While overall market rates set the starting point, your personal rate depends on factors like:
Credit Score: Better scores usually get lower rates.
Down Payment: Bigger down payments often mean better rates.
Property Type: Different types of homes can have different rates.
Loan Amount and Term: Shorter terms might have lower rates.

Why Do Mortgage Rates Change?
Economic Conditions: Changes in things like inflation, job growth, and economic health can influence mortgage rates.
U.S. Influence: Although Canada’s rates are set independently, U.S. rate changes can have an indirect effect.
Investor Demand: If investors are eager to buy mortgage-backed investments, it can push rates down, and vice versa.
Lender Competition: Banks and lenders often adjust rates to stay competitive, which can also affect what rates you see.

PUBLISHED BY : GurmaanMortgages

437-484-3273

g.gurjantsingh@dominionlending.ca

Hey everyone! 📉 Here’s a quick snapshot of today’s mortgage market in Ontario and what it means for homebuyers and homeowners:

Current Interest Rates: The Bank of Canada (BoC) policy rate is at 4.75%, and we’re seeing mortgage rates between 4.8% and over 7.5%. Fixed rates are expected to decline gradually, influenced by a cooling Canadian economy and lower bond yields​(
WOWA
,
True North Mortgage
).

Rate Cuts Expected: BoC is likely to cut rates gradually through the rest of 2024, with a target rate of 4.25% by year-end. Economists expect rates to continue dropping into 2025, which could provide some relief for those renewing mortgages or entering the market​(
WOWA
).

Market Conditions: The housing market has remained relatively stable despite rate cuts, but with over 2 million mortgages set to renew at higher rates in 2024 and 2025, financial stress on households is a key concern. This could impact home prices and demand moving forward​(
True North Mortgage
).

Looking Ahead: The BoC will continue to monitor inflation closely. While the expectation is for rates to continue dropping, external factors like global conflicts, high oil prices, and supply chain disruptions could play a role in future rate decisions.

🏠 What This Means for You: If you’re considering buying or renewing, locking in a rate now might be wise. Get in touch if you have questions or need guidance on the best mortgage strategy during these changing times!

📞 DM me or book a call to discuss your options. Let’s navigate these rates together!

Published by: Gurmaan mortgages
437-484-3273
g.gurjantsingh@dominionlending.ca

Whatever your goals, when it comes to getting a mortgage, there are a few things you can do in advance to make the mortgage process easier!

Getting Pre-Qualified: The purpose of mortgage pre-qualification is to help you get a general idea of what you can afford when shopping for your new home.
Pre-qualification will take your own assessment of your financial status and allow you to come up with a budget for a home, as well as what you can afford for monthly payments.
Download my app today and get pre-qualified in under 60 seconds! Plus, this will help to provide you with an estimate of your monthly mortgage payments and compare various payment schedules.
Getting Pre-Approved: While getting pre-qualified can give you a ballpark estimate of what you can afford, pre-approval means that a lender has stated (in writing) that you do qualify for a mortgage and what amount, based on submitted documentation of your current income and credit history.
A pre-approval usually specifies a term, interest rate, and mortgage amount and is typically valid for a brief period, assuming various conditions are met.
There are a few benefits to pre-approval including:
1. It confirms the maximum amount you can afford to spend
2. It can secure you an interest rate for 90-120 while you shop for your new home
3. It lets the seller know that securing financing should not be an issue. This is extremely important for competitive markets where lots of offers may be coming in.
Keep in mind that once you get your pre-approval, you will want to make sure not to jeopardize it. Until your mortgage application and sale is completed, be sure you don’t quit or change jobs, buy a new car or trade up, transfer large sums of money between bank accounts, leave your bills unpaid, or open up new credit cards. You do not want your financial or employment details to change at all until you have closed on the new mortgage.
Reach out to me to get started today!

Published by: Marketing Team