Subscribe with RSS ReaderHistorically the longer you wait... the higher the price. As evidenced by
the CMHC cost index for the past 25 years.
There are 2 components in purchasing a home:
1) Cost of the property
2) Cost of the money
Both are commodities. You of course wish to purchase both at the best
price possible
If interest rates go back to 5% this is historically still very low rates.
Please see the difference between 5% vs. 3.29% = 1.71% difference.
On a $400,000 mortgage if you wait to purchase, even if prices do NOT go up,
the interest difference of 5% vs. 3.29% over 25 years is $111,900.00.
You just paid $112,000 more for the same house.
This is not my opinion these are facts.
Is there really a good reason to wait?
Today’s Bank of Canada rate hold announcement marks almost four straight years that the key benchmark rate has remained unchanged, since September 8, 2010. Great news if you have a variable-rate mortgage or home equity line of credit; the prime rate stays at 3%.
The announcement noted that “the risks to the outlook for inflation remain roughly balanced, while the risks associated with household imbalances have not diminished.” With these considerations, the Bank is maintaining its monetary policy stimulus, and remains neutral with respect to the timing and direction of the next change.
The next rate-setting day is October 22nd. |
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