Victory Mortgage

12/12/2025

Should we hold a rate for you?

10/23/2024

Lower variable rates arrived this morning with the Bank of Canada rate cut of 1/2%. That was broadly expected in the markets. The fixed rates fell a few weeks ago in anticipation of this cut.

Remember that the Fixed Rates are only temporally linked to the variable. The variable rate is the domain of the political and economic powers of the Bank of Canada. Fixed rates also are affected by Bank of Canada bond prices but are more broadly affected by free market pressures. That is why a drop in the prime rate by the Bank of Canada does not affect the Fixed Rates lock step.

The real take-away is for every 1/2% lower rate it allows the payment on a $250,000 mortgage to drop by $176 a month. Let's keep in touch if you want to know more about the future cuts and how you can be approved with this optimism.

Cheers
Darrell

09/16/2024

Changes coming to insured mortgages Dec 15, 2024. This will have a positive affect on the housing market. Currently we have a Buyer's market and perhaps a more even marketplace is coming.

It has long been a contentious issue the Federal Government controls the maximum price when buying if you have less than 20% down. That has really stung for first time home buyers over the past several years. Especially when the average home price in Victoria approached $1.2M.

While the Government maintains a compulsion to limit what you can buy, they have come to some sense allowing the limit now to be $1.5M. Several years too late but thankful nonetheless. The higher limit gives first time home buyers a fighting chance for home ownership now.

If you want more information please call me.

08/21/2024

I have a big post that isn't typical of me but I wanted to say it finally. I'm not trying to be provocative but this is so easy to say that I hope I don't offend. I wonder if anyone else feels this way about our housing market?

I ask, "Is this a good time to buy?" The reason I wonder is because home prices have stalled the past few years and are tempered to lift as demand increases. Economics call it a negative correlation when home prices move "higher" directly to rates dropping "lower". Or when controls and punitive laws reduce. That is a simple relationship to prove easy enough.

Here is where things get interesting. Can we predict an added turbo boost to valuations going forward if, and when, rent controls and other Government meddling are modified? I studied the data and it is clear from these figures that rent controls and Government housing programs seriously hurt, and not help, the housing market long term. The controls ironically stress the supply of rentals and make it harder, not easier for those renters to find homes.

I witnessed this year for the first time people forced to sell because the renters actually cost them money. These folks were stuck with long time renters paying far too low a price. It is a "no win" value proposition where these same folks could not renew their mortgages at the best rates. This was because the rental income was too low for the banks to approve them. Those miniscule rent increases that were mandated by the Government got them votes but also a very sick economy. We all hope it is clear that home supply, prices and affordability must balance for investors to earn a fair market return on rentals and justify home building.

I share this knowing you pay for the upkeep, financing and taxes increased rising 45% in 5 years when you were bullied by the Government into passing only 10% on to the renters. The Government communicates clearly the heros who sacrifice to save and invest in this great country are the ones doing something wrong. What a topsy turvy way to reward folks who believe in this country and bet on the future.

Investors have walked away from this housing market because of Government mismanagement and over-reach. Period. Sales are flat and overall glum. For those seeking a good time to buy, perhaps now is the low? When bad policies change and incomes rise, and they will, it will boom again in this great province.

Remember it takes time to purge the damage.... So invest long term.

From what I've tried clumsily to question is, "are we at the bottom of valuations?" I believe we very well could be. What will keep you away or up at night is if you think inflation will return with higher rates?? .... Will rent controls continue unabated, with more Government bloating and meddling? Will it finally kill our free enterprise rental market under tonnage of more controls, taxes, fees and penalties?

I can playfully ask this as well. Maybe it is the Government's goal to penalize us??? Have they orchestrated the market to be where "only" the Government can participate in housing supply from now on? MMMM? Kind of like Moscow, circa 1975?

I have a report (link below) for anyone interested. Completed in 2019 by LandlordBC before COVID kicked. It is biased towards the owners however, it is a genuine effort to explain how the rent controls and lack of rental homes are related.

Link below.

https://r.search.yahoo.com/_ylt=AwrOuzmUF8Zmz64E1zbrFAx.;_ylu=Y29sbwNncTEEcG9zAzQEdnRpZAMEc2VjA3Ny/RV=2/RE=1725467797/RO=10/RU=https%3a%2f%2flandlordbc.ca%2fwp-content%2fuploads%2f2021%2f08%2fUNDERSTANDING-BCS-HISTORY-OF-RENT-CONTROLS-AND-TAX-POLICY-LR.pdf/RK=2/RS=O_JnseuduIJFQwiq62ITm7KmeZU-

08/19/2024

Great to see those who dropped into the open house this weekend at the BC British Columbia Aviation Museum. We lucked out with great weather too.

08/15/2024

08/14/2024

https://bcam.net/wp-content/uploads/OpenHouseInformation-1.pdf

04/05/2023

Mexico for conference. 👍🏻

11/04/2021

Here is a quick tip you all want to know. :) Fixed Mortgages are highly correlated to the bond market. If bonds change then mortgages change in the same direction.

This is a picture of the 5 and 10 year Canadian bond yields and the Yellow one (5 year) really went up in the last few weeks. This correspondingly brought the 5 year mortgage rates up significantly.

What does this mean in the long and short term for you? If you have a variable rate or a mortgage coming due in the next 2 years you need to call me. I will show you a way to win big and save money.

Cheers
Darrell McCollom 250 590-5558

Mortgage brokers

07/14/2021

What a year for home growth. Call me if you want to take advantage of the increased equity for those home improvements and consolidations. - Darrell