Reasons To Buy When Mortgage Rates Are Low
The Simpsons are expecting their second child. Theyd only planned for one so with this surprise addition, they would need a larger home. Jane, a young professional, is looking for a smart way to increase her wealth. Shes considering buying a home as it seems her rent might not be far from what her monthly payments would be. Shes thinking she might as well put the money towards owning the property she lives in.
Both the Simpsons and Jane contacted a mortgage broker and realize interest rates are currently low. But what does that mean? Are low mortgage rates a good reason to act now? The answer is almost always a yes. Heres why:
1. Low interest rates indicate a favorable market condition for buyers. Any decent mortgage broker who knows their trade will tell you that. Low interest rates mean more people are able to afford the payments, making buying a home now easier on the budget. In recent years, it means mortgage companies and/or banks have a lot of properties they wish to unload.
2. Low interest rates indicate a higher supply-versus-demand rate. There are more homes available than there are people who can afford one, or are interested in buying one. As in number one above, banks/mortgage companies have a lot of properties in inventory. Since they are financing companies, not property managers or developers, the sooner they can sell these properties off, the better for them perfect time to buy a home for your family, even more perfect for speculative buying. Ask your mortgage broker about it. Theyd be able to find you a deal that meets your requirements.
3. Low interest rates often come with low price tags. At least in this day and age, it does. Check with your mortgage brokers. Prices are currently at their lowest in years. No one can say if the industry has hit its rock bottom or not. Maybe the market can go further down. Maybe it would start going back up next month. No one can make a definite prediction. But if current conditions are evaluated against trends observed over a period of time, with low mortgage rates, now is an excellent time to buy.
It Wont Last Long Market conditions will change. As in everything that runs on a cycle, the real estate and mortgage industries will recover. And when it does, prices will go back up and interest rates are expected to rise with it. This is inevitable. The only question left to ask is when.
So, dont wait too long. Mortgage brokers in Toronto agree. This type of market condition does not happen very often. If you miss this window of opportunity now, it may not come back within your lifetime. And in the very remote possibility that it does, well, the prices in the next low-interest-rates season will always be a lot more than the previous season.
Contact your mortgage broker now and arrange a meeting. Even if its only to evaluate your financial ability to afford a home now, youll find that in the current market setting, theres something just right for you.
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