Low Rates Should Come With Warning, Experts Say

First Time Buyers use Mortgage Brokers! CMHC shows 44% use Mortgage Brokers.

CMHC has shown that currently 44% of all first time homebuyers use the resources that only a Mortgage Broker can offer. Generation Y: Also called Echo Boomers (Sixty million strong have grown up on the internet). They do their homework before buying and are savvy when it comes to finances, they want to know the rates and other costs associated with home ownership.

It makes sense for them when buying real estate to use a Mortgage Broker. WHY?... They can apply online, get access to “what if “ scenarios and other need to know information. They want answers quickly, are loyal when a Mortgage Agent demonstrates the skills and understanding they need to make the biggest purchase of their lives.

Service and Price are important to them. The GOOD news is they share information good or bad.

Busy lives call for quick solutions and secure on-line Mortgage applications provide the opportunity for both. In the comfort of your own home, you can research and apply for a pre-approval and through my office receive the information with-in hours.

Efficient knowledgeable, secure service and some of the best rates in Canada, it’s a combination first time buyers want and need!

A Guide to Your New Home Warranty is available from Tarion. Down Load here (pdf) booklet

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Low Rates Should Come With Warning, Experts Say

Cheap mortgages and the explosive resale housing market have been stirring fears of a housing bubble among economists and real estate experts.

"Our concern is that the majority of new buyers are going with floating rates and setting themselves up for gradual and material rate resets over the next two years," Scotia Capital economist Derek Holt told the Globe and Mail.

"Buyers need to think about where their rates could end up and whether they would be able to make those payments down the road."

Aside from the inevitability of rising mortgage rates, experts are also concerned about the dramatic climb in house prices this year, particularly in cities. If homeowners are forced to sell down the road due to rising mortgage payments, the Globe points to fears of prices being dragged down, echoing what happened last year. Despite the concerns - which were also echoed by ING's Peter Aceto two weeks ago - CAAMP CEO Jim Murphy told the Globe Canada is far from a U.S.-style housing crisis.

"The overwhelming majority of Canadians still have predictable fixed [rate] mortgages and a fair bit of skin in the game," he said. "In the U.S., people had no equity, or could get loans without jobs. We don't have that kind of volatility here."