According to economists, mortgage rated were not suppose to go low in year 2016 but they did.  In this article we will discuss the mortgage trends that have been changed in year 2016.

Government keeps changing mortgage rules and guidelines every year.  These rules specifically get tighter for lenders and safer and secure for home buyers. But world’s economy works in a different manner.   More people are losing jobs today than before and losing jobs mean they won’t be able to make mortgage payments. In Canada, 27 out of 10,000 mortgage borrowers are behind 90-days on their payments.

Mortgage rates stay low throughout the year 2016 though they weren’t as low as it was expected. Government raised the guarantee fee and allows banks to hold more capital thereby making difficult for the lenders to attract borrowers.

On the other hand, average home prices also hit another record in this year. Canada’s market conditions were low throughout the year therefore, expecting borrowers to pay high down payments in such market conditions made markets weaker.

After the change in mortgage by government, it became difficult for banks to pick up lenders and thus a benefit for lenders who specialize in riskier borrowers. However this year had been good for private mortgage lenders. This change in rules made it easier for private lenders to raise their capital. Borrowers who were rejected by the banks turn their faces towards private lending companies and raising the amount private lenders will lend, relative to home value.

Once you go through all these points it will become easier for you to make a wise decision to buy a home especially if you are planning to buy it in coming year. Avon Financial is available at your services to offer you suitable services and programs as per your requirements.

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