Royals when we probe our minds a bit and think about the last year an a half, I am sure all of us can come to the cumulative reflection that the pandemic has shifted our lives in some shape or form. For Many Covid-19 became a crisis of no hope and much questions accompanied by fear regarding our unique business endeavours, partnerships and economic standing.
Home buying was dramatically impacted according to stlouisfed.org due to a vast amount of job losses, disrupted flow of new immigrants and influx with school closures for students. However, Canada recovery adaptations have assisted in attempts to navigate the process for less problematic outcomes during economic uncertainty.
As a new home buyer I have my radars up as I am constantly on the search on how to make a successful move in the right direction before closing a deal on a home.
According to https://thoughtleadership.rbc.com/ Many Canadians homeowners have been on edge and have been operating on a defensive notion. Almost 780,000 people opted to defer mortgage payments since the start of the pandemic, representing 16% of mortgages in bank portfolios. By the end of August, the vast majority of mortgage holders whose deferral period has expired had resumed regular payments. However, it remains unclear how many will ultimately be able to continue as outlook for jobs remains bleak for many Canadians. This poses a risk for the housing market, especially in areas where the economy is shakiest. Financial strains could potentially unleash a wave of properties for sale.
Through much observation and research its noted that Canadian mortgage lenders are assisting more borrowers with a strong financial position. In addition, The Canadian government is providing monthly benefits and income support to help household keep up with bills and responsibilities. While successfully attending to lenders and helping homeowners temporarily defer mortgage payments. Powerful tools like this mortgage calculator https://www.mortgagecalculator.uk/affordability/ can help estimate the affordability of mortgage based on income.
My mother has been my staple when int comes to practical knowledge of making wise home buying decisions. Some important things to keep in mind, is to monitor your interest rates as if you have a variable rate mortgage , your monthly payments may rise. If you have a fixed rate mortgage it may be more favourable as payment wont change until you renew your mortgage.
Since its been a go to with my mom for selecting the fix rate mortgage option, it seems like the wisest choice when unpredictable circumstance like the pandemic arise. Nonetheless, it is always best to weigh ones options prior to proceeding and making any final decisions.
Royals I hope you enjoyed this topic as its so essential to have knowledge within this niche. Be sure to visit my blog for more upcoming articles and feel free to reach out if you have any questions!