Finance is the backbone of Capitalism. “Real” Estate was developed over time in the course of many 100’s of years during the transition from Feudalism to Free Market Societies. In feudalism, Lords over Land governed huge defined areas on which workers who were entitled often by birth were given a skill and a piece of land on which to live and inherit from father to son. In turn they were given a sense of community and to be protected from neighbouring threat and invasion. Lords in turn collected taxes from their workers to pay for the management of the lands and in meet obligations to the King or Queen, who’s responsibility it was to maintain an army and create a greater system of order.
In order to have an understanding of where we are socio-economically today we can simply flash forward to modern times. Imagine back to the general hierarchy of feudalism, then visualize an open system for private ownership and change the names of the players to those of modern day governments. To this day, Constitutional Monarchies in Capitalistic countries are still of the most prominent government types on the planet.
With this evolution into capitalism and free economy also came the capacity for lenders to expand the tentacles of debt and lending against all goods and services. Loans against private real estate deeds are a primary example of this amazing transition.
Canada has one of the most secure and best respected banking systems on the planet. Our Bank of Canada and its Charter Banks have an arm’s length relationship with Federal Government influence. One of the most common means of financing is the Mortgage and most Mortgages are granted by one of the charter banks.
Rates are set by an analyst understanding of current and future economic climate. Both domestic (and now in the global financial world), international influences play a part of how mortgage rates change.
Your Mortgage Broker has the task of helping you understand your options for finance. The variables are far more complicated than thought of at first blush. Your short and long term goals and an understanding of the upcoming potential for rate changes is crucial information to grasp when making the large decision about finance. We recommend working with a Broker who genuinely has your interest in mind. (no pun intended). Your local bank branches all have qualified lenders.
It may also be wise to work with a Mortgage Broker who has access to all the Banks and a larger variety of options or even private lenders. We have had incredible success with the following Brokerages:
Cynthia Kasem, Kasuco Mortgages & Investments Inc.
157 Gilmour St, Ottawa ON K2P 0N8
Office: 613-235-6669 X 22