Many people have been trying to lock in to a mortgage, while interest rates are low, since the Bank of Canada will likely increase rates in June. However, if you don’t get the chance to do so, keep historical rates in perspective as the future rate outlook is not as grim as some might perceive. Based on a recent article in the Toronto Sun, mortgage rates are predicted to move up in smaller increments rather than in a dramatic leap and it will still remain a good time to buy a new home. The housing market still gives buyers the power with a large amount of choice and competition. As well, Canada has a stable banking system which has proved to save us from extreme financial problems similar to those the United States has experienced.
As a result, real estate is still a good investment. As you pay off your mortgage, you increase your assets and net worth which can act as leverage for other areas of your life. In addition, it is highly probable that your home will increase in value over the next 20 years and you could make a potentially tax free, or partially tax free, profit from selling your home.