Why You Should Refinance Your Mortgage or Get a New Mortgage in 2020
In 2019, the Canadian mortgage and housing market made a remarkable turnaround from difficult conditions in 2018, and the housing market in 2020 is expected to show continued strength and resilience according to the Canadian Real Estate Association (CREA).
Across Canada, scarcity in the housing supply will persist, particularly in hot markets like the GTA and the Vancouver area. The resale market for homes will be supported by both the population and employment rate healthily rising, along with the unlikelihood of rising interest rates in 2020.
The second half of 2019 saw fewer homes listed, contributing to a lack of housing supply and price growth, which is a trend forecasted to extend well into 2020. To compensate for fewer transactions at the beginning of 2019, home sales are also predicted to increase by 8.9% to reach 530,000 in 2020.
In addition, price growth will be propelled by strong consumer confidence in the economy. Experts predict that the average price of a Canadian home will rise by 6.2% in 2020, reaching $531,000. As Canadian millennials have adapted to new, more stringent qualification requirements for insured mortgages since January 2018, and have begun earning higher salaries, they are likely to drive price growth through stimulating demand for homes.
Over-evaluation of the prices of homes in sought after markets such as Toronto and Vancouver will continue to decrease. Although prices will see positive growth, markets are expected to become less volatile and experience steady growth, rather than rapid acceleration of prices.
Some experts also suggest that interest rates may be reduced by 25 basis points. The Bank of Canada were compelled to hold the overnight rate steady at 1.75% during 2019 given a strongly performing domestic economy. Although the housing market is expected to experience positive price growth, the Bank of Canada may consider stimulating growth further by dropping interest rates further as banks in other jurisdictions did in 2019.
Take advantage of the bright future for the Canadian housing market by working with an expert mortgage broker at Clover Mortgage. Our mortgage brokers will work tirelessly to find the ideal mortgage for you to support your investments in 2020.
If you need to take some equity out of your home in the form of a debt consolidation loan or home equity loan to pay down some of your higher interest debt , or have bad credit or a low credit score, Clover Mortgage is here to help you get approved for the best possible option that is available to you. Call us today at Call us at 416–674–6222 or toll free at 1–800–673–2230, or email us at [email protected] to speak with a knowledgeable and helpful mortgage broker about your needs and situation.