February 08, 2021, by Neil Sharma
According to nesto, an online mortgage brokerage, the appetite for homeownership in Canada has been strong to start the year thanks in large part to low interest rates.
A report from the firm showed that 60% of the brokerageâ€™s users intended to purchase a new home last month, increasing from 48% in January 2020, but itâ€™s come at the expense of refinances, which had declined by 5% since November.
â€œJust like every year, the first week of January was full of refinance applications resulting from many Canadians reviewing their household budgets,â€ said nestoâ€™s report. â€œWe expected refinance volumes to increase throughout the month, but to our surprise, it was overshadowed by new purchase requests.
Mortgage rates are steadily declining below what they were in 2020, which nesto, noting that its best insurable variable rate declined by 1.6% to 1.3%, attributed to robust home purchase demand.
In Canadaâ€™s two most populous provinces, Ontario and Quebec, 65-70% of nestoâ€™s application requests for new properties are from homebuyers who have just begun their searches, rather than from buyers who have already found their desired properties.
What does this mean?
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