The bank of canada has announced today that they are keeping the overnight lending rate the same. This seems to be good news based on the other issues such as the new mortgage stress test rules for those buyers looking to buy with 20% or more down payment coming into effect January 2018. Which there is to be an estimated 50,000 potential buyers out of the real estate market.
Looking at this recent article here: Stress Test Link it states these new mortgage rules will block 50,000 potential buyers coming into the market.It goes on to state the federal government have done 7 moves to make it tougher to get a mortgage in the real estate market. The focus should not be to make it tougher to get a home for buyers but make it a healthy sector and help those potential buyers to get into a home for their family needs.
Now with this recent article: Bank of Canada Lending Rate Update stating the bank of canada is holding off on any increases now is really not affecting the foreseeable future and the fact that they are stating that higher interest rates are coming in the near future due to a strengthening economy is not really putting a positive thought in potential home buyers. They have stated due to strengthening job and wage increases and a strong business investment and a resilience in consumer spending is a factor they are considering in this decision.
It is imperative that potential buyers and current home owners review their real estate holdings and mortgage finances so they do not get caught up in a bad situation. And this situation is not happening on their own course but being pushed by the government now more then ever.
Questions? Concerns? Thoughts?…Contact me with any real estate or mortgage questions to ensure your foundation is well set for the near future.