August‍‍‍ 2017

A simple place for writing

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

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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 August 14th, 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%.

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Posted Rate

Welcome to the August 2017 update.

Oh boy... Oh boy... Oh boy.   2 weeks left of a typical "summer" for parents with kids getting ready to return to school.  We've prepared our oldest son for his start at Kindergarten this year, and it always amazes me how when you go into a store and everything is a "must have for school" item.  I mean.... he's going to be 5 in a matter of 2 weeks, and I'm pretty sure most of the stuff they're telling me I need to buy for him is because someone has shares in Staples!! LoL

Well, I'm sure we can all be thankful the weather has been warm and dry.  For the first time in nearly 20 years since moving to Calgary, I think it's safe to say this is the best summer I've had.  We haven't been obliterated with hail.  We haven't been been destroyed by rain and floods.  And although there has been little rain.... it's been just enough to make me appreciative for when it does arrive to water my lawn and trees!!  With that being said... and knowing there is still some summer left to enjoy; lets look at whats happened in the market in the past 30 days.

CHMC and Mortgages - As mentioned last month, the overnight lending rate had increased from 2.70% to 2.95%.   Since the raise of the rates, we've seen the rates go from 2.49% to 2.79%  with the same lender.  At first we saw a quick reaction from consumers as they wanted to ensure they locked in before the rates continued to climb.  With this kind of uncertainty it usually happens.  Then the slow down occurs, and that is been what it has been like for the past week and a bit.  

For the buildings and new home starts in Alberta, there has been an increase in starts for the 2nd Quarter over 2016 starts. For the purpose of ease and illustration, I'll use the single family freehold (not condominium or rentals) dwelling numbers.  In Q2 of 2016 there were 2,339 starts  and in Q2 of 2017 there were 3,498 which is an increase of 49.6%!  The overall YTD numbers are also up, but not at the same percentage.  In 2016 the numbers up to the end of of Q2 were 4,314 while this year that number is at 5,757 for an increase in 33.4%.  Not too shabby considering everyone is panicking about the rates and the housings starts are a good indicator of the economic outlook for us.  Ultimately, I guess we'll have to wait until the end of Q3 to see what real impact the change in rates had since we dont see the numbers reflecting the changes in rates for Q2.

Click the Link Below to see the full report and more.

Download: CMHC64147_2017_Q2.pdf