Jessica Evanisky, AB Mortgage Broker

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Canada
Edmonton, AB
Jessica Evanisky, AB Mortgage Broker

10+ years of experience helping clients with purchases, refinancing, pre-approvals and renewals🏠 Jessica Evanisky, MPC
Manager, Residential Mortgages
Invis Inc.

Buying a home can be stressful, the first and most crucial obstacle is securing financing that is tailored to fit your current and future needs and offers a comfortable and flexible payment plan. With an abundance of misleading and overwhelming amounts of contradicting information either from advertising or word of mouth, a client benefits from having an unbiased third party opinion with their bes

t interests in mind, this is where my services come in. As an extremely experienced, knowledgeable professional, I work from an informative perspective, ensuring the client knows the benefits and downfalls of multiple financing options, emphasizing the fine print to avoid any surprises and choosing which mortgage will best suit their immediate and future goals regarding your purchase, renewal, refinance or real estate investment planning. Canada’s Mortgage Experts
(780)886-1041
[email protected]
www.jessicaevaniskymortgages.com

03/12/2025

The BoC announced its 8th consecutive rate cut this morning. These reductions in the overnight rate are great news for anyone holding a variable mortgage, have a home equity line or any other loans/credit lines that are based on on prime rate

🏡 Why? This .25 reduction and the previous one were largely done as a “buffer” for the uncertainty surrounding the ever evolving policies the US has in place and how our administration is responding to them. Where things land is still highly volatile with our own government undergoing significant changes and an on and off again trade war with the US

🏡 Who does it affect? Reductions *only* affects those with a variable rate mortgage, fixed rates are unchanged by BoC rate cuts. Fixed rates=based on bond yields, variable rates=based on prime rate. If you have a variable mortgage, your rate will be reduced by .25. If you have a fixed rate or are considering one, there is no change

🏡 A .25 reduction equates to around 15$ saved for every 100k borrowed; many variable holders are now sitting under 4% which has not been seen in both variable or fixed rates since 2022. Here is how a variable rate is calculated: Your rate is prime-1.00, throughout the entire 5 year term, this discount does not change, your rate will always be 1% lower than prime, which is now sitting at 4.95%; your effective rate is 3.95%

🏡 What next? Future rate cuts are largely based on economic conditions both in Canada and south of the border. Depending on how the situation evolves will dictate future reductions but as of now, there is speculation that by July, there will be an additional .5-.75 in cuts. These cuts cannot completely mitigate the effects of the US’s policies, but can help

🏡 Use uncertainty to your advantage. Everyone needs somewhere to live and home ownership is more certain than renting; giving you full control of your financial decisions, having a stable payment of your choice, handling the management of the property and safeguards from ever increasing rent prices. If you’re comfortable with your own financial situation, use this as leverage and make moves when others won’t; some buyers/sellers may be holding off to wait and see how the situation evolves which could lead to opportunities that will fade away once things settle

As always, feel free to connect by email at [email protected] or phone at 780-886-1041 with any questions

01/30/2025

More welcome news from the BoC today, decreasing their overnight rate (and prime rate) by another 0.25. This provides more relief to variable mortgage holders and any other loan/line of credit/credit card that floats with prime. That being said, the bank of Canada rate changes do not affect fixed rates, these are based on bond yields and remain unchanged. Here are the predictions from the big banks on where prime rate may end up by the end of 2025

Although we’ve seen aggressive decreases from the BoC over the past 6 meetings, the bigger question is how 2025 might play out in terms of rate cuts when deciding to go with a variable vs. fixed mortgage, deciding to lock into a fixed term, and the overall usage of floating rate credit products

🏡 Every bank and economist has a different prediction for where prime might sit at the end of the year but these are forecasts and not guaranteed for many reasons

🏡 If you are holding or going into a variable mortgage, prime will change, but your discount off it does not throughout your term. For example: if your current rate is prime-1.00, as of today your effective rate is 4.2 (lower or close to an insured, 5 year fixed). If prime rate ends up being 4% at the end of 2025, your rate would then be sitting at 3%

🏡 Historically, variable rates do perform better than fixed rates but there is a large element of uncertainty with them so the decision to take one on depends on your own risk-tolerance

🏡The new US administration adds on another layer of risk as their policy decisions strongly affect ours and depending on how these play out, it could mean more aggressive rate cuts or possibly even increases.

