Happy Thanksgiving from my family to yours. 2020 has been a difficult year for most of us, but I hope we can take this weekend to think of the things we have to be thankful for. Family, friends and our health.
Life in a COVID-19 world is ever-changing. We all experienced a quarantine period – many experienced temporary layoffs, and some more permanent.
Mortgage Rates continue to be in a state of flux with COVID-19. Here is my latest (March 27, 2020) explanation of what has been happening.
Two weeks ago the Bank of Canada lowered it’s overnight rate by a half percent. This was the largest single day drop since 2008. Just over a week later on Friday the 13th, they did it again in an unscheduled rate announcement.
The major banks didn’t immediately follow suit, but as of today we have seen the banks pass along the full half percent rate drop again.
Canada’s housing market has long been considered quite overheated. This trend is mostly driven by the extreme markets of Vancouver and Toronto housing markets; these are the markets that government regulations that limit loan to value ratios among others were targeted at cooling. Conversely, the Fort McMurray housing market is crashing along with activity in the oil patch. But where does that leave Calgary’s housing market?
What are the options for Millennials to leave the nest? One solution is renting, though that can be expensive in markets like Vancouver and Toronto. A few worry that high housing prices will leave Millennials renters forever. If one is living in a more affordable housing market like Alberta, then it is possible to save up the difference toward a down payment on a new home. Renters benefit from their ability to move wherever work takes them.