Interest Rates on the Decline

Posted on April 23, 2008 by remaxultimate

As predicted the bank of Canada has dropped their lending rate by ½ a percent effective immediately.  The major banks did the right thing and followed by reducing their rates to 4.75%.  It seems that the rates are not about to stop falling as well.  I have received many calls from past clients and family that are looking to renew their mortgages and it is widely expected that they will leave their mortgage open at variable rates to at least the summer.    The rate drop is great news for buyers in our market as affordability with the higher rates were starting to affect their borrowing power. The introduction of longer amortizations have also been a great help as well.

I’ve always felt that many of the problems the U.S. has experienced with the loose lending practices would not affect us in Canada. Yes, due to the higher dollar and oil, our manufacturing is not the strong sectors of our economy but our housing market is.  At the end of the day, the housing market is what stirs the economic drink.  Without home sales there wouldn’t be a need for furniture and appliance sales, painters, renovators, builders, carpet and hardwood installs and so on.  The list of trades are endless that are connected to the housing market.  With over 100,000 people calling Toronto home yearly, the outlook for our housing market will remain strong.RE/MAX has also released their affordability Report that I hope you will find helpful.    

Please feel free to click on the press release for local press release or the affordability report for all of Canada

or

Tim Syrianos
RE/MAX Ultimate Realty Inc., Brokerage

Filed under: Toronto Market Watch Tagged: |

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