I’m beyond grateful to each client who trusted me to guide them through the mortgage process. Every review is a reminder of why I do what I do – making the journey smoother, clearer, and maybe even adding a laugh along the way.
Huge thanks to all of you for the trust, feedback, and stars. Here’s to keeping up the five-star service (and hopefully the dad jokes)! 🏡💫

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With another big announcement from the federal government that will impact housing supply, mortgages, and homeowners, I wanted to give you an updated breakdown so you are informed with your clients. Here’s a quick rundown, with more details to come as they roll out:

Refinancing for Secondary Suites Effective January 15, 2025:

• Homeowners will be able to refinance up to 90% of their home’s value (capped at $2 million) with default-insured mortgages to build secondary suites. This aims to increase rental options in high-demand areas and help homeowners manage rising mortgage costs.

Key Highlights:

• Max LTV up to 90% of the “as improved” property value.
• Amortization up to 30 years for easier payments.
• Up to 4 units allowed, including the main home.
• Self-Contained Suites – each must have its own entrance, kitchen, and bathroom.
• Long-term Rentals Only – No short-term rentals like Airbnb.

New Mortgage Rules Effective December 15, 2024:

• 30-Year Amortizations: Available for all buyers of new builds to increase purchasing power and reduce monthly payments.
• Higher Insured Mortgage Cap: Increasing to $1.5M (up from $1M), making it easier to qualify with less than 20% down. For example, a $1.5M purchase now requires a $125K down payment, compared to $300K under current rules.

Other Key Updates:

• Easier Mortgage Switches: Starting November 21, 2024, insured mortgage holders can switch lenders at renewal without needing a new stress test, potentially unlocking better rates.
• Tax on Vacant Land: The government is exploring taxes on vacant land to encourage more development.
• New Development Sites: 14 more federal properties are available for housing projects, totaling 70 sites.
• New Renters’ and Home Buyers’ Bills of Rights: Aiming for stronger protections and plans to deliver 4 million new homes.

These changes could open up more opportunities for rental units and new development projects.

It’s all part of the largest housing plan in Canadian history, making homeownership more attainable for everyone. Stay tuned for more updates as they roll in!

In the meantime, if you or your clients have any questions, please don’t hesitate to give me a call.

Be well and talk again soon.

In case you missed it….earlier today the Bank of Canada cut its key interest rate by 0.50%, bringing it to 3.75% after a series of smaller cuts in recent months. This larger cut was due to slower-than-expected GDP growth and weak inflation reports. While the rate is still considered restrictive, it is expected to stimulate growth and ease inflation concerns.

The Bank predicts that the policy rate could fall to 2.50% by next spring, with another possible rate cut in December if weak economic data continues. There is concern that lower rates could reignite the housing market, which is expected to rebound as rates decline. Mortgage rates are also dropping, and this is likely to lead to increased housing demand and rising home prices, although supply challenges like zoning and labor shortages may limit new construction.

What this means for Variable Rate Mortgage holders:

• For every $100K borrowed, you’ll save about $28 a month. For a $400K mortgage, that’s around $112 in monthly savings.
• In combination with the previous 3 reductions, you’ll be saving $72 a mount. For a mortgage of $400K, that’s around $288 in monthly savings

Key Points:

• Adjustable Rate Mortgage (ARM Variable): Your payments should automatically adjust in the next lender cycle. If not, give your lender (or me) a call to confirm.
• Traditional Variable Interest Rate Mortgage (VIRM Variable): Contact your lender to adjust your payment. If you’re with one of the big banks, you’re likely in a VIRM, and action on your part will be needed.
• Fixed Mortgage: No change for you
• Looking to Buy: This positive market news might bring sellers and buyers back, potentially driving prices up. If you’re in the market to buy, reach out to update your numbers and budget so you can act quickly and wisely.

The next BoC announcement is scheduled for December 11^th and it is expected that we will see another 25-50bps reduction.

If you have any questions or would like to discuss your specific situation, please don’t hesitate to reach out.

Be well and talk again soon,