Rising Loonie Boon to Real Estate Market

A report from CIBC World Markets entitled, "Loonie Boom: How the Soaring Dollar is Sustaining the Canadian Housing Market", states how the rising loonie is causing the boom in the real estate market.

The rising loonie over the last 2 years has kept interest rates at all time lows, leading to inexpensive credit.

CIBC estimates that 5-year mortgage rates would be 7% if not for the loonie's gain. Currently, big banks are offering 6%, 5-year rates, and other sources are below 5%.

The strong loonie and stabilized mortgage rates have helped boost real estate prices by an additional 9% in 2004, says Benjamin Tal of CIBC World Markets.

Lower interest payments due to mortgage refinancing saved the average household $1900 last year, an equivalent of a 3% increase in average household income.

The ability to refinance at lower rates has allowed homeowners the ability to put more money back into their home, as indicated by the increase in renovations.

Haven't taken advantage of these great interest rates? It is not too late to contact your mortgage provider or your neighborhood realtor.