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Posted Bank News

The Great Mortgage Reset

A FOUR PART SPECIAL EDITION… PART 2 of 4

Canada’s mortgage lending rules and policies are broken.  They just don’t work.  And the more our Federal government tries to help, the worse it gets.  This is a 4 part series of what our government can do to make home ownership affordable.

IDENTIFY THE PROBLEMS.

1. QUALIFYING IS TOUGHER THAN EVER BEFORE

    Canadians can’t afford to buy or rent a home due to the high monthly cost. Home prices and rental rates have exploded! No surprise there.  

    Simple math.. Even a below average home, let’s use a $500,000 mortgage @ 4.69% will cost you $2,820/mth.  Add in property taxes, home insurance and

    Continue reading “The Great Mortgage Reset”
    Posted Bank News

    10 up and 3 down, unintended consequences!

    LOTS OF MOVEMENT IN MORTGAGE RATES

    Sounds like a football play. But I’m not talking about football even though the NFL season just started and my Buffalo Bills won their first two games. I’m referring to how many times the Bank of Canada’s (BoC) Governor, Tiff Macklem, has changed the Overnight rate since March 2022.  

    Did you know we saw 10 rate hikes totaling 4.75% in just 16 months from March 2022 to July 2023?  That’s never happened before.  And most of those rate hikes

    Continue reading “10 up and 3 down, unintended consequences!”
    Posted Mortgage News

    Finally!! The Bank of Canada cuts the rate. 

    Today, the Bank of Canada cut the Prime rate by 0.25%.  Hooray!  This will directly affect Variable rate mortgages and indirectly affect Fixed rate mortgages. 

    It has been 27 months since the Bank of Canada governor, Tiff Macklem, started hiking rates to combat inflation.  The last hike was in July 2023. Since then, it’s been a guessing game to see when Macklem would act.. Finally, he cut the rates which is much needed and welcome news to all.

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    Posted Finance

    Housing crisis.. Made in Canada

    It’s really not that complicated.  If you really want to resolve the housing crisis you just need to do these FIVE things

    • 1. Bring back 35 year amortization periods and increase qualifying home prices to $1,250,000 or higher.
    • 2.Remove rent control rules.
    • 3.Halt new immigration until we can build up enough support services to handle what we have already. *(exception below)
    • 4.Cut back on the municipal, provincial gov’t Red Tape to build any type of residential housing and that includes purpose built rental apartment buildings.
    • 5.Create a hiring program to entice and incentivize people to get into skilled trades …and bring over people from outside Canada if you have to (this would be my exception to point 2 above)
    • Do this and you’ll soon have more housing units available than you could even dream of.  It could be done in 3 to 5 years.  It’s just not that complicated.
    Continue reading “Housing crisis.. Made in Canada”