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.

CMHC Forcast

Canada Mortgage Housing Corporation (CMHC) forcasts that Quebec growing economy and favourable borrowing conditions will continue to support Quebec housing markets in the next two years.

Housing starts for Quebec in 2011 is forcasted at 45,700 units. CMHC forcasts that Quebec housing price growth in the resale market will moderate over the course of 2011 and in 2012

CREA Forcast

Canadian Real Estate Association (CREA) reported Quebec sales activity for 2010 at 80,126 units. It forcasts Quebec sales activity for 2011 at 81,000 units, up 1,1% over 2010. Quebec sales for 2012 is forcasted at 83,050 units, up 2.5% over 2011.

CREA reports Quebec average house price at $248,697.00 in 2010, and forcasts 2011 price at $262,700.00 up 5.6% over 2010. Quebec price forcast for 2012 is $273,500.00, up 4.1% over 2011.

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Source: Cmhc & Crea

Banks publish their mortgage rates as "Posted Rates". Note however 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.

Quebec Mortgage Market

Mortgage Market in Quebec and across 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.

Negotiate Your Mortgage Rate

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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