Ron Mortgages

06/25/2024

Canadian inflation rose unexpectedly just a few weeks after the interest rate cut by the Bank of Canada. CPI rose to 2.9% in May up from 2.7% in April and quite a bit higher than the 2.6% that was expected.

Notably, grocery prices increased by 1.5% on an annual basis up from 1.4% in April, marking the first acceleration since last June. The other big increase is rent prices which were up 8.9% in May, higher than 8.2% in April.

All of this does put a further rate decrease by the Bank of Canada in July into question. However, there is another CPI number release just before the Bank of Canada's July decision, so it's not ruled out yet.

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Prices for services pushed the annual rate of inflation up to 2.9 per cent in May, according to Statistics Canada.

01/25/2024

📣 Bank of Canada's announcement yesterday, where they maintained the current interest rates, was widely expected. This time around as well, the Bank of Canada left the overnight rate unchanged at 5%. 🔍

Key points from the announcement that stood out:

🇨🇦 Canadian Economic Situation: Canada’s economy has been relatively stagnant since mid-2023, with growth expected to remain close to zero through the first quarter of 2024. High prices and interest rates have led consumers to reduce their spending, and business investment has declined. 💸

📊 Inflation and CPI: The Consumer Price Index (CPI) inflation ended the year at 3.4%. Shelter costs are the primary contributor to above-target inflation. The Bank expects inflation to stay near 3% in the first half of the year before gradually reducing, aiming to return to the 2% target by 2025. 🏠

🔎 Focus on Inflation: The Governing Council is closely monitoring inflation, especially the persistence of underlying inflation. It aims to see a sustained easing in core inflation and is balancing between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour. ⚖️

As has been the norm, the Bank is walking a tightrope with its signalling by largely sounding dovish while also not letting go completely of its hawkishness, despite what large parts of the media are saying (FP: “We may still need to raise rates,” Macklem said, echoing caution that has characterized previous hold decisions) 🚶‍♂️📉📈

Bottom line, the best course of action for potential mortgage clients is to be cautiously optimistic. One can reasonably expect rates to start dropping sometime later this year, but it would be advisable not to make risky financial decisions by counting on those expected rate drops, just yet. 🤔💡

The next rate announcement by the Bank of Canada is on March 6, 2024. 🗓️

🏦📈🏡💼📰

12/24/2023

🎄 Merry Christmas! 🌟 Wishing you a holiday season filled with warmth, comfort, and good cheer! May your holidays sparkle with moments of love, laughter, and goodwill.

🎁✨ Happy Holidays from all of us at ! ❄️🥂

11/12/2023

🪔 Wishing you a sparkling and prosperous Diwali! 🪔

As the festival of lights illuminates our lives, may it bring joy, prosperity, and success to all your endeavours.

Let's take this opportunity to spread positivity, kindness, and warmth in our professional and personal relationships. May the year ahead be filled with new opportunities, growth, and achievements.

May the light of Diwali guide us towards a brighter, happier, and more inclusive future, where diversity and collaboration shine brightly.

Happy Diwali to you and your loved ones! 🎉✨

07/14/2023

Just published the Q2 Sales Analysis on the GTA housing market by comparing it with the previous 10 years' data (rather than just last year). Here are the highlights:

1. Q2 2023 home sales in the Greater Toronto Area (GTA) declined compared to the 10-year average, with June experiencing a significant drop of 27%.

2. New listings rebounded in June, indicating renewed seller activity in the market over the historical average going well into the summer.

3. Active listings showed an upward trend, particularly in the latter part of Q2, suggesting heightened market activity during the summer months, again compared to the last 10 years.

4. Factors such as rate hikes and reduced affordability played a role in the decline of home sales.

5. Earlier on, April witnessed a notable decline in new listings, reaching only half of the historical average, but the market started to recover as Q2 progressed.

6. Despite remaining below the 10-year average, active listings showed signs of improvement.

With rate hikes continuing, Q3 might be another subdued quarter. Anyway, that still remains to be seen. For a more detailed analysis and valuable insights into the current state of the GTA housing market, check out the full blog post.

