Is a Big Market Shift Underway? – Industry Experts Weigh In
As interest rates trend downwards, the Canadian Mortgage Market may be entering a new phase. Mortgage and real estate professionals recently discussed the implications at the Mortgage Professionals Canada (MPC) conference in Montreal. Read more for insights on what the future may hold for borrowers, lenders, and homeowners.
Canadian Mortgage Market – Rate Cuts and Housing Demand
After a period of aggressive interest rate hikes to curb inflation, the Bank of Canada has recently reduced its benchmark rate, sparking optimism that lower rates might revive homebuying and refinancing activity. According to Manulife Bank CEO Katy Boshart, as rates fall, more perspective buyers may feel encouraged to enter the market. However, she cautioned that it could take time for demand to fully pick up as borrowers wait to see if rate reach the 3% mark for five-year terms.
Canadian Mortgage Market – A Comeback for Variable Rates?
TD Banks Devon Ajram noted the subtle rise in variable-rate mortgages as rates decline, potentially making them an attractive option again. With the Bank of Canada expected to lower rates further, more Canadians may consider variable rates to take advantage of anticipated declines.
New Policy Changes Set to Boost Demand
Upcoming rule changes could make homeownership more accessible, especially for first-time buyers. Extended amortization periods and a higher insurability cap on mortgages are set to be implemented in December. Louis-Francois Poirier from Dejardins noted these changes may encourage purchasing, though they could also increase prices if housing supply doesn’t keep pace with demand.
Canadian Mortgage Market – We Can Help You
With market conditions shifting, clients will benefit from professional guidance to find the best fit for their mortgage needs as they navigate this evolving landscape. At Client First Mortgage Solutions our experienced Mortgage Brokers are here to answer all of your mortgage questions. Contact us today!
Original Article – Canadian Mortgage Professional – Fergal McAlinden – October 31, 2024
