Getting mortgage is getting harder and harder day by day especially after introduction of new measures to tighten up the real estate and market. Bank of Canada has increased the rate of interest three times in one year to put a squeeze on the housing market in Canada especially the greater Toronto area which has resulted in higher mortgage rates. If you are looking for a mortgage to secure a home, we recommend that you shop around extensively to look for the best available rates in the market. The posted rates on the bank websites are usually higher than what you find internally. Talk to Mark H specialist with whom you have your primary bank account and tried to secure this possibility. All the banks have targets for the mortgages and they are willing to go the extra mile to help you become their mortgage client. Mostly banks do on her great match policy so you should try to make the best bargain possible. If somehow bank declined to offer you mortgage, you can always look for private lenders who can help you get the mortgage at same or even better rates. You have the option to go with either fixed or variable rate. There are several pros and cons of fixed versus variable mortgage rates so you should properly review your case and get qualified accordingly. As you are aware in fixed mortgage, market rate and payments are fixed for a period of time while in the variable market-rate, the interest rate fluctuates with the market. Market interest payments either fluctuate with frustration in the prime rate or the interest portion of the payment varies. As per the latest trends in the market, the best fixed mortgage is being offered by TD Canada trust Bank with the mortgage rate of 3.34% on a five-year term. If you are looking for a three-year term, you can qualify with the rate of 3.44% while with the one year your rate of interest decreases down to 2.99%.
For the variable mortgage, the best rate is 2.95% being offered by TD Canada bank for a period of five years. If you go with a private lender you might get a fixed mortgage rate of 3.09% for a period of five years while 2.69% for a period of one year.
Considering the market scenario, the real estate market has corrected itself from the last year. The overall sales of homes in the GTA have dropped over 30%. Securing a mortgage has become very difficult as banks have been instructed to be vigilant on high-value mortgage transactions. Based on the scenario, there is a chance that the Bank of Canada will increase the rate of interest again. If you are looking to buy a home, now is the best time as the prices are comparatively lower than the previous year and there are limited buyers looking out to buy a home. The introduction of foreign buyers tax has further helped the market for a reasonable correction. Although the prices are still very high against the actual value, the home prices are expected to increase again next year. As per the recent report, there is a glut in the supply of new homes in the greater Toronto area while the demand and population are on the rise. The prices therefore won’t last long and the search is imminent. If you’re looking to buy or sell a home in the greater Toronto area, please contact the team at local Toronto and he would be happy to give you all the information about the homes and in market scenario.
