With a population of about 42,000 people, the Northwest Territories is one of the least densely populated territory of Canada. Still, there is a significant demand for housing in the region, and people like you want to know where you can get the most competitive Northwest Territories mortgage rates. You have come to the right place, for we make it easy to find an affordable home loan from a reputable lender. We work with several banks, brokers, and lenders to offer you the most affordable mortgage rates, and we provide extensive information on the housing market in the territory, making us the best place online to learn about and find a mortgage in the Northwest Territories. Read more about the housing market in the region, and then choose the mortgage rate you are most comfortable with to get started.
What Influences the Housing Market in the NWT?
There are several factors that influence the size and health of the housing market in the Northwest Territories. Understanding these factors can help you predict future housing strength so that you might know when to buy. Here are the most significant influences on the housing market in the Northwest Territories:
• Economy — Although the economy of the Northwest Territories was shrinking just a few years ago, recent growth has been encouraging, and it should pave the way for the housing market to benefit. Diamond mining and fossil fuels are primary drivers of the economy, with the MacKenzie Valley Project to construct a natural gas pipeline across the territory expected to create a significant number of jobs and add around $85 billion to the economy over the next several years. Fishing and fur harvesting are also vital to the territory’s economy.
• Rental Housing Shortage — In the fall of 2011, the apartment vacancy rate in Yellowknife, the capital of the Northwest Territories, was about 0 percent. Due to this shortage of rental housing for half the population of the territory, which lives in Yellowknife, there is doubtless going to be great demand for rental units in the years ahead. Therefore, now may be the best time to take advantage of the lowest mortgage rates in the Northwest Territories if you are looking to own an income-generating property. Buy a residence that you can rent to others in the Northwest Territories and reap long-term economic benefits.
• Population Stability — Compared to other provinces and territories in Canada, the Northwest Territories’ population is fairly stable. The growth rate is expected to be less than 1 percent for several years to come, which may depress the demand for housing. However, many renters will be looking to move into home ownership, so this bodes well for those who are interested in buying a home and watching it appreciate.
The State of the Housing Market in the Northwest Territories
Most of the housing data available for the Northwest Territories concerns housing in Yellowknife, so that will be the focus of this analysis. Overall, the market is in good shape, and its recovery after a downturn in 2010 continues. Housing starts went from just over 50 in 2010 to 125 or so in 2011. As construction gets underway on the pipeline and other projects, starts may continue to increase because new residents of the territory will need a place to live. The majority of new home construction will likely be multifamily units such as condo developments and other structures that are suitable for the home rental market.
The resale market should continue to do well, averaging about 350 homes sold each year for the foreseeable future. As of 2010, the average price for a home on the resale market was $364,000, which represents a decline of nearly 28 percent from previous years. It seems, however, that the market has bottomed out, and housing values are expected to remain consistent and rise slightly over the next couple of years. This is an encouraging sign for future home values. Since prices have leveled off, home buyers do not need to worry about whether their investment in a home in the Northwest Territories is a sound economic move. This is particularly true when you use our site to find low current mortgage rates. A NWT home is obviously much more affordable and more likely to appreciate over time if you buy it at a competitive interest rate.
Land use restrictions in the Northwest Territories have the potential to make real estate even more valuable in the years ahead. This is particularly true in Yellowknife, where it may be more difficult to construct new homes over the next few decades. This could impact supply and cause the values of existing homes to rise.
The Northwest Territories Housing Corporation helps many home buyers who want to become homeowners. Many take advantage of the Providing Assistance for Territorial Homeownership (PATH) program, which offers forgivable loans to make housing more affordable in the territory. The Homeownership Entry Level Program (HELP) is another avenue through which certain renters can build up equity that they can apply toward a home purchase later on. Residents of the territory may be able to take advantage of these programs to assist them in becoming homeowners by using them in conjunction with the low mortgage rates in the Northwest Territories that many lending institutions are offering. Current mortgage rates as of spring 2012 fall between 2.6 and 6.5 percent depending on the type of loan and mortgage term.
Buying a Home in the Northwest Territories
Several communities in the Northwest Territories stand out as prime locations for future homeowners. Here are three of them.
Yellowknife, the territorial capital, is undoubtedly the best place to buy a home in the Northwest Territories. Established in 1935 when gold was discovered, the local economy has many jobs in the government sector and in mining. This is the population and cultural center of the entire territory, so people who live in the region are regularly moving to the capital. This creates a demand for housing in the immediate vicinity.
Hay River is the second largest community in the Northwest Territories. The hospital in the community is one of the largest employers, and housing is always needed for the doctors and nurses that work there.
Inuvik is the third largest community in the Northwest Territories and another logical place to reside. The town is well known for its large community green house. Tourism is significant to the economy of Inuvik, so those who work in the industry need homes in the community.
Get The Best NWT Mortgage Rates
Now that we have finished this brief overview of housing in the Northwest Territories, it is time to choose the best mortgage rate for your home purchase. Additionally, you can fill out the mortgage application form to receive a mortgage rate quote from a top Canadian lender in your area.
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