Halifax Home Buyers Take Notice!!!!
Thinking about buying a home and not sure how the financial crisis will affect your purchase. The Government of Canada is injecting 75 billion dollars to purchase Insured Mortgages. This is great news for home buyers. This should also help interest rates go down and make the purchase of your next home that much more affordable. Below is a press release from the government.
Federal Government's $75-Billion Purchase of Insured Mortgages Should Benefit Home Buyers
As part of its efforts to address the current financial crisis, the federal government announced that it will inject $75 billion of new money* into the financial system, by buying insured mortgage pools from Canadian financial institutions.
The purpose of this measure is to add liquidity to financial institutions - money they can then lend to businesses and consumers. The main effect of such an initiative is to increase the availability of credit while, at the same time, making the cost of credit more affordable. As a result of this plan, financial institutions' mortgage interest rates should drop, which is likely to stimulate activity on the resale market.
This announcement is good news for our financial system and for the economy in general. Ultimately, it is borrowers who will benefit from this initiative, particularly future home buyers.
This federal government intervention was made necessary by the fact that the financial crisis has led to a significant reduction in the amount of credit made available by the private sector and, as a result, higher costs. In this context, banks' financing costs increase, which translates into higher prime rates and mortgage rates.
The purchase will be made through the Canada Mortgage and Housing Corporation (CMHC) and will focus exclusively on mortgages that are already insured under its mortgage loan insurance program.
*Minister of Finance, Jim Flaherty, made an initial announcement of $25 billion last October 10, and announced an additional $50 billion on November 12.
"Excerpted from The Montreal Real Estate Blog"
The Halifax Real Estate market is starting to show signs of slow down in the last couple of months. Sales are down although average price continues to rise. Now is not a time to wait to buy, it's a buyers market right now. If you are thinking of getting into the spring market you will be looking at higher prices, although inventory will be up and more selection will be available.
If you would like more information on market stats and trends in the Halifax Real Estate market contact me or send me an email at andrewperkins@exitmetro.ca.
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Andrew Perkins
Your Halifax Real Estate Expert
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