🏡 Whether you’re going with a fixed or variable mortgage and the spring market just around the corner that is already very competitive, it’s important that you are pre-approved and have a rate hold in place as well as a trusted realtor to work with.

As always, with any questions please contact me directly by email at [email protected] or phone at 780-886-1041

10/23/2024

Great news for variable mortgage holders and buyers who are currently in the market with a plan to head into a variable term. This is the first big move by the BoC since the COVID era and a 50 bps rate cut equates to around a 30$ savings for every 100k of “mortgage money” with prime rate now sitting at 5.95%. A few things to point out and consider:

🏡Fixed rates *did not* drop by 0.50%; reductions by the BoC only apply to borrowing costs associated with prime. Bond yields dictate the pricing on fixed rates and the impact of cuts to the overnight rate take time to affect bond yields; there are also other economic factors that affect these (ie. economic status and activity in the US). There has been no changes to any fixed rates today however any variable mortgage holder will see a .50% reduction to their rate/payment.

🏡 More and more buyers, and those up for renewal/refinance are considering a variable rate in order to wait for fixed rates to drop. With any variable term, you can lock into a fixed term at any time with no penalty. Going into a variable rate mortgage (which are heavily discounted right now) with a plan to lock into a much lower fixed rate in the new year is something to consider

🏡 Variable rates have already started to increase as they are becoming more in-demand; banks are cutting back the discount off prime as the BoC continues to ease their overnight rate and will continue to do so.

🏡 Home prices will continue to go up. Although these rate cuts do affect variable rate mortgages, they do not make it any easier to qualify if you are planning on going with a fixed term. That being said, the psychological impact of “lower rates” headlines does bring more buyers and more competition into the market

As always, please feel free to reach out by phone at 780-886-1041 or email at je@jemortgages with any questions you might have.

09/27/2024

Back for the *11th* year. Somehow, my clients keep getting younger and younger, I’m not sure what’s happening here but I appreciate each and everyone of them and am so lucky to work with such amazing realtors, lawyers, legal assistants, builders, referral partners, and of course, all of my new and repeat clients that make my job easier, fun, and a little bit less stressful 🏡 ❤️

09/09/2024

A third consecutive .25 reduction to the Bank of Canada’s overnight rate was announced last week, which welcomes immediate relief to any borrowers in a variable mortgage or have credit lines based on prime rate. That being said, there seems to be a lot of confusion over what these cuts mean and who they apply to. A general “rates are dropping” statement is not completely correct; there seems to be a common misconception that when the Bank of Canada drops their overnight rate by .25 that *all* rates come down by this amount, which isn’t the case.

🏡 These rate cuts only apply to variable rate mortgages and anything else tied to prime rate. They do not directly apply to fixed rates

🏡 Fixed rates are based on bond yields, with the 5 year bond yield now sitting the lowest it has since 2022 (see slide 2). These rate cuts have a lagging effect on fixed rates, some of which is already “baked in” with the anticipated downturn in the economy months ago. Fixed rates will slowly come down depending on economic conditions in Canada and the USA but a .25 drop to prime rate doesn’t mean an immediate .25 drop to fixed rates

🏡 Fixed rates have already come down around 1% since the beginning of the year, fuelling an overall price growth of 10% across the market. Should rates continue to fall, this trend will accelerate as more buyers enter the market and it becomes easier to qualify
🏡 Whether you choose to purchase or renew into a fixed or variable term should be based on your own risk tolerance. If you’re wanting to “wait and see” what rates do, a variable rate offers this ability but you will pay a higher rate up front. This rate will come down with each BoC rate cut and allows you to lock into a fixed term further down the road into a term equal to or longer than the original contract term (usually 5 years)

🏡 Two more BoC reductions are expected this year and another ~1.5%-1.75% is expected throughout 2025 but these predictions, along with the overall economic conditions here and in the US is not guaranteed and not entirely predictable
As always, please feel free to reach out by phone or email with any questions you have at 780-886-1041 or [email protected]

05/02/2024

Roughly 80% of mortgages are up for renewal in 2024, and it’s not great timing. The good news is, there are options to lessen the financial burden of higher interest rates depending on your personal, financial situation. Refinancing is commonly being considered in today’s rate market and doing so at maturity is the perfect time to do so in order to avoid penalties and other fees.

