Latest Market Update - February 6th 2025

Is an emergency rate cut by the Bank of Canada coming soon?

In recent months, Canada has experienced a notable decline in interest rates, a trend driven by various economic factors and policy decisions. The Bank of Canada has implemented several rate cuts to stimulate economic growth amid challenges such as potential trade conflicts and global economic uncertainties.

Last week the Bank of Canada reduced its key policy interest rate again by 25 basis points, bringing it down to 3%.   The Canadian economy has shown mixed signals in response to these rate adjustments, but overall, economic growth challenges remain.    

Variable rate mortgages have benefited from the fall in rates, but fixed mortgage rates have not changed much since last October. 

Alternative lending rates have also fallen in recent months, and 2nd mortgage rates are now being offered under 9%.   Don’t be stuck with unpaid bills.  Our processes to get you the money you need have never been easier.  

Great rates are now being offered by major lenders:

• 5 years fixed as low as 4.89% 

• Variable rates as low as 4.20%

Did you know

The Bank rate back in June was 5% compared to 3% today and that variable rate mortgage borrowers are now saving on average $120 per month per $100k borrowed. 

Latest Market Update - January 7 2025

A New Year Brings a New Tax

The BC NDP government has introduced a Home Flipping Tax effective January 1, 2025. This provincial tax is distinct from the existing federal home flipping tax and is unlikely to significantly address housing affordability. Unfortunately, this policy may inadvertently deter housing transactions, further tightening supply in an already constrained market.

The details: 

• The tax applies to income from sales of residential properties, presale contracts, or assignments owned for less than 730 days (two years). This includes properties bought before January 1, 2025, if they are sold on or after that date and owned for less than two years.  

• The rate is 20 per cent for sales within the first 365 days of ownership, gradually decreasing until it is eliminated at 730 days.  

• This tax applies to any person or entity (individual, corporation, partnership, or trust) selling property within BC, regardless of residency.  

Exemptions if available are subject to specific conditions and filing requirements.  

Did you know: 

Most monthly mortgage payments today are now on average 25% lower than they were 1 year ago

Latest Market Update - December 12 2024

Just in Time for the Holidays

The Bank of Canada has dropped interest rates by another 50 basis points, marking the fifth consecutive cut since June 5th. With inflation growth easing and the economy continuing to struggle, speculation is already building for another rate reduction during the next announcement on January 29.

Falling rates are having a noticeable impact on the real estate market. In Greater Vancouver, home sales surged by 28% last month compared to the same time last year, following a 30% increase the month prior.

Adding momentum to this trend, new mortgage lending rules coming into effect on December 15 will allow homebuyers to purchase with as little as an 8.5% down payment and extended amortization periods of up to 30 years. Combined with increased competition among banks, some 3-year fixed mortgage rates are now as low as 3.99%.

For those looking to borrow smaller amounts, we love helping with second mortgages. Rates have dropped to as low as 9.49%, and you can access up to 85% of your home’s equity.

Wishing you all a joyful holiday season and a fantastic 2025!

Latest Market Update - November 14th 2024

Are Buyers Finally Responding to Rate Cuts?

Real estate sales in Canada’s largest markets surged in October as buyers jumped at the opportunity to purchase homes following recent interest rate cuts. While this uptick is positive news for Canada’s struggling real estate market, one month of growth doesn’t establish a lasting trend. The Bank of Canada is expected to reduce rates again on December 11, just in time for the holiday season, potentially introducing a significant cut that could drive variable mortgage rates to their lowest levels in years.

Meanwhile, average rents in Canada declined for the first time since 2021. According to recent data from Rentals.ca and Urbanation:

Average monthly rents dropped by 1.2% in October 2023, now standing at $2,152.

However, record-high consumer and business insolvencies paint a concerning picture of financial strain affecting households and businesses nationwide.

This financial stress may intensify next year as economic growth slows and many mortgages are renewed at higher rates.

Mortgage rates remain competitive, with some lenders offering fixed rates as low as 4.39% and variable rates as low as 4.95%. If you need financial assistance, please don’t hesitate to reach out.

Latest Market Update - October 19th 2024

Is Now The Time To Buy Or Refinance Your Mortgage?

Mortgage rates are expected to fall again next week as the Bank of Canada is getting ready to announce rates on Oct 23 and are expected to drop the rate by 50 basis points.  This will have the biggest impact on Variable mortgage rates, and we should see these rates under 5% very soon.  

The Greater Vancouver Real Estate market has been a soft market for the past months, but this may all be changing.   Sales of Detached homes appear to be accelerating this month.  This may be the ideal opportunity for people to buy at the bottom before prices rise.    Remember; don’t wait to buy but rather buy and wait.   Fraser Valley and other areas of the Province continue to be soft, but this may also change as we get into next year.  

Did you know: BC’s Property Transfer Tax was launched in 1987 as a “luxury tax” and intended to apply to only five per cent of real estate transactions.  This tax has changed significantly over the decades and is now a viable source of Government revenue. 

The 5-year fixed rate for Insured mortgages is now being offered under 4%! . Contact Tony to learn more.