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12/12/2022

With last week's BOC overnight rate increase, Our prime rate is now 6.45%.

Now that may seem grim, as Variable rates are higher than fixed rates. We have actually seen a decline in fixed rates with some being less than 5%. Our current best rate is 4.57% on an insured 5-year fixed mortgage only for this week!

As BoC decides its next move, they have mentioned they are still prepared to be forceful, but as they watch inflation start to come down they will be taking a data-dependant approach toward future rate hikes.

Read full article here:

While year-over-year core inflation has now stopped rising. Headline inflation has fallen from a peak of 8.1% to 6.9% The Bank of Canada has indicated its future rate decisions will be driven by economic data, but that it is “still prepared to be forceful” should the need arise. Deputy Governor ...

12/01/2022

As the spread between variable rates and fixed rates has evaporated. Borrowers are leaning towards a fixed rate as their preferred rate.

As of August, 44.2% of new mortgage borrowers chose a variable rate, down from a peak of 56.9% in January, according to the Fall Residential Mortgage Industry Report published by the Canada Mortgage and Housing Corporation (CMHC).
Based on more recent data from Statistics Canada show the trend continued in September, with the share of variable-rate mortgages falling to 39% of new originations. That’s the lowest share since April 2021.
We are also seeing a decline in 5-year terms as borrowers are opting for 3 or 4-year terms.

If you are buying a house or have to renew your mortgage soon, it's best to talk to a mortgage professional to help create a game plan and find a solution that best fits your needs and makes you feel the most comfortable with your next decision.

See full post here:

With some variable rates higher than fixed rates, people are leaning towards fixed as their preferred rate. Now that the spread between fixed and variable rates has largely evaporated, a majority of borrowers are once again opting for fixed-rate mortgages. As of August, 44.2% of new mortgage borrowe...

10/11/2022

Rates are expected to keep increasing!

If you have been following the interest rates this year, you would have seen an increase of 300bps or 3%.

Bank of Canada has confirmed that further increases in rates are warranted as no concrete evidence that core inflation is coming down. They forecasted rates to continue to increase in 2023.

If you have a mortgage coming up for renewal or considering purchasing and have any questions in this unnerving time of climbing interest rates and uncertainty, it's best to reach out to a professional for their opinion and develop a clear plan to make you feel confident in your upcoming decision.

09/15/2022

Home Prices and Sales Fell Modestly in August:

Housing Soften Again in August The full effects of the most recent rate hikes have not yet manifested. Statistics released today by the Canadian Real Estate Association (CREA) show that the slowdown that began in March in response to higher interest rates continued in August, albeit at a slower pace...

09/07/2022

🚨 Bank of Canada Update: Another 0.75% Increase !!! 🚨

The Bank of Canada Hiked Rates Again And Isn’t Finished Yet The Governing Council of the Bank of Canada raised its target for the overnight policy rate by 75 basis points today to 3.25% and signalled that the policy rate would rise further. The Bank is also continuing its policy of quantitative ti...

08/22/2022

Canada's Stress Test in Question... is it still relevant? Check out the article from Canadian Mortgage Trends' Brennan Doherty ⬇️

https://www.canadianmortgagetrends.com/2022/08/is-canadas-mortgage-stress-test-still-relevant/

Earlier this month, the Bank of England scrapped its mortgage affordability stress test. With mortgage rates presumably approaching their peak for this rate-hike cycle, some are wondering if changes to Canada's stress test are overdue.

08/17/2022

A little update on inflation and the next BoC meeting..

https://www.canadianmortgagetrends.com/2022/08/inflation-eased-in-july-kind-of-what-it-means-for-the-bocs-next-rate-hike/

Led by a drop in gas prices, Canada's annual inflation rate eased to 7.6% in July, according to data released by Statistics Canada.

08/15/2022

Housing Slowdown Continues in July

Housing Slowdown Continues in July Statistics released today by the Canadian Real Estate Association (CREA) show that the slowdown that began in March in response to higher interest rates continued in July, albeit at a slower pace. Home sales recorded over Canadian MLS® Systems fell by 5.3% between...

08/11/2022

A recent Residential Mortgage Commentary from First National states there is a sinking feeling among consumers 😓

Read the article here:

https://www.firstnational.ca/mortgage-brokers/resources-for-mortgage-brokers/article/residential-mortgage-commentary---a-sinking-feeling-among-consumers?utm_source=Residential+-+Broker+List+%5BENGLISH%5D&utm_campaign=641c14d081-EMAIL_CAMPAIGN_6_24_2019_COPY_01&utm_medium=email&utm_term=0_3a54a891f4-641c14d081-202677998&mc_cid=641c14d081&mc_eid=8c7b030f58

08/10/2022

Good news on the inflation front, FINALLY! Check out the full article from Dr. Sherry Cooper ⬇️

https://dominionlending.ca/economic-insights/finally-some-good-news-on-the-inflation-front

It was widely expected that US consumer price inflation would decelerate in July, reflecting the decline in energy prices that peaked in early June. The US CPI was unchanged last month following its 1.3% spike in June. This reduced the year-over-year inflation rate to 8.5% from a four-decade high of...