The Bank of Canada has just recently announced at its rate setting meeting on July 13th that it is maintaining its target for the overnight rate at ½ percent. This is good news as this interest rate affects the interest on your variable rate mortgage, new mortgages and even loans. The Bank of Canada stated “ the fundamentals remain in place for a pickup in growth in the economy sometime down the line” even though the Bank does have some short term concerns with slowness in some sectors of the Canadian economy as well as the impact that Brexit (U.K. decision to leave the European Union) will have.
The appetite for owning real estate in Canada continues to be strong. Royal LePage recently stated that the average home price across Canada climbed 9.2 per cent during the second quarter of this year and predicted continued appreciation of home prices for the second half of 2016 and into 2017. Meanwhile the Office of the Superintendent of Financial Institutions (OSFI) is concerned about the pace at which home prices across Canada and in particular larger cities are increasing and have issued a four page letter to financial institutions outlining the regulator expectation in ensuring lenders exercise prudent underwriting practices.
It matters now more than ever to use a mortgage professional like myself as your advocate. I have in-depth knowledge and expertise that will ensure that borrowers have the right mortgage that makes sense today and tomorrow. I can provide the flexibility and options that will empower you to take advantage of opportunities down the road. Having access to the greatest number of lenders allows me to deliver the best solution. Contact me today.
Mortgage Alliance Meridian Pacific Mortgages