YORK REGION MORTGAGE BROKER, SARAH COLUCCI, 20 YEARS OF EXPERIENCE HELPING HOMEOWNERS!
  • HOME
  • CONTACT US
  • PRIME RATE CANADA
  • MORTGAGE NEWS

Welcome to Our Smart Mortgage Blog

​Navigating mortgage financing can be daunting, but with the right strategy, it's manageable. This blog offers expert advice and insights on understanding interest rates and leveraging market trends for smart real estate investments. Whether you're a first-time buyer or a seasoned investor, "Our Smart Mortgage Blog" will provide the tools to make informed decisions and achieve your homeownership goals. Let's dive in and secure the best outcomes together.

Why Canadian Home Prices Refuse to Slow down Even with the Soaring Mortgage Rates

6/20/2023

0 Comments

 
Despite the soaring mortgage rates to their highest levels in more than a decade, Canadian home prices are still increasing. The continuous rise in prices has led many prospective homebuyers to question why Canadian home prices refuse to slow down. In this blog post, we will explore the factors that are keeping Canadian home prices buoyant, despite the increasing cost of borrowing money for a mortgage.


According to a report by the Canadian Real Estate Association, average prices of homes being resold continued to rise in May, marking the fourth consecutive month of increase. Since January, the average price of a Canadian house (not adjusted for seasonal variations) has gone up by more than $116,000. Almost all provinces saw a rise in monthly prices, with British Columbia, Ontario and Saskatchewan experiencing the strongest increases. When adjusted for seasonal variations, CREA's Home Price Index rose by 2.1% compared to April, but was still down by 8.6% year-over-year. National home sales also increased by 5.1% in May compared to April, with only three provinces - PEI, B.C. and Ontario - experiencing a rise in sales activity.

According to Shaun Cathcart, a senior economist at CREA, the increase in housing activity this year was expected due to the existing demand. The only uncertainty was the timing, which was resolved this spring. However, the reluctance of current homeowners to sell their properties due to the low fixed rates they secured during the pandemic was an unexpected factor in the 2023 housing market. CREA reported that the months of inventory decreased to 3.1 months in May, which is below the long-term average of five months. Although new listings increased by 6.8% from the previous month, they remain historically low.

Randall Bartlett, Senior Director of Canadian Economics at Desjardins, noted that a growing population, a tight labor market, falling price-to-rent ratios, and the expectation of lower interest rates have all contributed to the high demand for housing in the first five months of 2023.

The Canadian housing market is currently experiencing high demand due to various factors, but the only thing that could potentially cool it down is an increase in interest rates. Although the recent rate hike by the Bank of Canada and the possibility of more hikes in the future may slow down resale activity, the trend of slowing housing starts and the current lack of demand to meet supply will only worsen the affordability crisis, leading to higher home prices and rent.

Until there is significant progress in inflation reaching the Bank of Canada's 2% target, the bank will likely continue to raise rates, with a possible hike in July and further hikes as needed. TD Economics' Rishi Sondhi adds that higher rates may result in weaker sales growth in the latter half of the year, coupled with a softening job market.



RSS Feed

0 Comments

Demystifying APR: Understanding the True Cost of Your Mortgage.

6/15/2023

0 Comments

 
​As a consumer, understanding the APR (Annual Percentage Rate) is crucial when it comes to your mortgage and other loans. APR is a percentage that represents the total cost of borrowing money over a year, including interest and fees. It is important to understand this rate because it can greatly impact your finances.

Firstly, APR helps you compare loan offers from different lenders. For example, if you are looking at two different mortgage offers with different interest rates and fees, the APR can help you determine which one is more affordable in the long run. It gives you a more accurate picture of the total cost of each loan.

Secondly, knowing your APR can help you budget and plan for your payments. If you only focus on the interest rate, you may not be aware of all the other fees associated with your loan. By understanding the APR, you can calculate exactly how much you will be paying each month and over the life of the loan.

Thirdly, APR can help you avoid hidden fees and charges. Some lenders may advertise low interest rates, but have high fees that are not immediately apparent. By looking at the APR, you can see the total cost of borrowing money and avoid being blindsided by unexpected charges.

Finally, understanding your APR can help you save money in the long run. By choosing a loan with a lower APR, you can save thousands of dollars over the life of the loan. This can free up money for other expenses or investments.

In conclusion, understanding APR is crucial when it comes to your mortgage and other loans. It helps you compare offers, budget for payments, avoid hidden fees, and save money in the long run. Make sure to take the time to understand your APR before signing any loan agreements.

RSS Feed

0 Comments

The Prospective Outlook for Interest Rates in Canada.

6/10/2023

0 Comments

 
Below is a brief overview of the current status of interest rates:
  1. The Bank of Canada has raised its short-term policy rate to a 22-year high of 4.75% due to strong household spending and high core inflation. (Bank of Canada Hiked Rates Over Alarm of Household Spending)
  2. Economists anticipate further increase in interest rates at next month's policy meeting due to recovery in housing market and tight labor market conditions. Bank of Canada’s Beaudry Sees Signs of New Era of Higher Interest Rates)
  3. Inflation in April accelerated for the first time in 10 months, expected to ease to 3% this summer. (Markets eye more BoC rate hikes )
  4. The Canadian economy grew at an annualized rate of 3.1% in the first quarter, likely accelerated further in April.

Here are some solutions to help you manage higher interest rates:

1. If you have some time left in your mortgage term, you can get in touch with your lender to secure a fixed rate. This could help you avoid any fluctuations in your mortgage payments and provide you with a sense of stability.


2. One option to potentially reduce your monthly payments is to refinance into a longer amortization period. This can provide some financial relief in the short term, but keep in mind that it may result in paying more interest over the life of the loan. It's important to carefully weigh the pros and cons before making a decision.


3. Consider completing a comprehensive financial clean-up and consolidating your debts. Eliminate high-interest loans that may be depleting your finances and reducing your monthly cash flow.


4. Consider taking out a line of credit while the value of your property is still high. This can provide you with financial flexibility for unexpected expenses or to weather any market instability until conditions improve or interest rates decrease.


5. Let's conduct a complimentary financial review together to identify potential areas for saving money.

Schedule a meeting with me.

​
Remember: One way to achieve financial stability is by prioritizing saving over earning.
0 Comments
    Picture

    By: Sarah Colucci

    Senior Mortgage Agent, Level 2, Lic. M14000929, 
    Sherwood Mortgage Group, Broker 12176, 
    Direct: (647) 773-4849

    RSS Feed

    Archives

    September 2024
    August 2024
    July 2024
    March 2024
    February 2024
    November 2023
    October 2023
    September 2023
    July 2023
    June 2023
    April 2023
    January 2023
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    August 2021
    July 2021
    June 2021
    May 2021
    February 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    February 2019
    January 2019
    December 2018
    August 2018
    May 2018
    April 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All

    RSS Feed

GET IN TOUCH WITH SARAH

Let's get started today.



Address

411 Queen St. 
Newmarket, ON
​L3Y 2G9

Sarah A. Colucci, Mortgage Agent Lic. M14000929
Sherwood Mortgage Group
Licence # 12176

Telephone

Direct: 647-773-4849
​
Email: [email protected]
Picture
Photos from DFID - UK Department for International Development, wuestenigel, Free For Commercial Use (FFC)
  • HOME
  • CONTACT US
  • PRIME RATE CANADA
  • MORTGAGE NEWS