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.

Latest Market Update - October 8th 2024

Deputy Prime Minister Announces New Actions To Build Secondary Suites And Unlock Vacant Lands

On October 8, 2024, the Deputy Prime Minister and Minister of Finance Chrystia Freeland, alongside other government officials made a number of new action announcements. These initiatives are designed to unlock underused properties and make it easier for homeowners to add secondary suites to their homes, ultimately contributing to the federal goal of building 4 million homes.

1. Mortgage Refinancing for Secondary Suites: Starting January 15, 2025, homeowners will have the opportunity to refinance their insured mortgages to finance the construction of secondary suites. Key details include:

• Access to Equity: Homeowners can access up to 90% of their home’s value, including the value added by the new secondary suite(s).

• Longer Amortization Period: The refinanced mortgage can be amortized over a period of up to 30 years.

• Increased Price Limit: The mortgage insurance home price limit will increase to $2 million for those refinancing to build a secondary suite, ensuring broader access across various housing markets.

This reform aims to promote greater housing density, support homeowners with additional rental income, and enhance community living options.

2. Consultations on Taxation of Vacant Land
The federal government is launching consultations regarding the taxation of vacant land. This initiative seeks feedback from provinces, territories, and municipalities interested in implementing their own vacant land taxes. The goal is to encourage landowners to utilize their properties effectively, ultimately leading to more housing developments.

3. Unlocking Underused Federal Properties
An additional 14 federal properties have been identified as suitable for housing development, bringing the total to 70 underused federal properties available through the Canada Public Land Bank. This initiative is part of the federal government’s commitment to unlocking land for new housing, aiming to support the construction of 250,000 new homes.

The federal government is committed to its goal of building 4 million homes by leveraging all available resources and strategies. These recent announcements represent significant steps towards maximizing land use in our communities and addressing the housing affordability crisis.

Latest Market Update - September 25th 2024

Breaking News - Mortgage Renewal Changes

Canada’s banking regulator is set to eliminate the need for the banks to apply the stress test when you are simply switching mortgage lenders at renewal.  This will be very positive for borrowers looking to obtain a better rate and payment then what is being offered by your existing lender.   Creating a more competitive environment will result in you being able to get better deal upon renewal.  

Rate Wars are starting, and lenders are offering special rates:

• 3 year fixed as low as 4.49%

• Variable rate mortgages as low as Prime – 1.05%

• 2nd mortgage rate as low as 8.90%

OPEN HOUSE:   2496 Jonquil Court, Abbotsford, on Sunday, September 29th, from 1:00 pm to 3:00 pm. 

Latest Market Update - September 16th 2024

Breaking News

The Federal Government announced that starting on Dec. 15, the cap for insured mortgages will rise to $1.5 million from the existing $1 million. This will allow buyers to qualify for larger mortgages without putting 20 percent down payment.   The government is also allowing insured mortgages up to 30-year amortization. 

Very positive news for the real estate market and the new rules will have the largest impact on homes priced between $1 and $1.5 Million.  

Did you know:

Faster, smoother travel will soon be coming to Langley, Abbotsford, and Chilliwack with the Fraser Valley corridor improvements.  

IF you have questions, I can help!
Contact Tony today

Latest Market Update - September 2024

The Bank Continues to Lower Rates

This week the Bank of Canada dropped interest rates again making this the bank’s third consecutive cut.  More drops are expected this Fall, and this is a welcomed relief for many homeowners.   The constrained economic growth, weakening labour market and softening inflation; is allowing the Bank to finally begin an easing cycle.   Before we get too excited though; the favourable impact of falling interest rates and inflation will take some time to spill into your bank accounts.  In the meantime, there is likely more pain to be felt for many borrowers.  

The real estate market for the most part has been soft with Greater Vancouver home sales falling 17% last month.   With the easing interest rates improving home affordability, we may be at the bottom of the market.  You know the saying; ‘don’t wait to buy but buy and wait’.  

Mortgage rates fall and the mortgage rate wars are beginning.  The 5-year fixed can now be offer as low as 4.44% and a variable rate at Prime -.80%.  

Private/Alternative mortgage rates have also moved lower, with 2nd Mortgages being offered under 10%.  

Did you know:  

Credit delinquencies are on the rise as Canadians’ debt climbed to $2.5 trillion in the second quarter of 2024.  According to Equifax Canada credit card holders are carrying an average balance of over $4,300.    

Need money to get rid of high credit card balances; no problem the solutions are available.  Click her to email me. 

Latest Market Update - June 2024

Bank of Canada Lowers Rate

All eyes were on the Bank of Canada Wednesday when as expected they lowered the bank rate by 25 basis points.  No doubt this is great news that many borrowers have been waiting to hear.  But what happens now?  When rates change; the overall affect usually lags, and it may take some time to feel the impact of lower rates.   But nonetheless, it’s very positive and a comforting relief for borrowers especially those with variable rate mortgages.

The real estate market is showing some weakness and last month’s data was much softer than expected.   There are a few locations that are an exception, but overall inventory has increased substantially, sale volumes have dropped, and prices have been softening.  That being said, average prices are higher than the same period last year and higher than last month.  

The drop in the bank rate should be very positive for the Real Estate market.  Many buyers have been waiting to see the direction of interest rates before taking on a home purchase.  Mortgage rates have softened, and 5-year fixed rates can be offered as low as 4.99%; Variable rate mortgages as low as 6.60%.  Given all of this, the best time to buy a detached house may be right now.

Need money and the bank said no?  Turn that:

“‘Sorry, I can’t make the numbers work’
to: ‘no problem, how much do you need?’.”