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
BREAKING Iran fires air defence batteries in provinces as sound of explosions heard near Isfahan
Iran fired air defence batteries early Friday morning after reports of explosions near the city of Isfahan, the state-run IRNA news agency reported.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.