Best Advice for Home Buying in 2026

If you're considering buying a home in 2026, this is probably the top advice you could have. Whether this is your first home or your last home or anywhere in between, some of these things might be a given, some you probably already know, but some are important for 2026. Regardless, here's the best advice for home buying in 2026.

Mortgage rates are down over 2025 but still elevated.

Mortgage rates are definitely down from where they were a couple of years ago but they're nowhere near the pre3% that we got in 2017 to 2020. We may never see those again unless maybe we go to war. Which of course, nobody wants to do. The 30-year fixed mortgage are averaging about 6% to 6.2% down from 7% last year and the lowest in 3 years. This encourages more activity for buyers and sellers. One interesting fact is that there are now more homeowners with an elevated over 5% interest rate then lower than 5%. This means that the buyer and seller balance favors both parties.

For instance, homeowners that had a 3% were very wary of selling because they knew they would have to buy in a 6% or higher Market. This kept them in their homes a lot longer. But for those that did buy, have owned for the last couple of years, and now need to sell, they're actually looking at a better interest rate, comparable with other buyers on the market. This creates a balance, meaning there are now more homes for sale because more homeowners feel comfortable about selling.

Understand your monthly budget before doing anything.

Even if you already own a home, now is the time to really sit down and go over your budget. Do you need a lower mortgage or can your income support a higher mortgage? You need to consider mortgage, taxes, Insurance, utilities, and maintenance, especially if you've never owned a home before. If you've always rented, you will take on a lot more responsibility when it comes to your budget.

Geoff Walker of Ottawa Real Estate adds, "A good rule of thumb is 30% of your take home income should be set aside for housing. Any more than that and you might find yourself, what's called, "house-poor"."

A strong down payment still matters.

There are great loans out there for VA, USDA, and FHA, but a strong 20% down on a conventional loan is the best way to do it. You can avoid mortgage insurance and reduce your monthly payments. If you can't get to the 20% Mark, it's important to understand the trade-offs such as private mortgage insurance and higher rates.

Don't neglect HOA fees.

HOA's can impact your total cost over time. Owning land versus a condominium can drive better long-term appreciation. If you're constantly paying into an HOA, you could be putting that away either as an investment or purchasing a better property. You'll want to request HOA budgets, rules, and factor it into long-term costs. .

Does a REALTOR really matter?

Did you know that there is a difference between a real estate agent and a REALTOR? While they both can purchase property for you or help you facilitate a sale, a REALTOR goes through strict approval processes and has to be held to a certain code of conduct. However, all real estate agents should do that! Find an agent that you trust, interview them, find someone with local expertise, and ask hard questions. You want someone that's working for you and remember, they're getting thousands of dollars on the sale, they better be a good fit for you. All that being said, we always still recommend you go with a real estate agent over going it alone. They can navigate some of the legal jargon that can be confusing and make sure you're doing everything up to code.

Shop multiple lenders.

You don't have to go with your bank, Credit Union, or the first mortgage lender that emails you. Shop around and find the best mortgage lender or mortgage officer for your needs. Talk about rate buy-downs, any special incentives, monthly payment comparisons across different products. Mortgage brokers can typically be the better option than a bank because banks are stuck with their loans versus a mortgage officer or mortgage advisor who can shop multiple banks and really find the best loan for you.

Days on the market matter.

But they probably don't matter in the way you're thinking. If a home has been listed for over 100 days without any offers, it's probably either overpriced, there have been inspection issues, or something is really wrong with the home. However, not every home is going to be perfect for everybody, so you might find a home that's been on the market for a couple of months just waiting for the right buyer, not be a blanket option for multiple buyers. However, that also might be a red flag as to the resale potential. If the home's already been on the market a long time and it's not overpriced, you might have a hard time selling it in the future as well.

Never neglect the inspection

A detailed, professional inspection is non-negotiable. The last thing you want is to move into your dream home only to find multiple Plumbing or electrical issues, a roof that's falling down, HVAC systems that are on their last leg, or major Foundation issues that cost thousands of dollars to repair. Spend a few hundred dollars and get a good professional inspection.

Market conditions for 2026 look like they are favoring prepared buyers.

A lot of data suggest that home sales rebounded late last year due to lower rates, but inventory is still on the lower end. Many owners with ultra-low rates still are not listing, with a tight supply and modest price growth, buyers with pre-approval and clear budgets are in a strong position to make offers. Be prepared and be ready to act quickly. This year's market is going to be fun.

Have a living plan for 7+ years

Multiple folks recommend treating homeownership as a long-term commitment, meaning at least 7 years. Interest rates fluctuate, pricing Cycles go up and down, and transaction costs versus resale games very greatly. If you can keep a home for 7 years, you're in a better position with equity, you can make smarter, more financially fiscal decisions with the future of your home, and you've given it a go in one place long enough that you've shown future mortgage lenders stability.

The final takeaway is being prepared before you go shopping.

• Get pre-approval even if you have to lock in a rate multiple times over the year.
• Budget holistically, not just for your mortgage payment.
• Have a clear list of things you want and things you just won't tolerate, and understand your market trends, which a great real estate agent can help you do.

Again, 2026 is going to be a great year to buy a home.