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Affordable Ontario mortgage rates are making an area that is already desirable for home buyers even more attractive. We are the best site online for those who are interested in living in this province, the most populated region in Canada, because of our resources on mortgage rates and the housing market in Ontario. Our forms allow you to get access to the lowest mortgage rates in the province of Ontario, and we work hard to help you find the best lenders for your particular mortgage needs. Read on for more information on the Ontario housing market, and then choose a mortgage rate to inquire about available mortgage rates and pre-qualification.
Factors Affecting Housing Prices and Demand in Ontario
Ontario remains a desirable place to live in Canada despite the economic uncertainty throughout the province and the entire country that has characterized the recent past. Housing prices have continued to increase in the past few years, particularly in major Ontario cities such as Ottawa and Toronto, and it is likely that demand will remain high for some time to come. Several factors are driving this demand:
• Economy — Overall, the economic picture for Ontario is somewhat mixed, although signs of improvement will no doubt affect housing prices and the demand for housing. On the one hand, the jobless rate continues to hover around 7.5 percent as of the beginning of 2012, although it is projected to drop slightly in 2013. Many people attribute this to reduced exports to the United States, so as the economy in Canada’s southern neighbor improves, Ontario’s economy should benefit. Automobile production, however, has been increasing, with several companies such as Ford and Toyota planning to open plants in the years ahead. This will add jobs in the province and drive up demand for housing over time.
• Politics — Demand for housing will always be high in Ontario because of the significance of the province in Canadian politics. As far as population, Ontario is home to Canada’s largest city, Toronto, as well as its fourth largest city, Ottawa. Ottawa is also the capital of the entire country, and Toronto is the provincial capital. Job opportunities are perennially greater in Ontario than much of the rest of Canada because of this, and this fuels the demand for housing.
• Population Movement — Canada, particularly the province of Ontario, remains a highly desirable place to live because of its high standard of living and many other factors. Immigration continues to be a significant factor in Ontario’s population growth, and many Canadians are moving to Ontario from other provinces as well, increasing the demand for housing.
All of the above factors indicate that taking advantage of affordable mortgage rates in Ontario and buying a home now is likely a good idea.
The State of Housing in Ontario
Overall, the state of the housing market in Ontario is moving in a positive direction. In recent years, the number of housing starts was much higher than the actual demand, but beginning in 2012, this has started to change. By 2013, housing starts are estimated to be about 64,500, which is significantly lower than the nearly 68,000 housing starts recorded in 2011. As supply gets closer to meeting actual demand, homeowners will not need to worry too much that their home values will remain stagnant. Lower supply means that housing prices will level off and even increase in the years ahead.
MLS sales are predicted to increase by over 46,000 residences from 2012 to 2013 because of stabilization in housing prices and the demand for homes as people move into the area. The average selling price for a home in Ontario was just under $391,000 in February 2012, which did not prevent an increase in total residential units sold from 2011 to 2012. Approximately 15,000 housing units were sold in February 2012 versus 13,500 in the same month a year before. Housing prices should decline slightly in 2012 but are predicted to rebound in 2013, so 2012 is probably an excellent time to take advantage of current mortgage rates. Ontario home buyers will get more house for less money throughout the year.
Ontario continues to hold great investment potential for those who are looking for a home. Construction prices are holding steady, and mortgage rates are near record lows. The average rate on a 5-year closed mortgage is under 5.5 percent, with many lending institutions offering rates in the 3–3.5 percent range. Those who buy now will benefit from years of interest savings.
Where to Live in Ontario
There are many options in the province for those who want to take advantage of the best mortgage rates. Ontario cities such as Ottawa and Toronto are obvious choices, as they are perennial centers of job creation. Buying a home in these cities is almost never a bad idea, as their livability and desirability mean that real estate investments therein are likely to increase in value over time. There are some other population centers, however, that are also worth a look:
• Peterborough — Peterborough is an important economic center in Ontario that features a large number of available jobs in the public and private sectors. Significant employers include Trent University, General Electric, Quaker Oats and others. Many people are attracted to Peterborough because it is an easy commute from the city to Oshawa and the eastern portion of Toronto. Its close proximity to the provincial capital means that homes should continue to appreciate and remain in demand for years to come.
• Windsor — Windsor has a thriving tourist industry as well as a large number of jobs in education, pharmaceuticals, insurance and other sectors. Recently, the city was ranked number two in the listing of large cities with economic potential in North America, so housing should continue to be in high demand for some time to come.
• Greater Sudbury — Greater Sudbury is the largest town in Northern Ontario, with an economy that has historically been dependent on mining but that has diversified in recent years. The suburban areas of this city are desirable, and downtown redevelopment may make this area even more attractive in the years ahead.
Get The Best Ontario Mortgage Rates Right Here
You should not wait any longer to get the best Ontario real estate at the most affordable interest rates and prices. Choose a mortgage rate on this page or fill out the online mortgage application form for more information on current mortgage rates in the province.
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