Mortgage Talk from One of Our BEST!
2018 was a year of uncertainty, slightly higher interest rates and slowing down of real estate prices. While there was some growth in property values in some markets, overall growth in the housing market came to a halt this year largely due to higher interest rates and tighter mortgage rules that were in full effect.
Predicting home prices is always difficult, but the Canadian Real Estate Association (CREA) does see home sales rebounding and housing prices moving up slightly over the next year. The demand for home ownership remains very strong as Canadians want to own a home of their own. Even with interest rates rising over the past year, buying a first home or moving to a second home is still affordable and makes financial sense for many.
The interest rate from a historical view is still very reasonable. The Canadian mortgage market has also seen a slight shift in 2018 with more alternative lenders and options. This has been great news for many borrowers who have experienced difficulties in getting a traditional mortgage and for those who didn’t think it was even possible. So while there have been significant changes to the rules to get a mortgage, there are a number of different options that are still available for clients who may not qualify with the stress test.
So when is a good time to buy? Well right now of course! While the interest rates have increased, they are still very reasonable and are said to go up this year. The Bank of Canada has held the rate the same over the last 2 months but it is predicted that rates will continue to increase over the next year. I wouldn’t quite say it is a race to buy, but I would suggest that if you are sitting on the fence about buying, now would be the time to make a decision and pull the trigger before the rates continue to rise and proves continue to increase.
To contact Lucy Gagliardi at Your Mortgage, Your Way anytime, you can reach her on the go on her mobile at 647 888 1210
Mortgage Agent, Lic #M12000678
Cell: 647-888-1210 | Office: 905-848-1900 | Fax: 905-848-1918
Email email@example.com | www.lucyknowsmortgages.com
4310 Sherwoodtowne Blvd. Ste 303, Mississauga, Ontario, L4C4Z4