Ontario, Canada (PRWEB) October 29, 2012
Toronto, Ontario - This October, Bank of Montreal has released a new survey report that presents a clear picture of impact a mild increase in mortgage rates can have on Canadian households. Mortgage Expert Marcus Arkan highlights some of the major points revealed in this report and also offers his analysis of facts and stats presented in the report.
According to the BMO report survey, even a mild increase in the monthly mortgage payments will impact 72 percent of homeowners across the country. Moreover, 16 percent of these homeowners might be forced out of their homes should the rates jump more than 10%. According to Mr. Arkan, the situation was different back in June 2012, before the new rules were introduced by Flaherty. He said, “The stricter rules and lower amortization period has already made things tough for homeowners. A slight increase in interest rates now would mean that they are no longer able to afford their homes.”
Citing the smallest hike as a huge strain on homeowners under the current conditions, BMO has decided to keep its interest rate at the current level. Meanwhile, Mark Carney, leading economist and Governor of Bank of Canada also hinted lower mortgage rates throughout this quarter and the first quarter of 2013. However, Mr. Arkan strictly warns about the volatility that is ever present in the market right now.
In his analysis of BMO’s report, Mr. Arkan also pointed out the homebuyers’ confidence in the market. Nearly 46% of the people who were surveyed for the report said that they have plans to buy property in the next five years. This figure, however, will drop down 10 percent in case of a mere 5% increase in home prices.
Home prices, according to Mr. Arkan, are on the rise in major metropolitans and according to Canadian Real Estate Association home sales have already fell 15% from a year ago. Due to these changes, around a third of the population surveyed by BMO said that they have already cut down on their expenses in order to pay their monthly mortgage rates.
While speculations of increase in mortgage rates have been circulating since the start of the year, Mr. Arkan concluded the analysis with the forecast of low interest rates throughout the last quarter of 2012 well into 2013.
About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062
Email: info (at) smibroker (dot) com