The effect of the European sovereign debt-crisis in recent months has provided some unexpected benefits to the Canadian housing market in the form of lower interest rates, according to the most recent Housing Trends and Affordability report from RBC® Economics Research.
For example, fixed mortgage rates (on a five-year, posted rate) eased to 5.3% in the third quarter of 2011 from an average of 5.6% in the second quarter of this year. This ran counter to expectations of generally rising interest rates just prior to this summer’s latest bout of global uncertainty.
These lower mortgage costs helped to reduce the costs of owning a home in Canada. As a result, housing affordability improved broadly, albeit modestly, in Canada in the third quarter (after two consecutive quarters of declining affordability).
At the national level, the RBC Housing Affordability Measures fell (a decline represents an improvement in affordability) by 0.2 percentage points to 29.0% for condominium apartments, by 0.6 percentage points to 48.8% for two-storey homes and by 0.7 percentage points to 42.7% for detached bungalows.
What does that mean for you?
A good mortgage specialist should understand the fine line that exists when balancing lifestyle needs and housing affordability. They should provide tailored advice on all aspects of financing your home purchase. They should also have the ability to provide a quick turnaround time on financing approvals so you can ensure that dream home becomes yours!
Tony Marchigiano | Mortgage Specialist - Mortgage Sales BC Region, RBC Royal Bank | Royal Bank of
Canada | T. 604-505-7109 | F. 778-737-0054