Interested in learning more about property mortgages in Canada? Look no further!
Latest News
Should retirees pay off their mortgages with investments? + MORE Nov 28th
Ask MoneySense
I retired this year and my mortgage is coming due soon. My advisor said to keep the mortgage as rates are low possible and keep the money invested to keep making me money. I’m not sure this is wise, and my advisor works for the bank who holds my mortgage. What do you think?
–Li.... More »
The importance of effective listening to your success as a broker + MORE Dec 16th
As mortgage brokers look for ways to stand out in a competitive industry landscape, it’s increasingly important to consider the impact that clear and concise communication can have on service levels..... More »
Under-35 households lead the way in reducing mortgage debt, StatCan reports + MORE Jan 27th
Canada's youngest demographic of homeowners is the only group to have reduced their mortgage debt since rates started rising in 2022..... More »
Canada mortgage renewal shock coming: CMHC - CityNews Vancouver + MORE Nov 10th
Canada mortgage renewal shock coming: CMHC CityNews VancouverBank of Canada warns mortgage borrowers may face higher rates upon renewal CBC News2.2M mortgage holders will face ‘interest rate shock’ in next 2 years: CMHC Global NewsMortgage holders concerned about.... More »
CMHC reports annual pace of housing starts in January down 10% from December + MORE Feb 17th
Canada Mortgage and Housing Corp. says the annual pace of housing starts in January fell 10 per cent compared with December..... More »
Home Prices Heat Up Despite High Interest Rates
– canadamortgagenews.ca
Some weird stuff is happening in the world of real estate. As you likely know, the Bank of Canada has steadily raised interest rates over the past year in hopes of cooling inflation. This was also supposed to cool the housing market. Conventional wisdom dictates that higher rates would result in more mortgage defaults, more housing supply, and lower home prices. Oddly enough, none of that is happening.
What’s Going On?
Despite the astronomical spike in interest rates, there are far fewer real estate transactions compared to this time last year. The number of new mortgages being registered has dropped significantly. The rental market has ramped up (a basement apartment in Toronto now goes for $2k – $3k/month, which is ludicrous). And most importantly, real estate prices have skyrocketed. Bidding wars are back in full swing, which is almost the exact opposite of what we expected to see from a rate environment like the one we’re in.
Why Is This Happening?
There are a few factors at play here…
While some Canadian lenders do offer fixed-rate terms for as long as 25 years, a five-year term is far more common in Canada.Health-care workers Annie and Ben, 33, can afford a bigger house. But is now the time as they look to grow their family?
– thestar.com
The couple has a combined annual income of $260,000, a modest mortgage, and is wondering how best to invest their savings.
