ELECTION + CRAZY ORANGE MAN + TARRIFFS = HUGE OPPORTUNITY

Hey there!

If you got your mortgage five years ago, your term is likely up very shortly—and your home has probably increased in value. That’s built-in equity you can leverage right now. 🏡

Reflecting on Interest Rates During COVID

Five years ago, during the height of the COVID-19 pandemic, interest rates were at historic lows. The Bank of Canada slashed rates to stimulate the economy, making borrowing cheaper and more accessible. Many homeowners took advantage of these low rates to secure favorable mortgage terms. Fast forward to today, and the landscape has changed significantly.

Changes in the World Since COVID

The world has undergone substantial changes since the pandemic. We've seen shifts in global economic dynamics, supply chain disruptions, and evolving work-from-home trends. These changes have impacted the real estate market, with increased demand for suburban homes and properties with more space. The housing market has experienced fluctuations, but overall, home values have risen, creating opportunities for homeowners to tap into their equity.

Impacts of US Government Policies  (yeah, that really means Mr Trump’s policies!)

US government policies have also played a role in shaping the current economic environment. Trade conflicts and tariff wars have created uncertainty in global markets. The US government's approach to tariffs and trade policies has led to volatility, affecting various industries, including real estate. These policies have influenced interest rates and borrowing conditions, making it essential for homeowners to stay informed and adapt to changing circumstances.

Factors Today

Today, we face a unique set of factors that can impact your mortgage decisions. Global economic shifts and tariff wars are pushing governments to consider lowering interest rates to stimulate the housing market. The uncertainty right now, is your opportunity!  This creates an usually rare window to secure a better rate, unlock equity, or restructure your finances to save thousands. THIS WILL NOT LAST LONG! Whether you’re looking to reduce monthly payments, access funds for investments or renovations, or consolidate debt—this is your moment. 💰

Current Interest Rates in Canada

As of now, the average annual percentage rates (APR) for mortgages in Canada are as follows:

·5-year fixed mortgage rate: The average APR is 3.74%.

·5-year variable mortgage rate: The average APR is 3.95%.

·Prime rate: The current prime rate is 4.95%.

These rates are subject to change, so it's crucial to stay updated and consult with a mortgage broker to find the best options available.

Recent Market Trends

The real estate market has been experiencing some interesting trends lately:

·Increased Demand for Suburban Homes: With more people working from home, there's been a noticeable shift towards suburban living. Homebuyers are seeking larger properties with more space for home offices and outdoor areas.

·Rising Home Prices: Despite economic uncertainties, home prices have continued to rise in many areas. This is partly due to low inventory levels and high demand, creating a competitive market for buyers.

·Low Inventory Levels: The supply of homes for sale remains low, which has contributed to the rising prices. Sellers are in a strong position, but buyers may face challenges finding suitable properties.

·Interest Rate Fluctuations: Interest rates have been fluctuating, influenced by global economic conditions and government policies. It's essential for homeowners and buyers to stay informed about these changes to make the best financial decisions.

·Increased Focus on Sustainability: There is a growing interest in sustainable and energy-efficient homes. Buyers are looking for properties with eco-friendly features, such as solar panels and energy-efficient appliances.

Canadian Housing Market Trends

The Canadian housing market has shown some notable trends recently:

·Average Home Prices: Canada's national average home price declined to $668,097 in February 2025, marking a 0.3% decrease from January 2025 and a 3.3% decrease compared to February 2024.

·Sales Activity: Seasonally adjusted sales activity totaled 36,997 transactions in February 2025, showing a significant decline of 10% from January 2025 and a 4% decrease year-over-year.

·Benchmark Home Price: The national benchmark home price, which measures the price of a "typical" home, was $713,700, showing a 0.6% increase month-over-month but a 0.9% decrease year-over-year.

·Regional Variations: Home prices and market trends vary significantly across different provinces. For example, British Columbia saw a 1.6% monthly increase but a 2.4% annual decrease in average home prices, while Ontario experienced a 1.7% monthly increase but a 2.9% annual decrease.

Tips for Homeowners Looking to Refinance

Refinancing your mortgage can be a smart financial move, but it's essential to approach it with careful consideration. Here are some tips to help you navigate the refinancing process:

·Assess Your Financial Goals: Determine what you want to achieve with refinancing. Are you looking to lower your monthly payments, shorten your loan term, or access equity for other financial needs? Understanding your goals will guide your decisions.

·Check Your Credit Score: A higher credit score can help you secure better interest rates. Review your credit report and address any discrepancies or issues before applying for refinancing.

