(PRWEB) November 16, 2012
The recent changes in the mortgage policies in Canada have contributed to a decrease in the housing prices in Canada. This will have an overall affect on the housing market in Canada. According to certain predictions by experts, the housing prices will fall to a maximum of 10% in the next couple of years.
The Housing market contributes enormously to the Canadian economy and the fall in housing prices can negatively affect the economy and the annual GDP of the country as well.
Moreover, due to the inability of people to afford mortgage expenses as a result of the strict policies, the entire housing market will face the implications. The home construction industry will face a sharp decline in the coming year as the demand for homes will fall. Consequently, the cement, wood and paint industry as well as all those industries connected directly or indirectly with home construction will face similar consequences.
Also, mortgage brokers and real estate brokers will be facing a declining trend in their clientele due to the same reason. Even though the steady decline in the overheated housing market is a welcome change, mortgage and real estate brokers are not happy as it has directly affected their business.
The recent change in policies have not only discouraged home buyers, it has equally discouraged home sellers as they are also not willing to sell their houses at a lower price.
A latest survey of twenty forecasting experts depicted that most of them believed that the change in rules has done its work of slowing down the housing market and preventing Canada from experiencing a similar housing bubble burst like the United States.
According to the CTO of Syndicate Mortgages, Marcus Arkan, “The policy modifications were able to slow down the housing market in Canada as expected. However, it is good to see that the home prices are gradually declining and have not taken a sudden dip. This will give home sellers enough time to sell their homes if they really need the money and face the minimum possible loss. Those who are in no urgent need of selling their house can wait until this phase is over and sell their home when its value appreciates.”
In short, the policy modifications may have a short-term negative effect, but in the long-run it will have a positive impact on the housing market as well as the economy of Canada.
To know more about the current mortgages being offered, visit http://www.syndicatemortgages.com/
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.