Another major shift in the real estate market in September as a result of these 7 announcements/changes. In this episode of Brick by Brick: Building Wealth Through Real Estate with me, Nico James-Bock, a Broker and CondoWiz at Royal LePage Signature Realty, I outline the 7 announcements/changes and provide my insight in what they mean for you:

1. BoC makes it’s 3rd interest rate cut, bringing the overnight lending rate to 4.25% and indicated further rate cuts in future announcements.

2. National Inflation Rates Drops to 2% - Meets the BoC's Target Rate

3. No new stress test when renewing your mortgage

4. Ottawa (CMHC) announced raising the price cap for insured mortgages to $1.5-million, up from $1-million.

5. Ottawa announces 30-Year Mortgages for certain people under certain conditions

6. Unemployment on the rise, again. Nearing 7%

7. US Federal Interest Rate Cut - First cut since 2020

The federal government’s decision to bump up the amortization period and mortgage insurance cap is a double-edged sword. There’s a cost to a longer repayment horizon.

The main caveat here is that the longer a mortgage time frame, the more will be paid in interest over that period.

The impact of the new policy will largely depend on each consumer's circumstances and needs. Now, if the goal is to get the house you want, it can be seen as positive positive, but if your goal is to pay the least amount of interest, then it’s not.

The BoC is keeping an eye on unemployment and will continue its aggressive interest rate reduction in the coming months.

Nothing we’ve seen so far will help ease the housing crisis. Wow need to see more in terms of federal, provincial and municipal governments to help lower barriers to building more homes, make the time frame from start to finish shorter so developers can provide finished homes to consumers faster, lower capital gains so investors can release investment properties sooner.

Webinar: The Great Market Shift with Gareth Cahill from Dominion Lending Centres

When: October 9th 7:00pm

RSVP Here: https://event.webinarjam.com/register/1/pgk00ux

Helping you increase wealth through #realestate

Book a time for a quick 15min Chat - Discovery: https://calendly.com/thecondowiz/15min
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