Simply put in regards to Canadians household debt; In average we currently owe 162.6 percent of every disposable dollar, that means from every dollar after available after taxes and mandatory charges. This has been attributed in part to record low-interest rates that may have been seeing as an invitation to get into debt by many Canadians, all with the hopes that our so far stable and inclined to growth stable economy will allow us to re-pay our not so expensive debt in the near future.
But how are the record low mortgage rates being appreciated by those who are still renting? Are more families becoming homeowners as a result of this attractive rates?
A perhaps right or perhaps wrong (you can comment below) answer to the first question could be that most of the renters have not yet had enough time to seize the opportunity as the debts have made their mark in their credit score limiting their ability to qualify as that of saving enough for the down payment for a home that keeps a steady rise in price.
Having said the above, the answer to the second questions is: More yes, but very few and not enough to move the economy at a faster pace. But getting more renters to become home buyers do not change on mortgage rates factor alone, a factor that is very important to consider is the proper knowledge that the renter has of the many options at his/her reach to capitalize the opportunity and finally become a homeowner.
Many are still hesitant to make the decision to place a call and have his mortgage assessment done even when this is at no cost, so that they could know where they really financially stand and what are the range of opportunities for them to seize and finally turn into a homeowner before the rates start climbing as a result of a recuperating economy south of the border that might attract our current investors in Canada’s lending industry leaving us with a more expensive cost of borrowing some time this year or next.
A simple yet resolute advice to renters is to have your mortgage assessment done now free of charge and make a move into buying a house or not, after knowing that result and hearing the given advise