Mortgages by VK

08/12/2023

https://apple.news/A9yNlHsquQduJ2IZx_PELxA

When George Chalmers looked at how long his mortgage had grown due to rising rates, he saw something he never though he’d see: An infinity symbol where the amortization period should be.

01/25/2023

https://apple.news/AtjZRf5VjRg6Q2qXFfJLBag

The announcement, which had been widely expected by markets, brings the BoC’s policy rate to 4.5%; central bank says it ‘expects to hold the policy rate at its current level’ while assessing the impact of cumulative increases

01/12/2023

Here are three reasons why you should use a mortgage broker vs. going to your bank for your mortgage:

1. Better Rates – Because lenders compete for our business, we get discounted rates based on volume and pass these savings directly on to you.

2. Access to more lenders - When you apply for a mortgage at a bank or credit union, you only have access to the products they offer in-house. With a mortgage broker, you get access to dozens of lenders.

3. Our services are free – the lender compensates us.

Reach out to your Mortgage Broker for your free, no-obligation mortgage appointment.

12/24/2022

10/26/2022

Bank of Canada hikes key interest rate by 0.5 percentage points, raising borrowing costs for sixth time in a row!!!

09/07/2022

Bank of Canada raises the key interest rate by three-quarters of a percentage point, bringing it to 3.25%

The Bank of Canada has raised its policy rate to 3.25 per cent today, marking the fifth consecutive rate increase in 2022. The Bank has stated borrowing costs need to rise to bring inflation back to a target of 2% from the current 7.6%. In theory, higher interest rates discourage consumer spending on goods and services, which in turn reduces demand and lowers inflation. Most economists believe the Bank of Canada will now hold the overnight rate at 3.25% until the end of 2022 to cool domestic inflation and bring the economy back to balance without triggering too severe a recession or stagflation. However, with two more rate announcements remaining in 2022 (October and December), it is quite conceivable that another rate hike by our central bank may be in store before the year closes out.

The effect on house prices across Canada because of soaring interest rates according to Phil Soper, President and CEO of Royal LePage is "We have significantly reduced our outlook for 2022, however home prices are still forecast to end the year higher than 2021 and well above pre-pandemic norms. Following record price gains across the country, numerous markets in southern Ontario and parts of Greater Vancouver - specifically those that saw some of the highest price appreciation over the last two years - experienced a second quarter decline (approximately 6% Nationally, but sharper declines in British Columbia and Ontario). I expect this highly unusual downward movement in home values will be short-lived as the country's chronic housing shortage has not been resolved. Given our exceptionally low level of unemployment (4.9% currently), growing population with hundreds of thousands of new Canadians arriving in Canada this year and miniscule rate of mortgage default, we expect that the second quarter of 2022 produced most of the price declines," continued Soper.
While home prices have dropped thus far in 2022, according to Robert Hogue, Assistant Chief Economist at RBC, “National home resales have also fallen 31% in the first half of 2022 and RBC projects that National home resales will fall 23% this year, and a further 15% in 2023.”

The next rate-setting day is October 26, 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.

09/05/2022

A new survey found that more than half of Canadians are nervous about being able to afford their mortgage payments as interest rates rise.

However many are still not budgeting for them -- only 39 per cent of Canadians include mortgages in their monthly budgets, despite it being one of their biggest expenses.

Read more here: https://bit.ly/3emdBkW

08/11/2022

07/21/2022