The City of Toronto, Ontario is the 5th largest city in North America with 2.6 million residents and is also proud to be the home of the most diverse economy of any large North American city. The objective of this brief economic overview is to demonstrate that, due to Toronto's dynamic and growing economy, over time Toronto's housing market will increase in value, and given this, why it makes sense to attain attain a low rate mortgage in Toronto Ontario. After reviewing the current state and makeup of Toronto's economy, we will then look at factors that will cause future growth and how this growth will affect the Toronto mortgage and housing market respectively.
Toronto's industries are broken down into 'sectors' for purposes of organization, evaluation and opportunity seeking. The sectors do not represent all of Toronto's economy but showcase some of its main facets.
Finance and Financial Services: Toronto is widely known as the financial capital of Canada, and for good reason - it is home to the headquarters of Canada's 5 Big Banks, the Toronto Stock Exchange and dozens of smaller and medium sized financial firms. In the wake of the global financial crisis, Toronto has proven itself as among the strongest financial centers in the world as its Banks and other financial firms not only survived without government assistance, but continued to show strong profits and growth. The financial sector in Toronto as a whole is assessing acquisition opportunities globally and it will continue to strengthen as these opportunities are realized. Ironically, purchasing a home and low rate mortgage in Toronto goes to support the city itself since the finance and mortgage companies benefit from the inherit demand.
Business and Professional Services: This industry sector represents a very wide range of businesses such as law and accounting, advertising and marketing firms, specialty designers, such as engineers and architects and other specialized consultants. Given that Toronto has among the widest range and some of the most skilled professional services on the planet, this contributes in a very positive way through networking to the other industries located in Toronto, and serves to attract new businesses. For example, it helps that a major corporation such as IBM or Bell Canada (or any of the major Banks) be located near some top accounting, law and other consulting firms. This gives easier, lower cost access to top services. Growth and size certainly begets itself, and this makes owing a home and a low rate mortgage in Toronto all the more favourable over the long term.
IT and Communications: Many of the largest and most technologically advanced IT and communications companies have major presences or headquarters in Toronto. These small and large companies, having weathered the 'tech bubble crash' of the late 1990's have shown resilience and continue to grow. Global leaders such as HP, Microsoft, Apple, Bell Canada and many other strong tech firms have chosen to make Toronto their home, and as these companies grow, will continue to support the local toronto workforce and mortgage market.
Manufacturing: The manufacturing sector in Toronto is very diverse in itself, and as a whole, remains stable in a changing North American manufacturing economy. While some parts of Toronto's manufacturing sector have become globally uncompetitive and have witnessed decline in recent years, other areas show solid growth. This points to the fact that Toronto is competing well in changing from more basic forms of manufacturing to more advanced. This holds true even in a volatile global economy. Some examples of sub sectors that continue to strengthen themselves are aerospace manufacturing, computer hardware, apparel, and even some of the automotive parts suppliers continue to thrive. The indication is that advanced manufacturing is replacing basic manufacturing in Toronto and this requires a more educated workforce. Thankfully the city is home to many schools and community colleges that are helping the local workforce with this transition. A more educated workforce means higher pay, and a stronger housing market. Therefore, it makes owning a home and a mortgage all the more favourable in Toronto.
Biomedical: As the North American baby-boom population continues to age, more and more money will undoubtedly by placed into the health and wellness sectors. At the forefront of the health sector is the Biomedical industry. For decades, Toronto, with 2 large universities, research centers and major research hospitals, has been a world leader in disease research and treatment. This knowledge has both attracted large pharmaceutical firms, such as GSK, and has spun off new firms. This rapid growth sector should continue to benefit from the abundance of resources available in the City, including the hospitals and universities, access to funding, and other top tier professional services.
Media and Tourism: These sectors contain sizable employment in Toronto and are certainly positioned well for growth. Certain factors such as an increasing Canadian Dollar have made it more difficult to compete with other locations, but given Toronto's expertise, knowledge and infrastructure for filming and production, the city still remains a popular place to shoot both television and movies.
Toronto is home to a number of world class entertainment and dining venues and continues to drive a strong tourist following. The City has implemented a 5 year tourism action plan that is helping to bring businesses together and to promote the city. Visitation has been increasing ever since the SARS outbreak in 2003.
