July 2017

A simple place for writing

Mortgage tree • #205, 1680 40th ave sw. • Calgary, alberta • (403) 510-0455

Come see me for your next mortgage or renewal.

Whether you are buying your first home, refinancing, investing in a rental property, purchasing a second home, transferring your mortgage, or accessing private funds - I am here for help.

The Bank of Canada’s conventional five-year fixed posted mortgage rate is the mode (i.e., the most common occurring number) of the conventional five-year fixed mortgage rate advertised by Canada’s six largest banks. The rate is updated weekly and is available on the Bank of Canada’s website (CANSIM table 176-0043). The Bank of Canada’s posted rate is typically higher than the contract mortgage rate most buyers actually pay. As of July 27th, 2017, the Bank of Canada posted rate was 4.84 per cent.  (click the link above to see 'Interest Rates' and look at the 'Conventional mortgage - 5-year') and the prime rate was at 2.95%.

Come See me!

"I like my coffee.... like most people like their mortgages. Knowing it's consistent, smooth and reliab‍‍‍le no matter how it comes!"

Posted Rate

CREB Housing Report July 2017

CMHC Report July 2017

Welcome to the July 2017 update.

One month gone into summer... and we're already hearing the advertisements on the radio and TV for back to school!  That's not even fair... it's just now that parents are starting to unwind from the commotion of the end-of-year school rush!!  My wife is a teacher, so we're just hitting the stride of our summer.  Lots of family time, and lots going on.  Our oldest is getting ready to head to Kindergarten (yeah... now we're prepping for the school supplies shopping craze too!).  All I can say... is enjoy whats left, and lets look at whats happening in the market in the past 30 days.

CHMC and Mortgages - Well it's finally happened.  The overnight lending rate has increased from 2.70% to 2.95%.   It has a lot of people wondering if the rates are going to continue to rise, or drop again.  This becomes a gamble to try and guess it.  Much like going to a casino, playing roulette and expecting to put all your money on either red or black.  It's really an educated guessing game.  My thoughts are just this... they'll remain the same for a period of time.  The Government won't be dropping the overnight lending rate anytime soon, so it will be up to the lenders to take charge of what they want their rates to do.  If they want to off-load some of their cash that is sitting on their balance sheets, they need to lend it.  If they don't lend it... it's not making them money.  If they're not seeing the attraction from people... the only thing they can do is to drop their own rates to offload that asset.  Does this make sense? If not just call me and I'll answer.  Yes... I encourage you to call me to find out!

In regards to the Qualifying Benchmark rate.... it too has increased.  Since it was introduced by the Government last year, it has remained the same at 4.64%.  Just this week it went up to 4.84%.   That doesn't mean that you have to get the rate of 4.84%, it just means that you need to be able to carry that as part of your debt servicing so that should rates continue to rise, you're able to afford the mortgage.  This protect banks, insurers and the overall economy from doing what happened to the United States back in 2008!  Yes it is unfortunate, but at least we have measures in place to help protect our system.  

CREB Home Starts - Its as though the Calgary housing prices remained 'balanced' (as they worded it) according the CREB website on July 4th.  We are seeing modest improvements in sales along with a moderate increase in new listings. This is good and bad I suppose.  Since we are having product continuing to enter the market, we're not seeing the same pace of sales.  This is putting a pressure on supply and demand where the supply is now greater than the demand, and we know what happens here...

Lets hope that buying increases, inventory drops, and we can have a little more balance in the market!!

Click the Links Below to see the full reports.

Click the Links Below to see the full reports.