January 30 2024 - Latest Market Update

Is Now the Time to Refinance Your Mortgage?

If you’re struggling with too many monthly payments and have multiple debts that you would like to consolidate under a single interest rate, refinancing your mortgage or accessing your home equity may be a good option to consider. And it couldn’t be easier.

Fast, Simple, Truthful

Our experts at Mortgage Matters closely monitor the latest market trends and economic conditions that impact interest rates and the housing sector. The Bank of Canada maintained it’s interest rate at 5% last week and is forecasting weaker Economic growth over the next few years.  With growth slowing and inflation gradually easing, we stay up-to-date on how these trends may present opportunities for refinancing or adjusting your mortgage strategy.

In our current environment, many banks are enticing clients to refinance under terms that may not be ideal. Our market expertise allows us to present you with the best options tailored to your financial goals and the current economic landscape.

At Mortgage Matters we pride ourselves on advice that’s simple and practical, making the process easy for you to understand. With years of experience and partnerships across the mortgage sector, we can help determine if now is the right time for you to refinance or adjust your approach.

• APPROVAL in less than 24 hours

• QUICK Funding

• REDUCED fees

• 2nd mortgages up to 85%

To determine your best mortgage refinancing options, contact us today.

Did you know: That the population of Surrey is expected to surpass Vancouver within 5 years?

January 2024 - Latest Market Update

Great news to start the New Year

Mortgage rates have recently eased, and the interest rates overall are expected to fall throughout 2024.  This is comforting news for the mortgage borrowers facing a renewal later in the year.  Easing mortgage rates may be good news for homeowners, but not so much for those looking to make a home purchase.  

“Metro Vancouver’s housing market closed out 2023 with balanced market conditions, but the year-end totals mask a story of surprising resilience in the face of the highest borrowing costs seen in over a decade. ”

— From the latest REBGV stats

It has been many months since a 5-year fixed rate mortgage has been under 5%.  Lower mortgage rates will likely push real estate prices higher and not improve affordability.    Beyond the season changes, Inventory levels of available homes for sale are also falling.  It’s one of the primary reasons we escaped a market correction last year.  Bottom line; if you are considering buying a home, do it quickly.  

Need to get access to some of your home’s equity and you don’t want it to affect the great rate on your existing mortgage, then consider a 2nd mortgage.  You can be approved in less than 24 hours and many lenders are offering special incentives and quick funding options.  

November 2023 - Latest Market Update

Is It Downhill For Mortgage Rates?

The decades of high-interest rates have done the job. The impact of the higher rates is finally working to ease inflation.  The US, UK, and Canada to name a few are reporting easing inflation numbers and are now starting to be challenged with economic growth.   The consensus view of the Economists surveyed by Bloomberg last month predicts that rates in general will be 40% lower by no later than mid-2025.  

These economists also highlight concern over Canada’s looming wall of mortgage renewals upcoming over the next years.  There will be hundreds of billions in mortgages renewing at much higher interest rates which will, without any doubt have an impact on the Canadian economy.

Is your mortgage maturing soon?  Contact me before you lock into a high rate.

DID YOU KNOW?

The BC government has come out with new legislation intended to improve the zoning rules and allow townhomes, triplexes and laneway homes, on single-family lots – effective June 2024. In municipalities with more than 5,000 people, the new rules will allow for the following:

• Three units on single- or two-family lots less than 280 square metres (about 3,010 square feet)

• Four units on single- or two-family lots greater than 280 sq. m.

• Six units on lots greater than 280 sq. m. near “transit stops with frequent service”

Century 21 In Town Realty has announce a partnership with:

Our clients can now receive complimentary junk removal with every listing.

Click her for more details.

IMPROVED MORTGAGE SOLUTIONS: 

• Common sense approvals with lenders that think outside the box and can get you prime rates. 

• A ‘No monthly payment’ options. 

• You can access your home equity of up to 85% of appraised value. 

• Quick approval – often within a few hours.

• Improved rates and fees.

October 2023 - Latest Market Update

High Interest rates make for a balanced market.

The high interest rates are having an impact, and the housing market is feeling it.  From the latest REBGV monthly stats: “The month-over-month price gains seen earlier this year abated in the Metro Vancouver housing market in September due to a seasonal decline in sales and a modest increase in inventory levels across the region.”

