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Know More About Canada

Being the second largest country in the world in the area after Russia, Canada occupies roughly the northern two-fifths of the continent of North America. Canada shares a 5,525-mile long border with the United States. This is the longest border in the world. Canada shares a lot of similarities with its southern neighbor, the United States. However, the differences between the two countries are pretty significant as well. Yearly price-increase rates of 10 percent correspond to a doubling of house prices every seven years. At the same time, the fear of missing out on further appreciation predominates among home buyers. Canada consists of many newly renovated house. The interiors of these houses are said to be lavish with well-off looking couples dipped in for a taste and headed back to their expensive cars.

Apart from Toronto and Vancouver, Canada has many other hot spots as well. Just after provincial governments used a tax on foreign buyers to try to slow overseas demand in those two cities, Montreal has seen a condo sales explosion of its own. The Quebec economy has been rising. This has made it a target for foreign cash diverted away from B.C. and Ontario. There has also been a surge in the real estate market in the province's business capital. The housing market is anticipated to rebound, given the fundamentally supported demand related to strong job growth and strengthening wage dynamics. The mortgage rates have also been rising. The Bank of Canada has raised its key interest rate target twice this year. This has driven the big bank prime rates and the cost of variable-rate mortgages higher. The cost of new fixed-rate mortgages have also surged as yields on the bond market have also risen.

At the same time, the Office of the Superintendent of Financial Institutions is finalizing new lending guidelines. Among the changes being considered is a requirement that homebuyers who do not require mortgage insurance still have to show they can make their payments if interest rates rise. The increase in sales during the month of September this year was led by gains in Greater Vancouver and Vancouver Island, the Greater Toronto Area, London, and St. Thomas, Ont., and Barrie, Ont. The national average price for homes sold in September crossed $487,000, up 2.8 percent from a year ago. The average price was over $374,500, excluding Greater Vancouver and Greater Toronto.