B.C. is well-known for its real estate market prices. If you want to buy a house here, you should prepare to invest a considerable amount of money. A Canadian Real Estate Association report from a year ago shows the 4.3% net increase in home prices in Canada, B.C. excluded. If, however, you include B.C. in the evaluation, national home prices’ raise will be 8.9%.
Although many buyers might be discouraged by the amount of money needed to purchase a house, especially in Vancouver, there is one reason that balances this: mortgage rates that are currently at the minimum, thanks to the long-lasting battle between B.C.’s banks and credit unions.
Compared to the 4.19% rate on a five-year fixed rate closed mortgage you get in other provinces from a big bank, the 3.64% from any credit union you can get in B.C. is a dream come true. Let’s do a bit of math. According to the calculations made by the Financial Post: “The monthly payment on a 4.19% five-year closed $500,000 mortgage amortized over 30 years would be $2,431.65. Total interest over the mortgage period would be $99,250.85, whereas the rate to 3.64% and see what happens. The monthly payment goes down to $2276.80 and the interest paid over the term drops to $85,956.42.”
According to some experts, these rates are one of the factors that are driving prices up. Benjamin Tal, deputy chief economist with CIBC World Markets, said: “I think it’s possible it could become part of the story.”
All in all, you might find a good rate in the rest of Canada, but you can be sure it will not even be close to what is offered in B.C.