The new home marketplace in the GTA may seem daunting right now, with demand dwarfing supply and prices rising at unprecedented rates. The one financial bright light has been, and will continue to be, historically low mortgage interest rates. This fall, the Bank of Canada governor Stephen Poloz announced that our low rates will likely not change for some time to come. Single-digit rates are something we who lived through the spikes in the 1980s and 1990s thought were a thing of the past. Economic experts said we would never see these low rates again; yet here we are.
To young people who dream of owning a home but feel you cannot afford one, I say do your research, find out what help there is out there and talk it through with a mortgage expert. You have the remarkable opportunity to borrow money while interest rates hover around those your grandparents would envy. Exhaust every avenue available to you, and you just might find that you can afford a condominium. Even today’s compact condominiums are design wonders, maximizing every square foot by eliminating hallways and other unusable space.
Low mortgage interest rates are guiding our present, and hopefully our future. The important thing is to get into the real estate market sooner than later and start building equity for your lifestyle and financial futures.