Well, I can’t believe I’m saying this, but mortgage rates are dropping yet again!
For years, we’ve been telling clients that rates are at an all time low, and it’s a matter of time before they start heading back up. But here we are, 2015 and the Bank of Canada cuts its key interest rate. Dropping 25 basis points from one per cent to 0.75 per cent. And many in the banking industry expect the Bank of Canada to cut its rate again in the coming months!
With last weeks news, it was a matter of time before the major banks followed suit and lowered mortgage rates, and as expected the chain reaction began with RBC.
We’re now seeing unbelievable fixed rates as low as 2.84 per cent with smaller lenders offering loans as low as 2.69 per cent, and we expect those rates to fall even even further. The question now becomes how much home can you afford? Some fear that the historically low rates will cause home buyers to spend more than they can afford. Although I was a little too young for home ownership in the 80’s and 90’s I often hear some speak of the 12-19 per cent interest rates and truly having to make a choice between paying the mortgage or putting food on the table.
It’s certainly a different story for those of us here in Windsor and Essex County, our area remains the most affordable housing market in all of Canada. We’re seeing buyers from all over the country flocking to our area to snatch up great deals. Considering you could purchase 3 beautiful homes in Windsor, LaSalle, Amherstburg or Lakeshore for the same price as purchasing a small bungalow in Toronto or Vancouver, how could we blame them. We really have nothing to complain about!