• The Immediate Future of Housing and Mortgages in Hamilton, Ontario

    As a mortgage broker in Hamilton, Ontario, my work history has brought me many interesting experiences in the finance industry. I have endured several recessions and periods of euphoria, where interest rates were between 1% and 2%. I have also made errors predicting where we might be headed. It remains unknown to me what the government’s response will be regarding providing liquidity to keep mortgage rates artificially low.

    In the early 90s, the competent replaced the incompetent. It sounds harsh, but if a couple both lost their jobs, a new couple would purchase the home. In the long run, this is beneficial for everyone.

    Although I digress, I hope to offer you clues on what could happen in the near future and how to be prepared for your mortgage needs in Hamilton, Ontario.

    Last month we heard inflation is coming down, and that’s good. It also means the Bank of Canada may lower rates this month. That is excellent news because it means variable mortgage rates will be lowered. So far, all positive for homeowners and those looking for mortgages in Hamilton.

    However, it also means the economy is slowing. When rates go up, the opposite is happening, and the economy is strong. If a car is required in your family, you will be happy to know car loan arrears are increasing. With the price of cars today, hopefully, the market values will drop with increased supply. Mortgage arrears are inching up as well.

    At this time, housing in Hamilton, Ontario is stable. Another economic indicator is retail sales, which are much lower as well.

    My worry is why major Canadian banks are putting so much money away for loan provisions. All chartered banks [the big six] have set aside $4.3 billion in case of losses. TD and Scotiabank lead the way with $1 billion each. I ask the question: what are these smart bankers thinking, and what do they know? It is a hint to me that they expect economic trouble.

    My wish is to prepare our clients in Hamilton. This is an important time to review your personal economic situation. Questions to ask are: Am I carrying too much debt? Do I have an emergency account? Am I prepared in case of job loss? Where can I save money? Where can I cut expenses?

    Although we cannot plan for the unexpected, we can certainly prepare. The worst that could happen is that you will be ready in case the economy takes a turn for the worse.

    If you’re looking for a mortgage broker in Hamilton, Ontario, feel free to reach out to us. We are here to help you navigate through these uncertain times and secure the best mortgage rates available.

%d bloggers like this: