Being in the mortgage business almost 40 years, I have seen and experienced many ups and downs in the Real Estate and Mortgage markets.  I remember having an 18% 1st mortgage on my properties in Toronto. I saw the Real Estate Market collapse and prices decline, in some cases up to 25% to 30%.  In 1989 the Great Toronto Area Real Estate Market average house price was $350,000. By 1992 that same house sold for approximately $275,000.

Will that decline be happening again?

From my experience in the past the moment the newspapers start to write about the Booming Real Estate market, the record breaking sales, the shortage of listings, then the end of the current market takes a shift. It could be a slowdown in sales or reduction in prices that will depend on the lending market keeping the interest as low as they are now.

However, comparing the current market with the past is not a good indicator anymore. Because, the major factor or difference from the 1992 Real Estate market is and was the first mortgages rates where in the 13% range.

Now 20 years later 2012 first mortgage rates are 3% range.
WOW that is a 10% decrease in mortgage rates!

Now 20 years later 2012 average house price is $500,000. Not $275,000.
WOW! If only I bought more houses and did not sell them.

I do not know the future, however, with the current low costs of borrowing it still makes sense to buy.  Provided you can carry the payments and expenses and or rent the property with a positive cash flow.  Lenders are ready willing and able to help.

As a matter of fact last week I received telephone calls from 6 different lenders asking for business. Yes I said telephone calls not emails or texts I actually spoke with them something that is vanishing in our high tec world

Now the fact that these different lenders called looking for business tells me the lenders are hungry. When the lenders are hungry they usually offer some incentive or incentives to get your business.

GET YOUR EQUITY WORKING FOR YOU$$$$$$$$$$$$$$$$

So my friends if you are thinking of refinancing, buying or taking out some cash (equity) from your home or investment properties, DO IT NOW. Request the maximum amount you can afford, take longest term, at least 5 years, and say at 3.15% range.

Now invest those low costs funds at higher returns, get your money working for you. Some of my clients are doing this and then they reinvest these funds into safe, secure private mortgages with returns up to 12%. That is what I call a good return on your investment and letting your money (equity) work for you.  You never go broke taking a profit…..