By: Robert Floris

Lead Mortgage Broker with over 30 years of mortgage expertise, currently at Mortgage Architects.

Mortgage rates are the lowest EVER! Tell everyone!

Pandemic? It is not affecting home prices. Not only are mortgage rates dropping but so is the stress test rate.

What could go wrong!

On the surface, having the lowest mortgage rates ever in Canada seems great. If you are purchasing your home, refinancing or even just renewing your mortgage, I salute you for your excellent timing. As a life-long student of finance and housing, I always want to know why things are happening and hopefully look into the crystal ball towards the future. Before we analyze the situation, let’s look how it is affecting the consumer both positively and negatively.

Positive Effects of Historic Low Canadian Mortgage Rates

• Both fixed and variable rates are at record lows

• If you were considering selling your home, there may never be a better time (low rates and a shortage of listings has caused prices to escalate)

• Cheaper mortgage payments

• Never a better time to refinance to improve cash flow and renovations with cheap financing rates

• Lower rates have helped support the Hamilton real estate market

Negative Effects of Historic Low Canadian Mortgage Rates

• In cities like Toronto, it has caused a frenzy

• Home prices in major city centers are getting out of control

• Rates have been a major reason for speculation

• Rates and the housing market were supported by CERB (What happens when the CERB ends)

History is a great teacher of the future. We are definitely in utopic conditions in real estate if you are currently working. The great equalizer will be when the CERB and other government assistance ends. If we can get through the next period where the economy gets better, then Canadian, and specifically Hamilton real estate, will survive and perhaps thrive. If not and jobs and the economy do not bounce back and the government has eliminated all support, then all bets are off.

Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.