If you’re a person who likes to run their own mortgage scenarios and look at options yourself, then you’ll love our mortgage app. It’s super easy to work with and it lists many of the institutions we do mortgages for and their rates. Here’s the link to download it to your phone!
https://www.mccapp.ca/app/sandra-lastovic
There has been lots happening in the real estate and mortgage world, so here is a quick summary of the most important things to know right now:
Mixed News on Future Home Values – Uncertainty (what else is new?):
Canada Mortgage and Housing Corporation (CMHC) predicts a decrease in home values by up to 18% in key markets like the GTA and Vancouver. However, other studies show smaller communities are forecast to hold home values. Why? As dynamics change about working in offices in major urban centres, we’ll likely see more people work from home permanently. The need to be close to work will decrease and those people who live in GTA may find it more affordable to work from communities where home prices are lower and it’s easier to get into the housing market.
Keep in mind that real estate is based on supply and demand. There is obviously less supply but demand is also less. In our area – Guelph, K/W, Cambridge, and surrounding areas – we’ll likely see home values hold. So don’t wait for them to depreciate later this year! Especially in lower price ranges < $600K.
Here’s an excellent podcast on this very topic: Financial Post Down-to-Business https://podcasts.apple.com/ca/podcast/down-to-business/id1460294675?i=1000475168558
Mortgage rates: 
  • Do something NOW if you have a fixed rate mortgage over 3%
  • Hang in there if you have a variable rate mortgage (VRM)

For those clients who have greater than 3% on a fixed rate mortgage– please be sure to contact us as we’re recommending that you renew early to get today’s rates. If you are struggling with debt and making ends meet, know we’re always here to help and there are good solutions to get you into a better spot financially!

We’ve had several calls from clients who have excellent rates on VRMs whose mortgages are coming up for renewal in the next six months. As the mortgage prime rate is currently at 2.45% we have clients who have minus 0.7%. What to do? There’s no need to rush into your mortgage renewal. Now’s your chance to increase your mortgage payments and pay down on the principal. Switching to a new VRM won’t give you as good of a rate.

New guidelines for people purchasing and need default insurance – do a check-in on your mortgage pre-approval

You’ve likely read that the qualifications for insured mortgages (mostly affecting people with <20% down) changed on July 1. It means people without a stellar credit history and a lot of credit card and line of credit debt may be delayed in purchasing. For those people who were also buying at the top end of their pre-approval amount, we also recommend checking in with us to ensure the pre-approval is still valid. While only CMHC has changed their guidelines, and Canada Guarantee and Genworth haven’t, there may be a small window to “sneak in” under the “old rules”. However, I believe most mortgage lenders will bend to the new guidelines for risk management. 

Remember that we’re always here to help! It’s super easy to connect with us! Just click on the link below and schedule a call!