You’ve probably seen the headlines: the Bank of Canada has raised their key interest rate. Yet again. And this hike isn’t any less forgiving than the last one. In another unprecedented move (anyone sick of that word yet?) the rate increased by 0.50%, double the normal increase of 0.25%. Yes, it’s a big jump that’s […]Read more "Rates Are On the Up and Up… But For How Much Longer?"
From all accounts, floating-rate mortgages continue to outsell 5-year fixed terms. It doesn’t hurt that variables are priced at an average of 184 basis points below 5-year fixed rates. Come June 22, however, more people will be questioning their faith in variables. That’s when we’ll receive May inflation data, and it should be enough to […]Read more "Fixed rate vs. Variable: Stop guessing at the mortgage game"
As of June 2022, we are currently seeing unnatural discrepancies in the size of mortgage loans borrowers will qualify for, and it’s all because of a rift in the stress test continuim. You see, most 5-year fixed mortgage rates are already over 5%, making their stress test a full 2% higher at 7% or more. Concurrently, […]Read more "How the mortgage stress test is impacting qualification amounts."
Possibilities and challenges have emerged from the cooldown, says mortgage executive. The housing and mortgage markets may have cooled off substantially in recent weeks – but that’s bringing opportunity for buyers including greater choice and less competition from rival bidders, according to a prominent industry figure. Shubha Dasgupta (pictured), president and CEO of the Pineapple […]Read more "Housing market slowdown: How have things changed for buyers?"
For the past two years, appraisal valuations have rarely fallen short. Instead, we routinely saw appraisals coming back at the purchase price—and often higher—due to the national pandemic-induced frenzy for real estate. Since February of this year, the music has stopped playing in many markets across the nation, and the real estate marketplace is balancing […]Read more "What happens when appraisal values come up short?"
A new Canadian startup is looking to shake up the homebuying process by allowing homeowners to make their next purchase before the sale of their current home. Fundible, which officially launched today in Alberta and Ontario, boasts 100% assured financing so that a homebuyer can make a financing-free purchase offer without having to worry about […]Read more "Newly Launched Fundible Allows Canadians to Buy Before Selling"
Over the past month, we have seen several fixed mortgage rate hikes from the banks and other lenders. We all suspected rates would rise eventually, but this is happening much sooner than expected. Do rising interest rates affect mortgage pre-approvals? Rising interest rates make mortgage pre-approvals much more relevant and meaningful. Not only does a mortgage pre-approval give you […]Read more "How a Mortgage Pre-Approval Can Protect You from Rising Rates"
The benchmark price of a detached home in the Fraser Valley rose to nearly $1.7 million and over $2 million in Metro Vancouver. The average price of townhome in Metro is now over $1 million. Homebuyers might be eyeing the Fraser Valley after a record volume of new listings in February, while home prices soared […]Read more "Record-breaking number of new home listings in the Fraser Valley, while house prices soar in Metro Vancouver"
A new forecast by the BC Real Estate Association (BCREA) anticipates the province’s average home price will see year-over-year increases of 8.5% to $1.006 million, and 2.7% to $1.033 million in 2023. This is up from $927,800 in 2021, when there was a 18.7% year-over-year increase from the pandemic shock year of 2020. This year […]Read more "Average BC home price will reach $1 million for the first time in 2022"
2021 by all accounts was a record-breaking year for Canadian real estate — a blockbuster for sales, prices and low inventories. Such a pace is unsustainable, most agree, but how much of a comedown are we in for? “Canada’s housing market isn’t about to buckle,” writes RBC senior economist Robert Hogue in a recent report. […]Read more "Home sales set for the second ‘most remarkable’ year in Canadian real estate history"