10 Aug

Buying before selling your home. Mortgage Market Update August 10, 2018

General

Posted by: Anne Martin

 

 

 

MARKET UPDATE

Buying Before Selling Your Home

So, you’ve made the decision to move. Now the million-dollar question presents itself: Should I sell my home first and then buy another property or buy first and then sell?

It’s not an easy choice to make, and can prove stressful for any homeowner. The decision to move is an undertaking in itself and when you’re buying and selling at the same time, there are a number of added factors that come into play. Here are a few things to consider.

Regardless of what you decide to do, I have mortgage options available to meet your unique needs.

Best fixed rates are as low as *3.29 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.70%

*High Ratio/Quick Close Specials

This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

 

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.44% 3.24%
3 YEARS 3.59% 3.39%
4 YEARS 3.89% 3.54%
5 YEARS 5.59% *3.29 – 3.69 %
7 YEARS 5.80% 3.79%
10 YEARS 6.10% 3.99%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

 
23 Jul

Barrie and area real estate sales perk up in June 2018.

General

Posted by: Anne Martin

The Canadian Real Estate Association released its statistics for the month of June.  All statistics are of interest but one has to take into account the inflated nature of 2016 and 2017 which artificially inflated numbers, only to create large gaps in sales levels, which can be defined as a moderate change back to normal levels.

Fueled by new mortgage rules and interest rate increases, it is hoped that we are returning to a more normal real estate market.

Read the statistics published by the Barrie and District Real Estate Association here.  http://creastats.crea.ca/barr/

In summary……

Residential property sales in the City of Barrie and District perked up in June 2018 to sell 478 unit in June of 2018 which was an increase of 15.2% over June of 2017 but was still below the 5 and 10 year averages for the same month.

Year to date, there were 2178 units sold over the first six months of the year, down 28.5% for the same period in 2017.

Within the city of Barrie, there were 252 in residential sales in June 2018, up 25.4% on a year over year basis.  In surrounding areas there was an increase of 5.6% in year over year sales tottaling 226 units sold.

“Sales activity perked up noticeably from May to June,” said Geoff Halford, 2018 BDAR President. “That improvement, combined with the falling sales trend at this time last year, resulted in a double-digit year-over-year increase in the June 2018 sales figure. That said, we’ve still got a long way to go before activity is anywhere near the record sales activity of early last spring.”

Average prices –

$479,553   –  City of Barrie  (decrease of 6.8% compared to the first 6 months of 2017.

$525,578 –  Surrounding areas (decrease of 9.1% from the first 6 months of 2017)

Listings were up by 15.9% on a year over year basis with 1,095 new listings by the end of June 2018 and was a record for the month.

Active listings by the end of June was 1.766 units which was a big increase for 41.5% from June 2017 and being a more healthy levels.

Sales of all property types in the Barrie region numbered 504 units in June 2018, an increase of 17.5% from June 2017. The total value of all properties sold was $258.5 million, rising 18.9% from June 2017.

 

 

 

16 Jul

Last week: Poloz Opens The Door For More Rate Hikes. Bank of Canada update

General

Posted by: Anne Martin

Poloz Opens The Door For More Rate Hikes

As expected, the Bank of Canada hiked its key overnight rate this morning by 25 basis points to 1.5%. What wasn’t expected was the hawkish tone of the press release which brushed aside the threat of greater protectionism, instead emphasizing the need for higher interest rates to keep inflation near its target. In today’s Monetary Policy Report (MPR), the Bank maintained its forecast for growth of the global economy. The U.S. economy, however, has proven stronger than expected, “reinforcing market expectations of higher policy rates and pushing up the U.S. dollar. Meanwhile, oil prices have risen. Yet, the Canadian dollar is lower, reflecting broad-based U.S. dollar strength and concerns about trade actions.”

Canada’s economy continues to operate close to full capacity. “Household spending is being dampened by higher interest rates and tighter mortgage lending guidelines.”  The ratio of household debt to disposable income is edging down as household credit growth continues to slow (chart below).

Consumer spending growth has been slowing since mid-2017, led by a pullback in interest-sensitive components such as vehicle purchases, furniture, appliances and dwelling maintenance. With the slowdown in housing purchases, housing-related spending has also slowed.

The sensitivity of consumption and housing to interest rates is estimated to be larger than in past cycles, given the elevated ratio of household debt to disposable income. The impact of higher interest rates likely differs across categories of borrowers, with highly indebted households the most affected.

