Spring 2017 Market Update

Spring is definitely here in full force, minus the sun.  Multiple offers on condos and houses continue to keep us busy and lenders on their toes. 4Front has expanded again adding a new full time in house underwriter to assist with our files.  We have a total of 16 brokers working with our clients to ensure financing is never a challenge.  Please ask us how our pre-approval process can benefit your clients who need to enter into a quick closing, or no subject offer. We can help in all types of situations, from bridge financing, refinancing, private financing, and all financing in between.

Rates Trending Sideways And Down

On Wednesday, the Bank of Canada left its prime rate unchanged as most economists predicted.  The bank is optimistic on the Canadian economy, expecting it to grow at a rate of roughly 2.5 percent, compared to 1.4 percent last year and 0.9 percent the year before. Bright spots in the economy include revised activity in the oil sands, small and medium size business investment and of course housing.  Notwithstanding this, there are still significant uncertainties ahead including the unknown U.S. economic policies with respect to NAFTA, and potentially overheated housing markets in Ontario.

At best, rates should remain unchanged until there is a clearer picture of the effects of these headline topics.  At some point the bank will increase prime rate, however this is likely at least a year away. In the meantime borrowers can still enjoy low fixed and variable rates, both of which have decreased over the last few weeks.  Please ask us for details on current rates anytime.

BC Home Equity Partnership Loan

We have seen significant numbers of applications for this program.  Buyers and Realtors should be aware that there is a fee of $560 charged by the provincial government to set up these loans which is payable by the borrower. With the extra legal fees involved to register the loan on title as well as higher mortgage insurance premiums, the merits of the program are still somewhat questionable.