Is Canada on the precipice of a recession?
Some economists believe our Country is at a risk of a household led recession being caused by constrained lending and higher interest rates. The chief economist at TD Canada Trust expressed her concerns: “Consumers no longer have the capacity to lead Canada through another recession the way they did after the global financial crisis a decade ago. While Canada’s fastest population growth in decades provides some support to demand for housing, high debt levels remain a problem that could exacerbate the next recession.”
Economic growth in the US and here at home have been positive and both inflation and lending rates have increased as a result. Mortgage rates have been rising steadily over the past months and many fixed term rates are now pushing towards 4%, a rate not seen in a very long time. Mortgage borrowers should review their financial position and take advantage of locking into a fixed rate now before it’s too late. Variable rate mortgages provide the best interest savings, but only if you can handle the risk of higher payments over the next few years. As rates rise, it becomes even more important to take advantage of your pre-payment privileges. If you would like to discuss; click here to send me an email.
Real estate in Lower Mainland is starting to see downward pressure on prices as inventory for all property types have increased and in some areas the rise has been very significant. This along with a substantial decline in sales will continue to support softening prices. The Greater Vancouver Real Estate Board says home sales across the region in September plunged more than 40 percent compared with the same month last year. Affordability becomes further constrained with rising mortgage rates and with tightened lending conditions. It’s a great time to consider making a purchase. Although it’s easy to say: ‘buy low and sell high’ it’s hard to execute. Being a mortgage broker and a realtor allows me to better execute a purchase and can provide a huge benefit to a buyer. If you would like to discuss: click here to send me an email.
Rate specials to consider:
5 year fixed at 3.64%
5 year variable at 2.90%
Secured Line of Credit: 4.20%
2nd mortgage; 8.95%