·Compare Lenders: Don't settle for the first offer you receive. Shop around and compare rates from multiple lenders to ensure you're getting the best deal. A mortgage broker can help you access a wide range of options.

·Understand the Costs: Refinancing comes with costs, such as closing fees, appraisal fees, and other charges. Make sure you understand these costs and factor them into your decision-making process.

·Consider the Timing: Interest rates fluctuate, so timing can impact the terms you receive. Keep an eye on market trends and consult with a mortgage broker to determine the best time to refinance.

·Evaluate Loan Terms: Look beyond the interest rate and consider the overall terms of the loan. A lower rate might come with higher fees or less favorable terms, so evaluate the complete package.

·Prepare Documentation: Gather all necessary documentation, such as income statements, tax returns, and bank statements. Having these documents ready will streamline the application process.

Benefits of Refinancing

Refinancing your mortgage can offer several advantages, making it a smart financial move for many homeowners. Here are some key benefits:

·Lower Interest Rates: One of the primary reasons homeowners choose to refinance is to secure a lower interest rate. By refinancing at a lower rate, you can reduce your monthly mortgage payments, saving you money over the life of the loan. This can free up funds for other financial goals or simply provide more breathing room in your budget.

·Shorten Loan Term: Refinancing can also allow you to shorten the term of your loan. For example, if you currently have a 30-year mortgage, you might refinance to a 15-year mortgage. While this may increase your monthly payments, it can significantly reduce the total interest paid over the life of the loan and help you build equity faster.

·Access Home Equity: If your home has increased in value, refinancing can provide access to your home equity. This can be particularly useful for funding major expenses such as home renovations, education costs, or debt consolidation. By tapping into your equity, you can leverage the value of your home to achieve your financial goals.

·Consolidate Debt: Refinancing can be an effective way to consolidate high-interest debt, such as credit card balances or personal loans. By rolling these debts into your mortgage, you can benefit from a lower interest rate and simplify your monthly payments. This can help you manage your finances more efficiently and reduce the overall cost of your debt.

·Improve Loan Terms: Refinancing can also help you improve the terms of your loan. For example, you might switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, providing more stability and predictability in your monthly payments. Alternatively, you might remove private mortgage insurance (PMI) if your home's value has increased and you now have sufficient equity.

·Increase Cash Flow: By lowering your monthly mortgage payments through refinancing, you can increase your cash flow. This extra money can be used for various purposes, such as investing, saving for retirement, or covering everyday expenses. Improved cash flow can provide greater financial flexibility and peace of mind.

Recent Statistics on Refinancing Trends

Recent trends in mortgage refinancing activity show some interesting developments:

·Payment Savings: Borrowers who refinanced their first-lien conventional mortgages in 2021 lowered their mortgage rates on average by 1.15 percentage points. This resulted in an average annual savings of about $2,700 in mortgage payments (principal and interest).

·Equity Extraction: Many borrowers took advantage of increased home equity by refinancing their properties, reducing their monthly payments and extracting equity through cash-out refinances1.

·Decline in Refinancing Activity: In 2023, refinancing of single-family homes fell by 64% compared to 2022. Rising interest rates contributed to higher monthly mortgage payments, with the average monthly payment for a conventional conforming 30-year fixed-rate mortgage rising from $2,045 in December 2022 to $2,295 in December 2023.

·Discount Points: More than half of all borrowers paid discount points in 2023, with the median discount points paid for refinance loans being about $3,900.

How I Can Help Right Now

As your friendly neighborhood mortgage broker, I'm here to help you navigate these uncertain waters. With over a decade of experience and a rich family history in the real estate industry, I understand the complexities of the mortgage market. I can assist you in finding the best mortgage fit for your individual needs, whether you're renewing your mortgage or looking for a new one.

Remember, the best deal for you might be with your current bank, or it might not. That's where I come in. I'll do the legwork, compare the options, and ensure you get the best mortgage fit for your individual needs. Think of me as your personal mortgage detective, always on the lookout for the best deals.

📞 Let's chat for 15 minutes and map out your best move.

Call to Action

This kind of opportunity doesn’t come around often. Don’t let it pass you by. If you have any questions or need mortgage advice, don't hesitate to reach out. I'm here to help all across Ontario.

Let's make sure you get the best deal possible and bring a smile to your face in the process.

Stay healthy, stay smart, and remember—I'm always here to have your back.

Best regards,

Stuart Lessels

Your “Go To” Mortgage Broker for Georgian Bay and beyond

📧 stuart@housenow.ca

 📞 (705) 445-1234

P.S. Feel free to share this article with your clients and colleagues. It's always good to stay informed and be prepared for what's coming next in the market! 😊