Spring into 2020!

Spring 2020 is just around the corner.  This year started out with expectations of being a little more settled than recent years as far as the economic landscape is concerned.  Cue Corona virus.  What more can be said.  This thing has crippled China, killing thousands while thousands more suffer from this illness globally.  It is truly a terrible thing we can only hope is quickly under control and those affected are nursed back to health quickly.

  Corona has also affected the stock markets and sent bond yields into the basement.  We do expect these to be relatively short term effects and things likely return to normal as the Corona dust settles.  On the mortgage side of things the impact of Corona has created an interesting scenario as the spring real estate market approaches.  Fixed rates have been trending down with the bond markets (funds for fixed rates are closely tied to the bond markets). I expect we will see some very attractive  rates being offered by lenders in the coming weeks as they compete for business during this busy time of year. 

Mortgage stress test changes – The federal government recently announced changes to how they will determine the qualifying rate for new mortgages and is being heralded as the latest and greatest news in the mortgage industry.   I’ll try to keep a positive spin on this.  While I think it is a step in the right direction, the changes amount to very little when it comes to help with qualifying.  Having said that, every little bit helps, and when you combine this with lower fixed rates, and the many other little things lenders have been able to add to their arsenal to help out I think we have made some huge strides just in the past 12 months.  I’ll tip my hat to the broker community as a whole for making the case to bring about the changes.

So what should you be doing this spring?  First enjoy some sunshine, take the kids to the park, walk the dogs, and just get out there to enjoy the Okanagan, it’s why we live here!  Then if you own a home, have a review of your mortgage situation, it may be a good time to early renew,  transfer to a new lender, or refinance for debt consolidation.  If you are a buyer it’s time to speak with a broker and develop a plan to make your purchase happen.  As bad as the Corona virus is, it has also created a situation in which you can save some cash on your mortgage, all you have to do is contact me.

Cheers,