Low borrowing costs driving GTA home and condo sales

Spikes in mortgage defaults, foreclosures and the widely discussed mortgage deferral cliff never quite materialized. Instead, during the first wave of the pandemic, homeowners who delayed their monthly payments did not walk away from their mortgages. In TRREB’s recently released Market Year in Review & Outlook 2021 report and eagerly awaited new digital digest, Mortgage Professionals Canada President and CEO Paul Taylor stressed that in 2020, 768,000 homeowners took advantage of deferral programs due to falling income levels during this time of financial uncertainty.

But when it came to first-time homebuyers, they were looking to get their foot in the door thanks to reduced borrowing costs. Within the first month of the pandemic, we saw historically low interest rates spark a lineup of eager buyers hoping to purchase a home. Affordable rates are one of the drivers contributing to a forecast of more than 100,000 GTA home sales this year.

When buying a home, figuring out how big a mortgage you can afford is one of the first steps in the mortgage approval process. Since today’s condo market offers buyers more choice and bargaining power, you may be thinking about buying your first unit. Connecting with a TRREB realtor can help you with the ins and outs of mortgage pre-approvals and even more insights into condo ownership, such as what condominium boards are and the type of maintenance fees you can expect.

If you’re interested in digging deeper into the mortgage industry and its influence on market activity, download the Market Year in Review & Outlook 2021 report and explore our interactive website. You can also connect with a TRREB realtor by visiting trreb.ca to help you find the home you’ve long waited for.