The Bank of Canada raised its key lending rate by 100 basis points July 13, bringing it to 2.50%. The Bank said inflation is “higher and more persistent” than what it had forecast in April, and will likely remain “around 8% in the next few months.” In its statement accompanying the decision, the Bank said, “With the economy clearly in excess demand, inflation high and broadening, and more businesses and consumers expecting high inflation to persist for longer, the Governing Council decided to front-load the path to higher interest rates…” What happens now? In the coming days, banks and other financial institutions are expected…

After reaching record heights in February, the average cost of buying a home in the area fell for the second straight month, according to the Kitchener-Waterloo Association of Realtors (KWAR). The average cost of purchasing a house in April was $907,205, which is down around 13 per cent from March’s average cost of $960,181. The Kitchener-Waterloo market saw a record high of $1,007,109. Detached homes played a large part in the dip as the average fell to $1,060,992, which is a drop of almost $200,000 over the past two months. “Last month introduced a small measure of relief to the market,” KWAR president Megan Bell…

Home sales in Canada fell in March, while the pace of price growth eased, potentially signalling the start of a slowdown as interest rates trend higher. Home sales were down 16.3% compared to last year’s record high, falling to 55,000 units, according to data from the Canadian Real Estate Association (CREA). Meanwhile, the average home price came in at $796,068, down 1.5% from February, while year-over-year price growth eased to 11.2%, down from the annualized 20.6% rise seen in February. “While the market remains historically very active, March definitely saw a slowdown compared to February in terms of both activity and price growth,” said Jill…

Home sales in Canada fell in March, while the pace of price growth eased, potentially signalling the start of a slowdown as interest rates trend higher. Home sales were down 16.3% compared to last year’s record high, falling to 55,000 units, according to data from the Canadian Real Estate Association (CREA). Meanwhile, the average home price came in at $796,068, down 1.5% from February, while year-over-year price growth eased to 11.2%, down from the annualized 20.6% rise seen in February. “While the market remains historically very active, March definitely saw a slowdown compared to February in terms of both activity and price growth,” said Jill…

Bank of Canada Raises Rate by 50 bps     The Bank of Canada has just raised its key lending rate by 50 basis points, bringing it to 1.00%. This marks the second change to the Bank's overnight target rate this year and the first 50-bps rate hike since 2000.  In its statement accompanying the decision, the Bank said, "With the economy moving into excess demand and inflation persisting well above target, the Governing Council judges that interest rates will need to rise further." The Bank now expects CPI to average "almost 6% in the first half of 2022 and remain well above the control range throughout…

The federal government has earmarked more than $10 billion in new spending for housing-related initiatives, much of which is focused on increasing supply.  In terms of housing initiatives, the federal budget delivers on a number of Liberal Party campaign promises made during the last election, with one notable exception. Absent was the proposal to increase the insured mortgage cut-off from $1 million to $1.25 million.   The $10 billion in housing-related spending over the next five years includes: $4 billion for a new Housing Accelerator Fund. The fund will target the creation of 100,000 net new housing units over five years.  A $500 one-time payment…

The big news in the mortgage world these days has been the steady increase in fixed mortgage rates. Since the start of the year, fixed rates have risen approximately one percentage point, or 100 basis points.  As a general guide, for every 0.25% increase in mortgage rates, your monthly payment will increase $12-$13 per $100,000 of debt.  For now, these increases are mostly impacting potential new homebuyers that haven’t found a home yet. But as time goes on, a growing number of fixed-rate mortgage holders will be reaching the end of their term and could face mortgage renewals at higher rates.  Nearly 4-in-10 mortgage…

The Ontario government is going ahead with a hike and expansion of its tax on foreign homebuyers. In a release Thursday afternoon, the government said it will hike the non-resident speculation tax as of March 30 to 20 per cent from the current rate of 15 per cent. At the same time, it will expand the tax to apply province-wide, whereas it is currently only in force in the Greater Golden Horseshoe Region. The announcement confirms a BNN Bloomberg report in December that the measures were under consideration. At the time, a senior provincial government source indicated Queen's Park was prepared to take…

With the average home price at a record high, Canadians are having to fork over more cash for homes than ever before. In response, mortgage experts say they have been seeing more and more relatives gifting down payments to family members to help cover the initial costs of purchasing a home. Based in Surrey, B.C., Mick Gill is an accredited mortgage professional with Dominion Lending Centres, a national mortgage and leasing company. Even prior to the COVID-19 pandemic, he said the steady rise in home prices across the country has led gifted down payments to increase in both prevalence and size. “Affordability becomes…

  Despite an increase in new listings in many of the country's major housing markets in February, it wasn't enough to keep prices from continuing their climb. In Toronto, the MLS Home Price Index was still up 28% compared to last year—and nearly 6% on a month-over-month basis—while Vancouver prices were up 21% from last year. Calgary, meanwhile, saw a surge in activity, with sales up 80% from last year and its benchmark price up 16% on an annual basis and up nearly 6% from January. However, subtle changes are appearing in certain markets, including fewer offers on offer night and less aggressive bidding,…

Original Article Source Credits:   Government Of Canada , https://www.canada.ca/

Article Written By:  NA

Original Article Posted on:  2020-12-29

Link to Original Article:  https://www.canada.ca/en/financial-consumer-agency/services/mortgages/interest-on-mortgages.html

Original Article Source Credits:   CANADIAN MORTGAGE TRENDS , https://www.canadianmortgagetrends.com/

Article Written By:  Ross Taylor

Original Article Posted on:  April 27, 2021

Link to Original Article:  https://www.canadianmortgagetrends.com/2021/04/a-pre-approval-does-not-guarantee-a-mortgage-approval/

Original Article Source Credits:   Loans Canada , https://loanscanada.ca/

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Link to Original Article:  https://loanscanada.ca/credit/what-to-do-if-you-have-a-zero-credit-score/

Before you take possession of your new home, you need to consider all the additional costs of obtaining your home. These are called closing costs and are estimated to be around 1.5% of the purchase price. These costs include myriads of fees of services of third parties, such as your real estate attorney and your mortgage lender, and other expenses required to finalize a mortgage deal.

Original Article Source Credits:    Financial Post , https://financialpost.com/

Article Written By:  Clayton Jarvis

Original Article Posted on:   March 24, 2021

Link to Original Article:  https://financialpost.com/moneywise/renewing-your-mortgage-heres-why-you-should-think-twice

Original Article Source Credits:   Yahoo Finance, https://ca.finance.yahoo.com/

Article Written By:  Jessy Bains

Original Article Posted on:  March 4, 2021

Link to Original Article:  https://ca.finance.yahoo.com/news/canadian-banks-raise-some-mortgage-rates-lower-others-192709963.html

Original Article Source Credits:   CANADIAN MORTGAGE TRENDS , https://www.canadianmortgagetrends.com/

Article Written By:  Steve Huebl

Original Article Posted on:  March 23, 2021

Link to Original Article:  https://www.canadianmortgagetrends.com/2021/03/latest-in-mortgage-news-rising-prices-spurs-talk-of-capital-gains-tax-on-home-sales/

Original Article Source Credits:   Canada.ca ,https://www.canada.ca/

Article Written By:  NA

Original Article Posted on:  2021-01-22

Link to Original Article:  https://www.canada.ca/en/financial-consumer-agency/services/mortgages/choose-mortgage.html

Original Article Source Credits:   Straight , https://www.straight.com/

Article Written By:  Carlito Pablo

Original Article Posted on:  February 17th, 2021 

Link to Original Article:  https://www.straight.com/news/canada-real-estate-mortgage-borrowing-reaches-record-high-of-108-billion-in-2020