Buying a home can be very challenging in any market including that in the Inner City, Calgary. There may be an array of beautiful Calgary homes for sale to choose from, but several factors and pointers must be considered before closing any deal. You should be knowledgeable about the basics of home buying and be updated with the ins and outs of Canada’s housing market, particularly when it comes to the changes in available mortgage options.
An article in The Huffington Post, as filed by the CBC (Canadian Broadcasting Corporation), discusses recent developments in the US and Canadian economies, which can have significant effects in the real estate market. The article says that there could be an increase in long-term interest rates due to the U.S. Federal Reserve’s tapering, that is, scaling back of economic support and reduction of bond buying.
“In the context of a firming global economy, especially the U.S., we’d expect to see some upward pressure in market interest rates, long-term rates in particular, where the quantitative easing has its primary effect,” Stephen Poloz, Bank of Canada governor, said in an interview on CBC.
“So as a tapering occurs we might expect to see as we saw in the summer some increases in long-term rates, most of it seems to be priced in. Those kinds of pressures are the positive ones – if the U.S. economy strengthens as we believe, those are very welcome market pressures,” Poloz added.
Poloz said he believes a long-term rate rise wouldn’t greatly hurt the Canadian economy as the housing market appears to be heading for a soft landing and consumer spending, which has kept the economy strong these last few years, must come down to bring down household debt levels.
Taking some time to educate yourself before buying homes for sale in Calgary can save you from a great deal of trouble. Seek professional financial advice to confirm credit ratings and mortgage qualification. Work with a certified and reputable realtor focusing on Inner City Calgary listings, like Christine Ordze, to find the right property in your desired neighborhood. An experienced Calgary realtor can help you sort out the details, keep you informed, and provide you with applicable options; particularly when dealing with budget constraints.
Be familiar with applicable buyer policies and regulations, along with the necessary paperwork and legwork, especially with regard to getting mortgage pre-approval. Your real estate agent may even refer you to a lawyer and home inspector, whose services may be needed to ensure a safe and successful transaction.
(Article Information and Image from Long-term Mortgage Rates to Rise Soon, Huffingtonpost.ca/CBC, 01/07/2014)