Home&Mortgage Advice
4773 Yonge Street Unit 3B M2N 0G3 Toronto, ON, Canada

Economists from BMO have added their voices to those calling on policy-makers to take action to prevent a potential housing bubble due to prices going parabolic."We accept policymakers need to act promptly, in some form, to address the home value situation before the market is left presented to more serious results down the road," BMO economists Robert Kavcic and Benjamin Reitzes wrote in a report entitled Canadian Housing Fire Needs a Response. "At the point when the last ...housing wildfire hit, back in 2016-17, governments poured water on it," the Globe noted. "They brought in new taxes on foreign purchasers, speculation and empty homes, and new stress-test rules that made it harder to qualify for a mortgage. Be that as it may, with such high housing interest while migration levels are briefly low, they contend "the threats look worse than four years prior." In the event that the housing market neglects to moderate and /or signs of a speculative-driven bubble further mount in the coming months, policymakers could be pressed into action to cool housing activity, not unlike the macroprudential and tax measures undertaken in 2016 and 2017.

A decent credit score is certainly a significant factor for anybody who needs to be approved for a mortgage. However, it’s far from being the only consideration. Individuals are regularly confused and baffled when their application is denied without n apparent reason. The length of your credit history is just as significant as its quality. Lenders take a gander at the account that has been open the longest to assess the average age of all your ongoing accounts. Good standings for older accounts are frequently better compared to stellar standing for new ones. By utilizing more than one credit card, you could improve your credit mix and have better odds of being approved. Use credit cards to build points, for example travel and so on. In addition, try to pay off balances in full every month.

Covid isn't only a medical problem, it's also a financial issue. Coronavirus has made huge number of Canadians lose their jobs and many businesses to go under. As well as influencing the stock market, travel, consumer prices and investments, it's likewise influencing the mortgage rates in Canada. There is an immediate connection between Government of Canada bond yields and fixed mortgage rates. At the point when Government of Canada bond yields fall, so do fixed mortgage rat...es and vice-versa. It is possible that fixed mortgage rates could begin to trend upwards sooner or later in 2021. It relies upon how well the COVID-19 vaccines rollout goes and how rapidly the economy recuperates. On the off chance that the vaccine rollout works out positively and the economy skips back faster than expected, we could see fixed mortgage rates begin to go up in the coming months. The odds of fixed mortgage rates going up in 2021 are 50/50 now.

Canadian mortgage rates are starting to inch higher since the COVID-19 crisis started, mirroring the spike in long haul bond yields, however with home loans still languishing around historically low levels the modest hike is unlikely to slow the red-hot housing market. Mortgage rates had been moving slower in Canada since the Bank of Canada sliced its benchmark interest rate last March to a record low of 0.25% to help the economy during the pandemic. So, the climb in mortgage rates is sea change for home buyers, giving a feeling that a bottom could be in place. There was a high interest to secure rates a week ago and get pre-approvals, and more increases are expected.

The home prices in Toronto continue to recover, with the average selling price of $943,710, setting a new record for the month of July. According to the Toronto Regional Real Estate Board (TRREB), that means a 16.9% increase compared to last year. Regarding home sales in the GTA, there was an increase of 29.5% in July in comparison with last year, and also up 49.5% compared to June 2020.The competition among buyers increased during the month, and as a result, the acceleration... in price growth. Mortgages with 10 years and up are usually not very popular, but with new rates as low as 2.59%, these types of mortgages are starting to get more attention. The average selling prices for the new condo projects in development across the GTA averaged a record-high $867 per square foot. It increased from $864 psf in Q1 2020 and kept rising 8% year-over-year, reflecting broad-based increases in selling prices. The condo market in GTA showed resiliency in the second quarter of 2020, considering the lower-than normal activity. https://homemortgageadvice.ca/toronto-home-prices-set-a-ne/

The pandemic brought some curious changes in the real estate market. Because travel is more restrict now, it led individuals to look for rural areas. The demand for cottages has increased in a way never seen before, making agents very surprised by the new trend. A couple from London, Ontario, decided that they wanted to get a cottage during the pandemic, to get more in touch with nature. But they are not the only ones. According to them, there were a lot of people interested ...in the same area that they were looking. They also mentioned that the couple looked around 12 cottages, and they faced a bidding war for each one of them. According to Jill Price, an agent from Re-Max All Stars that covers the Bancroft region, people started coming up there, specially retirees taking retirement early and moving to the cottages full-time. Jill also noticed more younger couples on their early 30s coming in, who are now working from home and decided to move to a cottage and make it their new home office. For example, the cottages that are listed in the market for around $500,000, and with the bidding wars, they are expected to get a 10% increase. See more

Amid the uncertainty that the pandemic brought to the Canadian, there might be a silver lining for renters and home buyers. When the lockdown is finally over, which will most likely happen soon, renters and home buyers will deal with a more reasonable house market. Some believe that Airbnb hosts will probably sell their units since they will not be going to hold on in the rental market. Because short-term rentals bring more earnings than long term rentals, it is not interesti...ng to hold on to the units for a one-year lease, for example. Specially if the Airbnb owners have to cover a large amount of mortgage. The rent charged in these units might not be enough to cover the mortgage monthly payment. So, it is better for the Airbnb owners to sell those units, since it would be more profitable for them. As a result, there was an increase of 8% in listings of homes for sales back in March. Since now more houses are on sale, there are not as many individuals willing to buy at this moment, which decreases the housing prices.

