As you know, the real estate and mortgage markets have shifted significantly in recent months. Here are some key highlights:
Interest Rates
After peaking at around 7% last October, fixed interest rates have steadily declined and are now hovering in the mid-4% range. In addition, the Bank of Canada has been incrementally decreasing their overnight rate since their announcement June 5th. Prime Rate which peaked at 7.2% is now 5.95% and forecasted to continue to reduce steadily into Fall 2025. This is a great time to evaluate your mortgage options if you haven’t done so already.
New Canadian Mortgage Rules - Effective Dec 15, 2024: • One of the key changes is the increase in the CMHC-insured mortgage limit from $1 million to $1.5 million. This means buyers can now qualify for a mortgage with less than a 20% down payment on homes priced up to $1.5 million, making it easier to access higher-priced properties.
• Another major reform is the extension of 30-year amortization periods to all first-time homebuyers. This expansion builds on the government’s announcement earlier this year to offer 30-year amortizations exclusively for new builds.
Real Estate Market in Western Canada The fall market is bringing new opportunities, with both prices and activity stabilizing in many areas. Whether you’re considering moving up to a larger home, purchase an investment property or debating a renovation, now is a great time to assess your qualifications. With borrowing costs declining, there’s no better moment to explore your options.
As a dedicated broker, I’m committed to helping you achieve the best financial outcomes. Keeping you informed empowers you to make smart, confident decisions. I’m here to support you, please contact me at jac@shaw.ca for more information!
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