Copy
View this email in your browser
your mid-week mortgage market minute
with Jim Cook, Broker
to share this email with your clients, use this link.
in the mortgage marketplace ...
The market is anticipating, with better than even odds, a reduction in the Bank of Canada policy rate on June 5th and with almost 100% odds a reduction on July 24.  Let's get the champagne and caviar on ice!!   

That's great when what it reflects is inflation coming into target range, which it most certainly is when you take mortgage interest out of the equation.

The media is going to increasingly talk about pending BoC rate drops and buyers/homeowners are listening - but I don't think they  have the context.  A lot of folks I'm talking to recently are anticipating summer rate drops and are asking about variable rate mortgage options.

All things equal, a variable rate or a 2 yr fixed rate would be the preferred options based on what we expect in the next couple years, but both are priced so high, that they make no financial sense at the moment.  

Logically, that makes sense looking at market forecasts of a  reduction in Prime Rates of 1.5% over the next three years.   Except, variable rates are priced so high right now, we would need to see at least a 2% reduction over 3 years, just to average out/equal what you can get with a 3 yr fixed rate at the moment.  So, why take the risk?

It's going to be a quiet week on the economic front - with the only report to note being Canada jobs numbers due out this friday. US just reported much lower job creation and wage growth than expected.  If Canada continues to show weakness in employment, it could further grease the trail towards a June BoC rate reduction.

Message is consistent - we are inching ever closer to a declining rate environment - but it's likely going to be glacially slow.  What we may be surprised at is the volume of Buyers that re-enter the market after the first BoC rate reduction announcement!

chart source: mortgagelogic.news
rate snapshot ...

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. 

Have a successful week!  
We had the pleasure of working with Jim Cook as our mortgage broker, and we can confidently say that he exceeded all our expectations. Jim's intelligence and expertise were evident from the start, but what truly set him apart was his unwavering support and involvement throughout the entire process.

Jim went above and beyond to ensure that we understood every aspect of our mortgage journey. His dedication to keeping us informed was remarkable, as he provided frequent updates on any developments and was always available to address any questions or concerns we had.

What truly impressed us was Jim's innovative approach to communication. Whenever we reached out with a question, he would respond with a personalized video, breaking down the entire situation in a clear and comprehensive manner.

Having Jim work with the banks on our behalf was incredibly convenient. His availability at hours when the banks typically wouldn't be accessible made the process seamless. Furthermore, Jim's genuine care for our success was evident in every interaction. We truly couldn't have navigated this process without him.

(SL, 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!
SUBSCRIBE HERE to receive this weekly Mortgage Market Minute

Are you a member of my VIP CLUB yet? 
SUBSCRIBE HERE for a monthly newsletter with contest giveaways!
Jim Cook is a nationally-recognized broker with some quarter billion in mortgages funded. 
www.mymortgageplace.ca          519-832-7882            chatwithjim.ca
facebook jim cook mortgage
Website
Email
LinkedIn
Copyright © 2024 TMG The Mortgage Group, All rights reserved.


Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.

Email Marketing Powered by Mailchimp