instagram
facebook
twitter
you tube
google+

Category Archives: Market Trends

Bank of Canada influences on mortgage rates

Bank of Canada influences on mortgage rates

Couple with the text, "We own a house and still have a hard time making ends meet, but we've consolidated our debts and now things are better. What are you doing?"

A few other things to consider: Bank of Canada big picture influences on mortgage rates

1. Although the unemployment rate is at historical lows, the number of people looking for jobs is lower and wage growth is running at 2.7 per cent annually, which is below the 3.0 percent that has been consistent when there’s no labour slack on the market (Bank of Canada latest Monetary Policy Report.
2. Canada’s economy is growing super slowly – would you be happy with a growth in your investments by 2-3 per cent annually? We’ve lost our competitive edge on the global market. Our minimum wage increases may help, although I believe that it’s virtually impossible to own a home if you’re paid minimum wage. Growth is supported by population growth, including immigration. We’re also stifling innovation through further-and-further regulation. Is inflation really going to be a problem? We don’t believe it will and that the Bank of Canada should take a long pause before another rate hike.
3. There have been four interest rate hikes by the Bank of Canada since July 2017. Can another one be expected? Current 5-year fixed rates are at about 3.19 per cent to 3.79 per cent depending if you are buying or refinancing. You can still get a variable rate at prime – 1% (2.7%) or lower depending if you are purchasing or refinancing. We can walk-you through the analysis on Variable-rate Mortgage versus Fixed-rate Mortgage. The main reason for choosing a Variable-rate Mortgage would be if you wish to pay-off your mortgage sooner than the current amortization and you will be making extra payments towards principal in the next five years.
Here are some recent links to news articles that you may find interesting:
Call me or email me if you have any questions! We love helping people in Guelph, Kitchener-Waterloo, Cambridge and surrounding regions with technically-supported honest mortgage advice!
© Sandra Lastovic is the Principal Broker with the Mortgage Centre in Guelph. With over 15 years’ experience and holds a M.Sc. from the University of Guelph. She was recently ranked at the top 75 agents in Canada by The Canadian Mortgage Professionals annual survey and 2017 Most Influential Women in the Mortgage Industry. She can be reached at 519-763-3900 x1001 or www.skipthebank.ca™

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

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?

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

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?

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