The wolf-like bite of higher global interest rates is now tearing into the very soul of the Canadian economy. Consumer spending is in decline, and home sales in the Greater Toronto Area (G.T.A) have dropped for the 4th month in a row. Additionally, nearly 20,000 condo pre-construction units have been pulled off the G.T.A real estate market over the last 6 months, primarily due to unmanageable financial parameters. These economic shockwaves are now reverberating through the domestic economy. Perhaps you are looking for some clarity on what to expect next?
It’s best to note that presently, a bank’s best clients are being offered mortgage rates at near 6% for a residential 5-year mortgage. That is a >400% increase inside 2 years. Monthly mortgage payments could potentially quadruple without a degree of financial handiwork, such as extending amortization tenures.
Commercial borrowers are faced with comparably elevated rates. Perhaps lenders can be persuaded to stagger or blanket the loan? If you have questions, just call.
Know that the new mantra of the central banks is “higher for longer.” Optimistically, there is a growing consensus that maybe the higher aspect of this slogan is drawing to a near close. The longer part is, for the moment, the great unknown. Perhaps you are looking for a real tell? Then book an appointment to visit our office.
Factually, within 18 months, there will be > $500 billion in residential mortgages coming up for renewal. What will this mean for the marketplace? Why do we still have housing supply issues?
Looking for real insight? Forget asking your barber! It’s best that you ask the seasoned professionals at Heritage Caledon Realty with their nearly 200 years of collective experience. People are quickly discerning that this time is not different. Having a confidential conversation with an HCR veteran may be one of the smartest financial decisions of your lifetime.
Perhaps you are thinking of refinancing and in need of a second opinion (industrial or residential). Then request a (free quote) from Accurate (Peel) Appraisals for a professional AIC evaluation.
Meanwhile, may we all wholeheartedly pray for peace in the Middle East and Ukraine. If either conflict explodes exponentially, rest assured that all bets will be off!