The recent jobs data is important for first-time home buyers
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Toronto, Canada (PRWEB) July 17, 2014
Canadalend.com, the leading low-cost, private mortgage solution provider in Canada, is responding to recent jobs numbers and weighing in on how they will impact Canadian mortgage rates.
According to Statistics Canada, the Canadian economy lost 9,400 jobs in June, nudging the unemployment rate to 7.1%, the highest level in six months. Economists had predicted the jobless rate would remain unchanged at seven percent. (Source: “Labour Force Survey, June 2014,” Statistics Canada web site, July 11, 2014; http://www.statcan.gc.ca/daily-quotidien/140711/dq140711a-eng.htm.)
“The recent jobs data is important for first-time home buyers,” says Bob Aggarwal, president of Canadalend.com. “The Bank of Canada has kept interest rates artificially low—at one percent—since late 2010 to help combat a weak economy. The Bank of Canada has hinted it will not raise the lending rate, which impacts loans and mortgages, until the economy is on stable, sustainable footing.”
Aggarwal observes that while more than 33,000 new full-time jobs were created in June, 43,000 part-time positions were lost. Compared with 12 months earlier, employment increased by 72,000, or 0.4%—the lowest year-over-year growth rate since February 2010. Take Alberta’s job gains out of the picture and the rest of Canada actually shows a loss of 10,000 jobs over the last 12 months, he notes.
Aggarwal explains that the addition of 33,000 new jobs is encouraging, but the fact of the matter is that outside of Alberta, Canada is experiencing virtually no job growth; in fact, the bigger picture shows that Canada’s overall economic stability is precarious. As a result, there is a strong chance that Canada’s interest rates will remain historically low, probably into mid-2015.
“With interest rates expected to remain low until mid-2015, now is a great time for first-time home buyers to consider getting pre-approved for a mortgage,” Aggarwal concludes. “Contacting the independent, licensed mortgage experts at Canadalend.com can help potential home buyers lock in a rate that fits their short- and long-term financial and lifestyle needs.”
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 help with addressing financing concerns. To learn more about Canadalend.com, visit the web site at http://www.Canadalend.com.