Mortgages by Nick

01/27/2022

The Bank of Canada (BoC) announced that they will be maintaining their current key policy rate at 0.25%. There will be no change in rates for January 26th, 2022.

BoC did state in their report that interest rates will need to increase. The next scheduled date for announcing the overnight rate target is March 2, 2022.

An increase in interest rates will have effects on first time homebuyers, change up buyers, investors and the economy as a whole.

With rates remaining unchanged there is still time to lock in these historically low variable rates.

I am a call / DM away from helping you achieve these amazing rates!

01/14/2022

Happy Friday everyone!

I've been busy behind the scenes and wanted to jump on my Facebook to let you about my new Instagram soft launch!
by.nick

Please give it a follow! I will be promoting the educational information regarding mortgages and will be teaming up with local realtors for informative videos!

12/09/2021

"Bank of Canada Sticks to Rate-Hike Forecast of April at the Earliest"

We see that the Bank of Canada is sticking to its script that rates should remain low until the “middle quarters” of next year.

Experts are suggesting that the first BoC rate hikes to come anytime between April and September, although odds are currently pointing to earlier rather than later.

What do you think will happen to the housing market when the BoC starts to hike the rates between that time?

https://www.canadianmortgagetrends.com/2021/12/bank-of-canada-sticks-to-rate-hike-forecast-of-april-at-the-earliest/

Despite bond markets predicting interest rate hikes as early as the first quarter of 2022, the Bank of Canada today stuck to its script that rates should remain low until the "middle quarters" of next year.

12/06/2021

Monday Market Update:

"TRREB reported 9,017 home sales in November 2021 – lower than the 9,783 posted in October but still up 3.3% from November 2020. Meanwhile, the average selling price for all home types combined rose to $1,163,323, up by 21.7% year-on-year"

However, it is showing that new listings were down by 13.2% year-on-year, with double-digit declines for low-rise home types and condominium apartments.

On top of the housing market, we are also seeing that fixed rates are moving up again. This is something to keep your eye out for moving forward when purchasing a home and obtaining a mortgage.

https://www.mpamag.com/ca/mortgage-industry/market-updates/toronto-home-sales-whats-happening/318910

Decline in new listings shows demand continues to outstrip supply

12/02/2021

Reports from Equifax show "the average new mortgage being taken out by today’s borrowers surged to $360,000 as of the third quarter"

With the increase of the new average mortgage, consumer debt is rising. The "total consumer debt, including both mortgage and non-mortgage credit, topped $2.2 trillion, a 7.8% increase from Q3 2021"

With the increase of total consumer debt, we would assume that delinquency rates would increase. Equifax is reporting the opposite, stating that the delinquency rates are continuing to fall.

This leads to this question: Are we likely to see a rise in delinquency in the coming months?

What are your thoughts? 💭

https://www.canadianmortgagetrends.com/2021/12/average-new-mortgage-size-surges-18-in-third-quarter-equifax/

The average new mortgage being taken out by today's borrowers surged to $360,000 as of the third quarter.

12/01/2021

"[We see] insured mortgage balances just keep shrinking (down 5.3% year-over-year, according to OSFI data) while uninsured mortgage balances surge (+19%)"

The article reviews what is causing this growing gap between insured and uninsured mortgages and what it means for the future of the market.

In the end, it'll take "a major housing downturn to reveal the answers."

https://www.canadianmortgagetrends.com/2021/11/the-changing-makeup-of-the-mortgage-market/

Few realize how dramatically Canada’s mortgage insurance market has changed.

11/30/2021

Tuesday Tip of the Day! 💭
What is the difference between fixed and variable mortgage rates?

Fixed Mortgage Rates are for the duration of the mortgage term. Mortgage interest rates and payments are "fixed" for the term.

Variable Mortgage Rates tend to fluctuate with the market interest rate, known as the "prime rate". Mortgage payments either fluctuate with fluctuations in the prime rate, or the interest portion of the payment varies.

