A lot of people think that since the global economy isn’t quite as strong as it was in the time before the recent financial crisis, that now still isn’t a good time to get a mortgage. They’d be wrong, though. Although we aren’t completely out of crisis mode, we are definitely on the upswing, and things are looking great for the future. So if you are thinking about getting a mortgage, or second mortgage for any reason such as home renovation or personal loan reasons, then you need to know why now is a great time to get a mortgage.
First, mortgage rates are low
Overall, mortgage rates are still quite low in comparison to past rates. The sluggish economy and wariness of consumers has meant that money has had to become cheaper in order to be borrowed. There is a good chance that as the economy improves we will begin to see mortgage rates rise. People will begin to become more confident, and have more money to spare. Even a raise of half a percent can cost you $25,000 or more over the lifetime of your loan.
Home prices are beginning to rise
After flattening out and then stabilizing for a while, the housing market is starting to see an uptick. This means that if you don’t strike soon, you may find yourself wishing that you had acted when you had the chance. Experts have predicted a rise in the housing prices of Canada by 1% or more in the coming year. You will want to strike while the iron is hot.
New protections have been put in place to protect borrowers
Because of the market collapse, the government enacted new measures to protect both borrowers and lenders. This means you have access to lower amortization periods, and that you can be given more favorable deals that will help you keep your head above water. These are luxuries that people didn’t have not so long ago.
No matter what people may think, or how down they are about the economic situation, the reality is that the economy has improved. Mortgage rates, home prices, and government regulations are all contributing factors as to why this is a great time to get a mortgage. If you have any questions regarding home or personal loans, contact the experts at Sky Financial today, and see how we can help you achieve your goals.