Mortgage Broker Tips: Should You Avoid a Bidding War? - Mortgage Guys
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Mortgage Broker Tips: Should You Avoid a Bidding War?

To bid or not to bid; that’s the question?

There are various indications that the Canadian property market has entered a new phase for sellers and buyers, which is causing some concerns. If you’re  a seller or buyer in Guelph, then because of the way the market is performing it could be wise to become familiar with an accurate mortgage calculator. The reason for this is that reportedly, while the volume of home listings is increasing, the sale of units has declined.

To delve further into a developing situation, compared to the bidding wars between eager buyers in the past few months, today the scenario has changed to them walking away from negotiated deals. It leads to the question of whether it’s a simple case of multiple buyers’ remorse, or are they waiting for acknowledged absurd prices to tumble! In a potentially volatile market such as this, it could be financially viable for sellers and buyers in Guelph to seek advice from a mortgage broker in Guelph.

Is it the case of Buyers bidding or Sellers begging?

Compared to last year, the period from March of this year saw the property market run rampant to the extent of increasing by a margin of 33-percent. This is where your mortgage calculator is useful again because it was like a Wild West show. Buyers entered into bidding contests for ownership, while the seller’s sat back and waited for their gold rush bonuses.  

However, like many golden opportunities, there are limitations and if you are a buyer seeking a mortgage, consult your broker regarding the best course of action before even thinking about making a bid on a property. If you’re a seller, you could be well advised to also have a word with your broker regarding mortgage rates!

Market influences

Markets are fickle and reactive to the many and varied influences that arise from different sources. Amongst those that are relatively recent is concern about a buying frenzy, with prospective buyers in desperation buying properties without viewing them. This was further aggravated by offers being made for properties without prior inspection and the federal government making it more difficult to obtain a mortgage without a broker.

However, for those who did not or were unable to enter the buying fray, it could have helped in now transforming their mortgage calculation dream into a reality.