instagram
facebook
twitter
you tube
google+

Tag Archives: First Time Home Buyers

Mortgage rates and real estate market stability

Mortgage rates and real estate market stability

Street of residential houses

 

Expect stability in 2019: mortgage rates and the real estate market. If you’re recovering from a good party on New Year’s Eve, here is something to sooth your real estate woes. But if you’re like me, I had trouble staying up past 10 pm and am ready for a new and profitable year!

With all the volatility in the last year around mortgage rates and the real estate market, we can expect stability in 2019.

IT’S A BALANCED MARKET SO IF YOU’RE A FIRST-TIME BUYER OR A REAL ESTATE INVESTOR NOW’S YOUR OPPORTUNITY.

In the last three years, sellers have had the upper-hand in the market. If you had a property to sell, and it was reasonably priced it would sell in no time. There are still hot spots in the market especially lower-priced homes or condos under $400K. That’s because of the demand from three key cohorts:  first-time buyers; real estate investors, and those down-sizing. The new mortgage rules have affected these cohorts the most. Many self-employed individuals are also having difficulty getting approved at a bank.

The 2018 real estate market ended with a whimper, but there are two converging trends that may give the housing market a boost in 2019. The unemployment rate is at historical lows and when people are working they are buying or able to refinance and pay their debts off. The Bank of Canada (BofC) is also slated to keep rates steady into 2019 because the prospect for inflation is low (have you seen the cost of gas lately?).

There’s also been a lot of attention placed on consumer debt loads. With the new mortgage rules borrowing has slowed and home appreciation is on a more sustainable increase. First-time buyers are also benefitting from their parents, as a massive transfer of wealth is happening both in terms of gifted down payments and co-signing on mortgages.

WHAT SHOULD I DO WITH MY MORTGAGE?

If you’re renewing your mortgage it may make sense to pay the penalty and renew early especially if you’re looking at consolidating debts. Your improvement in cash flow will offset the penalty so it’s worth considering. Five-year fixed rates are currently just under 4% and we can typically get at least a .5% lower on a variable rate mortgage (VRM). So does it make sense to do a variable rate mortgage? About 40% of our clients have a variable rate mortgage.  Even if rates go up this year by .5% you’re still further ahead especially if you can make a pre-payment on your mortgage while rates are low.  I currently have a variable rate mortgage so I track this carefully for myself and when I’m locking in I’ll let you know too.

IF YOU KNOW SOMEONE WHO’S BEEN TURNED DOWN BY THEIR BANK – TELL THEM TO CALL US. WHY? WE CAN PROBABLY GET THEM APPROVED.

As a mortgage broker, not only do we do mortgages for chartered banks like TD and Scotia, and credit unions like Meridian and Your Neighbourhood Credit Union, we also have access to lenders that will lend to borrowers even if they don’t meet the usual criteria. Have your friends or family come to us first, as it’s our goal to get the best mortgage that the borrower can qualify for.

WORK WITH EXPERIENCED PEOPLE

As with any industry, we’re seeing more and more people become mortgage agents because they think they can make a quick buck or some extra money. This in fact has hurt many borrowers because mortgage-financing is more complicated than ever before. We get calls on a regular basis from people who have tried getting financing and we promised one solution only to find out that it’s not available.

HAVE A HAPPY NEW YEAR! PLEASE CALL US IF YOU HAVE ANY MORTGAGE-RELATED QUESTIONS, WE LOVE TO HELP!

SANDRA LASTOVIC, PRINCIPAL BROKER

lastovic.s@mortgagecentre.com, 519-763-3900 ext. 1001


 

Supply and Demand: The best time to buy a house is sooner than later

Supply and Demand: The best time to buy a house is sooner than later

Supply and Demand: The best time to buy a house is sooner than later: Supply and demand is a challenge for 2018. Over the years, history has shown that demand for new houses usually exceeds available supply. That’s why houses continue to rise in cost. Consequently, ‘now’ is usually the best time to buy. Talk to us,… Read More

What to do with your mortgage given the rate increase by the Bank of Canada

What to do with your mortgage given the rate increase by the Bank of Canada

What to do with your mortgage given the recent rate hike by the Bank of Canada? We were expecting the Bank of Canada (BofC) to increase its overnight lending rate which has affected most of the different banks’ prime rates. This rate increase occurred a few days ago and will have a direct impact on your… Read More

Things to know when buying or selling a home in Guelph, Kitchener, Waterloo and Cambridge

Things to know when buying or selling a home in Guelph, Kitchener, Waterloo and Cambridge

Things you’ll need to know when successfully buying or selling a home in Guelph, Kitchener, Waterloo and Cambridge. Get pre-approval before you list your home – requalify your mortgage. Other considerations are: Job changes Credit history changes Calculate the equity you’ll have Budget to help you keep on track Do a Buy/Sell Calculation Contact us… Read More

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

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

Housing Market Outlook 2015 and projection for 2016

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