The Time to Buy a Home in Edmonton is Now

Perhaps one of the biggest investments you will make in life is buying a home. Many lenders offer various mortgage plans and home equity loans to help you get the most value for your money and the most value for the investment that is your home. Because of the economic difficulties that we have faced in the past years, however, mortgage and home prices have altered greatly. In Edmonton, Alberta and much of the rest of Canada, the mortgage rates were brought down to encourage people to purchase homes. Today, however, we are amidst another big change in the homebuying industry as mortgage rates in Canada increase at an alarming rate.

How the mortgage rates are changing

In the throngs of economic recession, the Bank of Canada dropped mortgage rates drastically to encourage growth and economic activity. The result was that many Canadians started buying up homes as rates fell to all-time lows. Now, however, as economies are slowly recovering, it seems that the lenders are looking to make back some of the profits they may have lost. Overnight rates have raised by 0.6%, and they are expected to raise further in the next year by around 1.75%, resulting in a five-year mortgage rate of about 7% or more.

What does this mean for homebuyers?

If projections are right, this hike in mortgage rates spells bad news for those who have plans of buying a home in the next year or two. If you are in control of your finances, and you think you can afford to get a home that you will love, then you may want to buy a home before the mortgage rates rise even higher. Be advised that you shouldn't buy a home simply because mortgage rates are projected to go up. Weigh out the benefits and consequences of buying a home now with low mortgage rates as opposed to buying a home in the future when the economy may be more stable but mortgage rates are at new highs.

The Time to Buy a Home in Edmonton is Now

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