Notable News: September 6, 2013

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by Ratehub.ca September 6, 2013 / No Comments

How Homebuyers Can Reduce Impact of Rising Rates – Toronto Star

This week, Ellen Roseman published a story about homebuyers’ growing concerns over rising mortgage rates, while waiting for their pre-construction condo units to be completed. Anyone who has purchased in the last year or so likely thought they could secure a 5-year fixed rate of 3.00 per cent or less; unfortunately, that’s no longer the case. Buyers who are still shopping around and who are looking at pre-construction buildings have a number of options to consider, in order to secure a low rate. These options include: choosing shorter terms, going variable, working with a mortgage broker and being more realistic about estimating their monthly mortgage payments.

Mortgage Debt Exploded in Past 4 Years, Bank of Canada Data Shows – Huffington Post Canada

It’s no surprise that Canadians are taking on more debt – especially in the form of mortgages – with interest rates sitting at historic lows for now more than three years. But according to data released by the Bank of Canada last month, the total amount of mortgage debt has nearly doubled in the last four years – from $436.6 billion in June 2009 to $879 billion in June 2013. And that number only includes mortgages held at chartered banks. Add what is held by smaller lenders and the Globe and Mail estimates Canada’s total mortgage debt is closer to $1.1 trillion. With so much riding on Canadian’s ability to afford to repay these debts, it’s no surprise that Stephen Poloz chose not to increase the overnight lending rate earlier this week.

Vancouver Home Sales Jump More Than 50%, But Prices Lag – Financial Post

Month-end reports showed that there were 2,514 sales in Greater Vancouver in August 2013, up 52.5% from August 2012. “We’ve seen a healthy amount of demand in the marketplace this summer compared to the number of homes listed for sale,” said Sandra Wyant, President of the Real Estate Board of Greater Vancouver (REBGV). “The market today is much stronger than we saw last year and is consistent with our long-term averages for this time of year.” Fortunately for buyers, the increase in sales hasn’t resulted in an increase in prices. REBGV’s Home Price Index composite benchmark price for residential properties was $601,500 in August – a 1.3% decline from the year before. “Home prices have been quite stable and consistent for much of this year,” said Wyant.

INTEREST RATES IN CANADA

A look at current mortgage interest rates and 5-year mortgage rate history:

current mortgage rates september 5 2013

The average discounted mortgage rates in Canada in 2013:

discounted mortgage rates september 5 2013

A history of weekly 5-year fixed mortgage rates and 5-year variable mortgage rates:

mortgage rates by: Ratehub.ca