The Bank said that “Recent data suggest housing markets are beginning to stabilize following a weak start to 2018.”  The July MPR report estimates that housing will contribute a mere 0.1 percentage points to growth this year, with no contribution in 2019 and a slightly negative impact in 2020 (see Table below). The MPR elaborated that residential investment is slowing, reflecting the effects of higher interest rates and tighter mortgage rules. Resale activity contracted when the revised measures went into effect but is anticipated to improve over the next few quarters. Data on resale activity and housing starts suggest that the housing market is beginning to stabilize. The growth of new construction spending is expected to slow over the projection horizon. The new mortgage measures may cause households to purchase less-expensive residences because typical homebuyers are now more constrained in how much they can borrow.

Meanwhile, exports are buoyed by strong global demand and higher commodity prices. “Business investment is growing in response to solid demand growth and capacity pressures, although trade tensions are weighing on investment in some sectors. Overall, the Bank still expects average growth of close to 2% over 2018-2020.” This is somewhat above the Bank’s estimate of noninflationary growth at full capacity, the so-called ‘potential’ growth rate.

Inflation remains near 2%, consistent with an economy close to capacity. The Bank estimates that underlying wage growth is running at about 2.3%, slower than would be expected at full employment. The actual growth rate in wages has recently been boosted by increases in the minimum wage rate in some provinces.

These economic projections take into account the estimated impact of tariffs on steel and aluminium recently imposed by the U.S., as well as the countermeasures enacted by Canada. “Although there will be difficult adjustments for some industries and their workers, the effect of these measures on Canadian growth and inflation is expected to be modest.”

The Bank wrapped up its press release with the following statement: “Governing Council expects that higher interest rates will be warranted to keep inflation near target and will continue to take a gradual approach, guided by incoming data. In particular, the Bank is monitoring the economy’s adjustment to higher interest rates and the evolution of capacity and wage pressures, as well as the response of companies and consumers to trade actions.”

Bottom Line: This rate hike signals that the Bank of Canada is determined to bring its benchmark overnight rate back to more normal levels and that the economy is strong enough to withstand further rate increases. The Bank believes that stronger-than-expected business investment, higher oil prices and a weaker Canadian dollar offset the adverse effect of greater trade uncertainty. Exports have surprised on the upside because of strong global demand.

The mix of growth in Canada has shifted from housing and consumption to exports and business investment–the desired result of the many tightening moves introduced by the government, the central bank and the regulators to slow the rise in household debt.  The Bank believes that this shift in the composition of growth will result in a more sustainable expansion.

Markets expect the Bank to gradually hike the benchmark rate until it reaches 2% or 2-1/4% by the end of 2019–implying another 2 or 3 rate hikes by the end of next year. Governor Poloz said today at the press conference that the Bank’s assessment of the neutral rate for the benchmark is 2-1/2% to 3%, but it is uncertain how quickly we will get there.

The Governing Council of the Bank is scheduled to meet again on September 5. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on October 24, 2018.

Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres
drcooper@dominionlending.ca

 

28 Jun

Recent drop in home prices not expected to continue. Mortgage Market Update June 28, 2018

General

Posted by: Anne Martin

MARKET UPDATE

HOUSING MARKET INSIGHT

The latest Housing Market Insight Ontario report from Canada Mortgage and Housing Corporation (CMHC) says a recent drop in Ontario home prices isn’t expected to continue.

CMHC predicts that moderate economic growth across Ontario will provide support for provincial real estate prices throughout 2018 and 2019.

Market imbalances are easing and fundamentals such as employment, growth in new households and slightly higher interest rates will support home prices. As such, CMHC expects inflation-adjusted home prices in the province will remain relatively stable and close to the levels of last year’s fourth quarter.

Read more

Best fixed rates are as low as *3.29 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

 

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.44% 3.24%
3 YEARS 3.59% 3.39%
4 YEARS 3.89% 3.54%
5 YEARS 5.59% *3.29 – 3.69 %
7 YEARS 5.80% 3.79%
10 YEARS 6.10% 3.99%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

 

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

30 May

Poloz opens the door for a rate hike in July.

General

Posted by: Anne Martin

Stephen Poloz held bank of Canada rates steady for the third consecutive month however, he left the door open for a rate hike on July 11.

He sited various improvements in the economy.  First quarter economic growth is expected to be above the April projected 1.3% making the Canadian dollar rally suppressing fears that the bank was behind the eight ball because of a recent rise in gas prices.

Uncertainty still remains on the NAFTA front however, business investment picked up in the first quarter and the Business Outlook Survey will be released in late June giving insight into business intentions ahead of the next rate policy meeting.

