May not realize full impact of B-20 changes till Spring.

The pessimism that has been ruling the markets since the U.S. election may ease a little today.  President Obama is set to meet with the leader of the Republicans in an effort to avoid the fiscal cliff.  Bond yields are virtually unchanged, up just 1 basis point (bp).

We’ve been enjoying flat mortgage rates for a number of weeks now, with a downward trend in bond rates.  We’ve come down 15 bps over the last month so that being said, there’s little reason for mortgage rates to move up any time soon.  There’s been a bit of a cushion built into today’s rates as the cost to the lenders has come down, yet mortgage rates have not moved with them.

The market is still adjusting to the recent  B-20 underwriting changes that took effect the end of October.  As we go into what is generally a seasonal slowdown, it’s hard to really tell the impact it will have more immediately.  Come the spring, that may be the true test of this latest round of changes.

One can only hope that all this government meddling hasn’t caused more problems for the Canadian housing market.  I can appreciate the intent of trying to provide a soft landing and reduce the household debt issues that have been raised, but needing to step into the market four times in as many years seems a bit excessive, doesn’t it?

BEST RATES: 1yr 2.69% – 3yr 2.65% – 5yr 2.94% – 5yr Variable 2.65%

Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, reach out to him if you have any questions about these changes and how they affect you. Heard about our awesome new home search tool? We’ve opened up the MLS just for you. Make sure you log-in to our custom Spring Realty Homefinder Tool and give it a spin! Find us on Facebook and Twitter too!

What's the best available mortgage rate for 1st time buyer?


Best Mortgage Rates for August 16th 2012

   1 Yr – 2.49% – 3 Yr – 2.64% – 5 Yr – 2.89% – VRM – 2.65%

Wow!  This week has proved even quieter than the last.  No major economic news was announced, but we do have inflation numbers coming on Friday.  With Mark Carney already threatening the need to remove financial stimulus, he wants the market to believe that if this comes in higher than expected that we could see rate increases happen earlier than most are projecting.

I don’t think most economists are really giving this idea any serious attention as the economic fundamentals are too stacked against the option to increase rates.  Mark Carney has been crying wolf for too long and there are no obvious reasons to increase rates.  The economy isn’t at full capacity, we still have high unemployment, the dollar is playing with parity and they aren’t any further ahead in Europe.  Until these economic headwinds start changing direction, there really is no room for the Bank of Canada to make any rate changes.  Hence the mortgage announcement we got on June 21st.  I wouldn’t bet variable rates, but I think we should be here for a while still.

That being said, bond yields are still up, and we have some increases in rates, but there are still some great rates to be had out there:

Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, Lee will be posting these informative “Market Minutes” each week for you to enjoy. Heard about our awesome new home search tool? We’ve opened up the MLS just for you. Make sure you login to our custom Spring Realty Homefinder Tool and give it a spin! Find us on Facebook and Twitter too!


Doom or Boom? Best Mortgage Rates for August 3

This week we received conflicting reports about the so-called “condo bubble” in Toronto. One report from RBC seems confident that we are not in a bubble. The pace of construction is keeping pace with the creation of new homes in Toronto. Since land is becoming scarce in Toronto, builders are being forced to build up, and not out anymore. That being said, they do foresee a cooling, with a 2-7% drop in condo prices brought on by recent government changes.

The government can’t change interest rates so the changes announced on June 21st were designed to take some of the steam out of the Toronto (condo) market, while trying to engineer a soft landing.

The other report released this week came from the doom-and-gloom Capital Economics. They have been predicting for two years now a 25% decline in housing prices. That wasn’t speaking to the GTA or condos specifically, but more to the broad Canadian housing market. As a reader and someone in the industry, I take this report with a grain of salt. My guess is they are trying to grab headlines, as they did last year, with these horror-filled predictions. They point the finger at the Finance Minister’s changes and a growing reluctance for buyers to pay today’s top dollars in light of the global economic uncertainty we are in. While there may be some truth to these reasons, in the short term, it would be near impossible for prices to drop 25% with rates so low. As rates increase, which may not be till 2014 now, then it would be expected to see some pull back in the market.

In terms of the impact that the government changes are having on the market, it’s still too early to tell. I can say that in my office, very few clients were impacted by the change. Pundits may point to the lower numbers being generated this month, but this is also seasonally a very slow month for new deals to be written. I think we’ll need to wait until the fall market to see how much of an impact it really had.

The last bit of news to share is that ING is officially on the chopping block. Our Big Banks seem to be circling as the world’s largest insurer looks to divest itself of some of its holding in light of the bailout package it received. It will be interesting to see who ends up with the $1.7 billion in assets, and how they incorporate the ING clients and business model into their current holdings.

Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, Lee will be posting these informative “Market Minutes” each week for you to enjoy. Please remember to the Spring Realty Insider Club list to receive new blog post notifications, featured properties and insider access to Toronto’s hottest new developments right to your inbox. Find us on Facebook and Twitter too!


Fixed or Variable Mortgage? All the Rates look good!

We’ve had some interesting data recently that has some Canadians wearing smug looks. The most gratifying is the hotly-debated report from Environics which indicates Canadians are richer than Americans. It says the average Canadian household was worth about $363,000 in 2011, compared to almost $320,000 in the U.S., a difference of more than $40,000 – dollars that are pretty much at par. Of course, home prices had a lot to do with it. Canada didn’t see the collapse that the U.S. did and skyrocketing values in Vancouver and Toronto did a lot to jack up the national average.
The big credit monitoring firm, Equifax, says Canadians have slowed the speed at which they are driving themselves into debt. It says the rate of debt-growth dropped to 3.1% from 4.4% on a year-over-year basis. Credit card debt is down 3.8% and Canadians are sticking with their existing debt vehicles and not opening new accounts. Mortgage debt isn’t included.
And one dire sounding report that isn’t as bad as it seems from the Canadian Institute of Chartered Accountants. It suggests 48% of the people surveyed would find it “challenging” to meet their mortgage or debt payments if there was a “significant rate hike”. By “significant”, they appear to mean a 3.5% increase over what they are paying now. Rate increases will surely come but, given the current state of affairs, that sort of bump is highly unlikely. Also, keep in mind that “challenged” is not the same as “unable”.

