If you’ve been contemplating buying a new home or making an investment in Calgary’s real estate market, recent developments indicate that now might be an ideal time. On October 23, 2024, the Bank of Canada announced a significant 50-basis point cut to its key interest rate, bringing it down to 3.75% from its previous 4.25%​. This marks the fourth consecutive rate reduction since June 2024, making borrowing more affordable and presenting several compelling reasons why purchasing a pre-construction or quick possession property could be a smart financial move—whether you’re a first-time buyer or an investor looking to maximize returns.

Lower Interest Rates = Lower Borrowing Costs

The fourth consecutive rate cut since June 2024 has brought the interest rate down to its lowest level in years. This reduction means that prospective buyers can secure more favourable mortgage rates, translating to lower monthly payments and substantial long-term savings​. Whether you’re purchasing a pre-construction home or opting for a quick possession property, reduced borrowing costs make homeownership more accessible and allow buyers to stretch their budgets further
(BNN Bloomberg)​​ (Yahoo Finance)​.

Increased Market Activity and Investment Potential

With borrowing costs lower, experts anticipate a surge in buyer interest, which could lead to increased market activity. For investors, this means a chance to enter the market before home prices begin to rise with renewed demand​. Securing a property now—whether it’s a pre-construction unit with flexible payment options or a quick possession home ready for immediate occupancy—positions investors to benefit from market appreciation as more buyers return to the market (BNN Bloomberg)​​ (Global News)​.

A Window of Opportunity for First-Time Buyers

Starting on August 1, 2024, Canada introduced new mortgage policies allowing first-time homebuyers to access 30-year amortizations for insured mortgages on newly built homes. This shift from the traditional 25-year amortization is aimed at reducing monthly payments, offering much-needed affordability relief in a high-interest rate environment. The government introduced this longer amortization period as part of a broader strategy to make homeownership more attainable for younger Canadians and stimulate the development of new housing.​ With the Bank of Canada’s rate cut to 3.75%, the lowest level in years, now is a prime opportunity for first-time buyers to enter the market. In addition, the seasonal cooling of demand during the fall has resulted in increased inventory and more frequent price reductions, providing buyers with more choices and better negotiating leverage. Combined with supportive government programs like the Home Buyers’ Plan and tax credits for new homeowners, these conditions create an ideal window to make a purchase (Government of Canada)​​.

Future-Proofing Your Investment

Calgary is experiencing a period of rapid growth, making it a prime location for investing in a property. The city welcomed nearly 100,000 newcomers in 2023 alone, reflecting its increasing attractiveness as a destination for both international immigrants and interprovincial movers. This surge has solidified Alberta’s status as the fastest-growing province in Canada. Key factors driving this growth include job opportunities in sectors like technology and energy, expanding infrastructure projects like the Green Line LRT, and continued investments in urban development.

For buyers, purchasing a property now means securing a home at today’s prices in a city that’s poised for further growth. As Calgary’s population increases and infrastructure improvements continue, investing in the city’s housing market presents a significant opportunity for long-term appreciation and stability​.

Pre-Construction vs. Quick Possession

For pre-construction buyers, the reduced interest rates lower borrowing costs and allow them to lock in favourable mortgage terms today. Additionally, pre-construction homes offer the exceptional flexibility for buyers to select their preferred lot, floor plan, and elevation, allowing them to personalize their home to fit their lifestyle and preferences. From high-quality finishes to custom layouts, every detail can be tailored to your vision. Truman buyers can also take advantage of developer incentives and spread out payments over the construction period. With ongoing infrastructure improvements and community developments, pre-construction homes have long-term appreciation potential as neighbourhoods grow.

Quick possession homes, on the other hand, offer the immediate benefit of move-in readiness, which appeals to buyers looking for convenience or investors seeking immediate rental income. Lower interest rates mean more affordable monthly mortgage payments, making it easier for buyers to take advantage of available units. These homes also offer a shorter path to ownership, allowing buyers to lock in today’s market prices without waiting for construction to be completed. Quick possession homes are ideal for those looking to capitalize on current conditions while enjoying the benefits of brand-new construction.

For buyers, securing a home now means locking in today’s prices while benefiting from Calgary’s upward trajectory. Truman offers both pre-construction and quick possession properties, allowing you to choose between a fully customizable home or a move-in-ready option to fit your needs. In the current economic climate, with lower interest rates and promising opportunities in Calgary’s real estate market, purchasing a property presents a chance to maximize both affordability and investment potential. Whether you’re a first-time buyer looking for your perfect home or an investor seeking long-term gains, the combination of reduced borrowing costs and Truman’s vast selection of available properties makes now the perfect time to buy.

Explore our Featured Projects and Quick Possession homes and find the perfect fit for your lifestyle or investment goals today. Happy house hunting!