As a experienced mortgage professional, it is my job to get you the mortgage you need at the price that you deserve. I work on your behalf and have access to over 25 differnet lenders.
BLOG / NEWS Updates
Should I wait or buy now
Should I buy now or wait a yearas prices are dropping, but interest rates are rising? I hearthis question daily, and my usual answer drones on about interest rate projections,supply and demand of homes blah blah!! So I thought I wouldrun the numbers and see what makes the most sense based on the numbers, not my opinion! Option 1 - If you bought a home for$100,000 and put 5% downand had aninterest rate of 3.59% on a 5 year term amortized over 25 years you would have monthly payments of $498.46and at the end of the first year you would owe $96,397. That is a decrease in your mortgage of 2.53% over the first year. Option 2 - Lets assume the housing market dropped by 3% over the next yearand interest rates went up by1/2% (most economists are predicting a 3/4% increase in that period). So instead of a $100,000 purchaseyou only have to pay$97,000 and put 5% down, but the rate would be4.09% with monthly payments of $509.29. Now lets look into the future and see which option has the lowest mortgage 5years from the start of Option 1. Option 1 -mortgage balance is $85,467 Option 2 - mortgage balance is $86,300 Plus under Option 2 you would have paid $480more in monthly mortgage paymentsover the last 4 years than you would with Option 1 for a total savings of $1,313 per $100,000 in purchase price if you buy now instead of waiting a year. If interest rates do go up as projected by 3/4% over the next year, we are looking at savings that would offset a drop of closer to5% in values. If you want to discuss your personal situation and have me run yournumbers, please let me know as knowledge is power, and having the info will helpyou sleep better?
Among Canadians who are not yet back in their regular workplace, close to 4 in 10 do not feel safe returning
Months after COVID-19 began to spread in Canada, a large number of Canadian workers continue to work from home or are simply absent from their physical workplace. The survey asked these people whether they felt safe returning to work. At the time of survey collection in June, close to 4 in 10 Canadian workers who were not in their regular workplace (38%) reported that they did not feel safe returning to work. The most commonly-reported reasons for not feeling safe were fear of contracting the virus and fear of infecting family members. About 30% said that they felt safe returning to their physical workplace, and another 32% said that they did not know or chose not to answer the question.
National Bank of Canada Weekly Economic Watch
Housing starts rose from 166.5K in April to 193.5K in May (seasonally adjusted and annualized). Urban starts improved 22K to 181.1K on increases in both the multi-unit (+14.9K to 135.9K) and the single-detached (+7.1K to 45.3K) segments. At the provincial level, urban starts shot up in Quebec from 0K in April to 56.3K as social distancing measures were eased but plunged 37.1K to 56.5K in Ontario. June results should provide a clearer snapshot of the post-lockdown residential construction industry in Canada. Projects delayed on account of the Covid-19 pandemic might sustain starts at a relatively high level for a short while but the longer-term horizon looks less promising in light of much higher joblessness and reduced immigration. Moreover, tougher CMHC standards for mortgage insurance will likely exclude some potential buyers by shrinking their purchasing power. We estimate that the new rules governing maximum gross debt service will reduce by about 11% the amount that the median Canadian household will be allowed to borrow. Source: NBA Economics and Strategy