Homebuyers e-Valuate Mortgage Options
The 2010 Mortgage Consumer Survey, released recently by Canada Mortgage and Housing Corporation (CMHC), shows that the Internet has become an important resource for first-time homebuyers with 89 per cent indicating that they looked online for mortgage-related information, while 84 per cent researched mortgage terms and conditions before deciding on a mortgage option.
Additionally, more than two-thirds (69 per cent) of first-time homebuyers used an online calculator to compare different options when shopping for a home. As a result, 85 per cent of first-time homebuyers noted they had a good understanding of the size of mortgage they could afford before buying a home, with the average Canadian homebuyer taking 12 months to plan their purchase.
“Canadians confirmed that they take the time to do research prior to buying a home,” said Pierre Serré, CMHC Vice-President, Insurance Product and Business Development. “Informed homebuyers contribute to the continued strength of Canada’s housing system.”
The survey noted that 81 per cent of recent homebuyers indicate that they are comfortable with the level of their current mortgage debt.
More than two-thirds (68 per cent) of recent homebuyers feel there is a strong chance they will pay off their mortgage sooner than required and more than a quarter (27 per cent) have already taken steps to pay down their mortgage through lump-sum payments or through increased regular payments.
The on-line survey, which polled more than 2,500 active mortgage users, asked participants a series of questions designed to gauge the attitudes and sentiments of recent mortgage consumers in Canada. The survey has been conducted since 1999.
As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of high quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.
For complete details of CMHC’s 2010 Mortgage Consumer Survey please visit: http://www.cmhc.ca/en/hoficlincl/moloin/cosu/index.cfm
Information on this release:
Charles Sauriol
CMHC Media Relations
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Greater Toronto Area Resale Homes Sales remain high in May
Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®) in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.
“The pace of transactions slowed in May following record-setting sales in February, March and April,” said Toronto Real Estate Board President Tom Lebour. “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”
New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009.
“The gap between listings and sales has widened, which means there is more choice for buyers,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”
Median Price
In May, the median price was $376,750, from the $337,000 recorded during May of 2009.
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Central Bank Rate Hike Not Enough to Worry Mortgage Holders
June 01, 2010: The Bank of Canada raised its target overnight rate by a quarter of a percentage point to 0.5 percent today, making it the first of the G7 countries to do so. The Bank Rate rose correspondingly to 0.75 percent, with the deposit rate kept at 0.25 percent
Housing and consumer spending in Canada fed a robust 6.1 percent growth in the economy in the first quarter of this year. However, in a media statement released today, the Bank of Canada cited continuing global market instability as a reason for remaining cautious on interest rate increases:
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Buyers and Home Owners should take advantage of this present market conditions. If you are paying high interest Rates on your mortgage or have equity in the house and want to consolidate your debts to reduce your monthly payments, now is the time.
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