Cassandra Young
902B Newgate Ave P3A5J9 Greater Sudbury, ON, Canada

Where Are Mortgage Rates Going? With so much unknown in our economy and real estate markets, there is one sure thing - interest rates are on the move upwards. BUT, this is only fixed rates. Variable rates remain at all-time lows. Fixed rates have increased by approximately 30bps (.30%) over the last couple of weeks.... Why is it that only fixed rates are increasing? Fixed rates are based on the bond yield market. As bond yields increase, eventually, so do the fixed rates. There has been pressure building in the bond yield market for a while now and it was only a matter of time. Whereas, variable rates are dictated by the Bank of Canada (BOC) and based on many things including the health of our economy and consumer debt load coupled with what upside/downside there would be if they change the prime lending rate Currently, the BOC prime lending rate is 2.45%. If you have a variable rate mortgage, you either have a discount or premium added to this rate. Ie. Prime (2.45%) - 1% (discount rate) = 1.45%. If you have a premium added to that prime rate then we really need to talk because there is an opportunity to save some money. As the BOC moves the prime lending rate of 2.45%, your discount stays locked in for the term (typically 5 years). So if the prime lending rate moves to 2.70% and your variable discount is 1%, your new interest rate is 1.70%. If you want to secure a fixed rate before they increase even more, please reach out to lock in a rate hold. If you want to see if we can save you money on your current variable rate mortgage, please let me know and I’ll run some numbers. Either way, we as Canadians are in a great spot from a mortgage rate perspective. Money is still cheap and it will be for the foreseeable future. Please let me know if I can help in any way.

Congrats Rico! Well deserved for sure!

Is Now A Good Time To Purchase A Property? Given the current state of affairs, this is a popular question I hear. My not so simple answer is yes, no, and maybe...... A lot depends on your personal situation. Are you a first time home buyer? Are you looking to move up the property ladder? Are you buying an investment property? Are you worried about your employment? Have you taken into account down payment + closing costs? As hard as it is to not factor Covid into your decision, you have to ask yourself these questions: Do you understand your personal budget? Do you understand all the moving parts to your upcoming property purchase? Are you pre-approved? But, actually pre-approved? Meaning, someone has done a consultation on your situation, reviewed credit, income documents, etc. If you have your ducks in a row and your quality of life will improve, then yes, the time is good. Truth be told, I always think real estate is a sound investment. Covid did different things to different markets all across Canada. For example, condos in downtown Toronto have taken a large hit due to the borders being closed which means less immigration, coupled with tenants of rentals no longer having employment and people leaving the city. But, most markets are thriving...some are business as usual. Here are a couple of things I know to be true. It’s tough to time the market. That goes for real estate values and interest rates. Rates will be low for the foreseeable future. BUT...I wouldn’t base a home purchase solely on that. Rates will inevitably increase and you need to be prepared for when they -do. The banks stress test your potential mortgage payments as if the interest rate were 4.79%. This gives them comfort in case rates do rise when your renewal comes up in the future. I can’t answer with one broad statement if buying a property makes sense for you right now, but I can help you figure that out. Please let me know if you’d like to chat. I’m here to help.

We would like to thank everyone for an amazing year despite all the craziness our world has been going through. Being apart of your mortgage team means a lot to us and we can't wait to see what 2021 will bring us. Please note that our office will be closed from December 21st and re-opening January 4th 2021.... If you have a mortgage going closing us, don't worry! We will be keeping track of everything and staying on top of it. Thank you again and we will see you all in 2021!

I work with some incredible people.

Just because you're not a first time home buyer, doesn't mean you can't take advantage of the 5% downpayment option! There are some options for second homes and vacation homes as well to use 5% down. Give me a call or text and we can discuss your options! 705-626-2093

Remember to buy your tickets for the ultimate dream home! Great cause AND no mortgage!

Perfect starter or investment opportunity.

One of our Canadian mortgage insurers will be going by a new name! Sagen (pronounced say-jin)

Had a little lunch with the HQ Crew today :)

As you might have heard, interest rates in Canada are at an all-time low due to the uncertainty of COVID. So what does this mean for you? Great news, if you are currently in a variable rate, this means your rates are predicated on prime which is currently set at 2.45%. You either have a variable rate of prime (2.45%) minus or plus a spread.... If you have any unsecured or secured lines of credit, student loans, certain car loans, etc, you will be seeing low-interest rates for the foreseeable future. If you are currently at a fixed rate, this means you’re locked in for the remainder of your term at your current rate. There might be an opportunity to break your current fixed-rate mortgage and take advantage of the low variable or fixed rates BUT it would have to make sense. We will have to factor in a penalty and closing costs to see what the savings actually are. These low rates are good for everyone, it’s just a question if you can take advantage of them now or in the near future. If you’d like to see what your options are, please reach out and I’ll see what we can do.