Locally, home prices have remained quite resilient but as long as rates remain high, there will be downward pressure on prices.  These interest rate pressures were very apparent in two Canadian Cities last month.  Sales in Toronto were down very significantly but compared to Calgary their sales were at record highs. Vancouver has avoided a downturn and there are now indications that interest rates may have reached their peak – can you imagine what happens to housing values when rates start easing! There’s a saying I like: ‘buy when everyone is selling and sell when everyone is buying’.   

Banks have also felt the impact of higher rates.  Mortgage volumes are down significantly and many of the banks are already beginning to explore ways to make up for the falling revenue.  I’m not sure if there has ever been a more challenging time to borrow money from a bank.     

We can help and here are some NEW solutions:

• Common sense approvals with lenders that think outside the box and can get you prime rates.   

• A ‘No monthly payment’ options.   

• You can access your home equity of up to 85% of appraised value. 

• Quick approval – often within a few hours. 

• Improved rates and fees.

Did You Know?

In BC: About 3,000 eligible homeowners will be offered forgivable loans of up to $40,000 to help pay for construction costs for basement suites, garden suites, or laneway homes on their property.   We have plenty of lenders that can help with this type of project. 

Looking to learn more? Contact Tony today.

August 2023 - Latest Market Update

The Summer Sizzle

Mortgage rates have increased to a new summer high since the last rate increase by the Bank of Canada last month.   Where do we go from here?  The consensus is that the economy will begin a slow down and the rate increases will stop, and the interest rates will begin to fall.  This is certainly possible but maybe the bigger question is when will this happen?  The answer to that is even more difficult given our Country’s population boom.  I may not be confident about the timing, but I’m confident that the Bank of Canada will be reluctant to drop rates too quickly.   I believe the best we should expect to see is rates beginning to ease next Spring.  

Many borrowers are being turned away from the banks.  Don’t let the bank be your final answer.   There are options available to help whether you are refinancing, renewing or just need money.    

• 35 year amortizations can be offered.  This helps keep your payment low especially if you were not prepared for the higher rates upon a renewal. 

• Private 2nd mortgages.  This helps raise funds you may need and may allow you to maintain the low rate on your 1st Mortgage. 

• Private 1st mortgages.  This can be a great short-term solution and rates will very depending on equity position.

• Vendor Take-Back Mortgages.  This may be an ideal for sellers looking to earn a steady stream of monthly income secured against the home you sold.  

Private Mortgage Rate Sale:

Current blocks of funds from recent payouts looking for a new home:

• $125,000 as low as 9.95% (up to 70% equity)

• $300,000 as low as 11.95% (Up to 80% equity)

• $150,000 as low as 13.95% (Up to 85% equity)

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RECENTLY SOLD AND IS NOW ONE OF THE MOST EXPENSIVE HOMES EVER SOLD IN NORTH DELTA:
11932 CLARK DR, DELTA

June 2023 - Latest Market Update

40 Million and Growing

The Canadian population hit the 40-million-mark last week and the Real Estate crash many were expected has so far this year has been avoided.  Economists predict that Canada will need 3.5 million additional housing units by 2030 to restore affordability.  While the housing growth has not kept pace the high interest rates have had an unexpected affect on Real Estate.   New listings across the Country have been falling; reducing the supply.  It has been said that the high mortgage rates have been a deterrent to homeowners’ listing their homes for sale.  This combined with increased demand has driven prices higher, which of course has worsened affordability.  This doesn’t mean selling in today’s market is easy.   Homes that are well priced and well marketed are selling successfully.  Being in the industry for as long as I have, I’ve seen it all – the good and the bad.   It's not the glitz that gets home sold successfully, but rather smart practices and good advice. 

Mortgage rates stay elevated. If your mortgage is up for renewal, you will likely be surprised by the rates being offered and the increase of the new payment.  In some cases, borrowers could see an increase of up to 80%.   Many economists worry about the impact to borrowers especially by 2025 when many borrowers will have their mortgage due for renewal from the time they locked into very low rates during covid.   Don’t wait to be shocked.  Act now and explore your options by contacting me. 

