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As soon as the financial crisis reached its long awaited finish, the real estate market started to show signs of improvement. At least, this is what experts announced regarding the region of Ottawa, Canada. The forth largest city in the country seems to have re-launched itself in the world of real estate, becoming an attraction for buyers. Looking at the latest Ottawa mortgage rate trends, it would appear that buyers are encouraged to purchase properties due to the low rates operated by various companies or banks. This piece of news has managed to disturb the Finance Minister, James Michael Flaherty, member of the Ontario Progressive Conservative Party. Although some might perceive these trends as a sign of improvement, the minister tends to disagree, bringing forward a rather critical opinion upon the manner. As a result, restrictions were applied to this particular sector. Here are some examples of actions that have provoked changes on the real estate market. It appears that promoting the lowest rates is no longer permitted. In other words, banks are discouraged to advertise rates that go below 2.99 per cent. Borrowers are wrongfully informed regarding the lowest mortgage rate. As expected, this only made things easier for Ottawa mortgage companies to compete with banks. Another reason for which brokerage companies have started to enjoy a high popularity level is last year’s decision regarding the 3 per cent rule. Banks were not allowed to apply rates that were lower than 3 per cent. As you can imagine the competition on the market grew at a fast pace and brokers, as well as companies started to take advantage of the large number of interested borrowers. Just to complicate matters even further, it is relevant to mention that the interest costs have gone up a notch. This means that at the end of the day, the borrower pays more. At a first look, it would seem that the government has taken up all weapons to sabotage the real estate market as much as possible. Just when things were picking up again, all sorts of obstacles have made their way in the business and financial environment. However, after giving it some thought, these measures are not completely off balance. In the end, borrowers should not disregard the fact that the economic crisis first started because of uncovered loans. Borrowers were completely blinded by mortgage rates and low interest costs and started buying more than they could ever afford. Of course this is a rather general perspective upon the financial crisis. In some countries, problems in economy allowed the fall of the financial system to influence all areas terribly. Still, Ottawa is a strong city, with a small unemployment rate. So, in order to maintain this situation stable, the real estate is the biggest threat. Given these circumstances, it is only natural for the government to take all measures of precaution not to allow a similar collapse to reappear. Some voices are still of the opinion that matters could have been dealt with in a different manner and other measures could have been applied. To receive more information about Ottawa mortgage companies or about Ottawa mortgage rate trends, please review these links.
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