Buy Real Estate in Ontario Canada Now in 2010?There is no question that Ontario, Canada had been hard hit by the latest recession. Factory closings, job losses and a cut back in consumer spending has negatively affected the economy in Southern Ontario.
However, according to the Bank of Canada, economic recovery is solidly entrenched. It expects to keep its key policy rate at a record low of 0.25% until mid 2010. The central bank expects Canada to grow 3.3% this quarter, followed by expansion of 3% next year and 3.3% in 2011. Canada gained 79,000 jobs in November – an indication that our economy is on the road to recovery.
Mr. Ryan Brecht, Action Economics’ senior North American economist, expects the central bank to aggressively begin hiking its policy rate starting in the second half of next year. He believes the Central Bank will raise the rate 175 basis points before December of 2010, for a policy rate of 2%, or "more normal levels."
Therefore, the record low interest rates currently available are expected to remain until mid 2010, but will probably rise after that. If you are planning a large purchase, like a home, you would be wise to lock in interest rates while they are at these historic lows. A small rise in interest rates can result in thousands of dollars in additional interest you will pay for the same mortgage.
In addition, property prices dropped in Canada during the recession. Prices are coming back and sales have been strong in the last few months. Prices for homes are also expected to rise over the next few years.
Since buying a home is probably the biggest investment you will ever make, you will want to shop for a great home and a great mortgage.
Although adjustable rate mortgages have historically been a better deal over the course of the mortgage, a fixed rate mortgage is probably your best bet while the rates are so low.
First Class Mortgages Ontario Mortgage can help you secure a great rate since they deal with many lenders including banks, trust and financial companies, credit unions, etc. Think of how much effort it takes to find a home. It only makes sense to call and find the best possible financing. With access to many products and the latest deals, First Class Mortgages, Burlington Ontario can often get you multiple offers. You fill out one form and your information is shopped across all lenders with only one lookup on your credit score. Best of all – you pay nothing for the service.
So take advantage of this perfect time to invest in a new home. First Class can find you a great rate mortgage, and even recommend other professionals (lawyer, mover, decorator, real estate agent, etc.) to help make your move easy.
Call First Class Mortgages today at (
905) 529-4554
