Latest Market Update - March 28 2025

Spring Rate Sales Are Here!

Mortgage rates have dropped to levels we haven’t seen in years! Fully qualified borrowers can now secure a 5-year fixed or variable rate below 4%.  If you have a mortgage renewing soon, then consider getting a rate quote to help make your bank match a fantastic rate. 

Unlock the Power of Private Alternative Lending and take advantage of some of the best rates available, with loan amounts starting at just $50K:

• FIRST mortgages as low as 5.99%, 1% lender fee

• SECOND mortgages as low as 8.99%, flat $500 lender fee

• Borrow up to 80% of your home’s value
  

With over 30 years of lending experience, our team makes approvals fast and hassle-free. We take a common-sense approach to meet your unique needs, leveraging our extensive network of individual lenders and MICs across BC.

The Bank of Canada meets again on April 16th, and another ¼ point rate drop wouldn’t be a surprise. Now is the time to secure your financing!

Latest Market Update - March 4 2025

Trade Wars: Economic Impact & What You Can Do

The Bank of Canada is set to announce its second-interest rate decision of the year on March 12, and speculation is growing about the size of the rate cut to help the economy absorb the shock from the U.S. President’s new tariffs. Markets are anticipating a 50-basis point cut, marking the seventh consecutive rate reduction. If this happens, variable mortgage rates could drop below 4% for the first time in years.

Fixed mortgage rates are also trending downward, and we expect the 5-year fixed rate to fall below 4% soon. These lower rates are improving home affordability, offering relief to borrowers and the real estate market. But the big question remains: Will it last?

Trade wars have far-reaching economic and political consequences, with few real winners. Some of the key impacts include:

• Higher prices for consumers

• Economic slowdown

• Job losses

• Retaliatory tariffs from other countries

• Strained international relations

• Volatility in financial markets

While certain domestic industries may see short-term gains, the long-term effects of trade wars are generally negative for everyone.

How To Protect Yourself

Here are some financial strategies to navigate uncertain times:

• Minimize debt: Prioritize paying off high-interest debt and build liquidity. Consider refinancing your mortgage if needed.

• Cut unnecessary expenses: Reduce discretionary spending to improve financial flexibility.

• Postpone major purchases: Avoid large financial commitments until the economic outlook stabilizes.

• Support Canadian businesses: Buying local products helps sustain the economy.

• Rebalance your investments: Adjust your portfolio and increase cash reserves to take advantage of buying opportunities.
  

Alternative Lending & Mortgage Options

With interest rates declining across the board, alternative lending rates are also dropping. Second mortgages are now available with rates as low as 7.99%, offering quick and accessible financing options.

“Now more than ever, financial preparedness is key. Taking proactive steps can help you stay ahead in an uncertain economic landscape.”

Did you know? Last year saw the slowest new condo sales in the Greater Toronto and Hamilton Area since 1996.

Latest Market Update - February 6th 2025

Is an emergency rate cut by the Bank of Canada coming soon?

In recent months, Canada has experienced a notable decline in interest rates, a trend driven by various economic factors and policy decisions. The Bank of Canada has implemented several rate cuts to stimulate economic growth amid challenges such as potential trade conflicts and global economic uncertainties.

Last week the Bank of Canada reduced its key policy interest rate again by 25 basis points, bringing it down to 3%.   The Canadian economy has shown mixed signals in response to these rate adjustments, but overall, economic growth challenges remain.    

Variable rate mortgages have benefited from the fall in rates, but fixed mortgage rates have not changed much since last October. 

Alternative lending rates have also fallen in recent months, and 2nd mortgage rates are now being offered under 9%.   Don’t be stuck with unpaid bills.  Our processes to get you the money you need have never been easier.  

Great rates are now being offered by major lenders:

• 5 years fixed as low as 4.89% 

• Variable rates as low as 4.20%

Did you know

The Bank rate back in June was 5% compared to 3% today and that variable rate mortgage borrowers are now saving on average $120 per month per $100k borrowed. 

Latest Market Update - January 7 2025

A New Year Brings a New Tax

The BC NDP government has introduced a Home Flipping Tax effective January 1, 2025. This provincial tax is distinct from the existing federal home flipping tax and is unlikely to significantly address housing affordability. Unfortunately, this policy may inadvertently deter housing transactions, further tightening supply in an already constrained market.

The details: 

• The tax applies to income from sales of residential properties, presale contracts, or assignments owned for less than 730 days (two years). This includes properties bought before January 1, 2025, if they are sold on or after that date and owned for less than two years.  

• The rate is 20 per cent for sales within the first 365 days of ownership, gradually decreasing until it is eliminated at 730 days.  

• This tax applies to any person or entity (individual, corporation, partnership, or trust) selling property within BC, regardless of residency.  

Exemptions if available are subject to specific conditions and filing requirements.  

Did you know: 

Most monthly mortgage payments today are now on average 25% lower than they were 1 year ago

Latest Market Update - December 12 2024

Just in Time for the Holidays

The Bank of Canada has dropped interest rates by another 50 basis points, marking the fifth consecutive cut since June 5th. With inflation growth easing and the economy continuing to struggle, speculation is already building for another rate reduction during the next announcement on January 29.

Falling rates are having a noticeable impact on the real estate market. In Greater Vancouver, home sales surged by 28% last month compared to the same time last year, following a 30% increase the month prior.

Adding momentum to this trend, new mortgage lending rules coming into effect on December 15 will allow homebuyers to purchase with as little as an 8.5% down payment and extended amortization periods of up to 30 years. Combined with increased competition among banks, some 3-year fixed mortgage rates are now as low as 3.99%.

For those looking to borrow smaller amounts, we love helping with second mortgages. Rates have dropped to as low as 9.49%, and you can access up to 85% of your home’s equity.

Wishing you all a joyful holiday season and a fantastic 2025!