With historically low mortgage rates likely staying put throughout 2013 and beyond, there’s no doubt that the remainder of the year will be full of great opportunities for homebuyers across Canada.
Following are 4 Top Mortgage Market Predictions:
1) Borrowers will continue to become more savvy, while focusing on a mortgage strategy as opposed to short-term gains. With all the flash and dash of online mortgage comparison tools and discount rate websites, smart borrowers know they need a customized long-term mortgage plan put in place by a true mortgage professional. This is a fundamental cornerstone of your financial freedom – it’s not like comparing an electronic device or buying clothes where you can exchange an item within 14 days. Getting the very lowest rock bottom rate may not always be the best choice for you and could actually end up costing you more throughout your mortgage term.
2) More lenders in the marketplace. We have seen more lenders enter the Canadian mortgage landscape recently in both the qualified and alternative – helpful for the self-employed, those with bruised credit or even investors who need more options – marketplaces. More lenders always translates into more choices for borrowers!
3) Investors will earn higher rents. As mortgage rules have changed, first-time buyers may be waiting longer than needed to get into the market. The self-employed borrowers may be uncertain with their businesses and be holding onto cash longer than needed. And, finally, investors who aren’t sitting on lots of cash may be playing a game of chicken with lenders to see if their policies can relax a little. For more options, they also may access their equity to improve current rental purchases in the US.
4) Return of the variable-rate discount. We saw this flirted with for “qualified” borrowers towards the final quarter of 2012. It’s not likely we’ll see the prime minus 90 days any time soon, but perhaps we’ll see a better parallel where, with the proper strategy in place, variable will again be a viable option for more borrowers.
As always, if you have any questions relating to your specific mortgage needs, answers are just a phone call or email away! Call your mortgage broker today.