I found an interesting article online from "The Globe and Mail" a couple of weeks ago outlining five predications their mortgage columnist forecasted for the upcoming year (2013) regarding the mortgage market in Canada. These predictions were:
1. More home buyers will be shopping for lower mortgage rates online and using the internet to compare rates as opposed to speaking with specific, individual lending institutions.
2. Variable-rate mortgage will improve - recently these rates have been somewhat neglected but it is predicted that lenders will get more aggressive with their variable-rates in 2013.
3. People that rent housing will pay more in 2013 - new mortgage rules will prevent some first time buyers from purchasing a home, causing them to stay in their rentals longer, causing less rental properties being available, causing a shortage of rentals, causing rent increases.
4. There will be job losses in the mortgage industry – new mortgage rules will result in fewer people being able to buy homes resulting in fewer people applying for mortgages.
5. Tighter mortgage rules will cause more home buyers to pay higher rates (“non-prime”) than in the past as the number of people classified as being “higher risk” will increase.
To view the full Globe and Mail article click here
. I hope you find it interesting reading – only time will tell if these predictions will come to fruition.
Until next time,