(PRWEB) November 27, 2012
According to the CTO of Syndicate Mortgages, Marcus Arkan, the housing market has certainly slowed down after the mortgage policy changes were announced and implemented in July, 2012. They have even helped to somewhat cool off the overheated housing market of Canada. But a more prominent impact of these changes will be clearly visible in the spring of 2013.
The main purpose of these policy alterations, as observed by Mr. Arkan, was to reduce the debt risk and the default risk on the Canadian economy. It has undoubtedly succeeded in discouraging around 5% of potential homebuyers from purchasing new homes as they can no longer fulfill the criteria of applying for a mortgage, says the Government of Canada. However, the impact was not felt as strongly because the housing market is usually slow in the last quarter of the year. So, a small downward trend in the mortgage and housing market is no surprise.
Canada faces critically harsh weather conditions in winter and the housing sector usually does slow down in this season. People usually tend to stay indoors and housing and mortgage markets dwindle. The actual impact of the policy changes will be appropriately felt in the spring of 2013 when interested buyers will start searching for homes.
According to Katie Archdekin, Head of Mortgage Products at BMO Bank of Montreal, "Traditionally spring marks the busiest time of year for real estate - particularly here in Canada, where the market has continued to show solid signs of growth." Therefore, this will be a good time to closely observe the housing market.
Mortgage expert and CTO of Syndicate Mortgages, Marcus Arkan, says, “The housing prices have dropped after the new rules were implemented and according to forecasts, they will further drop in the coming year as well. But along with the prices, the demand will see a downward trend too.”
Mr. Arkan also adds that, “The decline of housing prices should have made potential buyers happier, but the tightening of the mortgage policies reduced their ability to afford a house of their own in their current income. The effects of these changes will remain on the housing market in the next year and for some time after that before the housing market starts to recover again.”
The observations of Mr. Arkan clearly illustrate the scenario of the housing market that will prevail in the coming year and looking at the current economic trends in Canada, his forecasts seem quite legit.
To know more about the current mortgages being offered, visit the Syndicate Mortgages website.
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