Housing activity remained soft as the housing market adjusts to new mortgage guidelines and higher interest rates.  There is an expectation that the slowing housing market will recover with solid labour growth and consumption of goods will contribute to economic growth in 2018.

The bottom line is that there may be a rate hike in July and another in October.  The rate was raised 3 times last year but it appears that the bank is waiting to see what happens to housing this year and the trade situation before making further decisions.

To read the full article, please visit  Dr. Sherry Coopers summary of the Bank of Canada announcement.  http://ow.ly/lVWh30kgcEX

14 May

Bank of Canada raises qualifying mortgage rate after Big Six banks hike rates. Mortgage Market Update May 14, 2018

General

Posted by: Anne Martin

Anne Martin
Mortgage Agent #M1000225739 Collier St. #306
Barrie Ontario L4M 1G5
Phone: 705-791-6683 | Email: anne@ndlc.ca
http://www.barriemortgagelocators.com
MARKET UPDATE

Bank of Canada raises qualifying mortgage rate after Big Six banks hike rates

OTTAWA — The bar is now higher for homebuyers to qualify for mortgages in Canada after the central bank raised a key metric used in stress tests that determine borrowers’ eligibility.

Read more

Best fixed rates are as low as *3.39 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

 

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.34% 3.24%
3 YEARS 3.49% 3.39%
4 YEARS 3.89% 3.49%
5 YEARS 5.14% *3.39 – 3.69 %
7 YEARS 5.30% 3.79%
10 YEARS 6.10% 3.94%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

27 Apr

Mortgage stress tests have squeezed millennials home buying budgets. Mortgage Market Update April 27, 2018

General

Posted by: Anne Martin

 

MARKET UPDATE

Mortgage stress tests have squeezed millennials’ homebuying budgets by $40,000: study

The homebuying budgets of Canadian millennials shrank by 16 per cent or just over $40,000 following the introduction of tougher mortgage qualification rules in January, according to a new study.

Read more

Best fixed rates are as low as *3.19 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

 

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.34% 3.24%
3 YEARS 3.49% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.19 – 3.59 %
7 YEARS 5.30% 3.79%
10 YEARS 6.10% 3.84%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

9 Apr

Canadian Home Buying Intentions Highest in 8 years. Mortgage Market Update April 6, 2018

General

Posted by: Anne Martin

 

MARKET UPDATE

Canadians’ home-buying intentions highest in 8 years, poll finds

Despite tighter mortgage lending rules, the number Canadians planning to buy a home has hit the highest level since 2010, according to a new RBC poll.

The annual Home Ownership Poll, released Tuesday, revealed 32 per cent of Canadians say they are likely buy a home within the next two years.

Read more

Best fixed rates are as low as *3.19 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

 

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.24% 3.24%
3 YEARS 3.44% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.19 – 3.59 %
7 YEARS 5.30% 3.79%
10 YEARS 6.10% 3.84%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

7 Mar

Bank of Canada Concerned About Trade Risks

General

Posted by: Anne Martin

Anne Martin
Mortgage Agent #M1000225739 Collier St. #306
Barrie Ontario L4M 1G5
Phone: 705-791-6683 | Email: anne@ndlc.ca
http://www.barriemortgagelocators.com

MARKET UPDATE

Bank of Canada Concerned About Trade Risks

The Bank of Canada held rates steady today, as expected, highlighting “trade policy developments” as an “important and growing source of uncertainty for the global and Canadian outlooks.”

Read more

Best fixed rates are as low as *3.09 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*High Ratio/Quick Close Specials

This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.24% 3.04%
3 YEARS 3.44% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.09 – 3.59 %
7 YEARS 5.30% 3.69%
10 YEARS 6.10% 3.84%
Rates are subject to change without notice. *OAC E&OE

 

 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

27 Feb

Canada raises red flag at credit rating giant. Mortgage Market Update Feb. 27, 2018

General

Posted by: Anne Martin

MARKET UPDATE

Canada raises red flag at credit rating giant

S&P Global Ratings warns it expects to see more evidence of fraud in Canadian residential mortgages amid high home prices and high household debt.

Evidence of mortgage fraud amid surging home prices and household debt has prompted S&P Global Ratings to lower a key risk metric for Canadian banks.

Read more


Best fixed rates are as low as *3.09 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*High Ratio/Quick Close Specials

This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home or are considering refinancing, contact me today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions –                                 *OAC  **conditions apply E. & O. E.

Terms Bank Rates Our Rates
6 Month 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.24% 3.04%
3 YEARS 3.44% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.09 – 3.59 %
7 YEARS 5.30% 3.69%
10 YEARS 6.10% 3.84%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.