Over the past 2 years, the Canadian economy has been turbulent. The housing market has had to sustain a massive financial crisis, a recession causing 430,000 less jobs across the country, the introduction of HST, and 2 changes in the rules for Canadian mortgages. Our economy’s faced some serious threats to its security! 

That said, we’ve pulled through. 

Today our economy sits on stable ground and is expecting to gain additional strength in 2011. New jobs will appear, and family incomes will stabilize. Though there’s more honey in the honey pot, RBC predicts that the increased activity will be just enough to off-set the 1% increase in interest rates from the Bank of Canada, and the 1.5% increase they’ve slated for next year. Additionally, we have to remember that Jim Flaherty issued that new change in mortgage amortization periods, effective this month. Amortization periods now max out at 30 years, opposed to 35. I wrote about it here

Finally, here’s my concluding thought: 

RBC and I both think that the resale prices are going to stay level over the next two years. 

Consider investing in real estate now, or in the near future, to take advantage of low interest rates and lower mortgage payments than you would within two years from now. 

Your new home doesn’t come with mortgage advice. I do.
Lino Contento | RBC Mortgage Specialist | Royal Bank Of Canada |
Tel: (905) 553-3270 | Fax: (905) 553-4200 | Cel: (416) 931-5466

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