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By Fred Romano
Starting 2008, it has been mayhem for investors whether they invested in stocks or property. Contrasting the U.S. and other European nations, the Canadian home market stood stronger and actually has been strengthening throughout 2010. All time high, home sales in the first half of 2010 is believed to be as a result of many different factors, including increased demand, lower supplies and all time low Canada mortgage rates all were a compelling recipe to overdrive the market to new highs.
While the home market turns out to be more stable, with more new and old home being available for sale, costs will perhaps become stable and increase at a great deal sluggish rate. The proposed HST tax as well made several homebuyers in Ontario and British Columbia to hurry up so that they can avoid it, this as well added fuel to the already heated home market.
As for the expectations from the Canadian home market, in near future home prices are not likely to go up to the extent that like they did in the first few months of 2010. For that reason, you might in fact find that home prices have become more affordable, in addition to fewer people, seeking home or speeding up to make manifold bids for the same home, will denote more bang for your buck.
The small rise in mortgage interest rates over the first half of the year 2011 will not have a much effect on your ability to buy home if the cost of the home goes down, as you will save much more money on cost of the home itself.
Despite the fact that it is not possible to precisely forecast what will come about with the Canadian financial system and overall interest rates, the common perception between all the main banks in Canada is that both adjustable and fixed interest rates will go up over the next few months.
The increase in the overnight rate is still a subject of discussion, with a few banks such as the CIBC forecasting that the overnight rate by the end of 2011 will be in the region of 2%, whereas a few other banks such as Royal Bank of Canada and the Toronto Dominion bank forecasting the rates will be much higher and will rise to around 3%, while the other popular banks forecasting interest rates of around 2.67%, as a middle ground. This is largely due to weakness in US economic recovery.
Obviously, these are just forecasts and can alter, with the pace and force of the Canadian financial revival, together with worldwide financial recovery especially revival of US economy, will have an impact on prime lending rates and financial policy.
Once you consider it is right time for you to purchase the home, you can save a lot on your interest cost over the period of your mortgage by selecting a reputed lender offering you the lowest interest rates. Seek a certified mortgage broker who can negotiate your business with several good lenders to get the best mortgage rate in Canada and save your hard earned money.
About the Author: Fred is an expert in the field. For more information on
Mortgage Rates
, and
Mortgage Interest Rate
Please visit: http://www.ratesupermarket.ca/
Source:
isnare.com
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