🏠 Don’t simply sign and send back your renewal notice. It’s more important than ever to look into other options available 2-3 months prior to your renewal date. Rates, terms, pre-payment privileges and portability options and potential penalties vary widely from bank to bank and are important factors to look at upon renewal

🏠 If the new, higher payment is not manageable, look at refinancing into a longer amortization period, which is the most effective way to lower your mortgage payment. Also take a look at other outstanding debts and consider paying these off by way of refinance to reduce your overall financial obligations

🏠 The good news is, most properties have significantly gone up in value, leaving the option for refinancing more open than ever as you need a minimum of 20% equity in a property in order to refinance it

🏠 Pick a rate, term and product that suits your future plans and goals. For example, if you’re planning on selling the property and moving out of the country, you would not want to sign up for a fixed term in order to avoid a large penalty upon sale. Another example: if you are planning on purchasing another property and keeping your current one as a rental, the best time to pull out equity for a second purchase is at renewal to avoid a penalty down the road

🏠 Take advantage of future, lower interest rates by looking into terms outside of the historically common 5 year fixed. Whether that’s going with a shorter, fixed term or a variable rate with intent to lock in at a lower rate later on will depend on your personal situation and risk tolerance

As always, please contact me directly with any questions by phone at 780-886-1041 or email at [email protected]

04/12/2024

As expected, the Bank of Canada held their overnight rate at 5% on Wednesday. This was no surprise however it’s thought to be very likely the first cut will be in June, and a total of 3-4 rate cuts (of .25%) will be made by the end of 2024. Some other news to point out:

🏠 As of August 1, 2024, first time home buyers will be eligible for a 30 year amortization period on new homes (pre-sale and spec homes. Currently, the maximum amortization on an insured mortgage is 25 years. A longer amortization means more interest paid, however it will help buyers qualify and reduce their mortgage payment. For example: the payment on a 400k home with 5% down at current rates would be roughly $2298/month using a 25 year amortization and $2109 at 30 years

🏠The move is intended to spur home builders to build more houses, which we desperately need; it would be nice if this change applied to resale homes as well. Your home is a major investment and there shouldn’t be limitations on what type of property first time home buyers can purchase; hopefully, this will be taken into consideration and should also apply to renewals to reduce the payment shock of higher rates and make existing mortgage payments more manageable

🏠 Fixed rates are moving up. Higher than expected CPI data from the US, and lack of clear confirmation of when the first rate cut will be from the BoC has pushed bond yields well over where they were a month ago; once the BoC does start cutting rates, fixed rates will also start to come down. In the mean time, whether you have a renewal coming up, a potential purchase or are considering refinancing, you should have a rate hold in place

🏠 Lower rates are on the horizon, which is great, but once the BoC does make their first rate cut, many buyers will be moving off the sidelines to purchase. A combination of pent up demand, lack of supply and lower rates all point to even higher home prices in the near future. It is predicted home prices will be up to 20% higher heading into 2025-2026. If you are wanting to purchase, but also want to wait for lower rates, the best move would be to put the mortgage into a variable term and then lock it into a fixed term later on

As always, please contact me directly with any questions you might have by email at [email protected] or phone at 780-886-1041

03/12/2024

Affordability concerns are at the top of most prospective buyers list but unfortunately, it likely won’t get better even as rates continue to fall later this year. Many buyers that have been holding off since 2022 are already moving off the sidelines as rates have come down around .5% since January and prices have gone up significantly in all areas of the market

