Weekly Digest

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August 25th, 2024

Partner Trip for 2025

April (Spring) 2025, our annual realtor trip will be held in Nashville, Tennessee.

Qualifying is easy. Send $1,500,000 in total closed mortgage business to automatically qualify.

To date, we have 3 realtors who have already qualified.

CPI Reporting

For the first time since February of 2021, inflation has dipped below the 10 year average. July headline inflation cooled to 2.50% year over year. A rate cut is all but guaranteed at the next Bank of Canada meeting.

Shelter inflation also dropped to a 17% month low of 5.70%

Bank of Canada & The Fed

September market-implied rate cut probabilities show a:

• 100% chance of a 25 bps Bank of Canada cut on September 4th

  • With a 1% probability of -50bps

• 41% chance of a 50 bps Federal Reserve rate cut on September 18

  • A 100% probability of at least a -25bps drop

Condo Market Struggles

The average price of a condo has dipped 4% since last month, now at $707,095.

In a notable turn, condos in downtown Toronto are now selling at $993 per-square-foot (PSF). This is the first time since January 2021 that downtown units have dipped below the $1,000 PSF threshold.

Toronto condo market now has nearly six months’ worth of inventory.

Summer Lull

The weak labour markets continue to affect the younger population disproportionately. There is a troubling new trend of many young Canadians who are not actively working in any capacity.

Canadian Equity

The average Canadian mortgage holder has approx. $400,000 of equity. This number has remained relatively flat over the last 12 months.

Current Interest Rates

CONVENTIONAL

• 5 year fixed, 30 yr amortization – 4.89%

• 3 year fixed, 30 yr amortization – 5.09%

• 2 year fixed, 30 yr amortization – 6.00%

• 5 year variable, 30 yr amortization – Prime – 0.90% = 5.80%

• 5 year fixed, 25 yr amortization – 4.79%

• 3 year fixed, 25 yr amortization – 4.99%

• 2 year fixed, 25 yr amortization – 5.95%

• 5 year variable, 25 yr amortization – Prime – 0.95% = 5.75%

INSURED

• 5 year fixed, 25 yr amortization – 4.49%

• 4 year fixed, 25 yr amortization – 4.54%

• 3 year fixed, 25 yr amortization – 4.64%

• 5 year variable, 25 yr amortization – Prime – .95% = 5.75%

Fast Facts

• $49,000,000 – What former RBC CFO Nadine Ahn is seeking in her wrongful termination lawsuit. Ahn says she was on track to take over as the CEO before she was abruptly let go.

• $64,000,000 – Revenue that Bell Canada brought in from calls inmates made at Ontario jails between 2013 and 2021. A new lawsuit alleges the telecom charged overly high rates.

• $1.03 billion – Global box office sales for Deadpool & Wolverine. Only 2019’s Joker has fetched more at the box office as an R-rated movie.

• $283,000,000 – Total property damage calculated to have been caused by last month’s wildfire in Jasper, Alberta. The tourist town lost 358 structures, including 800 housing units.

• $60,800 – The median income of a Canadian family after taxes in 2022. After adjusting for inflation, the average household income actually declined compared to 2021.