Latest Market Update - September 2024

The Bank Continues to Lower Rates

This week the Bank of Canada dropped interest rates again making this the bank’s third consecutive cut.  More drops are expected this Fall, and this is a welcomed relief for many homeowners.   The constrained economic growth, weakening labour market and softening inflation; is allowing the Bank to finally begin an easing cycle.   Before we get too excited though; the favourable impact of falling interest rates and inflation will take some time to spill into your bank accounts.  In the meantime, there is likely more pain to be felt for many borrowers.  

The real estate market for the most part has been soft with Greater Vancouver home sales falling 17% last month.   With the easing interest rates improving home affordability, we may be at the bottom of the market.  You know the saying; ‘don’t wait to buy but buy and wait’.  

Mortgage rates fall and the mortgage rate wars are beginning.  The 5-year fixed can now be offer as low as 4.44% and a variable rate at Prime -.80%.  

Private/Alternative mortgage rates have also moved lower, with 2nd Mortgages being offered under 10%.  

Did you know:  

Credit delinquencies are on the rise as Canadians’ debt climbed to $2.5 trillion in the second quarter of 2024.  According to Equifax Canada credit card holders are carrying an average balance of over $4,300.    

Need money to get rid of high credit card balances; no problem the solutions are available.  Click her to email me. 

Latest Market Update - June 2024

Bank of Canada Lowers Rate

All eyes were on the Bank of Canada Wednesday when as expected they lowered the bank rate by 25 basis points.  No doubt this is great news that many borrowers have been waiting to hear.  But what happens now?  When rates change; the overall affect usually lags, and it may take some time to feel the impact of lower rates.   But nonetheless, it’s very positive and a comforting relief for borrowers especially those with variable rate mortgages.

The real estate market is showing some weakness and last month’s data was much softer than expected.   There are a few locations that are an exception, but overall inventory has increased substantially, sale volumes have dropped, and prices have been softening.  That being said, average prices are higher than the same period last year and higher than last month.  

The drop in the bank rate should be very positive for the Real Estate market.  Many buyers have been waiting to see the direction of interest rates before taking on a home purchase.  Mortgage rates have softened, and 5-year fixed rates can be offered as low as 4.99%; Variable rate mortgages as low as 6.60%.  Given all of this, the best time to buy a detached house may be right now.

Need money and the bank said no?  Turn that:

“‘Sorry, I can’t make the numbers work’
to: ‘no problem, how much do you need?’.”

Latest Market Update - April 2024

Housing and Affordability

Good news for Canada’s latest inflation figures announced on Tuesday.  We saw a modest improvement over last month.  Most of the improvement was with our ‘core’ inflation which strips out the more volatile components.  Interest rates are expected to ease as soon as the next Bank of Canada’s announcement in June.   Our inflation has been moderating but housing affordability, not so much.   And it’s a hot topic.  So hot in fact that all levels of government seem to be taking some sort of action and the latest action on housing coming from our Federal Government’s budget. 

Some highlights are as follows:

  • Extending amortization for Insured mortgages to 30 years.

  • Increased limits on withdrawing/using RRSPs for downpayment for first-time buyers.

  • Introduction of a Canadian Renter’s bill of Rights.

  • Provide more Federal land for housing developments.

  • Increased capital gains tax.

  • Increased spending to get homes built.

 

The probability of lower borrowing rates here in Canada is looking good, but this is not the case in the US.  Their economy appears to be exceptionally resilient, and the Federal Reserve will be reluctant to drop rates as quickly as we do.  This has been reflected in the Bond markets, which has an effect on our mortgage lending rates.  This will likely keep our fixed rates higher for longer.  The good news though is that lenders are getting very competitive, and we are seeing some great rate deals with some fixed-term rates being offered under 5%.  

Have questions? I can help. Contact Tony today.

Latest Market Update - An Active Start To Spring 2024

An Active Start To Spring 2024

We are off to a very active Spring real estate market.  Beyond seasonal trends, the expectation of lower interest rates seems to have excited the market.   We are experiencing strong sales, an increase in new listings, and rising prices. 

The Federal Government is expected to introduce some housing initiatives in its budget next month, but in the meantime, the BC Government has been the first to act.   The BC NDP has introduced a new framework to the Property Transfer tax with an increase in the Fair Market Value threshold for First Time Homebuyers and an increase in the Fair Market Value threshold for Newly Built Homes.  This will help First Time Homebuyers reduce or eliminate the cost of PTT.   Please contact me if you would like more details.  

The BC Government has also introduced a new Flipping Tax targeting short-term speculators. This will punish anyone selling a residential property that has been held for less than two years.   Some pundits believe this will constrict inventory levels and put added pressure on prices. 

If you planning to sell your home; your curb appeal and outdoor living space cannot be ignored.   Consider updating your landscaping and hardscapes.  Great-looking, useful, and maintenance-free landscaping is the new trend. 

Looking for inspiration for your next landscaping project? Check out a few of the images from our friends at Luxury Enterprises Ltd that are sure to inspire your next project. Their services range from landscaping to hardscaping, artificial grass to concrete as well as irrigation system installation.

February 23 2024 - Latest Market Update

Inflation Rates Fall

Last month’s rate of inflation surprised the markets with a decrease from the month earlier and it now sits in the Bank of Canada’s target range.  This is providing added support for the Bank of Canada to begin lowering interest rates by late Spring.   Mortgage payment relief for many is now in sight. 

The inflation rate wasn’t the only thing that fell.   Alternate lending mortgage rates also have declined and are down on average 50 basis points.   Prime rate mortgage rates have been stable and there are some very good deals now being offered with a 5-year fixed rate below 5%; however, most borrowers should expect between 5% and 5.60% depending on the lender and the type of deal. 

All of this is boding well for a very good Spring real estate market.  Month-to-date sale volumes are looking strong, new listings are moderate and prices continue to push higher. 

 

Need financing and the bank says no; then contact me.  I have a solution to every financial challenge. 

 

ALTERNATIVE LENDING DEALS:  APPROVAL WITHIN HOURS

  • 1st mortgages up to 75% financing with rates as low as 9.95%.  Fully open.

  • 1st mortgages up to 50% financing with rates as low as 7.99%.  Fixed term rate.

  • 1st mortgages up to 75% financing with rates as low as 9.95%.  Fully open.

  • 1st mortgages up to 50% financing with rates as low as 7.99%.  Fixed term rate.

 

PRIME LENDING DEALS: APPROVAL WITHIN 24 HOURS

1st mortgage up to 80%:

  • 5-year fixed as low as 5.29%

  • 2-year fixed as low as 6.39%

  • 3-year fixed as low as 5.49%

  • 1-year fixed as low as 6.99%

IT’S EASY AND QUICK TO APPLY

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)

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

Get Your Free No Hassle Mortgage Evaluation Now