While the heads of the big six banks in Canada are urging Ottawa to put tougher restrictions on a person’s ability to get a home, the Bank of Canada is telling everyone not to worry, there is no housing bubble to speak of. The problem here is that only one of these groups can be [...]

While the heads of the big six banks in Canada are urging Ottawa to put tougher restrictions on a person’s ability to get a home, the Bank of Canada is telling everyone not to worry, there is no housing bubble to speak of. The problem here is that only one of these groups can be right. If the heads of the banks are right and nothing is done, a housing crash will come later this year. However, if the Bank of Canada is right and nothing is done, the housing market will continue to improve and the economy right along with it.

So, who do we believe then?

 According to Mark Carney of the Bank of Canada, it should be them. He recently said that there is no housing bubble and there is no need to change anything in the mortgage market. The heads of the banks want to have more money down on a home and shorter mortgage term lengths in order to weed out the people who may be spending beyond their means.

Speaking in Winnipeg, Carney said that the market is doing very well over the past decade and the strength of the system of mortgage insurance has been witnessed during this time. Carney also said that the increased strength of the housing market was completely expected and that the bank is looking at the market closely.

 Regardless of how the housing market is doing, in June the Bank of Canada will be raising the .25 percent prime interest rate. When this happens, homeowners will find that they are paying much more for their mortgage each month and that may put too much strain on some people. If that happens, and if there are too many foreclosures, then there could be a mortgage meltdown like which was seen in the United States.

 However, over the next few months the housing market will continue to improve and grow, with record increases over the previous year being seen. In Toronto, there has been double, and triple-digit, growth in the housing market since June and this will continue for a few months more. What happens after June is not known. Many think the housing market will slow, others think it will continue to grow, while some think that the market will collapse. All we can do now is prepare for the worst and hope for the best and wait to see what exactly is going to happen.


Posted: 2010-02-12 15:11:34

Ream more...

Want to sell condo Toronto? If yes then you are at the right place. At Canada, especially in Toronto your search for a perfect real estate broker to find out best Toronto Condo for Sale can’t end at a better place. I Marco Momeni, assures you best value for your condo and unmatched customer service at most competitive cost. I can even help you make your condo more attractive so that we can finish the whole transaction and selling procedure in least possible time. Selling a condominium in Toronto is a very herculean task. And if you want to try to sell condo Toronto all by yourself then the whole process will be nightmarish. So let me handle your Toronto condo for sale, I guarantee you best value at most affordable price. I even have the experience to take care of all the legal procedures such as preparation of agreement papers and various other necessary things which are required at the time of condo selling. We are committed to strike the best deal for your Toronto condo for sale by finding out the most suitable person or family who can pay you correct amount. I can achieve this by utilizing mine as well as your network of family, friends, neighbors, office colleague etc. I even strive hard enough to popularize your Toronto condo for sale by using internet, print and visual medium, and various other advanced advertising and marketing techniques. As I have years of experience selling, buying and renting properties in Canada and especially in Toronto, We know in great detail about the important factors that makes difference in sealing a deal. Using all these knowledge, I give my clients many inputs and advices about staging their property which makes them more attractive and gets them better return on that.