Spring Is Here!
The new mortgage rules have now been in place for only a few months and it’s already impacted housing across the country. Canada’s national average home price was down 5 percent and sales volume was down 17 percent in February from a year earlier. There was also near a 7 percent decline in the amount of transactions between January and February this year. This is the second month-over-month decline and the lowest reading in nearly five years.
The number of sales in BC has also plummeted since new federal mortgage rules took effect at the beginning of the year, however; it did not stop prices from rising. Average prices were up almost 9 percent in February from a year earlier. Sales of condominiums were impacted far less. The average price of a condo in Greater Vancouver rose over 27 percent from February last year. It may only be a matter of time before the prices of condos moderates but don’t hold your breath as the average prices rose almost 3 percent from the beginning of the year.
Mortgage Rate Updates
Mortgage rates have remained primarily stable over the past few months and the Bank of Canada meets again to set the rate on April 18th. I’m predicting the bank will not make any change to the rate. In fact we may see some downward pressure on mortgage rates. The uncertainty of trade relations, the impact of the new mortgage rules and the introduction of new housing policies have taken the steam out of rising rates. That being said, the US Fed raised rates on Wednesday and signals that more hikes are coming this year.
Qualifying today for a prime rate mortgage from a bank has never been harder but some of our lenders have relaxed lending criteria which can really make a difference in getting that approval. If your bank said ‘no’, then give me a click: tony@tonyiannetti.ca
It’s of no surprise, but the demand for private money has increased significantly over the past year. Rates for 2nd mortgages can be as low as 8.45% with only an appraisal being required. Taking a 2nd mortgage may be the ideal solution to access equity because it will allow you to preserve and keep the existing 1st mortgage in place. Have a question or need a rate quote: click here: tony@tonyiannetti.ca
Some best rates to mention:
- 5 year fixed – insured: 3.34%
- 5 year variable – insured: 2.50% (Prime - .95%)
- 5 year fixed – conventional: 3.59%
- 5 year variable – conventional: 2.90% (Prime -.55%)