Mortgage brokers encouraged by renewed interest in home buying and renewals
A hold in the Bank of Canada's key interest rate might turn the tide for financing homes across Canada.
- Download the CTV News app to get local alerts on your device
- Get the latest local updates sent to your email inbox
Mortgage brokers in Simcoe County and the surrounding area are encouraged by the return of buyers to the market and renewals amid concerns of future defaults this year.
"As much as people want to buy bigger houses and things like that, they have been limited in terms of those higher rates," said Jason Nugent, a mortgage broker with Dominion Lending in Newmarket. "But because of the halt on hikes, we've actually seen some optimism return to those seeking to re-enter the market."
The Bank of Canada's halt on rate hikes occurred earlier this month after a year of hikes to slow down inflation nationwide.
"In fact, we've actually seen a little bit of a reduction in the rates in the last week or so," said Michael Oziel, Mortgage Broker with Sherwood Mortgage Group. "We're starting to see a lot of buyers coming off the sidelines and get back into the pre-approval process."
However, only some have been able to qualify for conventional mortgages.
A November 2022 report from CMHC revealed 33 per cent of borrowers renewed with alternative lenders in the third quarter of 2022, up from 29 per cent the year prior.
"When you look at the gig economy, people working hourly, two or three jobs, the banks have certain restrictions about how much time you have to be on that job before we can use that income," Nugent said. "So we have seen a small increase in defaults, but we're still very stable."
Simcoe County's default rate currently sits at 0.47, which Michael Oziel said is a sign of resiliency.
"How people have been ensuring that their finances are in order to withstand these rates, I'm actually quite impressed with how low defaults have been," he added.
CTVNews.ca Top Stories
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.