DLC Parato Mortgage Group

03/18/2025

A great perspective from our Chief Economist at DLC on Inflation rising from 1.90% to 2.6%

Canadian Inflation Surged to 2.6% in February, Much Stronger Than Expected The Consumer Price Index (CPI) rose 2.6% year-over-year (y/y) in February, following an increase of 1.9% in January. With the federal tax break ending on February 15, the GST and HST were reapplied to eligible products. This....

02/03/2025

Here’s a great article from Dr. Sherry Cooper in regards to the future trade tariffs

10/25/2024

Since Bank of Canada lowered the Overnight rate by 50bps, questions have come up about 3year and 5 year Fixed rates, that I want to get better rates. Great question, here is my thoughts on 5 year government bonds and how they affect rates:
Here’s a breakdown of how Canada’s 5-year bond yield impacts mortgage rates in simple terms:

Inflation: Think of inflation as a rise in prices over time. When prices are expected to go up faster, lenders increase mortgage rates to make up for the reduced value of money in the future.
Bank of Canada’s Decisions: The Bank of Canada sets interest rates to keep the economy steady. If it raises rates, borrowing costs go up, including mortgages. If it lowers rates, mortgage rates often go down too.
Economic Health: When the economy is doing well (more jobs, higher spending), rates can increase because there’s more demand for borrowing. When it’s slower, rates may go down as lenders try to attract borrowers.
Global Events: Events in other countries, especially the U.S., can impact Canada’s economy. For example, if the U.S. faces financial challenges, Canada might feel the ripple effect, which can influence mortgage rates here.
Investor Confidence: When people feel uncertain about the economy, they invest in safer options like bonds, lowering yields. In stable times, they may take more risks, which can drive mortgage rates up.
In short, mortgage rates fluctuate based on a mix of economic health, inflation, the Bank of Canada’s decisions, and global events. All these factors help lenders decide what rate to offer for a 5-year fixed mortgage.

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10/23/2024

Bank of Canada dropped overnight rate, which drops Prime Rate from 6.45%to 5.95%. This effects Unsecured, secured loans and LOC, for mortgages it effects you if you choose a Variable product. Call me or DM me to discuss

05/03/2024

Thank you very much for all the amazing people with Birthday wishes yesterday and taking the time out of your busy schedules. I had a great time this week with some incredible friends, Family and relaxation. CHEERS

03/07/2024

06/14/2023

Rising interest rates, manufacturing costs, employment levels, and housing prices are complex issues influenced by various factors. While government policies can play a role, it's important to consider that the economy is a multifaceted system affected by global trends, market forces, and a range of other factors. Higher than normal employment and rising house prices from city to country living.
Right now government spending is out of control causing an unstable economy with the average family/household not being able to catch up financially.
Plan forward would be to pause immigration, stop frivolous government spending, get housing starts up (NOT just condos - due to condo fees that eat away at peoples budget).
Immigration can contribute to economic growth, innovation, and labor force expansion, but also can create an unstable Real Estate market that not many can afford.
Allow Canadians to afford a home that they can start their families. First time buyers have a very hard time buying without the support of friends or family to go on the mortgage with them.
Buying an investment residential real estate is not the bargain that it once was, with higher prices, comes higher rents, comes unstable tenants trying to afford in some areas, overpriced real estate.
If we allow current Trudeau government to frivolous spend and mismanage this government and the Canadian Citizens , interest rates will keep going up.
I've been a variable person for almost 20 years, first time ever locking in, I just don't have faith in this government not to leave us so far behind with a massive deficit which will take many years to fix.
Locking in for 3-5 years may or may not be the right choice if rates start to fall, but rates rising is far too scary for many Canadian families to gamble that thought process. Locking in around 5-5.25% takes away from the uncertainty of future rate hikes.
It's crucial to note that economic policies involve trade-offs, and their impacts can be nuanced and diverse. Public policy decisions are often influenced by a range of factors, including political considerations, expert advice, and public opinion.