Canadian average home price drops 10.4 per cent from the same month a year ago
The month of May might mark the time when many Canadians are breathlessly waiting for income tax refunds, but it is also when prospective home buyers can enjoy a little good news about home prices dropping across the country.
According to the Canadian Real Estate Association (CREA), the country’s average home price fell to $491,000, a 10.4 per cent drop from the same time period a year ago. The CREA reported further home sales also increased by 1.3 per cent in the first quarter of 2018.
Analysts say the drop has happened because of a number of factors that include a shift in sales mix and changes in mortgage regulations which affect both the demand for lower-priced homes as well as the number of qualified buyers.
For those who might find this drop-in-price news motivating, experts are recommending they consider three important features to help secure the best mortgage. Shopping around for the best mortgage doesn’t necessarily mean simply securing the lowest rate. An effective mortgage plan includes generous prepayment privileges and room for portability. Mortgages are not a one-size-fits-all product. Don't get stuck in a contract that doesn't fit! Be sure to ask your mortgage broker to for the loan features that will best suit YOUR needs. Here's a list of some of the items you should be checking to ensure you have in your new home loan:
Portability: A portable mortgage means home buyers can transfer their mortgages to new homes if they are moving or even combine it with another loan, if necessary in the future.
The option to make lump sum payments as frequently as possible. They are known to reduce mortgage interest substantially, not to mention, take years off the amortization period.
The option to accelerate mortgage payments. By accelerating your payments, you can reduce the amortization period of your loan substantially, which amounts to thousands of dollars in savings.
What are the penalties if you break the contract early? Sometimes taking a big discount on the interest rate may increase the penalty to break your contact early.
And remember, if you're not sure where to start. Don't try to do it all on your own! Ask your Kennedy Real Estate Agent for help. We have a great team of respected professionals that we have worked with extensively and can recommend people who we are confident can assist you. Give us a call, we'd love to help!
Author:Cynthia Cherie Phone: 780-718-1598 Dated: May 17th 2018 Views: 244 About Cynthia: ...
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