Toronto, Ontario (PRWEB) March 21, 2013
TD Bank, one of the largest banks in Canada, has recently published a research paper that reports that the decade long bloom of Canada’s real estate market has come to an end. While the revelations made in the paper are alarming, mortgage expert Marcus Arkan, CTO of Syndicate Mortgages, sheds light on its various aspects and explains how it will affect home owners and prospective buyers in Canada.
The paper by TD was published on 11th March, 2013. Major heralds including The Star also covered the story this week. The Star reported that TD predicts a ‘lackluster’ two percent annual ROR over the next decade. However, the report states that Toronto and Vancouver markets are likely to perform better than the national average.
Sharing his expert views on TD’s report, Marcus Arkan states, “TD report may sound a little discouraging but at least it is not as disastrous as some of the experts predicted last year. Our real estate market has remained strong even in the face of 2008’s recession. Yet, we have witnessed plenty of correction during the past two or three years. So, the report, truthfully, predicts a real-estate rebound in Canada rather than a total collapse.”
The report was created by TD’s Chief Economist Craig Alexander, Deputy Chief Economist Derek Burleton and Senior Economist Soniya Gulati. Mr. Alexander denied the speculation about the housing bubble in Canada. Times Colonist reports that Mr. Alexander hinted towards a cool down in the market but refuted the possibility of a permanent shock or a sharp correction.
At the same time, the report also stated that a smaller correction of about eight percent is expected in the next three years. Currently, the report states, the Canada housing market is overvalued not more than 10 percent. “TD has reached a closer estimate than what other forecasters believe. Citing more than 20 to 25 percent overvaluation of Canada’s market is an over-exaggeration of the problem.”
Mr. Arkan further stated that the market has shown resilience against rule changes last year. “Canada mortgage rates are still lower and home prices, according to The Canadian Real Estate Association, have witnessed an overall two percent increase. Yet, as TD predicts, Canada mortgage rates are likely to increase eventually.”
Marcus Arkan shares his opinion and expert advice on Syndicate Mortgages Canada mortgage blogs. You can lean more at http://www.syndicatemortgages.com/blog. TD’s research paper can be found at http://www.td.com/document/PDF/economics/special/LongRunRateOfReturnForCanadianHomePrices.pdf
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.
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