🏡 Average selling price on detached homes is already around 10% higher than it was last year. If the house you’re looking at now listed for 400k goes up another 5%, the overall affordability is the same even with a rate reduction of .5%

🏡 Lower rates=higher prices. More and more buyers will be looking to purchase as rates continue to drop, unfortunately this also means higher prices, a larger down payment and it could become more difficult to qualify even with lower interest rates

🏡 Rent in Edmonton has gone up an average of 17% over the past year, the highest amount in any major city; “renting cheap” is more difficult than ever, especially if you have a family with specific needs, and makes saving for a down payment even more challenging; purchasing a home that’s within a comfortable budget is now often cheaper than renting the same type of property

🏡 The market is only going to get busier and more competitive, there simply aren’t enough listings to satisfy the demand. Again, as rates come down, this is a trend that will likely continue throughout the year

There are always valid reasons for renting and for some families, it simply works best for them or purchasing is not an option, which is great, but for those that have been putting off a purchase, these are points to consider while we’re still early on in the spring market. Houses under the 450k mark are selling quickly and over list price. Always make sure you’re fully pre-approved and working with a great realtor to help navigate the housing market whether you’re buying, selling or both and as always, please contact me directly by email at [email protected] or phone at 780-886-1041 with any questions or more information

02/28/2024

It might not feel like spring yet but if you’re planning on purchasing, refinancing or up for renewal, now is the time to start preparing yourself. Pre-qualifications or using online calculator are not good enough in a tight housing market and rates sitting higher. A full pre-approval is fast, accurate and sets you up for 120 days which gives you plenty of time to find a property, start the renewal process or look into refinancing your current mortgage

🏡 We’re very early on in the spring market and there is limited inventory available, especially under the 450k mark; properties in this price range are selling quickly with multiple offers and you need to be prepared to make an aggressive offer when the right one comes up as well as having all of your documents in order before even looking at properties

🏡 Many mortgages are up for renewal in the spring, payments are going up and there are ways to make them more manageable but there are steps that need to be taken at least a month beforehand to ensure you don’t get stuck in an extremely high rate while you’re trying to sort out new financing to bring your payment down, consolidate debt, or find a lower rate

🏡 With rates sitting higher than they have been in the past, you need to know how high you are able to go in terms of a purchase price and also what to expect for a payment at a few different price points to make sure you can comfortably afford the house you are wanting to purchase

🏡 Lastly, whether you’re buying or selling, you need an experienced, dedicated realtor to help you navigate the housing market, if you don’t know one, I do. Any reputable realtor will want you to be fully pre-approved prior to working with you

As always, please contact me by phone at 780-886-1041 or email at [email protected] with any questions

01/08/2024

Happy 2024! All eyes will be on the Bank of Canada this year; the BoC meets 8 times a year, these are the intervals where a decision is made to hold, raise or cut the overnight rate. Variable mortgage holders have relief coming their way, the question is when and how much

🏡 The general consensus is we will see rate cuts by the middle of 2024, possibly sooner if the economy softens more than expected, which is completely possible given how aggressive the past tightening cycle has been

🏡 Prime rate does not affect fixed rates, but they are coming down as well. Over the past 1.5 months, a good, 5 year insured rate has dropped around .8% and are expected to continue trending downward. Fixed rates are tied to bond yields, not prime rate. To put this in perspective, we are now sitting around where we were in May of 2023 comparing yields

🏡 Assess your risk appetite when deciding to go fixed vs. variable. Most clients are leaning towards a variable rate in a downward trending rate market. That being said they are also sitting around 1% higher than a 5 year fixed but are appealing with rate cuts on the horizon

🏡 Variable rates and short term fixed rates are higher and therefore harder to qualify for. Make sure you know your options heading into spring and consider which rate/term will perform best over the next 3-5 years. At this point, the performance of a good 3 year fixed and a variable term are comparable, I wouldn’t recommend jumping into a 5 year fixed unless it’s necessary to qualify or you want a the security of knowing exactly what your payment will be over the next 5 years, which is completely OK

