When people consider buying property or real estate trends, there is a great focus on the more urban parts of the country. This is true when people look at real estate in Ontario as well. Forecasts and the accumulation of information are typically regarding the major cities in the area. However, it is also important to consider the property performance in rural areas as well. It can be just as much indicative of the strength or the weakness of the economy. It can also help you to determine whether it makes more fiscal sense to live in an urban area or a rural one. Here are a few things to think about with the rural Ontario real estate industry:
Getting a Mortgage in Rural Ontario
While homes in rural Ontario may be cheaper, it is not always as easy to get a mortgage for such properties. This is especially true if you are trying to get a bank to provide you with a loan for a house in these areas – see here: https://www.lifeoncredit.ca/. This is due to several reasons. First, although the real estate industry may be hitting an all-time high, many authorities hold a dim view of the overall future economy. Banks and other major financial institutions are also following this forecast as well. The result of this suspicion is that banks are being quite selective of whom they hand over the mortgages to.
Banks get even more stringent when it comes to providing mortgages for rural properties. This is due to the fear of borrowers defaulting on their loans – see here: https://www.lifeoncredit.ca/bad-credit-personal-loans-in-canada/. Of course, in this instance, the banks are able to repossess the homes. However, it does become more difficult for them to sell. While the demand for rural housing is increasing, it still does not appear to be as high as in the urban areas. As such, banks consider this to be somewhat of a risk.
Private Mortgage Lenders
Potential homeowners are then left to seek financial aid elsewhere. This typically involves going to private mortgage lenders or other institutions that are willing to provide loans – see here: https://www.lifeoncredit.ca/getting-out-of-debt-get-a-chance-with-debt-consolidation-loans/. Depending on the acreage of the property, there may be certain cases that fall under the jurisdiction of farm loans as well. Buyers are then able to opt for these types of loans too.
This is the current situation regarding real estate trends and mortgages in the various regions of rural Ontario.
Real Estate Trends
For the most part, real estate trends in rural Ontario are being determined by those that are taking place in the urban sector. In 2016, real estate prices in the major cities began to soar. Overall, within the span of a year, house prices have increased by a stunning 11.42 percent. This is more than twice the rate of the previous year. This has been on a national level for housing types of all kinds, including single unit family homes as well as apartments.
However, when taking into consideration major cities such as Toronto and Ottawa, the rise has truly been remarkable. In the Greater Toronto Area, the average house price is almost half a million dollars. In areas such as Ottawa, the price is lower, but still, nonetheless, quite high. These skyrocketing prices are compounded by another factor – space. Not only are housing prices increasing, there are also now fewer units available than before.
For many individuals, these high costs are not feasible, and so this has left many with several choices including moving to rural areas. This means that homes in rural areas are experiencing greater demand. This is not the only reason that the housing market in rural Ontario is receiving a boost, however. There were many poorly performing towns that are now beginning to see a turn around. This is encouraging many homeowners to begin buying homes once more. Windsor is just one such example of this particular trend.