|1 Yr – 2.74%|
|2 Yr – 2.69%|
|3 Yr – 2.69%|
|4 Yr – 2.99%|
|5 Yr – 2.99%|
The doom and gloom that has been hanging over the Canadian housing market is brightening a little. Make no mistake, the market is slowing and prices are softening – which is exactly what the federal government wants – but the dark and foreboding headlines have received a little sunshine.
Canada Mortgage and Housing Corporation’s latest quarterly report forecasts increasing housing starts, increasing resales and increasing prices over the next year. Certainly the pace of those increases is slowing, but it’s a long way from a bursting bubble! No reason for people to sit on the fence!
Further, a couple of well-known Canadian economists say there’s no need to fear a U.S.-style meltdown.
Among their key points: – While the debt-to-income ratio is at a record high (163%) the rate of increase is slowing; Canadians aren’t loading up on debt the way Americans did before the crash. As well, debt relative to assets is below peak levels in Canada. – Canadian mortgages are higher quality; borrowers have better credit scores and they have more equity in their homes. – Canadian home buyers are insulating themselves against inevitable interest rate hikes by taking out fixed rate mortgages, the opposite of what happened in the U.S.
Best to talk to your mortgage broker and take advantage of these low rates while we still have a 5 year fixed rate under 3%!