Is it the right time to get a mortgage to buy a home?
The Covid-19 pandemic has caused many economic changes in Canada. Interest rates are the lowest they have been in years.
If you’re considering taking out a mortgage and buying a home, now is the best time to do it. For the best mortgage companies in Canada, visit allreviews.ca, a review site that allows customers to provide feedback on companies they have used and the products and services they offer. To read reviews about credit companies, click on the links to be redirected. Reviews are a great tool to use when identifying which mortgages companies to use based on their ratings by previous customers.
Why is this the right time to buy a home?
Mortgage rates are at an all-time low in Canada because of the pandemic and its influences on the economy. The current economic climate is the perfect time to take the leap and purchase your own home. By taking out a mortgage now, and opting for a fixed-rate mortgage, they guarantee you the current interest rates on your mortgage payments for the next 10 years. This can, however, cause financial problems when their period ends, but with some proper financial planning, any issues can be planned for and prevented.
What are the current interest rates in Canada?
Current mortgage rates are the lowest they have been in the last 10 years. The rates are:
- 5-year variable rate is at 1.95%
- 5-year fixed rate is at 2.14%
This has a significant effect on the prime lending rates of banks and other credit companies in Canada. This means lower mortgage payments because of the lower interest rates. While this could change, a significant increase is unlikely, with the world’s economy still recovering from the effects of the Covid-19 pandemic on businesses and individuals.
What does the housing market look like for buyers?
The housing market is exceptionally busy in Spring. But this year, things are looking different. There has been a sharp decline in the number of houses being sold. Canadian cities like Toronto and Calgary are only selling one-third of the homes they would normally sell around this time of year. This can be beneficial to buyers, as homeowners are more willing to negotiate their prices to sell their homes. A drawback in fewer houses on the market means less choice and diversity for the buyer. But it remains a good market for buyers.
Conclusion
To ensure an excellent rate on your mortgage, ensure that your financial records and credit score are in order. Bad debts and delinquent payments affect your credit score negatively and can affect your mortgage application. Shop around and get the best mortgage rates to suit your budget and your home-buying needs. Read reviews of the various credit agencies to determine which offer the best services for those looking to get a mortgage and buy a home. Speak to your financial advisor for the best tips on securing a mortgage.
