Mortgage Brokers Association of British Columbia Mortgage Brokers Association of British Columbia

Residential Market Commentary - Unconscious spending

December 1, 2022 | BCMG British Columbia Mortgage Group

With inflation running at generational highs and interest rates on the rise many debt-strapped Canadians are struggling to reorganize their finances.

A recent survey sponsored by FP Canada (an organization that represents and promotes professional financial planners) suggests “unconscious spending...

Continue Reading...

Residential Mortgage Commentary - Employment, inflation and interest rates

November 14, 2022 | BCMG British Columbia Mortgage Group

The news on the economy, inflation and the future of interest rates has been mixed over the past week or so. Most of the recent analysis has centered on employment.

Market watchers were surprised by the latest job numbers which shot up by 108,000 in October. The unemployment rate did not move ho...

Continue Reading...

Residential Mortgage Commentary - Inflation & interest pinching consumers

November 8, 2022 | BCMG British Columbia Mortgage Group

High inflation and increasing interest rates have a lot of Canadians keeping a close watch on their finances and for many, housing is a key concern.

The latest consumer survey by the credit monitoring service Equifax suggests that just 50% of Canadians are comfortable with their personal economic...

Continue Reading...

Residential Mortgage Commentary - Bank of Canada signals a slowdown

November 1, 2022 | BCMG British Columbia Mortgage Group

The Policy Rate rose by one-half of a percentage point (or 50 basis-points) to 3.75%. The majority of market watchers had predicted a 75 basis-point bump. The smaller than expected increase appears to be an indication the BoC is nearing the end of this rate-hiking cycle. But it is not done yet.

"...

Continue Reading...

Bank of Canada increases its benchmark interest rate to 3.75%

October 26, 2022 | BCMG British Columbia Mortgage Group

Today, the Bank of Canada increased its overnight benchmark interest rate 50 basis point to 3.75% from 3.25% in September. This is the sixth time this year that the Bank has tightened money supply to quell inflation, so far with limited results.

Some economists had assumed the increase this time...

Continue Reading...

Residential Mortgage Commentary - Another interest increase all but guaranteed

October 25, 2022 | BCMG British Columbia Mortgage Group

Another interest rate increase by the Bank of Canada is all but a done deal. Even though inflation, as measured by the Consumer Price Index (CPI), fell slightly to 6.9% in September, it remains well above the Bank’s 2.0% target.

Price relief at the gas pumps gets the credit for the decline but s...

Continue Reading...

Residential Mortgage Commentary - Misleading averages

October 18, 2022 | BCMG British Columbia Mortgage Group

Since interest rates started climbing back in March there has been a lot said about declining home prices in Canada. Broadly speaking, market watchers have been forecasting a 20% to 25% drop – from the February peak – in the average price by the end of this year.

Those are dramatic numbers, but t...

Continue Reading...

Residential Mortgage Commentary - Home ownership on hold

October 12, 2022 | BCMG British Columbia Mortgage Group

Residential Mortgage Commentary - Home ownership on hold Uncertainty begets hesitancy and that is painfully true in the housing market right now. Two of Canada’s big realtors are out with surveys that suggest the desire for home ownership remains strong, but it will a dream deferred for many buyers...

Continue Reading...

Residential Mortgage Commentary - Inflation & interest rates increase anxiety

October 3, 2022 | BCMG British Columbia Mortgage Group

Inflation and rising interest rates are having a very real affect on Canadian spending habits and housing affordability according to a pair of new reports.

The latest survey by the Angus Reid Institute suggests that nearly 90% of Canadians are “tightening their belts” as a result of rising costs,...

Continue Reading...

Residential Mortgage Commentary - As autumn arrives the market cools further

September 22, 2022 | BCMG British Columbia Mortgage Group

Home sales in Canada declined for a sixth straight month in August according to the latest report from the Canadian Real Estate Association. Compared to July the number of properties changing hands dipped by a modest 1.0%, the smallest drop so far. Year-over-year, sales are down 24.7%.

Home pric...

Continue Reading...

Residential Mortgage Commentary - Rates up again. More hikes likely

September 16, 2022 | BCMG British Columbia Mortgage Group

As expected the Bank of Canada has raised its trend setting interest rate. It jumped by another, outsized, three-quarters of a percentage point to 3.25%. This has triggered a series of knock-on effects in the lending and mortgage markets.

The move puts the BoC’s policy rate above its self-declar...

Continue Reading...

Bank of Canada increases its benchmark interest rate to 3.25%

September 7, 2022 | BCMG British Columbia Mortgage Group

Today, the Bank of Canada increased its overnight benchmark interest rate 75 basis point to 3.25% from 2.50% in July. This is the fifth time this year that the Bank has tightened money supply to combat inflation. While the latest increase was comparatively smaller than the move made in July (100 bas...

Continue Reading...

