One positive aspect of this recession is low mortgage interest rates. If you're buying real estate for the Spring of 2009 or renewing your mortgage, you will benefit from low interest rates on both fixed-rate and variable-rate mortgages.
Remember that even if you're moving to a new home, it's worthwhile to shop around for your mortgage. You do not have to deal with your existing financial institution if they do not have the best mortgage and interest rate available on the market. Sometimes a minimal cost can save you thousands on a lower interest rate.
Canadian employment numbers were released last week and the prognosis is that over the first half of 2009, we can expect the unemployment rate to head towards 8% before coming back down as the economy stages a recovery in the latter part of the year. Employment figures are key in predicting economic activity, which also includes looking at what is happening at GDP.
Mortgage rates will remain consistently low for 2009, but I'm encouraging my clients that if they're looking for real estate in 2009 to get pre-approved in January as a pre-approval locks in a fixed-rate for you and protects you from subtle market fluctuations.
If you have any questions, please don't hesitate to post a comment or contact me directly through e-mail. Sandra, The Mortgage Mentor
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