Richmond Hill Homes - Mortgage rates low... and the hopes are...?

Today is a gorgeous day that feels like spring and, as we move closer to its official First Day, many people start getting that familiar “itch”: ‘May be it is time to move again?’

Indeed, the mortgage rates have just hit the historical lows again, as, according to the “Toronto Star”*, “Four major Canadian banks –Royal bank, TD Canada Trust, CIBC and Bank of Montreal slashed their mortgage rates to 2.99 per cent, though only BMOs rate applies to five-year term. The other four banks are offering the rate on a four year mortgage. “

Of course, this is a limited time offer and if potential buyers are contemplating making a move they might as well take this opportunity to lock into a lower rate now rather than wait for a few weeks and have to pay at least half a percentage more for the same mortgage.

I just spoke to a customer who is overall ready to “jump” but she is a little bit apprehensive of all the talk in the media about the possible Housing market bubble, slowing down of the construction starts in Toronto and disappointing employment numbers for February. What do I tell her? The phrase “Nobody has a crystal ball” is starting to sound like a broken record, and of course it is true that predicting anything in the current market is a very dangerous game. Especially for a real estate professional, who after all has direct interest in advising a client to buy (or sell, for that matter).

All I can do is point to the statistics of the last decade (the prices have doubled) and the fact that, according to Toronto Real Estate Board,the average selling price in the TREB market area was $502,508 in February – up 11 per cent compared to February 2011. I do sometimes come across a customer who try to convince me that real estate prices will soon be falling and therefore they wish to wait to buy low… guess what? They are still waiting, paying rent and thus making someone else richer…

With the uncertainty in Europe and the US recovery going at such a slow rate, many economists agree that the Prime rate will probably not be going up anytime soon (at least 1 ½-2 years), and therefore affordability will continue to be a factor in many families’ decision to buy. And when the rates do start to rise, it will probably be a gradual process because no one here wants to see what happened in the US in 2008.

So, dear friends, take advantage of the opportunity while you can and if you are not ready yet, just enjoy the beautiful weather!

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