First-Time Buyers get Careful in Canada
With the current American real estate market stall, it seems that Canadians are doing their best to learn their lesson. True, the situation in Canada is far from a mirror of that in the United States, but Canadians - and especially first-time buyers - are taking action now to ensure they don’t end up in trouble later.
Foreclosure and bankruptcy scare buyers smart
It’s a fearsome scenario: thousands of Americans who were tempted into buying properties they couldn’t afford by zero down payments and short-term dazzling interest rates are now facing the prospect of losing their homes to the bank. Canadians have been watching the drama unfold very closely - the problem is so epidemic that American presidential candidates are basing large parts of their campaign platforms on bailing these unfortunate citizens out of trouble.
To say the least, witnessing this situation from the north has been educational for first-time Canadian buyers. More than ever, they are wary of deals that seem too good to be true in favor of being prepared for the long term. They are consulting with hosts of mortgage brokers, combing the Internet for information, and checking the math themselves to make sure they’ll still be able to afford later what they’re planning to purchase now. They are doing lengthy research to find suitable homes that balance their lifestyle needs with their financial abilities.
Canadians remain confident in the housing market
The decline in activity in the Canadian real estate market has been of concern despite that it pales in contrast to what’s happening in the United States. However, a recent study indicates that first-time Canadian buyers are still confident that the Canadian real estate market is a safe bet. The statistics show that buyers trust in the long-term financial growth of their property investments and are relatively unconcerned with the recent short-term declines in Canadian housing prices.
Buyers in Canada are concerned, however, with high monthly mortgage payments and the potential for property taxes and interest rates to increase. For this reason, Canadians are being careful to avoid zero down payment mortgages or other dicey plans that promise to get them into houses they can’t really afford. They are combing new development listings and websites like www.mls.ca to find properties for which they can afford a healthy down payment now as well as manage the mortgage payments down the road.
It’s all done with good reason; after what’s happened in the United States, most first-time Canadian buyers are doing all they can to avoid over-committing themselves in the real estate market. They have realized that it’s better to be cautious for the sake of preserving and increasing their long-term overall financial health.
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