AGENT LICENSE ID
M21000893
BROKERAGE LICENSE ID
11707
Melinda Baker
Mortgage Broker
Office:
Phone:
Address:
1370 Kilarney Beach Road Box 190, Lefroy, Ontario
Welcome,
Take a look around and if you have any questions please reach out.
Text for an appointment 705-220-1608
Melinda
BLOG / NEWS Updates
Bank of Canada maintains policy rate, continues quantitative tightening
The Bank of Canada on Wednesday held its target for the overnight rate at 5%, with the Bank Rate at 5% and the deposit rate at 5%. The Bank is also continuing its policy of quantitative tightening.
Inflation in advanced economies has continued to come down, but with measures of core inflation still elevated, major central banks remain focused on restoring price stability. Global growth slowed in the second quarter of 2023, largely reflecting a significant deceleration in China. With ongoing weakness in the property sector undermining confidence, growth prospects in China have diminished. In the United States, growth was stronger than expected, led by robust consumer spending. In Europe, strength in the service sector supported growth, offsetting an ongoing contraction in manufacturing. Global bond yields have risen, reflecting higher real interest rates, and international oil prices are higher than was assumed in the July Monetary Policy Report (MPR).
The Canadian economy has entered a period of weaker growth, which is needed to relieve price pressures. Economic growth slowed sharply in the second quarter of 2023, with output contracting by 0.2% at an annualized rate. This reflected a marked weakening in consumption growth and a decline in housing activity, as well as the impact of wildfires in many regions of the country. Household credit growth slowed as the impact of higher rates restrained spending among a wider range of borrowers. Final domestic demand grew by 1% in the second quarter, supported by government spending and a boost to business investment. The tightness in the labour market has continued to ease gradually. However, wage growth has remained around 4% to 5%.
Recent CPI data indicate that inflationary pressures remain broad-based. After easing to 2.8% in June, CPI inflation moved up to 3.3% in July, averaging close to 3% in line with the Banks projection. With the recent increase in gasoline prices, CPI inflation is expected to be higher in the near term before easing again. Year-over-year and three-month measures of core inflation are now both running at about 3.5%, indicating there has been little recent downward momentum in underlying inflation. The longer high inflation persists, the greater the risk that elevated inflation becomes entrenched, making it more difficult to restore price stability.
https://www.bankofcanada.ca/2023/09/fad-press-release-2023-09-06/
Housing market stabilizing as rising interest rates weigh in July
Summary
On a seasonally adjusted basis, home sales decreased 0.7% from June to July, a first monthly contraction in six months following the renewed monetary tightening cycle of the Bank of Canada.
On the supply side, new listings jumped 5.6% in July, a fourth consecutive monthly increase. Another sign of a loss of momentum in the real estate market is the proportion of listings cancelled during the month, which is back on the rise, a sign that some sellers are discouraged by recent interest rate hikes.
Overall, active listing increased by 2.5%, the second monthly gain in a row. As a result, the number of months of inventory (active-listings to sales) increased from 3.1 in June to 3.2 in July. This continues to be higher than the trough of 1.7 reached in the pandemic but remains low on a historical basis.
The active-listings to sales ratio is still tighter than its historical average in the majority of Canadian provinces, with only Manitoba indicating a ratio slightly above historical norm.
Housing starts in Canada decreased in July (-28.5 to 255.0K, seasonally adjusted and annualized), beating consensus expectations calling for a 244K print. This decline follows the strongest growth ever recorded the previous month. Decreases in housing starts were seen in Ontario (-21.8K to 99.5K), British Columbia (-15.2K to 50.7K), Nova Scotia (-8.1K to 5.8K) and Saskatchewan (-1.9K to 5.3K). Meanwhile, increases were registered in Alberta (+11.9K to 38.5K), Quebec (+3.1K to 38.0K), Manitoba (+2.1K to 10K), New Brunswick (+0.6K to 5.0K), P.E.I. (+0.6K to 1.2K), while starts in Newfoundland (+0.1K to 1.1K) remained essentially unchanged.
The Teranet National Bank Composite National House Price Index rose by 2.4% in July after seasonal adjustment. Eight of the 11 markets in the composite index were up during the month: Halifax (+4.9%), Hamilton (+4.4%), Vancouver (+3.9%), Toronto (+3.5%), Victoria (+1.6%), Winnipeg (+1.3%), Ottawa-Gatineau (+0.6%) and Edmonton (+0.3%). Conversely, prices fell in Quebec City (-1.2%), Montreal (-0.9%) and Calgary (-0.3%).
https://www.nbc.ca/content/dam/bnc/taux-analyses/analyse-eco/logement/economic-news-resale-market.pdf
12. Why use a Mortgage Broker
Need money? Why use a mortgage broker?
Want to purchase your first home.
not sure if you can qualify? How much?
Purchase plus improvement
You are coming up for a renewal, and want to see if there is another option other than what your current lender is offering?
Refinance high interest debt
Renovate
Where should I start?
Traveling, did you see a billboard on the seventh line that advertises a Mortgage Broker?
Should I use a mortgage broker?
Why would I use a Mortgage Broker?
In most cases, the Canadian Dream is to own your own home, a piece of land and someplace you can call your own. A place to raise your family in an emotionally and financially stable way.
Your home is or will be in most cases the most significant purchase you will ever make. Most people will need to work hard and save for the first doorknob now a days, let alone their first home.
The Average person will not be able to pay cash, to own their own home, but that does not mean that it is not a worthy goal. Once you have that down payment, in most cases you will need a mortgage, or somewhere to start.
So where do you start?
At your bank, the Mortgage Specialist is an employe who is in most cases not licensed but sells their banks products.
Why use a Mortgage Broker?
A Mortgage Broker is an independent contractor in a highly regulated industry with specific knowledge and a licensed who works to lend in Mortgages. Your Broker works under a Licensed Brokerage, and they work to solve your home ownership problem, or expansion ideas. If any issue comes up that the client feels needs a resolution, they can speak to the Mortgage Broker to discuss. If there is still no resolution, they can speak with the licensed brokerage principal broker and the licensing agent FRSA for dispute resolution. The Mortgage Broker receives payment after the mortgage closes through the brokerage within the lending process. No money exchanges happen between you or your Mortgage Broker, everything goes through the Brokerage and the Lawyers for the deal. When you meet with your Mortgage Broker you will discuss your goals, property, assets, liabilities and review your credit in a professional manner. With the specific details gathered as part of the file the Mortgage Broker reviews the various lenders and their available underwriting guidelines to find the best solutions to your home ownership problem or expansion ideas.
Do you own multiple homes? Rental business? Commercial business?
Are you a 40-hour fulltime employee with a traditional income?
Business for self BFS? On disability income or pension? Retire?
With these details questions answered, you and your mortgage broker will learn what you want to do in both your current and future goals.
Sometimes the discussions may not be now but working towards improving your financial picture to home ownership. There is a solution that may not be easy, but your Mortgage Broker can help you to find the best solution. Your best solution.
How can you, my client, purchase your home and be in the best situation to financially grow your assets under management so that you can financially support your family, church, charity, and community through your interdependent life?
Start the conversation and find out today why to use a Mortgage Broker
Melinda Baker Mortgage Broker M21000893 Verico The Mortgage Station 11707
Phone: 705-220-1608 melinda@themortgagestation.ca mortgageweb.ca/melindabaker