Homeowners who may be sweating the real estate price drops and worrying about their home equity are encouraged not to make knee-jerk reactions according to a recent article from Toronto-based Zoocasa.
The government is putting measures and homeowners can pay down mortgage debt, which should help them “ride out the storm of falling home prices,” the article states.
Government actions such as the Land Transfer Tax of 2009, new bank regulations on mortgages, Bank of Canada’s lending stress test and increasing rates for B-Side lenders will help Canadians deal with the fluctuating prices in the real estate market.
Looking at the nation’s market history should also relieve some of the worries homeowners may have about the drop in real estate.
“While no one has a crystal ball, one of the best ways to gain insight to the current market is to look to the past,” the article says. “Analyzing Toronto Real Estate Board data, we can see there have been a few house price spikes and drops over the years, similar to what we’re experiencing today.”
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