You may have noticed that the Mississauga real estate news in recent times have focused mostly on whether or not Mississauga mortgage rates are going to increase. Many prospective homeowners are interested to know if now is a good time to buy a home or if they are better off delaying until things go back to normal. This is a very valid question, and one that many prospective homeowners ask frequently. Before answering this important question, note the following points first:

1. Be aware that interest rates and the values of real estate are constantly fluctuating. In essence, the economy follows a cycle of growth and decline. As the economy goes through this cycle, interest rates and real estate values move along with it in a relatively predictable manner.

2. It is very likely that interest rates will continue to go up in the next few years in a slow and steady manner as the economy starts to improve from where it is today. It should be noted that rising rates are not uncommon in an improving economy.

3. Be aware that the values of real estate are dependent on supply and demand. Currently, the supply is high. Buying is slower than usual because of financial skepticism and recessionary pressures. However, this is going to change. The economy will improve over time and as it does, the demand for real estate will go up, supply will go down (more people buying), and the values of real estate holdings will be better. This may take several years.

4. It is impossible to time the market; it’s a losing proposition even if it may seem like a good idea to do so. The smart investors know better than to time the real estate market. They enter or get out of the market according to the best information they have right now. They don’t make their decision based on what they think is going to occur in the future. If you’re avoiding buying real estate because the interest rates are high even though real estate values are going down, you’re likely going to avoid doing the same thing if tomorrow interest rates suddenly go down and real estate values skyrocket.

5. Owning a home isn’t exclusively about mortgage. Your home is a valuable asset you own. It is, in essence, a security that you can use to borrow against. Your home is an investment whose value can increase or decrease depending on what you do with it or to it. Owning a home is much better than renting. Look at it this way: when you rent, you make payments each month on something you’re never going have outright ownership in the first place.

Now take into account all of the five points noted above and you’ll see that you’re betting off owning a home and that purchasing a home now is a good idea. It’s a much better option than renting an apartment for months or even years while you wait for the real estate market to do what you want it to do. The rent money you would be paying every month could be very well spent on paying your Mississauga mortgage.

Despite the rising interest rates, prospective homeowners still have a good chance of finding reasonable financing for a new home. Work with a Mississauga mortgage broker; he can help you find the right mortgage for you.