Weighs in on Rising Consumer Confidence and Inflation Levels and Their Impact on First-Time Home Buyers

Toronto, Canada (PRWEB), July 4, 2014 – , the leading low-cost, private mortgage solution provider in Canada, is commenting on rising consumer confidence levels and inflation and the impact they have on the nation’s real estate market.

Canadian consumer confidence levels have been bolstered by rising real estate prices. For the week ended June 27, 2014, Canadian consumer confidence levels increased to 59.2 from 58.5 in the prior period. Further, the percentage of respondents who believe home values in their neighbourhood will climb over the next six months increased to 44.1, the highest level since the fourth quarter of 2009. (Source: Mayeda, A., “Canadian Consumer Confidence Rises on Real-Estate Outlook,” Bloomberg web site, June 30, 2014;

“Canadians are increasingly optimistic about personal finances and the economy, in part because the country’s real estate market continues to heat up,” says Bob Aggarwal, president of “Echoing consumer sentiment about neighbourhood real estate prices, May saw Canadian realtors recorded their biggest sales gain in almost four years. On top of that, housing starts rose in May to their strongest level in seven months.”

Aggarwal explains that the strong rebound can be attributed in part to pent-up demand after the difficult winter. The Canadian real estate market is expected to remain resilient throughout the summer and fall as mortgage rates continue to hover near record lows. In fact, according to the most recent data, the average price of a Canadian home increased more than seven percent year-over-year in June to $416,584.

“Despite rising real estate prices, many Canadians are looking to jump on the property ladder to take advantage of near-record-low mortgage rates. While rates below three percent are certainly attractive, it’s important to remember that interest rates will eventually rise and that borrowers need to know they can handle the extra costs,” Aggarwal explains. “At the same time, inflation, which has been a non-issue since 2008, is suddenly making news—again, something borrowers need to take into consideration when looking to get a mortgage.”

In May, Statistics Canada announced that the Consumer Price Index jumped to 2.3%, the largest jump in two years and up from two percent in April. Gas prices are up more than 6.3%, food prices increased by 2.3%, and natural gas is up 21.3%. Previously, the Bank of Canada has stated it didn’t expect inflation to hit two percent until early 2015. (Source: “Consumer Price Index, May 2014,” Statistics Canada web site, June 20, 2014;

“In this context, it’s important to understand that there’s more to getting a mortgage and maintaining the lifestyle a person is accustomed to than interest rates,” Aggarwal concludes. “Eventually, rising mortgage rates will put a strain on household incomes; it’s clear that inflation is already having an impact on day-to-day living expenses. Potential home buyers looking to get pre-approved for a mortgage need to get in touch with one of the independent, licensed agents at They help their clients get a mortgage that takes all their short- and long-term financial and lifestyle needs into consideration.” is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. provides its clients with residential and commercial mortgages, home equity credit , debt consolidation, and help with addressing financing concerns. To learn more about, visit the web site .


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