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Weekly Digest — November 22nd, 2023

22 Nov Weekly Digest — November 22nd, 2023

Posted at 19:13h in Blog by

Weekly Digest

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November 22nd, 2023

 

Bridge Loans

In this video, I’ll be going over a couple of bridge loan examples. We’ve had real estate agents from different teams reach out for help, so I wanted to provide some guidance. I’ll discuss scenarios where clients need bridge loans without an existing line of credit, as well as cases where they have an existing secured line of credit.

Remember, clients must understand in order to facilitate a bridge loan they need to go through the entire application process. They must also take a mortgage product (line of credit or mortgage) on the new purchase property.

Bridge Loans - Examples and How They Work

 

Inflation Improves in Canada

The overall CPI fell in month-on-month seasonally adjusted terms for the first time since May 2020.

The average three-month annualized change in CPI-trim and CPI-median has fallen to 3.0%, the lowest since early 2021.

Gasoline prices also fell which contributed to the headline inflation to fall to 3.1% (down from 3.8%). Food price inflation is still running high at 5.6%, but this represents a 2 year low.

 

And in the USA…

The CPI report from the US showed that inflation cooled more than expected to 3.2%.

  • This data is helping to reassure investors that the US Federal Reserve is likely done raising interest rates.

  • Many traders are now betting on rate cuts in 2024.

  • Bonds rallied.

  • Stock market rallied.

 

Current Interest Rates

 

CONVENTIONAL

  • 5 year fixed, 30 yr amortization – 6.09%

  • 3 year fixed, 30 yr amortization – 6.30%

  • 5 year variable, 30 yr amortization – Prime – 0.50% = 6.70%

  • 5 year fixed, 25 yr amortization – 5.99%

  • 3 year fixed, 25 yr amortization – 6.20%

  • 5 year variable, 25 yr amortization – Prime – 0.60% = 6.60%

 

INSURED

  • 5 year fixed, 25 yr amortization – 5.69%

  • 4 year fixed, 25 yr amortization – 5.69%

  • 3 year fixed, 25 yr amortization – 6.00%

  • 5 year variable, 25 yr amortization – Prime – .90% = 6.30%

 

Fast Facts

  • 2.00% – The estimate that government consumption and pandemic transfers to households accounted for of the B.O.C hikes. Your vote counts more than you think!

  • 31.7% – That is the drop in mortgage registrations in Ontario from November 2022 to October 2023.

  • 5.6% – How much Canadian home sales fell by in October compared to September. Home sales decreased in nine of the ten provinces, with New Brunswick being the lone exception.

  • £712 million EURO – Revenue brought in by Premier League soccer club Manchester City, anew record for the league. The boost came from increased match day sales, TV deals, and sponsors.

  • $6.5 billion USD – Net loss recorded by the US Postal Service in the 2023 fiscal year, due in large part to $2.6 billion in added costs caused by inflation.