Real estate markets all around the country have had a tough seven years, that is for sure. First, there was the North American mortgage crisis in 2006 that devastated real estate markets through out the entire United States of America and the country of Canada. Then, just two years later, the economic recession and global financial meltdown took effect and further damaged the mortgage situation in Canada. But, there is good news as of late, as it seems like the real estate and mortgage situation is bouncing back to levels prior to the meltdowns of 2006 and 2008, and prospects are looking good well into the future, as long as the economy stays stable and still grows- albeit at a slower pace than most homeowners and property managers might hope for. Another good sign is that Canada was not hit as hard as the United States and Europe during the financial crisis, so there are plenty of things on Canada’s side when it comes to the current mortgage situation in the country.
The Current Situation
Canada has a pretty favorable average mortgage rate at the moment- which has stabilized in the single digits- which many countries can not brag about. Overall, it is a pretty good sign of things to come as far as mortgage goes. But, even with economic growth, many lending companies have kept their tight restrictions when it comes to lending out mortgage money to people, which dampers the current situation a bit. For now, lending companies are still not comfortable loosening up a bit, and will not be until they are very confident that the economy- and real estate markets in the country- will rebound and eventually boom.
When the Time is Right
Even with favorable rates in Canada at the moment, it is still important to apply for a mortgage when the time is right. But, how do you know when the time is right, exactly? Well, the answer is long and complicated, as there are many factors to take into consideration. But, the short and sweet answer is when rates are low. Low rates usually mean you are getting the most bang for your buck, so that is when it is time to apply for a mortgage. The economic situation has a lot to do with it, so the best idea is to sit back and wait for the right opportunity to strike. But, overall, Canada is sitting pretty comfortably as far as the mortgage situation is concerned and you should not hesitate looking into rates and getting as many opinions as possible on the subject.
Carmen is a freelance writer for a host of websites, community newspapers, regional magazines and blogs. She spends much of her time writing about the real estate market in her native country of Canada, as well as how to negotiate the best mortgage rates for you. Kantix is a great resource to study your renewal and get the best deal possible.