Well, now that we know Alberta will be staying with us in Canada, our next big question is: who will be mayor of Toronto after Monday?
The latest polls show the race is very close, so Monday night could be quite the nail-biter.
But there’s another date I’m watching next week too.
The Bank of Canada makes its next interest rate announcement on October 28.
This week at our sales meeting, Outline Financial gave us an update on mortgages and where rates could be headed. Their presentation had one very practical takeaway for anyone thinking about buying a home in the next few months:
Don’t wait to talk to your mortgage broker.
The current expectation is that rates could increase before the end of the year. No one has a crystal ball, of course, but if you’re thinking about buying, now may be a good time to ask your mortgage broker about getting a rate hold.
That way, you can continue looking for the right home knowing you’ve protected today’s rate if rates move higher.
One other number caught my attention.
Mortgage arrears in Ontario have risen to 0.34%, their highest level in more than 15 years.
That sounds alarming until you put it into perspective.
In the UK, the rate of mortgages in arrears is approximately 0.64%, while in the U.S. it is about 2.06%. Outline Financial’s presentation also points out that Canadian mortgage arrears remain significantly lower than both the U.S. and the UK.
So yes, more Ontario homeowners are falling behind than we were seeing a few years ago, but 0.34% is still a relatively small percentage of all mortgages.
Another interesting change is the type of mortgages people are choosing.
With the gap between fixed and variable rates widening, more borrowers have been choosing variable-rate mortgages.
According to the numbers Outline shared with us, variable mortgages accounted for about 41% of new mortgage activity in July, up from about 29% in March.
That doesn’t mean variable is right for everyone. Your mortgage choice should depend on your own finances, comfort level and plans.
But it does show how quickly things can change.
And that’s probably the biggest takeaway for buyers right now.
If you’re hoping to have a new home in time for the holidays, get your financing organized before you find the house. Know what you can comfortably afford, speak to your mortgage broker and find out whether a rate hold makes sense for you.
Then, when the right place comes along, you’re ready to act.
As always, if you’re thinking about buying or selling, just call Davelle.
My First Home: How to Buy Smart in Toronto
Know someone who talks about buying a home “someday”? Forward them a copy of our new My First Home magazine. It covers what to know, where to look, and how to buy smart in Toronto.
Want to Make This Market Work for You?
As always, if you have questions about the market, or would like an updated home evaluation, we’re here to help.
For Lease: Bright 1+1 Bedroom Condo in Queen West (15 Beverley St #503)
Queen West has always been one of Toronto’s coolest neighbourhoods, and this suite puts you right in the heart of it all.
Bright, spacious and designed for downtown living, the real showstopper is the oversized terrace – bigger than some downtown apartments!
For Sale: Renovated 1+1 Bedroom Condo in Midtown, Toronto (225 Merton St #501)
Welcome to your own slice of paradise in the heart of Midtown, where the Kay Gardner Beltline Trail is practically your backyard. Morning run? Evening stroll? Taking Fido out for a spin? Just step outside and you’re there. Inside, this spacious one-bedroom-plus-den suite has plenty to love.
For Sale: Renovated 3-Bedroom Detached House in Leslieville (14 Coady Ave)
Morning Coffee. Evening Wine. Leslieville Living. This turnkey Leslieville gem checks all the boxes. Beautifully renovated and completely move-in ready, this detached 3-bedroom, 3-bathroom home is designed for easy everyday living and effortless entertaining.
For Sale: Luxurious 2-Bedroom Corner Suite in Yorkville, Toronto (38 Avenue Rd #1403)
Some homes offer luxury. This one offers peace of mind. Welcome to Suite 1403 at 38 Avenue Road, where every detail has been designed to make life feel effortless. Behind the private direct elevator entrance is an elegant corner residence that offers the rare combination of generous proportions, refined finishes, and exceptional service.
For Sale: Bright 1-Bedroom Condo in Corktown, Toronto (60 Tannery Rd #516)
Step into a sunlit living and dining space with clean sightlines and effortless flow. The open-concept kitchen keeps you connected – prep dinner, catch your favourite show, and take in the view all at once.