Your factors to consider during the winter months
To sell, or to buy, that is the question!?!?
This great archaic Shakespearean like quote has some varying factors that affect your decision. Lucky for Canadians, the factors are still in our favour. Thanks to our solid banking system and immigration standards, Canada’s real estate market is on fire.
In addition to Canada’s pre 2010 mortgage lending policies, a new policy put in place by Canada’s finance minister Jim Flaherty, made it more difficult for real estate investors to get pre-approved for a 1-3 year variable mortgage rate. They must now be pre-approved for a 5 year fixed mortgage rate before any lending occurs. This was implemented in order to keep unemployed and low income investors out of the market place to ensure foreclosures don't run rampant. We all know what happened in the U.S, specifically with lenders such as Fannie Mae and Freddie Mac, they almost single handedly started the recession due to low credit requirements. Mr. Flaherty was, and is, committed to keeping our real estate market strong.
Another contributing factor Canadians rely on for a strong real estate market, is our immigration policies. The number of immigrants entering through our borders keeps our multi-cultural livelihood strong and workers prevalent in our increasing service economy. Our growing population helps drive our need to buy, sell and rent. For this, our flame is filled with hope and prosperity entering into the winter months, and beyond. The graph below shows Ontario's increasing number of immigrants entering and leaving our province throughout the year (with a large majority coming in and out of the GTA).
The result of our strong financial system and leading immigration policy is it’s ok to BUY and SELL real estate NOW, and in the future!!!