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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!

OSFI Tightens Supervisory Expectations for Mortgage Underwriting

OTTAWA ─ July 7, 2016 ─ Office of the Superintendent of Financial Institutions The Office of the Superintendent of Financial Institutions Canada (OSFI) today released a letter to all federally regulated financial institutions (FRFIs) reinforcing its expectation that federally regulated financial institutions engage in prudent underwriting of residential mortgage loans. With Canadian household debt levels… 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

Trends in 2016 which will impact mortgage borrowers

Trends in mortgage financing that have impacted buyers and sellers in 2015 The overall sentiment of mortgage lenders, be it bank’s or wholesale banks, is more restrictions to lending money and this will continue for 2016. However, if you know these key factors you can use them to your advantage. Working with a seasoned mortgage… Read More

Canadian highlights from TD bank

Here are some highlights that come from TD Economics about Canada: -Economic data this week supported the view that the Bank of Canada will remain on hold at next week’s FAD meeting. -Despite the disappointing headline, the August manufacturing data released this morning fit comfortably with our estimate of real GDP growth of 2.5% annualized… Read More

Mortgage Rates & Economic Outlook

Mortgage rates and the Economic outlook – you can’t have a good discussion of one without the other. As hard as this is to write, it looks like the five-year fixed mortgage rate will be stable at around 2.70% for some time. I write this knowing that as soon as this hits the printer that… Read More