Current mortgage rates in Canada are almost the lowest that anybody has seen for a long time. With the slight upswing of the economy, there is a possibility that mortgage rates in Ontario, Canada will see a gradual rise in the next few months. Although this is just a speculation and no one can say this is true for sure, but international trends point to this direction and many financers as well as property buyers are preparing for this change.
The residential property market in all of Northern America including Canada is largely dependent on the state of the economy in this area. The mortgage rates come plummeting down even when there is a rumour that the economy is slackening or there is no growth. People become unsure of their jobs and without jobs they would not know how to pay off their mortgages so they refrain from getting a mortgage loan. With decreasing demand the cost of residential property falls and when even the reduced prices do not bring in customers, mortgage rates also fall.
This is the mechanism of the rise and fall of mortgage rates that are closely linked to the state of the economy of the North American region. Eventually the governments of USA and Canada intervene and provide solace by different schemes and offers to help citizens tide over the rough patch. These measures help only if the economic crash is not so severe and the country gets back to its feet quickly.
The current slow economic recovery is keeping current mortgage rates in Canada down but there is hope and there will soon be better times for the building industry in the region.
The residential property market in all of Northern America including Canada is largely dependent on the state of the economy in this area. The mortgage rates come plummeting down even when there is a rumour that the economy is slackening or there is no growth. People become unsure of their jobs and without jobs they would not know how to pay off their mortgages so they refrain from getting a mortgage loan. With decreasing demand the cost of residential property falls and when even the reduced prices do not bring in customers, mortgage rates also fall.
This is the mechanism of the rise and fall of mortgage rates that are closely linked to the state of the economy of the North American region. Eventually the governments of USA and Canada intervene and provide solace by different schemes and offers to help citizens tide over the rough patch. These measures help only if the economic crash is not so severe and the country gets back to its feet quickly.
The current slow economic recovery is keeping current mortgage rates in Canada down but there is hope and there will soon be better times for the building industry in the region.
