33 yorkville condos buzzbuzz . It’s hard to cool down the housing market! According to the Canadian Real Estate Association (CREA), home sales in December 2020 reached an all-time high for the month, with sales up 47.2 per cent from December 2019, the biggest year-on-year increase in monthly sales since 2011. One of the important factors behind this crazy acceleration is historically low mortgage rates.Please Visit: 33 yorkville condos buzzbuzz to Get Your VVIP Registration Today!
According to the latest affordability report from the National Bank of Canada (National Bank of Canada), even though the average sales price has risen by 15.2% over the past year, the affordability of houses in the country has actually improved, mainly in terms of a decline in monthly mortgage payments.
However, analysts from the loan industry pointed out that loan rates are expected to continue to fall in the first quarter of 2021, which may add fuel to the already busy real estate market, and it may be difficult to cool the real estate market for a while.
According to the latest forecast of Canadian loan rate information website Ratespy, floating loan rates are expected to continue to fall to lower rates in the first quarter of this year.
The cheapest floating rate on the market is still the five-year floating rate discount from HSBC: 0.99%. The loan interest rate is above 1%, which is the first time in the history of Canada. It is called a landmark change in the history of Canadian bank loans.
According to Ratespy’s analysis, the reduction in floating interest rates this spring is mainly based on the following four reasons:
There is now a floating interest rate with more room for discounts.
Given the economic impact of the blockade brought about by the epidemic, it is also possible to cut interest rates again.
When fixed interest rates dominate consumers’ purchasing power, some financial lenders will naturally want to balance their mortgage books with floating-rate loans.
If economists predict that “interest rates will rise in a few years or less” as scheduled, it means that the number of borrowers using floating rates will be negligible. And when lenders switch floating rates to fixed rates, bank profits usually soar, mainly because most people are often unable to lock in the best fixed rates when converting interest rates.