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Category Archives: Market Trends

Bank of Canada is set to make a rate announcement this week


The Bank of Canada is set to make a rate announcement. Stay tuned for updates!

It’s always difficult to predict where rates are heading, but the Bank of Canada (BofC) is set to make a rate announcement this week and it may raise rates. Why? Everything is humming in the economy. Rates go up because of expectations for inflation. In simple terms, the BofC raises rates to help keep inflation low.

Here’s some expert information to help you with your mortgage:

1. One mortgage lender that we work with, noted that 47% of all mortgages in the Canadian marketplace are coming up for renewal in 2018. If your mortgage is renewing in 2018 consider renewing early, even if there is a slight penalty to pay. This is especially true if you’re carrying credit card or line-of-credit debt that you’re not paying off monthly, and can consolidate that debt into the mortgage.

2. If you have a variable rate mortgage, stay the course (unless of course this is causing you anxiety). Remember the BofC doesn’t raise the different bank prime rates. Financial institutions adjust their own prime lending mortgage rates. You likely have a variable rate mortgage that’s at the prime rate minus a certain percentage. You’re probably paying under three percent. If you lock into a fixed rate term, you’ll be locking in at over three percent, or possibly a half percent higher.

3. If you are buying a house this year, talk to us as soon as possible. With the new mortgage changes your old mortgage pre-approval may not be valid anymore. Check in with us to ensure you can still qualify for the mortgage that you want!

Banking Regulator sees potential risks; Current home values are stabilizing in most regions

    Banking regulator sees potential risks in high home prices, debt loads. The Office of the Superintendent of Financial Institutions (OSFI) is set to finalize changes to residential lending guidelines (B-20) by the end of this month. They are proposing changes that will see a ‘stress test’ applied to those borrowers buying a home… Read More

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… Read More

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

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