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Present State Of Canadian Mortgage Rates

Many potential home purchasers are curious about the present state of mortgage rates given recent news and mortgage rate increases.  Are mortgage rates too high now?  Is it worth buying a home now given these mortgage rate increases?  With the introduction of the HST, is buying a home a smart investment? 

From a financial view, households should purchase a home today if they can financially afford to.  From a financial stand point, mortgage rates are still at a historic low.  The graph below plots both the prime rate and the 5-year fixed term mortgage rate over the past decade.  As you can see, mortgage rates are still very low compared to recent history.  If you are looking to purchase a home, this is the perfect time to do so given the low cost of financing.   

So if you are thinking of buying a home, let me be the first person to give you the push in that direction.  With low mortgage rates and fair home prices, the cost of buying a home could today not be more affordable.

Posted by: Kevin Somnauth, CFA…For your Sudbury Mortgage

3 Responses to “Present State Of Canadian Mortgage Rates”

  1. This was a interesting post to read, thank you for sharing it.

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