With all the headlines about Canada’s housing market, what are homeowners and homebuyers to do? Who would have thought during a pandemic housing would hit all-time highs. There are many factors that have contributed to the rise of housing prices and increased real estate activity. These factors include interest rates at historic lows, demand for more space for work and school from home, and maybe some FOMO. House prices have responded by increasing quickly supported by bidding wars.
As the Canadian economy recovers, the Bank of Canada has committed to maintaining a low-interest environment for the near term. This has also caused people to look elsewhere for higher returns and places to park their money. The stock market is not something a lot of people are comfortable with as it can be considered a risky investment. However, most people do understand the housing and in these financial markets, tend to move into hard assets like real estate.
With so many choices, it is advisable to speak to a mortgage professional who can provide expert advice.
The uncertainty of how long this pandemic might take to end is supporting the work from home model. It might be here to stay in some capacity driving the move into new homes or larger homes and bigger condominiums, both in Toronto and across Ontario. People are also moving out of the GTA to smaller towns and cities to take advantage of competitive pricing and more space.
For home buyers considering a new purchase such as first-time homebuyers, there are opportunities to get a foot in the real estate door. Condo prices in Toronto and some of the GTA had tapered off and are still trending lower (not appreciating as fast as houses). Take advantage of first-time homebuyer incentives offered by the Government of Canada. These incentives combined with low interest rates will keep carrying costs lower while providing the opportunity to purchase the property.
Existing homeowners have choices too. As they see the prices of their home appreciate, homeowners should consider opportunities to tap into their increased home equity in this low-interest-rate environment. They can upgrade their own lives by leveraging equity for renovations, purchasing a vacation home such as a cottage or second home, move equity into investments, pay for children’s education or consider upgrading to a new house.
With so many choices, it is advisable to speak to a mortgage professional who can provide expert advice. Contact a mortgage broker or agent at Square Capital Mortgage Brokerage to learn more about options in this market.
Checkout Square Capital Website for more information: Square Capital Management Inc.
Are you ready to get your mortgage?
Contact us today to get a free quote. We will help you understand the current market conditions affecting the mortgage market! Prequalify without affecting your credit!