Mortgage rates are one of the most divisive financial topics in Canada, with mortgage brokers and financial analysts from all over the country frequently debating one another over the future of mortgages. However, among this debate, there is usually a general consensus formed that gives a good indication for what the next 12 months have in store for mortgage rates throughout the country.
In the case of 2020, the state of mortgage rates is looking quite good for home buyers. If the majority of the biggest reports being released are to be believed, then it is a perfect time to get in touch with the top realtor in Victoria, BC, in order to start looking for your new dream home.
Stable Rates In 2019
Most financial experts and homeowners were pleasantly surprised to see that 2019 delivered relatively stable mortgage rates. Early economic estimates indicated that the Bank of Canada’s rates were unlikely to remain so low throughout the course of 2019. However, as we now know, mortgage rates continue to hold at a fairly low rate, meaning that people can now afford to spend up to 10 percent more on the purchase price of their home.
The big question is: should people pair up with the best real estate agent in Victoria, BC, right now in order to purchase their new home and secure a mortgage while the rates are surprisingly low or wait for further possible price drops?
Low Prices as Far as the Eye Can See
Many Canadian citizens are dying to know what is in store for the nation’s mortgage rates for 2020 since this will help them decide whether or not it is a perfect time to try and find their forever home. The good news is that, according to most financial experts, Canada is expected to experience fairly stable rates for the entirety of the year.
When it comes to fixed five-year mortgages, the rates hit one of the lowest prices it had seen in years in the third quarter of 2019 when it reached 2.9 percent. Although the second half of 2020 is expected to see a slight increase, it is only expected to reach a high of 3.07 percent, which puts it only just slightly above the 3.04 percent that it was in the second quarter of 2019.
That is why many market analysts believe that monthly mortgage payments will remain relatively unchanged. In fact, many of them believe the trend will continue past 2020 and extend into the first half of 2021.
With the news that mortgage rates are not expected to change very much in the foreseeable future, 2020 seems like the perfect time to meet up with the best real estate agent in Victoria, BC, and begin the search for your new dream property. This is especially true in BC thanks to the increase in housing demand, lower mortgage rates, population growth, and first-time buyer incentives, which have resulted in a significantly faster recovery rate for the province’s housing market.
Get started on finding your new dream home today by working with one of the top realtors in Victoria BC!