BEST RATES

1 Yr – 2.39%

3 Yr – 2.64%

5 Yr – 2.89%

VRM – 2.65%

Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, Lee will be posting these informative “Market Minutes” each week for you to enjoy. Please remember to the Spring Realty Insider Club list to receive new blog post notifications, featured properties and insider access to Toronto’s hottest new developments right to your inbox. Find us on Facebook and Twitter too!

 


Best Mortgage Rates in Canada for July 18th, 2012

The Bank of Canada left the overnight rate at 1.00% at its meeting yesterday, as was universally expected. This is great news for anyone with a variable rate mortgage, or any product tied to prime like a line of credit or student loan.

More notable was the Bank’s assessment of the global outlook, which was deemed as having deteriorated relative to April.  The weakening in the global environment was cited as a factor restraining growth in Canada; however, the Bank views the domestic economy as continuing to grow at a moderate pace. These factors resulted in the Bank downgrading its 2012 growth forecast to 2.1% from 2.4%. The Bank forecasted that the economy will grow at a faster 2.3% in 2013 (albeit a tad slower than April’s 2.4% forecast) and 2.5% in 2014 (higher than April’s forecast of 2.2%).

The tone indicated that there may be need to reduce stimulus in order for the Bank of Canada to maintain the 2% target rate for inflation, but most economists don’t expect that to happen till 2013. More great news for variable rate mortgages, and anyone with debt tied to prime.  Yields are trending down so there may be some room for some short term decreases to fixed rates.  Sit tight and we’ll see!

Much of this is due to the slowing economic growth in Canada, the U.S. and China, and the unrelenting economic problems in Europe.  These helped to handcuff our central bank.  It has been looking to raise rates in an effort to slowdown the growth of household debt in Canada. But the Bank of Canada did get some relief with Ottawa’s imposition of new lending rules for high-ratio mortgages and new mortgage qualification limits.  The regulatory moves amount to a de facto interest rate increase in the housing sector and, anecdotally at least, appear to be having the desired, cooling effect.

BEST RATES
1 Yr – 2.39%

3 Yr. – 2.69%

5 Yr. – 2.94%

VRM – 2.79%

Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, Lee will be posting these informative “Market Minutes” each week for you to enjoy. Please remember to the Spring Realty Insider Club list to receive new blog post notifications, featured properties and insider access to Toronto’s hottest new developments right to your inbox. Find us on Facebook and Twitter too!


East Village Leslieville – Townhomes in Leslieville

We have floor plans and prices ready for you! 

(Original post from March 31, updated April 15th and a further update April 16th)

Breaking news from Spring Realty (thanks to our top secret insider). The East Village Leslieville Project is finally here!!! Check out the renderings at the bottom of this post.

After hearing rumors a month or so ago I could not dig up a thing on East Village Leslieville, but as of last night (March 30th)the website went live and we at Spring Realty got extremely excited! This spring, Leslieville will offer a new condo/loft project.

From the City of Toronto document obtained by another Spring Realty insider (April 15th) it seems as though the address will be 1321 Gerrard St East (100% confirmed as of April 16th btw)! This document outlines the proposal for 31 stacked TH style units with underground parking. From the preliminary renderings they look  to be quite an improvement from the current state of the old Coffee Time site. The two building complex will contain 31 residential units with a number of underground parking spaces. There should be a variety of suites but we’ll know for sure in the coming weeks. The suites will have roof terraces and plenty of green space to enjoy. At approximately 1:30pm on April 16th another Spring Realty Insider contacted us with the name of the developer!!!!

Most locals are familiar with Abode Lofts and the Leslieville Lofthouse Project on Colgate Ave just North of Queen off Carlaw. Well, George Popper (Urban Fabric Development) is at it again with 1321 Gerrard. Taking it to a new level, building a contemporary stunner in the East End. Now that I know George is behind this, I’m even more confident it will be a massive success. Can not wait for this! Spring Realty will have floor plans before anyone else and we will  get you in the door first.

View Larger Map

In the mean time, it is very important that you Contact Us to register for this project. Please use East Village Leslieville as the subject line. We will keep you updated the instant we get more information.

For real time updates please follow us on Twitter (@aramamourian, @springrealtyinc) or Visit our Facebook Page.

 


Leslieville Town Manors by Manorgate Homes

New Rendering just released Today, February 29th!: Take a look.

Leslieville New Development Alert!!!! Contact Us immediately for priority access to this exclusive Town Home community in the Heart of Leslieville. Opening this Saturday March 3rd at NOON sharp.

Prices starting at $649,900 including HST!

The Leslieville Town Manors by Manorgate Homes will be located at 1183 Queen Street East and is a welcome addition to the Leslieville community. Located just east of Jones Ave at the corner of Queen St and Rushbrooke in one of Toronto’s most desirable communities this development consists of 10 nicely appointed town house suites along with two Queen St fronting Retail Spaces. All include parking and the finest of finishes.

For more information on this development please contact us today. If you’re not familiar with the South Riverdale community, learn more about it here.

The Leslieville Town Manors has 14 units and 3 stories.