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October was a slower than usual month for real estate transactions. Most buyers have put their home search on hold and are hoping to see the market crash or low rates to return. In my opinion, the market will not crash, and rates will likely remain high for at least the next 6 months or longer. The advantage of buying in this market is the abundance of inventory to choose from, negotiating power, conditional offers and far less competition from other buyers. Sure, the rates are high today, however, this is short term. Keep in mind that if the rates go down tomorrow to 2-3% as they were earlier this year, home prices will go up as well. We are still in a housing crisis here in Ontario and there is more demand than supply. Another option is to take over a sellers existing mortgage if they are looking to part ways with it. This will depend on the type of mortgage, lender, and terms.
Contact me for more information to explore the options that might be available to you.
Mortgages: Fixed vs Variable
What are the differences between a variable rate mortgage and a fixed rate? Is one better than the other? Which one should I go for? These are some the questions I get asked from clients when they are looking to either renew their mortgage or apply for a new one. Both have their advantages and dis-advantages and will ultimately depend on the current rate, your long-term goals, etc. Let’s look at each option in further detail.
Variable Rate - A variable rate mortgage is a type of loan in which the interest rate is not fixed. The payments can rise or fall depending on the prime rate. This can be a great option if rates go lower over your term.
Fixed Rate – This type of loan offers a fixed rate during the loan term. This will keep your monthly payments the same whether the rates go up or down. A typical loan term is 3-5 years.
There are several options and many different lenders in today’s market. Always consult a professional mortgage specialist and be sure to get your pre-approval in writing before beginning your home search.
FEATURED LISTING: 61 Madaket Private in Kanata
$599,900
3 Bedroom Townhome in Kanata with a finished basement – call me today for a private showing!
As always, it would be my pleasure to assist you, your friends and family with any Real Estate needs. Please don’t hesitate to reach out with any questions!
613 262 5810
mero@merosellshomes.com
www.merosellshomes.com
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