Mortgage Rates in 2021: Should you Buy Now?
Trying to time your house purchase around forecasts of varying opinions could prove to be a tiring endeavor. The Canadian housing market is seeing record low interest rates. This is beneficial for homeowners looking for lower monthly mortgage payments and provides buyers an opportunity for larger budgets. However, these same low rates have had a hand in why house prices are climbing.
The lowest mortgage rates ever seen
The Bank of Canada is keen on retaining the depressed interest rates to encourage spending and stimulate the economy. Mixed with the pandemic’s economic impacts this will likely keep our fixed and variable interest rates steady for some time. Even though interest rates are lower than ever before, that does not necessarily mean more people are qualifying for mortgages. In truth, the rate which prospective homeowners must meet is higher than ever. This makes it more difficult for first-time homeowners to enter the market.
For those who do qualify, the low mortgage rates are very attractive. Many people are in a good place to take advantage of it. Securing an ultra-low mortgage rate this year could save you thousands of dollars over the duration of the loan.
Don’t rush into a purchase just for the interest rates
The pandemic has created economic uncertainty that has made accurately forecasting which way the housing market will swing rather difficult. COVID-19 infection rates, long-term unemployment, and vaccine accessibility are just some of the factors that will impact housing trends this year.
A mortgage is a long-term commitment. Speaking with a mortgage professional can help you gain insight and put a plan together to decide the best time to buy, ensuring you are financially ready regardless of what is, or is not, happening in the real estate market.