• As we close out the end of the first month in 2018, we realize how much has changed in only 12 months. At Robert Floris’ Mortgage Architects Office in Hamilton, Ontario, we will try to share how we feel the market has changed and where we believe it is leading us.




    2017 2018
    Mortgage Rates – 5 years fixed Range 2.49% – 2.89% Range 3.39% – 3.69%

    Rates climbing slowly

    Mortgage Rules Normal – stress rates in for high ratio Higher stress rates for both high ratio and convertible
    Listings Not enough inventory to meet demand As of January 1, 2018, there were 50% more listings
    Real Estate Prices Price escalating due to increased demand and lack of supply Less pre-qualified people, more supply has made the market very slow with the exception of the starter homes between $300,000 to $400,000

    It is our opinion that with the new mortgage rules, less clients are being qualified with the A rates. The new mortgage rules are also affecting the secondary B market. The secondary market are using 6% for their stress test, leading to an increase in high rate second mortgages.

    It is our opinion that as these marginal clients get pushed out because of affordability, more homes will go on the market and thus we do not see much or any price increases for this year.

    Robert can be contacted at 905-574-9200 Ext. 215 OR by email at mortgages@robertfloris.com. You can fill out an application online here with absolutely no pressure and no obligation.

    Click here to see what others are saying about Robert and we invite you to leave your own review!

%d bloggers like this: