REAL ESTATE RUMBLINGS | Canadian Mortgage News January 2020

Are ten-year mortgage term lengths the next big thing in Canadian real estate? A report out of the CD Howe Institute and the Governor of the Bank of Canada seems to think so. Mortgage rates in Canada have started to creep up slightly the past few months and the Bank of Canada held the overnight interest rate at 1.75%. This is a new segment for Bald Prairie Real Estate that I am calling real estate rumblings. Whenever there is real estate or mortgage news I will do these quick little informal videos with my thoughts on the news. This episode is jam-packed with three mortgage-related topics. 10 Year Mortgage Terms? The CD Howe Institute thinks that by going from five-year mortgage terms to ten-year mortgage terms there will be more stability in the real estate market because owners will not have the interest rate shocks they currently get every five years. I can see why the banks would like this idea. There would be fewer people switching banks reducing their churn rate. I am a little worried about how this would impact the consumer as right now payout penalties to break those mortgages early can be big. Sellers may have less ability to sell because of those fees. Mortgage Rates The big five banks have all had their rates on the rise a little for the past few months. Going into the fall of 2019 you did see rates around 2.65% whereas now they are closer to 3%. With the spring market about to kick off soon, buyers should lock those rates in an buy before we get the typical spring push and prices go up with rates. Bank of Canada Overnight Rate With a little slowdown in the economy late in 2019, the bank of Canada decided to hold its overnight lending rate at 1.75% again. Right now the betting money is at a 50% chance of the bank hiking rates in 2020. Although there is a possibility that the finance minister may ask the bank to drop rates if the slowdown continues. My name is Matthew Pfeifer and I am a realtor in Regina Saskatchewan working for Royal LePage Regina Realty. In nearly 10 years working as a real estate agent I have seen both ups and downs in the market. But there is no real estate market that you cannot buy or sell a house in. Often the media tries to present a Canadian real estate market or they talk about the real estate market in Canada as if there is a national market. With a country as vast and diverse as Canada trying to make predictions or reports about the Canadian real estate market is tough. I try in my market update to focus on the Regina perspective. But if you are looking for a more national perspective Royal LePage puts out great monthly reports across Canada as well as national reports on the Canadian real estate market. Even better if you are watching this from another city in Canada and want specific information about your specific real estate market, I would be happy to put you in touch with a great Royal LePage realtor in your region. I aim to be the top Regina realtor though my client service and belief in educating my clients about the Regina real estate market. Royal LePage Regina Realty Are you wanting to know more about mortgage terminology, rates, terms, etc? Kevin Carlson has a great breakdown here all about it:    • Mortgages Explained Canada | Regina Mortga...   If you want to learn more you can check out my Facebook page:   / matthewpfeif.  . Or follow me on Instagram:   / matthew_pfe.  . #BankofCanadaInterestRate #MortgageNews #RealEstateNews