• Fixed rates vary from 4.90% to 6.05%.

• Variable rates range from 6.20% to 6.80%

• The prime lending rate is 6.95%

Don’t be stuck for money.  Private lenders are looking to get you money and often you can access up to 85% of the equity in your home.

February 2023 - Latest Market Update

Making 2023 your most prosperous year yet

In the Chinese culture, 2023 is considered the year of the Rabbit.  The sign of Rabbit is a symbol of longevity, peace, and prosperity in Chinese culture, and it is not the year to take wild risks but rather to focus on building a solid financial foundation. To make 2023 one of your most prosperous years, I believe it’s important to have a solid plan.  

Interest rates and inflation are the highest it’s been in decades. The stock markets are volatile and real estate sales have slumped.  Although sales are below historical averages, inventory levels remain very low and homes that are well priced are selling very successfully.  When it comes to selling your home, some little things can make a huge difference.  

Here’s just a few tips to maximize your sale price:

1. Ensure your listing is launched with photos.   Photos evoke emotion and when they are not available at the time of the launching the listing, buyers can move on to other opportunities. 

2. When you can avoid having your realtor use a Lockbox.  They are paid to sell your home so make sure they make effort to be present at all showings to showcase, answer buyers’ questions and sell your home for maximum dollars.

3. Do not allow your realtor to use other realtors to host your Open House.  No one knows your home better and cares more than your listing agent.  Features that make your home unique can be overlooked. 

Mortgage rates have begun to ease, and we are starting to see some great deals on mortgage rates.  Five-year fixed rates are being offered as lows as 4.89% and variable rates as low as 5.50%.  When it comes to refinancing or renewing your mortgage consider the following:

1. Banks are not always the best option for a mortgage.  Credit Unions do not need to follow the qualification criteria that banks must follow, and this may not only save you thousands of dollars in interest, but it may also make a huge difference in what type of home you can purchase. 

2. Credit reporting agencies have changed how they determine your credit scores.  Avoid utilizing credit cards as it has a negative impact on your score.  A high credit score usually gets you a better rate. 

3. Rather than refinancing your existing mortgage that may have an attractive interest rate, consider a 2nd mortgage, and then refinance in the future to combine the mortgages when rates are more attractive. This could possibly save you thousands in interest.

Let me show you how I can help, contact me today.  

December 2022 - Latest Market Update

2023 Will Be A New Environment For The Real Estate Market

Recently, the Province introduced new Strata rules which prevent rental and age restrictions on all buildings (except for 55 plus age restricted strata’s) with the goal being to create more available housing.   January 3 will be the start of the Home Buyer Rescission Period.  This change to the Property Law Act will allow a homebuyer the right to withdraw from a purchase agreement within three business days of an offer being accepted.  This will have a material change to how homes are sold and purchased.  Also starting January 1, non-Canadians will be banned from buying residential property across Canada until December 31, 2024. 

Since March 2nd, 2022 the Bank of Canada has steadily increased lending rates. The overnight rate currently sits at 4.25%, and the prime rate is now at 6.45%. To qualify for a mortgage the rate used is close to 8%.   Next year the market will absorb the impacts of a higher rate environment and so far, the impact has been a decline in home sales and skyrocketing rental rates. For the latest real estate stats:  click here

At first glance all of this may appear scary, however; inflation is already starting to moderate and is expected to fall early next year along with interest rates.  Immigration to BC is surging; and there remains a strong demand for homes.  Well-priced homes are selling, and buyers can now take advantage of a more balanced market.

Homebuyers continue to have choices for mortgage financing.  We are seeing a surge in demand for private lending which can offer a short-term solution for raising money to either make a purchase or to cover any expenses.  Don’t be stuck keeping high balances on credit cards where you can use the equity in your home to reduce your interest costs and your monthly payments.  For the latest mortgage rates:  click here

For many homeowners; downsizing or making a change can be challenging.  Hiring the right professional can make a world of difference.  Next year we are offering improved services to help with a changing market.  Some of these changes will see new marketing strategies that will help expose your home more domestic and international markets; cash back to help with moving expenses, free junk removal and more.   More specifics to follow in the new year.   

