Specifically, more than 20% of Millennials, those born after 1980 and the primary age group for first-time home buyers, have shortened their time frame for stepping on the property ladder
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Toronto, Canada (PRWEB) February 23, 2015
Canadalend.com, the leading low-cost private mortgage solution provider in the country, is weighing in on the Bank of Canada’s recent decision to lower its key lending rate to 0.75%. Canadalend.com is also releasing its comments on how lower interest rates are encouraging more and more people to consider buying a home in the near-term.
On January 21, the Bank of Canada announced that it had cut its key lending rate by a quarter of a percentage point to 0.75%; it had held its benchmark rate at one percent since September 2010. The bank said lower oil prices and the prospect of slower economic growth were some of the contributing factors that led it to lower the rate. Oil extraction accounts for roughly three percent of Canada’s total economic output, while crude oil accounts for about 14% of exports. (Source: “Bank of Canada lowers overnight rate target to 3/4 per cent,” Bank of Canada web site, January 21, 2015; http://www.bankofcanada.ca/2015/01/fad-press-release-2015-01-21/.)
“While the vast majority of economists expected the Bank of Canada to stay the course at one percent, it is hoped that the fresh rate cut will encourage more borrowing and help kick-start the lagging economy,” says Bob Aggarwal, president of Canadalend.com.
Falling interest rates are already impacting the way first-time home buyers are thinking about real estate, says Aggarwal. He points to a survey conducted after the rate cut, which found that nearly half plan to buy a home in the next five years, and more than 15% said the cheaper mortgage rates will allow them to buy a home sooner than expected. (Source: McMahon, T., “Canadians set to jump on homebuyer bandwagon amid lower rates,” The Globe and Mail, January 30, 2015; http://www.theglobeandmail.com/report-on-business/economy/housing/lower-rates-has-canadians-set-to-jump-on-homebuyer-bandwagon/article22717699/.)
“Specifically, more than 20% of Millennials, those born after 1980 and the primary age group for first-time home buyers, have shortened their time frame for stepping on the property ladder,” Aggarwal adds. “Meanwhile, a whopping 75% plan on making a purchase within the next five years.” (Ibid.)
Aggarwal observes that as a result of the rate cut, Canada’s major banks are beginning to finally lower interest rates on home loans. The country’s big banks are offering fixed-rate mortgages for as little as 2.84%, while smaller lenders are providing fixed-rate loans for as low as 2.69%. Home loans with variable rates are even lower.
“Those first-time home buyers looking to take advantage of the lower interest rates and who want to get pre-approved before demand increases during the busy spring market should contact the licensed, independent agents at Canadalend.com,” Aggarwal concludes. “They help home buyers determine how much they can afford and get them the best mortgage at the best rate. The mortgage experts at Canadalend.com will also help buyers get pre-approved for a mortgage in 24 hours or less.”
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and financing concerns.