Market Updates

MortgageGirl Market Update

In every e-newsletter we send out I usually like to provide a quick summary of what’s going on in the mortgage market,and then I post it to our blog; this one is no different. Below you will find a brief commentary on what the MortgageGirls think is happening and going to happen with interest Rates, house prices & the mortgage market. As always, please do not hesitate to contact us if you have any questions or comments on the below info.  We only ask that you keep in mind it is our opinion based on the articles we read and interpreting them based on our experience in the past & present mortgage market, we don’t actually have a crystal ball in the office. (I wish!)

Interest Rates

The BoC last met on January 23rd and decided to leave Prime rate the same for the 19th time in a row. Weaker than expected foreign investments and exports in the second half of 2012, among other factors,  lead us to believe that interest rates are going to stay low into 2014. The fact that the rest of the world economies are still struggling hard has bought us another year of low rate relief. But the U.S. economy is gaining traction and that means things are starting to look up; in time rates will do the same, just not anytime super soon.

House Prices

Condos are dominating the headlines these days, at least when it comes to talks of the housing market. The amounts of condo development permits issued across Canada are down, this leads me to surmise that the government is trying to stimulate the pre-existing condo resale market. Regarding the overall residential housing market, the number of sales across Canada are down, but price levels remain steady. The new rules enacted just over 6 months ago are pushing some buyers out of the market, but there is still enough competition between the buyers that still qualify for financing to keep the marketplace competitive and house prices increasing slightly. Annual averages in the national market are calling for a 3-5% increase in home prices, but the declining number of sales could offset that in some of the hotspots like Toronto & Vancouver. Alberta is likely going to remain strong with home prices and sales maintaining their positive trend.

Mortgage Market

In general, the mortgage market in Canada is strong, with new mortgage lenders entering the market that is just further confirmation of that. We’re keeping all fingers crossed that there are no more mortgage rules in the pipeline, and we haven’t heard any rumors yet, let’s hope it stays that way. Instead, attention will likely be directed towards encouraging Canadians to reduce their unsecured consumer debt levels on things like credit cards, personal lines of credit, etc. With less Canadians qualifying for mortgage financing, now is the time to reduce your personal debt, pad your savings account and ensure your credit score stays in tiptop shape.

The Bottom Line

Now, more than even, it is more important than ever that you not only educate yourself on your financing options, but also work with an experienced professional you trust. By doing both, you not only benefit from the experience of others, but ensure that you are exposed to all the solutions available to you for your specific scenario.

If you’re looking for an experienced mortgage professional, take the direct approach by calling us at 866-932-8412 or emailing

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