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."
The housing market in Canada is cooling down. Home sales between March and April dropped by 12.6%, according to recent data from the Canadian Real Estate Association (CREA). While home prices may not have experienced quite as significant a drop, the demand for homes appears to be cooling nationwide. If you’re looking to sell your […]Read more "3 important lessons to take into a cold real estate market"
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?"
The population data from the census 2021 is now available and it offers us a wealth of information about where Canadians live, where they’re moving to and what communities are growing in size as a result. The latest census arrives at a critical time in Canada’s real estate history, when governments of all levels are weighing their options […]Read more "Here’s What the Census 2021 Data Can Tell Us About the Housing Market"
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?"
The Big 6 banks have raised their expectations for Bank of Canada rate hikes, with most expecting another 125 to 150 basis points in tightening by the end of the year. RBC was the latest to revise its expectations, matching Scotiabank’s call that the Bank of Canada’s key lending rate will reach 2.50% this year. […]Read more "BoC rate hike expectations grow"
Housing affordability in Canada has deteriorated to its worst level in 31 years, according to RBC Economics. The bank’s aggregate affordability measure rose 1.6 percentage points in the fourth quarter to 49.4%. In the past year alone, the deterioration reached a near-record 7.2 percentage point. A move of that scale happened just once before, in […]Read more "Housing Affordability Reaches Worst Level in 31 Years"
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"