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.
Bank of Canada
Cheaper mortgages are on the horizon. Priced in for well over a week, the Bank of Canada dropped the overnight rate by 0.25% on Wednesdat. The Prime Lending rate now sits at 6.70%. This puts us back to rates of June, 2023.
The announcement also noted that, in combination with metrics that underscore excess supply, lower interest rates will start to contribute to a slowdown in mortgage and shelter costs, which have been the largest contributor to inflation.
Impact to Borrowers
On a 25 year amortization, this saves clients approx $15/ month per $100,000 of mortgage.
Gives more confidence to perspective home buyers
Key Dates in the Calendar
US Fed meeting – Wednesday, July 31st
Bank of Canada announcement – Wednesday, Sept 4th
Retail Sales
Crack in consumption continue to grow. Sales volume fell by 0.80% in May with 8 of the 9 major sub sectors showing a lose in growth. This is particularly troubling as our population continues to grow.
Manufacturing
Another critical data announcement this week, manufacturing sales in Canada plummeted -2.6%. Previous reading was +0.4%. Just another example of why lower rates can only help an economy that is struggling.
Impact Moving Forward
Odds of another cut in September are a coin flip, currently sitting at 50%. Based on the weakness of Canada’s economy and the need to accelerate the GDP, we put the odds of a cut at higher than 50%.
The new Monetary Policy Report shows that the Bank expects headline inflation will average 2.3% in the third quarter. That provides some support to the forecast that a third consecutive rate cut in September is the most likely outcome at this stage.
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
$8,500,000 – Approximately the number of Windows computers and servers that were taken down by the Crowdstrike outage last week, according to Microsoft.
53% – The percentage of GTHA residents who have considered moving out of the region due to traffic and congestion.
$9 million – Cost of a Manhattan condo that was recently purchased by the government for its consul general to New York. An investigation into the transaction is now underway.
17 C – The average temperature for the Earth on Monday, which scientists say was the hottest day ever recorded. Even temperatures in the Canadian Arctic rocketed to 9 C.
