Buying a home and taking a mortgage is probably one of the most important steps and decisions one has to take in one's lifetime.

There will be many questions to be answered before one goes ahead to buy a home and take a mortgage.

Is it the right time to buy. Is it the right time to take a mortgage. Is mortgage rates going to go down or go up. Do I lock in or take a variable rate mortgage. Am I able to afford the downpayment and the monthly mortgage payments. What if I loose my job. What if I have to move to another province.

There is no easy answer except to listen to friends and relatives, real estate agents and bankers. Read housing forcasts and mortgage interest rate forcasts. Pray that luck is on your side.

The Canada Mortgage and Housing Corporation (CMHC) is Canada's national housing agency, established by the Government of Canada in 1946. Its role now includes providing housing policy and program and housing research.

CMHC's second quarter 2007 housing market outlook for Quebec region forcasts that while residential construction will decline in the next two years, housing demand will remain strong in Quebec, thanks to a still growing economy and favourable buying condition.

CMHC forcasts further that a combination of a strong Canadian dollars vis-a-vis the U.S. dollar and modest GDP growth will keep Canadian interest and mortgage rates low over the remainder of 2007 and in 2008.

One, three and five year "posted" mortgage rates are forcast to be in the 5.75 to 6.75, 6.00 to 7.00 and 6.25 to 7.25 percent range respectively over the rest of 2007 and in 2008.

CMHC also forcasts that price growth will slow to 4.6 percent in 2007 and to 2.9 percent in 2008, as a result of rising inventory of existing houses and an eventual slowing demand for houses.

Please note that "posted" mortgage rates are usually about one to one and a half percent higher than what the banks and mortgage lenders are prepared to lend to you.

Also note that the mortgage market in Canada and the U.S. is very competitive. This is good news to mortgage seekers because they have a large number of mortgage lenders to choose from. It is a borrower's market as far as mortgage and mortgage rates are concerned.

It is important that you negotiate with the mortgage lenders when it comes to mortgage interest rate because, for example, on a 25-year $100,000.00 fixed rate mortgage, a half percent reduction in interest rate will save you $9,173.82 in interest charges over the life of the loan.

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