The Canadian House Market Shows No Sign of Easing

Consumer confidence in Canada remains at its highest in four years, as 40% of the population expects house prices in their neighborhood to keep rising. Recent gains in real estate have left Canadian homeowners feeling confident. The decision by the bank of Canada to hold off on interest rate increases has also contributed.

Sales in Vancouver and Toronto Lift Market

According to the Bloomberg Nanos Confidence Index, less than 10% of Canadians expect house prices in their neighborhoods to fall in the next six months. Sales of homes rose by 2.7% in April. The engine of growth was in Vancouver and Toronto. The four month fall in house prices experienced over the winter, now seems like a distant memory.

Neither does construction seem to be easing. Building of new homes increased in April, reaching 194,809 units. While there has been a tightening of mortgage regulations by federal and provincial government, lenders have dropped their rates this year, encouraging more people to get on an increasingly expensive mortgage ladder.

What Will Your House Cost You?

If you are still hoping to get on the ladder, a mortgage consultant can provide somedown-to-earth advice. They will assess your situation, ask you the tough questions and help you to build a coherent strategy. How much money can you afford to spend on your new home? The cost of a home is not simply the purchase price. There are other things which need to be factored in. There are ongoing maintenance and ownership costs. Property taxes for instance. The monthly cost of owning a home should not exceed 32% of your monthly earnings.

Down Payments

For most people in Canada, the biggest monthly cost is their mortgage payment. The cost of a mortgage is dependent on many variables, chief among them being your ability to make a significant down payment as a deposit. In the case that you can’t afford to pay more than 20% of the house price, you will probably need to take out mortgage insurance to cover the loan.

 If you find yourself getting into trouble with payments or if you are uncomfortable negotiating with your bank, a mortgage consultant can ease the process. They can negotiate with the bank on your behalf and advise you where to go for the best features and interest rates. Buying a house may be the biggest financial decision of your life. Don’t take any chances. Seek the best advice you can.