Will Dunning, the head economist for the Canadian Association of Accredited Mortgage Professionals (of which we’re a member and by which I’m Accredited) has issued a very interesting report which details pretty thoroughly why the Canadian and US mortgage markets differ and why we’re in a much stronger position than the US.
It seems like the fundamentals in Canada are quite strong. Of course, we don’t live on an island, so what happens in the US and other countries around the world will affect us too. The key thing to remember is this too will pass, and in the long run, there are probably good opportunities to get into the market now – either the housing market or the stock market. The important thing is not to panic. Some of the greatest wealth has been built in times like these.
I’m reminded these days about how, not long ago, everyone thought real estate would go up forever – and literally as early as last June people were panicking because they thought they’d never be able to afford a house again. For those of you who missed out last time, think of today’s market as a time machine. You’ve just gone back 2 or 3 years in time and have gotten a second chance to make the best of a situation.
As for First Foundation, we’re not panicking. We’re continuing to search for the best mortgage products, lowest rates, and safest lenders to do business with. Our approach hasn’t changed and neither should yours. Spend within your means, borrow what you can afford, own real assets, and be patient.