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in the mortgage marketplace ...
This realtor uses a creative video hook (lol).   I can visualize one or two local home girls/ home guys doing something very similar - in fact, I'm now going to be watching for it. 😂

1.  Headline inflation came in weaker than expected.  Average core inflation has dropped every month this year.  Rent and mortgage interest inflation slowed further.  Food inflation showed the steepest decline since August 2020.  The result?  Our dollar is stretching further - and the probability of a June 5 BoC rate cut are again above 50% - and at 100% for July.  

2.  The media has done a phenomenal job at focusing consumers on a pending rate cut.  I've received several calls about whether they should be negotiating renewal rates today or after June 5th as a result.

3.  Reductions in BoC do not directly translate to reductions in mortgage fixed rates.  Prime rate is expected to fall 2.5% over the next 3 years - the 5 yr fixed rate is expected to fall less than 0.5% over that same time frame.

4.  The biggest impact of a BoC policy rate drop on June 5 would be boosting consumer confidence to get off the sidelines and enter the fray.

image source - Mortgagelogicnews
rate snapshot ...
Preferred options remain relatively stable but a few others starting to drop now - with a couple lenders now below on insured, 3 and 5 yr terms.

** a reminder - lowest rate is not the same as lowest cost **

For properties priced below $1 million, with less than 20% down payment, example rates would be:
  • 1 yr fixed  6.74% or $6.84 per $1k in mortgage
  • 3 yr fixed  5.19% or $5.92 per $1k in mortgage
  • 5 yr fixed  4.99% or $5.81 per $1k in mortgage
For clarity, a $500,000 at 4.99% on a 25 yr amortization would have payments of 500 x 5.81 = $2,905 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 ...
Reminder - Our clients follow the same simple 3 step process every single time.

1.  Discovery Phone call to ensure we can bring value before wasting everyone's time.  (chatwithjim.ca)

2.  Application and Documentation through our encrypted portal so any answer is based on fact, not fiction.

3.  Answers back within 24 hours of folks completing Step 2.

Simple.  Direct.  Convenient.  Secure.

Have a successful week!  
I'm not sure why anyone would choose someone other than Jim.  Both buying and renewing a mortgage have been so easy and well explained with Jim as our broker.
He does the math and figures out what is best for his clients - both short and long term.
Kincardine is lucky to have him!

(PS, May 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. 
www.mymortgageplace.ca          519-832-7882            chatwithjim.ca
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