Wishing you all the best of 2023 and Happy Holidays

October 2022 - Latest Market Update

Is Inflation Impacting Real Estate?

The Bank of Canada has sent a clear message to Canadians as it executes the most aggressive round of tightening in the Country’s history and increases the bank rate by 50 basis point, it’s sixth increase this year.   A recession here and around the world seems inevitable as borrowing rates reach levels not seen in decades.  A 5-year fixed rate mortgage is now reaching over 6% and variable rates are reaching above 5%.   Private lending rates have also increased, but at a more modest pace.  

The Canadian Real Estate market is also feeling the impact with increased listings and a significant reduction is sales.  Prices have begun to soften, more so in some areas and most homes are selling under the list price.   Real Estate developers have also begun to delay and/or cancel projects.  Governments are not helping, and they continue to be a huge part of the inflation problem.   As the Country enters a recession, Government budgets will become strained, especially in BC where a huge percentage of the Government’s revenue comes from taxes on Real Estate. 

That being said, there are some reasons to be optimistic.  Rental rates have increased significantly and is allowing many property owners to meet their increased expenses.  Metro Vancouver’s rents are some of the highest in Canada and it’s allowing many investors from having to sell their property.

The Bank of Canada’s tightening is beginning to work, and the inflation rate has already slowed and is expected to fall further over the next few months.  This should provide some relief of further rate increases and possibly allowing the Bank of Canada to start easing monetary policy next Spring. 

If your mortgage is up for renewal try to avoid locking-in to a fixed rate beyond 3-5 years.  Variable rates are still great options for some borrowers, but caution to the Bank/lender you consider.  Some mortgage lenders will increase the payment with the increase in rates, but do not lower payment when the rates begin to fall.  Check with your lender before making decisions. 

Minimize borrowings as much as possible.  It may be better to take some equity out of your home rather than carrying balances on credit cards.  Many private lenders are sitting on a huge pile of cash and are eager to lend out the money. 

If you have a pre-sale purchase completing soon and the bank said no, don’t stress.  There are plenty of options to help get the deal completed.  

Did you know: In Scotland, homeowners have been known to paint their front door red when they pay off their mortgage. 

September 2022 - Latest Market Update

Storm Clouds

I don’t think anyone will be surprised to hear that mortgage rates have more than doubled over the past year and are predicted to rise further.  The next Bank of Canada meeting is on October 26th, and it’s expected to increase the rate by another 75 basis points.  The impact of higher rates is significant and monthly payments can be increased as much as 40% compared to last year and this will be higher in a few months.     

• September 2021:  $100,000 @ 2.60% with 30-year amortization = $399 per month

• September 2022:  $100,000 @ 5.44% with 30-year amortization = $560 per month

The bigger impact is on the qualifying rate lenders use for mortgage financing which has reached over 7%.  This is making it very difficult to qualify for a prime rate financing.  At the end of August, the benchmark price of a condo in Greater Vancouver was $740,000 and $1,954,000 for a detached home. 

To qualify for a prime rate mortgage at these benchmark prices with a 20% down payment:

• For condo you need income of at least: $192,300.

• For a detached home you need income of at least: $452,000.  

Of course, these high rates are having an impact on the Real Estate market.  Sales have been falling steadily since the Spring and prices across the Country are starting to fall.   Some areas have been impacted worse than others, but it may be only a matter of time before we see prices fall everywhere. 

Will the increases in rates start reducing the rate of inflation?  Eventually the rate increases will do the job to tame inflation, but the challenge is with the timing.  Our Governments of all levels continue to fuel inflation with money printing policies.  I don’t think any economist would feel that a deep recession isn’t on the horizon for Canada and the world. It is usually the recession that will cause inflation to fall.

Another huge issue we are facing is housing affordability.  The solution for housing affordability was determined to be to increase the supply of housing.  The rising costs of construction of new homes has resulted in many developers and builders to cancel and/or pause projects throughout the Country.  As our population continues to grow; this will cause a supply problem in meeting the demands for housing putting upward pressure on prices.  

With that being said, I recommend anyone looking to make a home purchase consider doing so this winter and take advantage of a softer market.   Bottom line: the demand for housing should continue to accelerate, so whether you are a buyer or renter; expect to pay more.