Latest Market Update - June 2025

GST Rebate, Missed Credit Payments, and Mortgage Updates

The Canadian Government’s new GST rebate on homes under $1 million, and a partial rebate on homes between $1 million and $1.5 million, has not done much to prevent an overall softening of the real estate market.   The GST rebate is great news for the market and First-Time buyers, but it’s hard to overlook some troubling numbers that are starting to be revealed.   Recent numbers from Equifax Canada indicate an increase in the number of Canadians who are missing mortgage, auto loan, and credit card payments.

According to Equifax’s Consumer Trends and Insights, 1.4 million consumers missed a credit payment in the first quarter of this year, an increase of 146,000 from the same quarter last year. 

“It’s younger consumers and lower-income consumers where we are seeing missed payments rising,” said Rebecca Oakes, vice president of advanced analytics at Equifax Canada.

Missing any payment can affect your credit rating and score, which can cause higher interest rates and reluctance from lenders to lend to you in the future.    Consider using your home equity to help you through a difficult time.  Rates for alternative lending have never been better, with 1st mortgage rates as low as 5.75% and 2nd mortgage rates as low as 8.99%.   Lenders are also offering “no payment” options, lower fees and quick funding solutions.  

Prime mortgage rates have not changed significantly, but we have seen a modest increase in some fixed-term rates.   We continue to believe that the Bank of Canada will lower rates in the future and suggest that borrowers consider a variable-rate product.  The next rate decision is scheduled for the end of July.

Latest Market Update - May 2025

Canada’s Housing Market: A Mixed Bag

Canada’s housing market is experiencing a significant shift. Nationally, home sales have plunged to levels not seen in decades, signaling a rapid cooldown. In the Lower Mainland, the situation is characterized by rising inventory and declining sales. According to Andrew Lis, GVR’s Director of Economics and Data Analytics,

“From a historical perspective, the slower sales we’re now seeing stand out as unusual, particularly against a backdrop of significantly improved borrowing conditions, which typically helps to boost sales.”

What’s Driving This Change?

The main factors appear to be affordability challenges and ongoing economic uncertainty. However, there are several silver linings:

• Falling Borrowing Rates: Rates are expected to decline further.

• Improved Affordability: Home prices may become more accessible.

• Options for Buyers: A cooling market means more choices.

• Rental Opportunities: Renters may benefit from lower rates.

• Easier Mortgage Approvals: Criteria for lending are improving.

• Competitive Alternative Lending Rates: lower rates and fees.

But a Recession Looms

While there are positive developments, a potential recession in Canada means that patience is crucial—whether you’re buying or selling.

These rates are awesome:

• 5-Year Fixed: As low as 3.89%.

• Variable Rate: Starting at 4.15%.

• Private 1st Mortgage: From 6.95%.

• Private 2nd Mortgage: From 8.99% (up to 85% of home value).

Why Choose Us?

• Fast approvals—under 24 hours.

• Cash back is available.

• Common-sense lending solutions.

Latest Market Update - March 28 2025

Spring Rate Sales Are Here!

Mortgage rates have dropped to levels we haven’t seen in years! Fully qualified borrowers can now secure a 5-year fixed or variable rate below 4%.  If you have a mortgage renewing soon, then consider getting a rate quote to help make your bank match a fantastic rate. 

Unlock the Power of Private Alternative Lending and take advantage of some of the best rates available, with loan amounts starting at just $50K:

• FIRST mortgages as low as 5.99%, 1% lender fee

• SECOND mortgages as low as 8.99%, flat $500 lender fee

• Borrow up to 80% of your home’s value
  

With over 30 years of lending experience, our team makes approvals fast and hassle-free. We take a common-sense approach to meet your unique needs, leveraging our extensive network of individual lenders and MICs across BC.

The Bank of Canada meets again on April 16th, and another ¼ point rate drop wouldn’t be a surprise. Now is the time to secure your financing!

Latest Market Update - March 4 2025

Trade Wars: Economic Impact & What You Can Do

The Bank of Canada is set to announce its second-interest rate decision of the year on March 12, and speculation is growing about the size of the rate cut to help the economy absorb the shock from the U.S. President’s new tariffs. Markets are anticipating a 50-basis point cut, marking the seventh consecutive rate reduction. If this happens, variable mortgage rates could drop below 4% for the first time in years.

Fixed mortgage rates are also trending downward, and we expect the 5-year fixed rate to fall below 4% soon. These lower rates are improving home affordability, offering relief to borrowers and the real estate market. But the big question remains: Will it last?

Trade wars have far-reaching economic and political consequences, with few real winners. Some of the key impacts include:

• Higher prices for consumers

• Economic slowdown

• Job losses

• Retaliatory tariffs from other countries

• Strained international relations

• Volatility in financial markets

While certain domestic industries may see short-term gains, the long-term effects of trade wars are generally negative for everyone.

How To Protect Yourself

Here are some financial strategies to navigate uncertain times:

• Minimize debt: Prioritize paying off high-interest debt and build liquidity. Consider refinancing your mortgage if needed.

• Cut unnecessary expenses: Reduce discretionary spending to improve financial flexibility.

• Postpone major purchases: Avoid large financial commitments until the economic outlook stabilizes.

• Support Canadian businesses: Buying local products helps sustain the economy.

• Rebalance your investments: Adjust your portfolio and increase cash reserves to take advantage of buying opportunities.
  

Alternative Lending & Mortgage Options

With interest rates declining across the board, alternative lending rates are also dropping. Second mortgages are now available with rates as low as 7.99%, offering quick and accessible financing options.

“Now more than ever, financial preparedness is key. Taking proactive steps can help you stay ahead in an uncertain economic landscape.”

Did you know? Last year saw the slowest new condo sales in the Greater Toronto and Hamilton Area since 1996.

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.