 2025. That sounds promising, but the real question is whether waiting for a better rate is actually better for your financial future. The answer isn’t always straightforward and depends on a few key factors.

The risks of waiting

Yes, rates might go down, but home prices can go up. If you wait for rates to fall, more buyers may jump into the market again, pushing up prices and reviving bidding wars. A lower rate doesn’t always lead to lower monthly payments if the price of the home you buy is significantly higher.

You also need to consider that waiting too long might mean missing out on properties that suit your needs and budget. The perfect home could come and go while you’re holding out.

Why buying now might make sense

We’re in a rare moment with higher inventory and more motivated sellers. That means more negotiating power, price flexibility and time to make the right decision. Buyers are in a stronger position to avoid overpaying or rushing into a bidding war.

Plus, if rates do drop significantly in the future, you can consider refinancing. You aren’t locked into the rate you get today forever. In fact, many Homewise clients are able to refinance to a lower rate when the time is right, thanks to lender features like early renewal windows or refinancing options without large penalties.

Locking in stability

If you’re financially ready and have found a home that suits your needs, now could be a strategic time to buy. With a mortgage pre-approval, you can lock in today’s rate for up to 120 days while you shop. That gives you peace of mind and flexibility.

You also reduce the stress of rising prices or surprise interest rate changes during your home search. And with Homewise, we help clients find the best rate and features across more than 30 lenders in Canada, which makes the process simpler and more rewarding.

The bottom line

Trying to time the market perfectly is nearly impossible. If you’re financially ready, have a long-term outlook, and find a property that checks your boxes, it’s worth taking the next step. Talk to an expert, get pre-approved and approach the market with clarity and confidence.