Hi, I just want to say Welcome to 2020 and wishing you the best of health and prosperity.

2019 was a roller coaster year within the mortgage markets. Most of us are finally coming to terms with the constant Government regulation and the impact and sleepless nights it has caused. We are hoping for a more stable 2020 and based on feed back so far the consumer seems to be finally adjusting to the new lending land scape.

In 2019 the 5 year fixed mortgage rate fluctuated between 2.69% to 3.24% with the prime/variable rate remaining steady. (Remember always do your home work when taken a fixed rate option). The mortgage rate and terms do change depending on the mortgage lender type (A or B lending) (High Ratio or Conventional), property type and location. Current High Ratio is at 2.94% with conventional at 3.19%. On line quotes do not disclose the full picture.

We do finally expect the Bank of Canada to reduce the prime/variable rate in 2020 which is good news for borrowers holding variable rate mortgages. Canada is the only Country out of the big G7 who has not reduced its prime rate. 2020 will be the year as a slowdown in the world economies will be a factor. The Bank of Canada has been cautious in lowering its prime rate based on our real estate valuations. Lower rates may put pressure on these prices again especially if supply remains a issue.

We are expecting some new innovated mortgage products to hit the market this year and hopefully a kinder lending approach to self employed and commission borrowers. I will keep you updated as these products are launched. January tends to be a “get your house in shape month” so not much happening right now but Spring will be here soon so expect some noise shortly.

A strong emphasis for me this year is to help my clients build there real estate portfolios by tapping into their existing equity in other properties. Toronto is going to continue to grow aggressively. There will be some knocks and slow downs along the way but we have a long way to go.

I just returned from Ireland where I spent the Christmas holidays with my family. I had a great time and always find connecting with my roots grounding to my spirit and soul but not too kind to my liver. So here is a quote from my Mom who is in my thoughts, “just look forward and do your best, as long as you have your health, stick to your principles and values and be kind the rest will fall into place”.

Here’s to a fabulous 2020 and looking forward to connecting with you soon.

Hi,

With the coronavirus causing a lot of economic panic right now, investors are jumping back into bonds. These are seen as a safe haven when there is a potential crisis happening around the world, whether it be political, social or economical.

From a fixed rate perspective investor jumping into bonds lowers yields which as a result lowers fixed interest rate. So, we may see some aggressive fixed rate mortgage pricing on the way.  As with anything this can blow over very quickly so the window of opportunity could be open for a week or two at most.

I will keep you posted but if you a have a need to renew, refinance or take out a mortgage for any reason this could be a time to take advantage of a sudden rate drop and lock in your rates. Remember, sudden rate drop opportunities are only for live applications AND not pre-approvals.

Robert

Student Rental Mortgage: There is not a lot of financing options when it comes to Student Rentals. These type of investment properties can be profitable for the investor but there are not a lot of mortgage lenders financing them.

We do have access to lenders. Down payment can typically range from 25% to 35% and along with the interest rates will depend on the City and Location, property type such as condo or house and how many bedrooms been rented.

Please call or email for more information.

There are a couple of options for you to decide on when renewing your mortgage.

One, you can do a straight up renewal. Here the mortgage and amortization amount stays the exact same. We basically find you the best new terms to renew into whether it is a variable or fixed rate mortgage. Currently the 5 year fixed is hovering around 2.89% and variable is at 2.95%. It is early season so we may see some rates drops over the next few months or rates could increase. It is hard to say these days.

Second, this could be a time to tap into the equity in your home. You have probably built up quite a bit of equity over the past 5 years so now is a time to take advantage of that. For example are you planning on purchasing a new property or need funds for another type of investment or purchase. I always encourage my clients who have equity in there home to add on a secured line of credit. This is a great tool to have and has helped me tremendously overs the years to build up my real estate portfolio. If you have no immediate need right now adding on a secured line is a great asset for the future. It allows you to make quick decisions known the funds are there when you need them. You only pay on the balance so if not used there is no cost.

If you have an immediate need today for funds or in the very near future then I would add the funds into your mortgage. Reason been the mortgage is cheaper then lines of credit (line of credit currently prime +.50% or 4.45%). Another idea could be to consolidate debts so to lower your borrowing cost and increase cash flow. A lot of people carry a lot of debt paying really high interest. By adding these debts into your mortgage your costs come down and you have more money in your pocket each month. If you apply some of those savings back into the mortgage by increasing your mortgage payment you will find that you will pay down your mortgage sooner (with all the debt included) then you would have done in your current situation.