Fixed-rate mortgage war and construction boom now make Montreal top market for condo buyers

In the market for a condo in Montreal – either as a residence or investment?

Award-winning Montreal mortgage broker Stan Rashev explains why a few different trends make this the best time to buy.

“The fixed-rate bank war began last spring when the Bank of Montreal launched its 2.99% fixed-rate mortgage,” says Rashev.

“The other banks quickly fell in line, so the lowest fixed mortgage rates continue to be available. In fact, we estimate that Montreal fixed mortgage rates will remain low throughout the first and second quarter of 2015.”

“The second factor is that Montreal is in the midst of a construction boom, and much of that has been devoted to building new condos, but also converting beautiful old Montreal apartments into attractive condominiums.”

“So we have the two trends,” explains Rashev. “On the one hand, current fixed-rate mortgages are low, and on the other, there is a surplus of inviting condos available now at their best price and which will quickly increase in value.”

“For these two reasons alone, now is definitely the time to buy to lock in the best price on your dream condo, and also to enjoy the lowest fixed-rate mortgage – so your interest rate is guaranteed for the duration of your contract.”

“There’s another factor I’d like to mention that should be considered,” says Rahev.  “Hospital personnel have already begun working at the McGill University Health Centre. It will be opening next April with many thousands of medical professionals and interns moving into one of the largest academic hospitals in the world. They will definitely be taking advantage of the Montreal fixed mortgage rate and low price of condominiums. So you may want to be one step ahead of them, either for a residence or investment.”

“Finally, I’d just like to add a note to parents. It’s this kind of market – low fixed-rate mortgages and low-priced condos – that could help you pay for or even profit from your child’s time spent at a Montreal college, university or internship. Use your home equity to buy a condo, have your child rent to roommates, then sell the property for a sizable profit once their education is over. It’s a simple plan that could make your education costs so much more affordable.”

Stan Rashev is an award-winning mortgage expert and broker for Dominion Mortgage Centres, 1100 University, Suite 104, Montreal  H3B 3A5. (514) 994-1030