Mortgage and buying a new house

[Benrickjane]

Hey guys,

It's been 15 years since I have moved to Canada. I'm an Indian citizen, and a few years back, I got my PR. Now I have a plan to buy a new house in Canada. But, the one I have checked is a bit high in the budget. So we need to go for a mortgage.

Has anyone here recently took a mortgage? Are the rates are lower due to COVID-19? Is there any change in the policies for Indian citizens?

Thanks!

 

[steaky]

I got a mortgage renewal and I can tell you that the rates are lower due to the pandemic.

 

[canuck78]

Hey guys,

It's been 15 years since I have moved to Canada. I'm an Indian citizen, and a few years back, I got my PR. Now I have a plan to buy a new house in Canada. But, the one I have checked is a bit high in the budget. So we need to go for a mortgage.

Has anyone here recently took a mortgage? Are the rates are lower due to COVID-19? Is there any change in the policies for Indian citizens?

Thanks!

Rates are low but not due to the pandemic. Were already heading lower due to monetary policy. Has only gotten lower. Due to economic uncertainty make sure you have extra savings for th like job loss. To pass the stress test you’ll need to qualify at a higher rate.

 

[rmacraj]

Hey guys,

It's been 15 years since I have moved to Canada. I'm an Indian citizen, and a few years back, I got my PR. Now I have a plan to buy a new house in Canada. But, the one I have checked is a bit high in the budget. So we need to go for a mortgage.

Has anyone here recently took a mortgage? Are the rates are lower due to COVID-19? Is there any change in the policies for Indian citizens?

Thanks!

Rates are lower and are expected to be low short-term. Also, there is no specific change particularly for Indian citizens.

 

[Lazymon82]

Hey guys,

It's been 15 years since I have moved to Canada. I'm an Indian citizen, and a few years back, I got my PR. Now I have a plan to buy a new house in Canada. But, the one I have checked is a bit high in the budget. So we need to go for a mortgage.

Has anyone here recently took a mortgage? Are the rates are lower due to COVID-19? Is there any change in the policies for Indian citizens?

Thanks!

Ratehub.ca should give great deal of information and i do not see why you need not trust them.

 

[roy1947]

Rates are lowest now, predominantly a buyers market.

 

[canuck78]

Rates are lowest now, predominantly a buyers market.

Not a buyer's market everywhere. Also very little inventory in some maekets for some types of homes especially wingle family home (deteache and semi-detached).

 

[gurpreet.ts]

Yes rates are lower and expected to remain lower until 2023. Perfect time to buy the market in terms of interest rates.

 

[vin22]

Only interest rates are low...property prices are high. When will they be affordable?

 

[gurpreet.ts]

GTA has been seeing crazy prices since 2005, post Covid we see the effect of high pricing in cities surrounding GTA too.

 

[canuck78]

GTA has been seeing crazy prices since 2005, post Covid we see the effect of high pricing in cities surrounding GTA too.

Low interest rates pushes up the housing prices it's a double edged sword.

 

[Lazymon82]

Interest rates currently projected by the central bank to maintain the same until 2023...i guess until immigration numbers catches up to continue the market momentum.

 

[canuck78]

Interest rates currently projected by the central bank to maintain the same until 2023...i guess until immigration numbers catches up to continue the market momentum.

Will partially depend on how many businesses go under and how many people lose their jobs. Income replacement is only a small portion of many people's salaries so we haven't seen the effect of job losses on housing yet for various reasons. In general homes in hot real estate markets will likely do well but whether the real estate market is strong will depend on where you live and the type of property. Even with immigration increasing if the new immigrants aren't securing jobs it won't have the typical impact of immigration on the market.

 

[Lazymon82]

Will partially depend on how many businesses go under and how many people lose their jobs. Income replacement is only a small portion of many people's salaries so we haven't seen the effect of job losses on housing yet for various reasons. In general homes in hot real estate markets will likely do well but whether the real estate market is strong will depend on where you live and the type of property. Even with immigration increasing if the new immigrants aren't securing jobs it won't have the typical impact of immigration on the market.

Also depends if people who are losing jobs really own homes or even if they do, are they small condos and with multiple income families. Effect of job losses can be exaggerated out of proportion easily. For sure effect of the pandemic will be felt for years to come but fast paced economic growth plans for canada can easily suppress it unlike the past economical disasters. Dependency on city centers for economic activity is decreasing with work environments becoming more virtual fueling comfortable housing requirements far more than ever before coupled with rise in economically stable immigrants flow in the coming years.

 

[canuck78]

Also depends if people who are losing jobs really own homes or even if they do, are they small condos and with multiple income families. Effect of job losses can be exaggerated out of proportion easily. For sure effect of the pandemic will be felt for years to come but fast paced economic growth plans for canada can easily suppress it unlike the past economical disasters. Dependency on city centers for economic activity is decreasing with work environments becoming more virtual fueling comfortable housing requirements far more than ever before coupled with rise in economically stable immigrants flow in the coming years.

There are many small business owners who are home owners. It isn't only low level employees being impacted. Many making little actually may have ended up ahead during the pandemic. In some places like Alberta the economy wasn't strong prepandemic. There is no guarantee that the economy will come roaring back. Pandemic is not going away anytime soon between those who will refuse vaccination and needing to vaccinate the rest of the world. We are still likely talking years to get close to where the world was precovid. Even though employers have moved more virtual I don't see people moving away from the big cities. Many will still need to go into the office but employers may now consider remote work for most employees that was unheard of before covid. A large percentage of workers aren't able to work virtually. The major sector that will get hit are the smaller units. There are still many who have no desire to move to the suburbs. Many employers are still not hiring and even the skilled workers usually need a mortgage. Many of the true consequences of covid haven't been seen yet like evictions, bankruptcies, closures, etc. The US is also in for huge economic issues because of minimal economic support after the cares act. There is a segment who will come out of the pandemic with minimal economic consequences but there is a large amount of people who will end up broke. homeless and needing to start over. Canada is a small economy so our recovery is very dependent on the rest of the world. Repaying all the money we have spent is also going to be a huge issue for generations so there will eventually be pushback when it comes to unlimited spending and we may be in for an election next year that could change plans. Would add that the increase in housing prices for the past 20 years isn't a good thing. Yes certain people made money but housing is extremely unaffordable compared to salaries which means current generation is likely to struggle economically more than their parents.