There tend to be pros and cons between the both depending on if you are a "set it and forget it" or willing to risk it depending on the market.

For further information on the difference between the two, I have placed the link below! For any questions on your mortgage needs please don't hesitate to contact me.

https://www.ratehub.ca/variable-or-fixed-mortgage

One of the first decisions homebuyers and mortgage shoppers face is whether to select a fixed rate or variable rate mortgage.

11/29/2021

"Is Canada's housing market about to heat up?"

Based on my recent posts, rates are slowly going up and with the BoC announcing that rates will be increasing in the late 2nd Quarter, there is speculation about the possible future trajectory of Canada’s housing market.

What are your thoughts moving forward in the housing market?

https://www.mpamag.com/ca/mortgage-industry/industry-trends/is-canadas-housing-market-about-to-heat-up/318148

The possibility of a rush to take advantage of soon-to-end low rates has been debated in recent weeks

11/28/2021

"A total of 4,280 home sales took place in the region last month, a level that was 7% above the 10-year average for October. Single-family sales [totaled] 1,112 units sold (14% below the 10-year average), while condos represented 3,168 transactions (17% above the 10-year average)"

A good little Sunday read as we are closing out the month of November. Stay warm and safe during this snowy day.

If you do have any questions regarding mortgages please don't hesitate to contact me!

https://www.mpamag.com/ca/mortgage-industry/market-updates/gta-home-sales-accelerating-amid-depleting-inventory/317992

Benchmark prices are nearing all-time highs, industry groups say

11/26/2021

This is huge... "Approximately $1 trillion in personal wealth will be transferred from one generation to the next in Canada between 2016 and 2026, according to estimates, with roughly 70% of that in the form of financial assets..."

A very good read to keep in mind what to expect in the future as this will translate towards the housing market. This will be the biggest intergenerational transfer of wealth in Canada. It will take place over the next few decades to come.

How will this affect the housing market for the next years to come?

https://www.manulifeprivatewealth.com/ca/en/viewpoints/investor-education/preparing-your-family-for-the-great-wealth-transfer

The greatest intergenerational transfer of wealth in Canada’s history is set to take place over the next few decades, but are high-net-worth families prepared for the shift?

11/26/2021

"A sudden influx of investors in the housing market likely contributed to the rapid price increases we saw earlier this year..."

As we know Real Estate is generally a great investment option. Always generating ongoing passive income. Based on TransUnion, BoC calculations chart we see that house investors and repeat homebuyers have jumped dramatically from the beginning of the pandemic. Proving that there is a great investment opportunity. But, with the house prices and mortgage sizes increasing, along with the lack of inventory, this leads to the question: Are the housing market risks growing? "As home prices and mortgage sizes have increased, the amount of ‘wiggle room’ for recent purchasers has decreased, making them more vulnerable to changing economic and rate conditions..." Check out the link below to read more!

Please ensure to reach out to me regarding your mortgage needs. I am always here to help educate and guide you towards the appropriate mortgage.

https://www.canadianmortgagetrends.com/2021/11/influx-of-housing-investors-driving-up-prices-and-adding-to-market-risk-boc/

Over a quarter of all home purchases in 2021 were made by a buyers who already own a home—investors in many cases—according to data from Teranet.

11/25/2021

"Leverage is a powerful thing. That is until you run out of it..."

It is crazy to think with over 6 figures of income and a credit-worthy lender you would be able to qualify "for almost three times the mortgage they did in the early 1980s.." With the unpredictable market, many have felt they are not able to obtain a mortgage. But, never underestimate the power of a Mortgage Agent and what I can do to help get you qualified for a mortgage.

https://www.canadianmortgagetrends.com/2021/11/real-estates-double-edged-sword/

It's easy to forget the power of leverage. With $100,000 of income, a creditworthy borrower can now qualify for almost three times the mortgage they did in the early 1980s.