Zoo Mortgage, Weighs in on News That Canadas Interest Rates Could Remain Low for Years - AZTV7/Cable 13, Me-TV 7.2, HSN 7.3, Phoenix-Prescott, AZ

Zoo Mortgage, Weighs in on News That Canadas Interest Rates Could Remain Low for Years

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Toronto, Canada – May 28, 2014 /MarketersMedia/ –

Zoo Mortgage (www.ZooMortgage.ca), the Greater Toronto Area’s leading private consumer financing company, is weighing in on news that Canada’s interest rates are expected to remain low for years to come and how that impacts first-time home buyers.

Steven Poloz, the head of the Bank of Canada, recently said that while the economy is improving, there is still room for additional growth. Even when it does return to full capacity—most likely in early 2016—and interest rates rise, borrowing costs are expected to remain historically low. Some economists are predicting that the overnight lending rate, which directly impacts short-term borrowing, will find support in the 2.25% to 2.5% range—more than a full point below pre-recession levels. (Source: “Bank of Canada’s Steven Poloz says Canada’s Interest Rates to Remain Low for Years to Come,” Financial Post, April 24, 2014; http://business.financialpost.com/2014/04/24/bank-of-canadas-stephen-poloz-says-interest-rates-to-remain-low-for-years-to-come.)

“It was previously thought that the Bank of Canada would raise lending rates when the economy found solid footing,” says Luciano Giustini, owner of Zoo Mortgage. “Fears of increased interest rates sent some first-time home buyers onto the property ladder just so they could take advantage of near-record-low mortgage rates.”

Giustini explains that the Bank of Canada lowered its overnight lending rate to near-record lows in 2009 in an effort to stave off a recession; lower rates were supposed to stimulate borrowing and boost the economy. The Bank of Canada has kept the overnight rate at one percent since September 2010 and recently said it would not raise it, even when the economy is showing signs of sustained economic growth.

“With the spring housing market heating up in the GTA, this is great news for first-time home buyers,” Giustini observes. “While low interest rates are certainly important and finding the best one can help homeowners save tens of thousands of dollars over the lifespan of the mortgage, it’s also important to take other factors into consideration.”

He adds that first-time home buyers need to decide whether they want to take out a fixed or variable mortgage and determine the amortization period, down payment, the portability of a particular mortgage, up-front costs, and land transfer tax.

“There is more to think about when getting pre-approved for a mortgage than just interest rates, and they can all have a major impact on one’s finances and lifestyle,” Giustini notes. “Most people only think of going to one of Canada’s big banks to get a mortgage, but unfortunately, they only offer their own financial products, whether they’re in an individual’s best interests or not. When it comes to getting a mortgage, it’s important to get independent, unbiased help.”

“With access to over 50 of Canada’s top lending institutions, including big banks, credit unions and trust companies, Zoo Mortgage can get first-time home buyers the mortgage best suited to meet their financial needs, both in the short and long term,” Giustini concludes.

Zoo Mortgage is one of the most trusted private mortgage agents in the Greater Toronto Area. The independent, unbiased, and licensed mortgage agents at Zoo Mortgage assist clients with both acquiring and renewing residential and commercial mortgages, home equity credit, consolidating debt, and financing-related concerns, including refinancing. To learn more about Zoo Mortgage, visit the company’s web site at www.zoomortgage.ca, contact Zoo Mortgage by phone at 1-888-481-2858 or by e-mail luch@zoomortgage.ca, or by visiting the Zoo Mortgage office at 3582 Major Mackenzie Drive, Woodbridge, Ontario.

For more information about us, please visit http://www.zoomortgage.ca/

Contact Info:
Name: Luciano Guistini
Email: marketing@zoomortgage.ca
Address: 3582 Major Mackenzie Drive, Vaughan, ON L4H 3T6 Canada
Phone: 416-807-5630
Organization: Zoo Mortgage

Source: http://marketersmedia.com/zoo-mortgage-weighs-in-on-news-that-canadas-interest-rates-could-remain-low-for-years/45976

ReleaseID: 45976

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