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Category Archives: First time home buyers

Economic Growth; The OECD has raised expectations for Canada. Should we expect interest rates to continue to rise?

The Organization for Economic Co-operation and Development has raised its expectations for economic growth in Canada this year compared with a June forecast.

The Paris-based economic think tank says it now expects the Canadian economy to grow by 3.2 per cent this year, best in the G7. That is up from its forecast in June for growth of 2.8 per cent. – The Canadian Press

There are several factors that lend to economic growth. As professionals in the real estate industry we naturally look at certain information; rising income and job stability, causing inflation. A thriving real estate market, like the one we have seen over the last year and a half. Lastly, record low interest rates like we have seen over the last 5-7 years. We have enjoyed the ride so far, but Canada’s economic growth is healthy and on the rise, so now we wait to see how interest rates will follow.

Knowing that the BofC adjusts interest rates to either stimulate economic growth, or follow trend with it, we are likely going to see rates continue to rise after their next meeting on October 25, 2017. With the potential rate increase in October comes proposed changes to regulations once again. This would see that all mortgages, whether high ratio (<20% down payment) or conventional (>20% down payment), will be qualified in a relatively similar manner. We now have “stress test” qualifying for high ratio mortgages, currently qualifying at the benchmark rate of 4.84%. If the new regulations come into play we will see conventional mortgages qualified at the contract rate plus 2%.

If you have been thinking of accessing equity in your home, or would like to refinance your home before these regulations are put into place, I would be happy to help! Now is the time to take advantage of your borrowing power.

Sandra Lastovic | 519-763-3900 x1001

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Changes to Canada’s Housing Rules

Over the last few days, I’ve fielded calls from concerned clients who are buying a house and want to know the impact of the recent regulatory changes to Canada’s Housing Rules that come in to effect in late October. I’m sharing a statement provided to me yesterday from our industry lobby group Mortgage Professionals Canada. Also,… Read More

What can we expect in the housing market for the rest of 2016?

Is Guelph and surrounding area in a housing bubble? The general definition we use to describe a housing bubble is two to three consecutive years of unsustainable price appreciation. Unsustainable price growth would include a 10% or more price increase year-over-year. According to The Guelph and District Realtor’s Association (GDAR) as of September 9, 2016… Read More

Should I buy a house now or wait until I have more money saved?

Canada Mortgage Housing Corporation (CMHC) has some interesting statistics available on home purchases. It normally takes people nine to fourteen months to decide to move. However, once someone has made the decision, they normally act promptly when they see a house they’d like to buy. For the first time in 2015 more first time home… Read More

Negotiating a better mortgage rate

Everyone who needs a mortgage wants the best rate. However a good rate is only one way to save money on a mortgage. Adjusting payment schedules, creating flexibility on the amortization or paying-out consumer debt are cost-saving strategies often overlooked by most people. Focusing only on the mortgage rate and finding a rate that’s “too-good-to-be-true”,… Read More

Housing Market Outlook 2015 and projection for 2016

New Home Market In the Kitchener-Cambridge-Waterloo (KCW) and Guelph areas, housing starts will be lower in 2016 and 2017 compared to 2015. There will be a greater decline in apartment starts (both condominium and rental) in KCW however, single-detached starts will increase slightly as the demand will remain strong and more land will become available… Read More

More money down required if you’re buying a home…but only if it’s more than $500K

If you’re buying a house for more than $500,000 you’ll need to have more money saved for a down payment. Outside of Toronto and Vancouver, most first-time home buyers can purchase a nice home for less than this. However, lenders are likely to pass future costs for mortgages down to consumers, find out more from… Read More