Here's what you can expect from the housing market in 2020
Ratehub has released its projections for the mortgage and housing market for 2020.
This year, despite the fact Canada didn’t cut the key overnight rates in 2019 even though 35 central banks did at least once during the year, the Bank of Canada will be lowering it by 0.25 per cent.
According to James Laird, co-founder of Ratehub and Inc. and president of CanWise Financial mortgage brokerage: “These savings will be passed along to variable rate mortgage holders in the form of a lower prime rate. Therefore all Canadians who are in a variable rate will see their interest rate drop in the second half of the year.”
Additionally, five-year fixed rate mortgages are expected to stay below three per cent for the year—good news for those whose mortgages are up for renewal as well as those who plan on purchasing a home this year.
Homeowners will be happy to hear that home values are expected to appreciate by one to three per cent—and homes valued below $1 million in major urban areas of the country will appreciate by as much as five to 10 per cent.
However, those who planned on using the First-Time Home Buyers Incentive to purchase a home may not be able to qualify for it, as the changes the government announced to the program likely won’t come into effect due to the slow adoption of the existing program, as well as the fact that some of the other political parties do not support expanding the program.
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