Residential Mortgage Commentary - When will the BoC pause interest increases?

September 7, 2022 | BCMG British Columbia Mortgage Group

September has arrived and the central bankers are back from their summer vacations. With that they will resume setting interest rates and fighting inflation.

The Bank of Canada, the U.S. Federal Reserve and the European Central Bank are all making rate announcements this month. Market watchers ar...

Continue Reading...

Residential Mortgage Commentary - Affordability update

August 17, 2022 | BCMG British Columbia Mortgage Group

Aug 17, 2022

Sales are slowing, prices are falling, interest rates are rising and affordability is getting worse in the Canadian housing market.

The Bank of Canada’s latest Housing Affordability Index (HAI), for the first quarter of this year, shows households now have to dedicate 42.8% of dispo...

Continue Reading...

Residential Mortgage Commentary - A sinking feeling among consumers

August 11, 2022 | BCMG British Columbia Mortgage Group

Aug 10 2022 The lazy, hazy, crazy days of summer have been hot across much of Canada and consumer sentiment seems to be wilting.

Recent data from the non-profit research foundation, Angus Reid Institute, suggests three-quarters of Canadians feel now is a bad time to make a major purchase. Cars, t...

Continue Reading...

Residential Mortgage Commentary - Despite challenges, desire to own is still strong

August 3, 2022 | BCMG British Columbia Mortgage Group

Aug 3, 2022

The current situation in the Canadian housing market has both buyers and sellers stepping to the sidelines. But underneath all of the recent shuffling there still seems to be a firm, foundational desire to own a home.

The annual affordability survey conducted by RE/MAX suggests risi...

Continue Reading...

Residential Market Commentary - Cautious economic optimism

July 27, 2022 | BCMG British Columbia Mortgage Group

Crystal-ball gazing to predict the economic future can be a murky business. And some of the latest polling of Canadian economists shows just how opaque the view can be. The Globe and Mail surveyed 15 prominent Canadian economists about what, they think, is going to happen.

There is general agree...

Continue Reading...

Bank of Canada increases its benchmark interest rate to 2.50%

July 13, 2022 | BCMG British Columbia Mortgage Group

Today, the Bank of Canada increased its overnight benchmark interest rate 100 basis points to 2.50% from 1.50% in June – the largest single increase in almost 25 years. This is also the fourth time this year that the Bank has acted to tighten money supply to combat the possibility of an entrenched i...

Continue Reading...

Residential Market Commentary - Real estate knowledge gap

July 7, 2022 | BCMG British Columbia Mortgage Group

Another one of the country’s big financial institutions has produced a survey that suggests Canadian homebuyers and homeowners are unclear about what is happening with rising interest rates. Last month it was one of Canada’s major insurance companies. Last week it was one of the big banks.

While...

Continue Reading...

Residential Market Commentary - Affordability concerns

June 28, 2022 | BCMG British Columbia Mortgage Group

With inflation and interest rates continuing to rise there are renewed concerns about housing affordability in Canada.

Statistics Canada pegged the inflation rate at 7.7% in May, its highest level in almost 40 years. That set the stage for further speculation that the Bank of Canada would likely...

Continue Reading...

Residential Market Commentary - Fighting fear about fighting inflation

June 23, 2022 | BCMG British Columbia Mortgage Group

The outsized interest rate hike by the American central bank, last week, is sending ripples through Canada’s housing market.

The U.S. Federal Reserve took the very rare step of boosting its trend-setting rate by 75 basis points at its June 15th setting. Federal Reserve Chair Jerome Powell also se...

Continue Reading...

Residential Market Commentary - Collateral damage in the inflation fight?

June 16, 2022 | BCMG BRITISH COLUMBIA MORTGAGE GROUP

There is a growing sentiment among market watchers that the Bank of Canada’s current fight against inflation is putting home prices in the crosshairs.

In the release of the Bank’s annual Financial System Review, Governor Tiff Macklem mentioned a desire for “moderation” in the housing market severa...

Continue Reading...

Residential Market Commentary - Inflation is deflating consumers

May 25, 2022 | BCMG British Columbia Mortgage Group

Inflation and consumer confidence are running in opposite directions in Canada.

The April figures from Statistics Canada put the annual inflation rate at 6.8%, up from 6.7% in March and now at its highest level in 31 years. Key drivers of the increase include food and shelter costs. Food rose by...

Continue Reading...

Residential Market Commentary - Interest rate outlook

May 12, 2022 | BCMG British Columbia Mortgage Group

With interest rates now on the rise, two perennial questions have popped up again: How much? How fast?

Traditionally the Bank of Canada has used 25 basis points, or one-quarter of a percentage point, as the standard increment for any interest rate move up, or down. Occasionally the Bank will mo...

Continue Reading...

GET APPROVED FOR A MORTGAGE NOW!

Apply

Connect with us