🏡 If you’re in a variable rate, I wouldn’t lock in at this point. It’s painful, but ride it out if you can; the data coming out of the economy is in your favour (so far)

Nothing is certain, and nobody knows exactly what to expect, but as of now, spring is headed in the right direction rate-wise and sets the housing market up to be busier and higher priced . It can be a confusing time for those looking to purchase, refinance or up for renewal. As always, feel free to contact me directly by phone at 780-886-1041 or email at [email protected] with any questions

12/19/2023

2023 has been nothing short of challenging, interesting and unpredictable. The good news is, from a financial standpoint, the worst is likely over. What might happen in the housing market is still not clear but the common consensus between economists is that overall conditions are going to improve. That being said, with lower rates brings higher prices; this combined with pent up demand from would-be buyers over the past two years and interprovincial immigration support the forecast of increased pressure on housing prices.

🏡 Rate cuts are expected to start in the second quarter of the year however if the impact on the economy from the previous increases proves to be too much, they could come sooner and in larger amounts

🏡 The US has priced in three .25 rate cuts in 2024. It is expected Canada will see at least this amount especially considering our economy has not been as resilient as theirs

🏡 Many prospective buyers have been holding off for lower rates; fixed rates have already been dropping aggressively over the past month, making it easier to qualify and improving overall market sentiment. More demand=higher prices; a 4% increase has been forecasted but it could turn out to be much higher

🏡 We aren’t going back to pre-pandemic rates. Most home owners and buyers have accepted this and adjusted their budgets accordingly.

🏡 Renewal shock. Some over leveraged households will be forced to downsize and/or sell when their mortgage comes up for renewal. So far, most households have been able to manage these increases in Alberta due to relatively smaller mortgage balances compared to markets out east and west. Refinancing and extending amortization periods will give some relief to many home owners

🏡 More interest in variable mortgages. Short term fixed rates have trended throughout 2023; with prime stabilized and a significant downside on the horizon, more clients are leaning towards VRM’s until a clearer bottom is established on fixed rates

As always, feel free to reach out by email at [email protected] or phone at 780-886-1041

10/26/2023

Some welcome news for prospective home buyers and especially those in a variable rate mortgage. It’s widely expected the BoC is finished with rate hikes after the most aggressive tightening in recent history. Although not guaranteed, markets are betting that we have peaked in terms of the overnight rate and possibly fixed rates as well

🏡The economy is slowing in most areas; as long as this trajectory continues, the BoC is expected to hold at 5% through to 2024. The next meeting date is December 6, as I’m sure we’ve seen, anything can happen but the consensus is that there won’t be further increases. The bigger question now is how long will they stay this high?

🏡 The full effects of the 10 (yes, 10), rate hikes through 2022 haven’t been fully felt. If it turns out the BoC acted to aggressively, there could be rate cuts coming sooner than later but not before the end of 2023

🏡 The BoC is not going to make comments to boost consumer confidence; even if rate cuts are on the table, they will maintain a hawkish tone to discourage spending and overall sentiment. When we do see a rate cut, it will be a pleasant surprise

🏡As the the prospect of rate cuts increases, a variable rate mortgage will likely outperform any fixed term. The only term priced lower than a well-discounted variable rate is a 5 year fixed— which it is essentially guaranteed to outperform due to the downside applicable to prime rate

🏡 We need more housing; paradoxically, shelter cost is one of the main drivers for inflation. With rates where they are, mortgage payments/rental costs are higher and corporate investment in housing development has pulled back; a balance between rates and supply/demand needs to be reached and rates this high are simply not sustainable—the increases we’ve seen were not intended to be a permanent measure but to simply do their job

🏡 Whether you have a renewal approaching, considering refinancing or purchasing and regardless if you are leaning towards fixed or variable, get a rate hold. Variable rates are deeply discounted right now but will not stay this way as prime comes down

As always, please feel free to reach out by phone at 780-886-1041 or email at [email protected] with any questions or comments

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Edmonton, AB

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http://www.jessicaevaniskymortgages.com/

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