In the same week that we see headlines such as,

  • Greater Vancouver real estate hits $3M sales record in 2014″
  • “Vancouver’s housing market is 2nd-most unaffordable in the world”
  • “The Loonie flies south”

we also see another major headline…

  • “The oil market hits rock bottom”

ratecutIt’s this later message that factored heavily today as the Bank of Canada surprised everyone and cut the key lending rate to 0.75%.

As much as this if great news for variable rate and line of credit mortgage holders, it may be good and bad news for new home buyers.

Good new because money is cheaper, but this cheaper money will likely encourage more borrowing and in turn, boost sales and prices of homes in Central Canada even higher.

In deciding whether to buy a home, we can never have perfect visibility into what the years ahead will bring. Make sure you are buying a place that you can afford — with a sensible price relative to the alternative of renting — and that you can see yourself living their for some time.

Because you can’t know the future, concentrate on the things you can know, about the finances of a potential purchase and your own personality, and leap accordingly.

PS – Ask me about our 5 year 2.69% rate promotion

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

– No Hassle

– Best Rates

– Trustworthy Advice

– We Even The Playing Field With The Banks…

Your Vancouver Mortgage Broker For Life 604-273-2002

www.notapennydown.com

P.S. Who’s the next person you know who wants to save thousands off their mortgage. Be sure to give me a call so we can help them! 604-273-2002