For a summer market, traditionally a slow time for most Realtors and Mortgage Brokers, Real Estate and Mortgages seem to take up a majority of the news. From the Real Estate Association predicting that housing sales would be on par to their 10 year average for annual activity for 2012 and 2013 to the low interest rate environment in full effect today. According to TMG The Mortgage Group Canada Inc. the updated forecast now predicts activity slightly above the long term average. The national average price is also forecasted to rise in 2013, edging up two percent to $378,200.00.
This year has been flooded with activity on the lending side, the 5 year fixed rate dropped below three percent earlier this year and once again, you can secure a 5 year fixed rate below three percent. On the variable side, we saw steady increases up to about Prime (3 percent) until this past week where one lender dropped their rate 35 basis points below Prime. Will more lenders follow suit?
In addition to the interest rate fluctuations, Finance Minister Jim Flaherty initiated some changes to the lending world to slow down the pace of rising debts. If you missed them, here's the breakdown: Shockwaves sent through the marketplace
With the exceptionally low interest rates available today, it may be the best time in years to consolidate your debts. Craig Alexander, Chief Economist at Toronto Dominion Bank suggested in a recent article that consumers should not abuse this opportunity by taking on new debt but should take advantage of it.
If your mortgage rates are higher than what's quoted above, contact me today for your free consultation as it may make sense to switch...after all, it could save you thousands! I look forward to hearing from you.
As always, I encourage you to contact me if you have any questions with your current mortgage or are looking for one. Please find me on facebook at facebook.com/jnmortgages on twitter @jasonmortgages.
Jason Nesseth with TMG The Mortgage Group Canada Inc. If you have any questions or comments about this blog, please feel free to call Jason at 604.375.7375, email jason.n@mortgagegroup.com or visit his website at jasonnesseth.com