According to the Housing Affordability Index, bungalows and two-storey homes in Canada increased in price by just under 0.5% last year. That may not seem like a huge amount, but it means that house prices are definitely on the rise. In a high-price market such as Toronto, it can put a starter home out of reach for a young family; even in a smaller centre like Barrie, where I live and practice, it can have a significant effect on someone looking to get into the market.
Over the past few years, low interest rates have compensated for rising prices. However, with the murmurings of rising interest rates, home ownership may become less affordable for new buyers. If you are thinking about buying, you will want to be proactive about meeting with your mortgage broker early to be sure you can afford it.