It is great feeling to be recognized as one of the leading figures in the #mortgage industry in #Canada. At the same time it is a big responsibility to fulfill trust that people place in you. Well I'm always up for a challenge and also 2020 recognition kinda feels extra special. #CMP #Mortgage #Award #MortgageBroker #Toronto

Purchasing a home is still one of the most popular types of investments in Canada. Because of that, it is not a surprise that many Canadians were fearful when with the abrupt economy reversal that happened recently. With the pandemic and the economy hit, the country’s average home prices dropped from 9-18%. The Canada Mortgage and Housing Corporation (CMHC), believes that the housing sector will only return to the same levels as pre-pandemic in 2022. Specialists predicts that... big cities like Toronto and Vancouver will suffer the most, specially regarding the condo markets. The good news is, for potential buyers, is that the next three years will be a good chance to invest in the residential real state market. Massive government spending and the resulting drag on economic growth mean that borrowing rates will likely remain low for a long time. If you are looking to refinance or purchase a home over the next few months, contact us today at 877-296-2696 or email us at [email protected].

According to Rentals.ca, the average rental properties listed in May was $1,814 per month. This indicates a drop of 1.4% monthly and 5.4% annually. In May, the average rental rate was $1,750 per month, which a drop of $50 com pared to April 2020 and May 2019. The national rental market continues to drop due to the COVID-19 pandemic, compared to September peak of 2019, which was $1954 per month.... This indicates a total decrease of 7.2%, compared to last year. According to CMHC, the prediction is that the resale housing market in Canada will suffer a drop of 9-18% annually. Also, CMHC is taking action to protect first-time home buyers by applying changes in the mortgage’s regulations. For example, the new credit score requirement in order to qualify is 680 or higher. This means that even if tenants are able to buy a property, they might not be able to qualify for a mortgage under CMHC insurance. As many Canadians won’t be able to purchase a new home at the moment, it will increase the demand for rentals. If you are looking to refinance or purchase a home over the next few months, contact us today at 877-296-2696 or email us by e-mail [email protected].

Canada’s economy was affected in all sectors due to the COVID-19 pandemic, specially the housing sector. Canada Mortgage and Housing Corporation anticipates a 9-18% drop in house prices for the next 12 months. CMHC has decided to change their underwriting policies for insured mortgages, in order to protect home buyers and reduce risks associated with this type of mortgage. The new changes will take place in July 1st, and will affect new applications for homeowner transaction...al and portfolio mortgage insurance. The housing market and financial system stability is supported by CMHC, which is devoted to provide support to those Canadians that are in housing need, and also by offering advice and house research to all levels of Canadian government, consumers and the housing industry. If you are looking to refinance or purchase a home over the next few months,contact us today at 877-296-2696 or email us by e-mail [email protected].

Canada Housing Market Sales warmed up 53% from April 2020 The housing market in Canada started to finally warm up again, after a long pause since the COVID-19 pandemic started. The predictions are overly optimistic according to the real state board, as long as the economy continues to re-open slowly and there are no set-backs. According to Toronto Regional Real State Board, there are approximately 4,606 property sales in GTA, which represents less than half of the number of s...ales that were registered for the same period last year. In mid-February when the lock-down started, it became extremely difficult for buyers and sellers to connect, since precaution measures were in place. Even though the home sales market started improving again since May, it is going to take some time for the market to recover completely. The sales numbers for this month were below 7,256 sales registered in February before the pandemic. The average selling price is $863,400 for all the homes that were sold across GTA last month. This is a slightly higher growth on a sequential and year-over-year basis. Active listings dropped almost 43% year-over-year, and this happened as a result of a lingering descend of houses available in the market for purchase. According to Jason Mercer, chief market analyst from Toronto Regional Real State Board, if the GTA continues to reopen gradually, the year-over-year price growth could continue, from now to summer months. If you are looking to refinance or purchase a home over the next few month,contact us today at 877-296-2696 or email us by e-mail [email protected]. We have access to lenders that did not raise their rates as much as others and our system will automatically lower your approved rate when banks will decrease theirs and it only takes 30 minutes of your time.

Kristina Barybina, a real state agent, single mother and only daughter to her elderly mother, had no other option but selling her house during the pandemic after losing all of her real state clients. Also, for terminating her mortgage earlier, she had to pay an extra $30,000 to TD Bank, which didn’t offer her any option to reduce her debt. Generally speaking, financial institutions may charge lower interest rates, but they will not clarify the penalties involved if the c...lient decides to terminate their mortgage earlier. We are currently facing an unpredictable pandemic situation, but many unforeseeable circumstances can happen to anyone at any time, and that might force them to give up on their mortgages earlier than expected. That is why here at Home Mortgage Advice we help our clients to select the best mortgage that reflects their long- and short-term goals, and avoiding them having to pay high penalties, like what happened to Kristina. Contact us today us today at 877-296-2696 or email us by e-mail [email protected] and find out how you can get the best deal on your mortgage stress-free!

Here are the Toronto areas where rent prices notably dropped This happened for several reasons, since demand dropped significantly and some tenants decided that this is not the best time to seek for another home. The new rental scenario is one of the best ones in years for those looking for a new place, no matter if it is a fancy condo or a single bedroom in an apartment. Landlords are encouraging tenants to move in by decreasing their monthly rents. ... The average rental prices dropped 5% per month compared to the same time last year. The prices dropped from $2,476 in April of 2019 to $2,362 in April of 2020. This includes every type of rental properties all over Toronto.

Toronto Condo Prices fell in most areas. If you are a condo owner and not planning to sell. Refinancing could be the best way to access the existing equity and capture your profits tax free.

As promised, our little discussion with Patrick Zaharov regarding Real Estate and Mortgage situation on the market in Toronto. In this video, we discuss the current reality amid the COVID and market trends in GTA. We are planning on making another video soon, so please leave your comments and questions below!