The heat is back on

Two wooden houses and a green up arrow on the sign. Real estate value increase. Rising prices for housing, building maintenance. High rates of construction, high liquidity. Supply and demand
Andrii Yalanskyi / Shutterstock

The rebound over the past three months has been swift and strong, with July’s sales figures tripling those in April.

Although the buying and selling season typically peaks around May or June, the pandemic pushed the whole schedule back.

“A big part of what we’re seeing right now is the snap back in activity that would have otherwise happened earlier this year,” says Cathcart.

The Canada Mortgage and Housing Corporation predicted in May that prices could fall in the future as government support dries up — but if a correction is coming, it certainly hasn’t happened yet.

The average price of homes sold in July jumped by over 14% compared to the same time last year. That number, the CREA says, is heavily influenced by surging prices in the Toronto and Vancouver areas.

One obvious reason for all the demand is today’s tremendous mortgage rates. To keep the economy churning in a time of uncertainty, the Bank of Canada has made it easier and easier to get a great deal on a loan, and homebuyers are happily taking advantage.

But that’s not the whole story.

Good credit is important for your financial health, and Borrowell can help you take a turn for the better. Sign up for Borrowell to get your credit score and credit report for free!

Sign up

Buyers eager for more space

Young Couple Sitting On Sofa thinking about a home
Billion Photos / Shutterstock

Canadians who have put off their travel plans this summer have spent months in lockdown thinking about what they really want in a home. Sellers also had more time to prep their houses while they waited for things to pick up.

And COVID-19 has only fuelled desires for more space, according to a recent survey from Mortgage Professionals Canada.

About 12% of homeowners who plan to move in the next few years said working from home more has inspired them to seek out roomier accommodations.

Others said they wanted to rely less on public transit by moving closer to where they worked or switch to a space that makes social distancing easier (without elevators or roommates, for example).

The survey adds that very few Canadians regret becoming homeowners and are actually happier with their mortgages than they have been in the past.

Take advantage of today’s incentives

Happy african american young couple first time home buyers having fun unpacking
fizkes / Shutterstock

If you’re tired of renting or being confined to your tiny condo, now could be an ideal time to make a change.

It's easier than ever to get a great interest rate — so long as your credit score is in good shape — and a recent change to Canada’s mortgage stress test has increased buyers’ purchasing power by thousands of dollars.

Plus, with prices staying strong in most markets, current homeowners can be assured they’ll get top dollar when they go to sell. (If you happen to live in Toronto, Ottawa or Calgary, Properly is a handy site that will estimate your home’s value for you).

To see how much home you can afford, use Homewise to find the best mortgage rate available to you:

You're 5 minutes away from the best mortgage

Searching for your perfect mortgage shouldn’t be hard.

Homewise is an online brokerage that will negotiate on your behalf with more than 30 big banks and other lenders, completely free, and it only takes five minutes to apply.

If you're in the market for a new mortgage, or if you're looking to refinance before interest rates rise again, go to Homewise now and answer a few simple questions to get started.

About the Author

Serah Louis

Serah Louis

Staff Writer

Serah Louis is a senior staff writer with MoneyWise.com. She has a Bachelor of Science from the University of Toronto, where she double majored in Biology and Professional Writing and Communications.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.