HOUSING MARKET LOW RISK TO ECONOMY SAYS BoC
Canada’s housing market despite its hot spots, is not a significant risk to the economy
due to regulation of mortgage lending says The Bank of Canada.
BoC also stated “House prices have been rising relative to household income for about
20 years and driving forces have included a shift towards urban living, growing
population - including migration - lower interest rates and improving credit conditions”.
The tighter lending conditions have also improved credit worthiness of borrowers, with
average credit scores rising. Canadians have been paying down their mortgages and
mortgage default is extremely low.
This is our reality folks, so stop believing the spin doctors pushing the ‘Negative’ button
for their benefit. I refer to the Banks perpetual ‘Rates are going to Rise Soon’ and the
media sensationalizing overheated markets...’The Sky is Going To Fall’ type of language
designed to sell more papers, magazines etc.
The economy continues to be weak. Some say it’s in Recession. Inflation is so low that
there is fear of the opposite, Deflation.
As we walk the streets of Centre Wellington we notice that there are few For Sale Signs
and noticeably so. It’s a great time to buy a first home, to move up, to trade down and to
build that dream home with rates as low as they were half a century ago.
It’s also a great time to build your wealth by acquiring a second (rental) property and to
renovate your existing home.
Aside from Toronto, Vancouver and Calgary the overall housing market is stable and is
expected to continue to produce price growth.
We are CW’s number one source of mortgage financing. Give us a call today to discuss
your needs and remember DO NOT RENEW WITHOUT TALKING TO US FIRST!
You won’t get a recording or press 1, 2, 3 for whatever. We answer our phones ‘Live’
and that’s just the beginning of our friendly, professional service to our neighbours.