76% of mortgages due for renewal by end of 2026. Variable rate mortgages risk negative amortization, increasing principal balances.Read more
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Canadians' rising savings rate, now at 7.2%, may not adequately shield homeowners from upcoming mortgage renewals, according to a CIBC report. The true excess savings could be between 5% and 13% of household income, rather than the 25% suggested by national accounts. Most savings are held by homeowners without mortgages, while those with significant mortgageRead more
The Bank of Canada cut its policy rate to 4.5%, lowering mortgage rates for some Canadians. Variable-rate mortgage holders will see reduced monthly payments, especially those with adjustable-rate mortgages.Read more
The Bank of Canada is anticipated to continue lowering interest rates in 2024, with the next cut expected at the upcoming meeting on September 4. Economists predict a series of rate reductions at each of the remaining three policy-setting meetings of the year,Read more
The Home Buyers’ Plan (HBP) now allows first-time buyers to withdraw up to $60K from their RRSPs. The HBP repayment grace period has increased to five years for withdrawals made between 2022 and 2025.Read more
Real estate experts indicate that the Bank of Canada's third consecutive interest rate cut is positive for those with variable-rate mortgages, but it may take time for lower borrowing costs to significantly impact sales. While the key lending rate is now 4.25%, many potential homebuyers find mortgage rates still unaffordable. Experts suggest that even aRead more
The unemployment rate three-month moving avg rose, indicating a potential recession. S&P 500 dropped 3%, VIX index spiked, and US 10-year yield plunged 9.8%.Read more
Starting August 1, 2024, first-time buyers of new homes can access 30-yr amortizations for insured mortgages.To qualify, buyers need a minimum 5% down payment for homes up to $500K.Read more
Rate Drop Forecast: BoC rate could dip to 3.75% by late 2024. Historical Trends: Past rate cuts did not always boost home prices; it often led to declines.Read more
Mortgage professionals in Ontario should note that the Homeowner Protection Act, effective June 6, 2024, has rendered Notices of Security Interest (NOSIs) for consumer goods, such as water heaters, expired. FSRA advises mortgage agents and brokers to inform clients about these expired NOSIs to prevent unnecessary payments and financial stress. Homeowners with NOSIs registered beforeRead more
