P.S. Mallhi Mortgages

04/21/2022

We don't think it's likely that getting into the housing market is going to get any easier between now and 2024. In our 2022 Housing Market Outlook, we explain that housing affordability will still be a challenge, because price growth will continue to rise faster than income growth.

We believe you'll start to see the growth in prices gradually slow from the peaks we saw in 2021, and then return closer to long-term averages because of rising mortgage rates.

Ontario, Quebec and British Colombia are likely to see the highest prices. Want to know what’s predicted for your area? Check out the full report: http://ow.ly/Leg450IOW5l

03/02/2022

Quarter Percent raise.

The Bank of Canada announced today that it has raised the overnight rate by .25% to .50%, to help curb a worsening inflation picture owing to global supply chain bottlenecks, labour shortages and rising energy costs. Canada's surging inflation rate moved to a 30 year high of 5.1% recently, driven by high gas prices, soaring housing and automobile costs and rising food prices and this is well above the Bank of Canada’s target rate of 2% that it had hoped to maintain.

The Bank of Canada owns approximately 42% of Canada's sovereign debt and has also signaled it will start to shrink its balance sheet by allowing maturing bonds to roll off without reinvesting the funds, this is called quantitative tightening.

Expect more rate hikes throughout 2022 from the Bank of Canada. Recall that just over three years ago the overnight rate, in October of 2018, was 1.75%.

The next rate-setting day is April 13th, 2022.

Now is the time to get in touch for a review of your mortgage strategy. It's important to get advice and a professional assessment of your situation if you want to switch your mortgage for a new rate, need a new mortgage, are renewing, or looking to refinance for debt consolidation, renovations, or other large expenditures.

01/26/2022

No Rate Increase.

The Bank of Canada announced today that it will continue to hold the overnight rate steady, noting that the recovery continues to require extraordinary monetary policy support. While Canada's economy showed a higher-than-expected resiliency in 2021, new lockdowns and the spread of new variants have put a pause on further expected economic growth. Canada’s central bank has ended the bank’s provision of monetary stimulus through quantitative easing (stimulative bond buying).

Worsening inflation pressures owing to global supply chain bottlenecks, labour shortages and rising energy costs will likely force the Bank of Canada to begin raising interest rates as early as March of 2022. Canada's inflation rate moved to 4.8% recently, driven by high gas prices, soaring housing and automobile costs and rising food prices and this is well above the Bank of Canada’s target rate of 2% that it had hoped to maintain.

Tiff Macklem, the Bank of Canada Governor said, "The challenge here is to bring inflation back to target without choking off the recovery."

The next rate-setting day is March 2nd, 2022.

Get in touch for a review of your mortgage strategy. It's important to get advice and a professional assessment of your situation if you want to switch your mortgage for a new rate, need a new mortgage, are renewing, or looking to refinance for debt consolidation, renovations, or other large expenditures.

04/13/2021

The stress test is getting harder for uninsured mortgages effective June 1, making the role of a Mortgage Broker even more valuable.

Your Mortgage Broker can provide advice on how you can improve your situation so you can qualify under the stress test or offer alternative lending solutions.

There has never been a better time to get professional unbiased advice!

04/11/2021

https://www.theglobeandmail.com/business/article-tougher-mortgage-stress-test-will-mean-less-buying-power-for/?fbclid=IwAR1k8-vZ-JxkYgs4Xu0_4bOlUp0TzLskWF3ykWiPx37SmhURbE9KbL59744

Changes could reduce the maximum amount a borrower could take on by 2 per cent to 4 per cent. Experts say this won’t cool overheated housing prices

02/11/2021

It’s frustrating that mortgages are always advertised based on rate, especially since cheapest is not always best and, as they say - the devil is in the detail. Once the fine print is read, you may find you don’t qualify for that rate, and often there are restrictions and fees that could really cost you in the long run.

Important mortgage privileges, those that can save you money and give you important flexibility, don’t fit in a rate ad. But these are key in building you the right mortgage matched to your needs and goals.

If you are looking at low online rates, do all of the research you can but be sure to call your Mortgage Broker to discuss.

01/01/2021

Wishing you and your family a blessed new year.

Best wishes
PS Mallhi

11/21/2020

What is the first thing you should do when you get your mortgage renewal? Get a second opinion!

Regardless of how loyal you are to your bank, they still may quote you a non-discounted rate. Even if they offer you a better rate when you question it, is that how you want to be treated?

Regardless of who your lender is, it just makes good common sense to get a second opinion so that you can make sure you are getting the best deal possible. At renewal, you can renegotiate everything pertaining to your mortgage – with no penalties – which means this is an important moment of opportunity.

If your renewal is coming up in the next 9 months, get in touch with us.

10/28/2020

The Bank of Canada announced today that it is keeping the overnight rate steady at 0.25%. It is expected the Bank will keep this target unchanged until well into 2023 to aid our economic recovery. The Canadian economy is in recession with negative GDP growth, inflation is at zero, the Canadian dollar relative to the U.S. is stable at around $.76, oil prices are hovering around $40 - $43 U.S./barrel and unemployment is currently at 9%, another marked improvement from last month.

According to StatsCan and CMHC, 75% of the almost $200 Billion of mortgages that were deferred were from Canadians that are still working and took the deferral as a precautionary measure. This would support the argument that the massive wave of defaults on mortgages previously expected is likely to be avoided this winter. In addition, unemployment has been forecasted to rebound to 7.5% by the end of 2021.

Cam Strong, CEO of Invis Mortgage Intelligence stated “Most economists agree personal debt levels will likely worsen in 2021 and the hospitality sector will face record bankruptcies or closures. However, record low mortgage rates should continue to support our housing industry along with an improving employment outcome in 2021.”

Canadians have record high mortgage and consumer credit debt of $2.5 trillion according to Statistics Canada as of September, 2020 however, thanks to the Bank of Canada, the servicing costs on this debt is very low.

The next rate-setting day is Wednesday, December 9th.

With this stable, low interest environment it’s never been a better time for qualifying homeowners to refinance to consolidate debt to improve cash flow, save interest costs and protect their credit scores. Always get advice and a personal assessment of your situation if you need a new mortgage or want to change your current mortgage strategy.

10/11/2020

Have a wonderful and safe weekend everyone. Enjoy giving thanks!

08/31/2020

The process of qualifying for a mortgage should begin before you buy a home.

Start with a conversation with your mortgage broker for advice on downpayment, determining what you can afford, understanding all of the costs involved in buying a home, budgeting, improving your credit, advice on mortgage features beyond rate like prepayment options, refinancing penalties, restrictions and more.

Early advice can save time, money, and stress! Get off on the right foot in your homebuying journey!

08/18/2020

First-time homebuyers - don't leave money on the table. Take advantage of the programs and incentives offered by the federal government that can help you achieve your new home.