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your mid-week mortgage market minute
with Jim Cook, Broker
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in the mortgage marketplace ...
We are already starting to a see a glimpse of some market insanity locally - I suspect it's going to continue to be frustrating for purchasers within an average home price bracket.

If you are/have a Buyer client who is waiting on the sidelines for rates to come down a wee bit - and they are thinking that message is the Bank of Canada reducing it's policy rate - then this (admittedly poor quality) very short video below is something you should watch.  The rates are off, but the message is the same.

I don't expect rates to plunge - it is going to take some time - but that gradual reduction is only going to bring comfort and resolve to Buyers waiting on those signals.

Also worth noting - fixed rates typically fall as much as a couple months before any Prime rate reduction - so if folks are intending to purchase this spring, a month ago was the best time - today is second best.

Notable Policy News:
  • last week I noted to watch for 30 year amortizations coming to market - which they did a day or two after I gave the heads up.  It could be viewed as an inflationary policy and so it is limited to first time buyers, new construction purchases only, to become available in August.   Frustrating restrictions but there is an intent to open up this policy more in the future.  In the text, government advises they will monitor inflation and supply to determine when conditions permit more broad access to an insured 30 yr amortization.  So, let's assume it's coming for all - subject to government change as well.
  • the RSP Home Buyers plan limit has increased from $35k to $60k, for those that are able to build savings - and - the grace period to begin replenishing their RSP has been extended by three years.
Final note - the government is (finally) proposing to consult on providing some form of tool to complete income verification through CRA.  That should slash income fraud in mortgage applications - and streamline some of the paper work for mortgage approvals - speeding up the process for Purchasers, brokers and lenders alike.
rate snapshot ...

In response to surging demand in the US and jitters over what may be coming for Iran/Israel, we saw bond rates continuing to increase and therefore some lenders increased their fixed rates.  It result in a couple late nights doing pre-approval/rate hold requests in advance of the increasingly active spring market.  Preferred options remain stable - with one lender below on insured, 3 and 5 yr terms.

For properties priced below $1 million, with less than 20% down payment, example rates would be:
  • 1 yr fixed  6.64% or $6.78 per $1k in mortgage
  • 3 yr fixed  5.14% or $5.90 per $1k in mortgage
  • 5 yr fixed  4.99% or $5.81 per $1k in mortgage
For clarity, a $500,000 at 5.09% on a 25 yr amortization would have payments of 500 x 5.87 = $2,935 monthly.

Note also that rates can change daily, certainly differ between lenders and definitely differ based on down payment, mortgage features and hidden costs.
in Jim's practice ...
A reminder - the easiest way to refer someone into my office - whether to start the education process, for a second opinion or to aid with a trade-up - is to have them visit chatwithjim.ca and book a phone appointment right into my calendar

We are also working on a new location to archive past and present 3M emails.  Stay-tuned - we should have links/news shortly. 

In future weeks, we are going to start to highlight some of our client processes so you are aware of how things have evolved.

Have a successful week!  
We are so grateful to have found Jim to help us navigate our purchase and mortgage needs.We definitely recommend Jim's team!!!

(S&P, Feb 2024)
chatwithjim.ca

the best place to refer clients to get questions answered quickly!  No Phone Tag.  They book directly into my calendar to schedule a call!
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Jim Cook is a nationally-recognized broker with some quarter billion in mortgages funded. 
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