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With fewer buyers and more homes, you not only have more options to choose from, you also have greater negotiating leverage.

You have more time to look for the right home and you can evaluate the choices without feeling pressure to act too quickly.

Another major influence on your decision to buy is the mortgage interest rate. What rates are available now? Will they drop in the immediate future? Will they rise? If so, by how much?

Trying to answer these questions can be difficult. Once again, CMHC’s Market Analysis Centre can help. It can provide you with an analysis of the mortgage market and an outlook for future mortgage rates.

For those who need to see the big picture of Canadian housing, the Market Analysis Centre produces a series of national and local subscrip- tion reports to provide you with a comprehensive housing view across the country.

You can also use CMHC’s CMHC’s AffordAbility computer software. It can help first-time homebuyers, people renewing their mortgages and move-up buyers determine the home price and mortgage they can afford.

If you prefer to access the latest housing information directly from the web, visit our Electronic Marketplace at www.cmhc-schl.gc.ca. Order our most popular reports on-line, and we’ll e-mail them to you in PDF, Lotus or Excel formats—usually on the same business day.

CMHC’s Market Analysis Centre offers timely homebuying information.

Hamid and Yvonne had saved $15,000 for a down payment on a small older home in the Saint John neighbourhood where they had both grown up.

*$300

$250

Median resale price by house type

They wanted to save more, but they kept a careful eye on mortgage

$200

$150

$100

89

90

91

92

93 94

95 96

Single

Semi

Townhouse

Apartment

SOURCE: TREB

  • *

    thousands of dollars

At a glance, you can see how housing prices can fluctuate.

These figures apply in a single geographic market. Similar fluctuations appeared in other Canadian centres at different levels.

Mortgage rates Major financial institutions

15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5%

5-year

1-year

89 90 91 92 SOURCE: Bank of Canada Review.

93

94

95

96

Mortgage rates are a critical factor in your decision to purchase. This chart illustrates how rates can change quickly.

interest rates, hoping they would drop lower. Instead, rates began to climb. Hamid and Yvonne called their CMHC market analyst.

They learned what the mortgage rate trends had been over the past few years. They also found out rates were expected to rise in the near future.

For any of these products, or for other information on the housing market in your area, please call your regional CMHC business centre or visit our web site at www.cmhc- schl.gc.ca.

As a result, Hamid and Yvonne decided to buy soon.

Ready for the next step?

STEP 2 • MARKET FORECASTS

11

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