Hello and welcome to my latest post on GTA home sales! Let’s dive into the data from Q2 and examine how the Greater Toronto Area’s real estate market performed during this period. In this analysis, I’ll compare quarterly sales data with a 10-year average to provide you with a comprehensive per...

06/16/2023

Bank of Canada's resumption of rate hikes, overall messaging and the resultant surge in bond prices have caused mortgage rates to rise from 20 bps to 60 bps pretty much across the board, among all lenders and almost all kinds of mortgage products.

However, even with this squeezing of credit, demand for mortgage products is high and deals are getting funded and closed with careful planning and preparation. Reach out today if you or anyone you know is looking for a mortgage solution.

05/31/2023

Urbanation and CIBC’s recent report on Condo Investments for 2023 is creating a buzz mainly because of the eye-catching headline in the media talking about more than half of condo investors being underwater, or variations of it.

A closer read of the report shows that the main reason for negative cash flow is the rising interest rates of 2022 and some investors being possibly over-leveraged. Condos completed in 2021 were cash flow positive, despite a lack of rent growth due to lower interest rates. Even among leveraged investors, a majority got their mortgages from Big 5 banks, and most of them are cash flow positive.

In fact, the report actually has some positives for investors such as

a) Potential for Appreciation: The report mentions that new condos reaching completion have appreciated considerably from their presale prices. Despite some market depreciation, the average closing price for new condos in 2022 was still lower than the year-end MLS benchmark price for resale units. This suggests the possibility of potential value appreciation in the resale market, which could benefit investors in the long run.

b) Adjustments and Opportunities: The report notes that condo investors appear to be adjusting their purchases by shifting into lower-priced markets where positive cash flow is more attainable. This indicates that there may be opportunities for investors to find investment properties that align with their financial goals and generate positive returns.

c) Supply Constraints: The report highlights supply constraints in the market, with longer project delivery timelines and limited overall supply growth for the GTA condo stock. These constraints can help support condo prices and potentially create a favourable environment for investors in terms of property value stability.

05/29/2023

🏢🏠 Exciting insights on Ontario's investment real estate market! 📊🇨🇦

In its investor report series, Statistics Canada reveals fascinating trends about investors and investment properties. Our post here focuses on the findings in Ontario.

Key findings highlight the prevalence of condominium apartments as popular investment choices, with a remarkable 41.9% usage rate. Local investors play a significant role, utilizing houses and condominiums for investment purposes. Toronto's core areas also showcase a higher concentration of investment properties. The information provided here empowers real estate professionals and investors to make informed decisions.

Read the full post here: https://www.ronmortgages.com/2023/05/29/analysis-of-residential-real-estate-investors-and-investment-properties-focusing-on-ontario/

Hello and welcome to my newsletter where we discuss Real Estate and Mortgage insights and updates. In today’s edition, it’s all about investors and investment properties. Here’s what we’ll cover while analysing Statistics Canada’s recently released report about them: Introduction Earlier t...

05/10/2023

April 2023 GTA sales data came out a few days ago and the data is mixed between good and not-so-good news. Although month on month the number of sales increased, they are still down as compared to last year.

Also, home prices are beginning to creep up, which could cause the Bank of Canada to rethink its rate hikes 'pause'.

Read on to find out more about all this and the best mortgage rates & offers currently available.

April 2023 GTA sales data is out and the data is mixed between good and not-so-good news. Read on to find out more about all this and the best mortgage rates & offers currently available.

04/17/2023

In this edition, I cover home sales in GTA for Q1 2023. Home sales in the GTA in the first quarter of 2023 fell on average by almost 50% as compared to the first quarter of the last 10 years.

Read on as I unpack the data showing comparisons of this year vs the last 10 years for actual sales, new listings and active listings.

And find out what this means if you're a homeowner looking to sell, a potential home buyer or a real estate professional.

Read on to find out why home sales have fallen by almost 50% in Q1 of 2023 as compared to the same period over the last 10 years.