I thought I would reach out to our resident Mortgage Broker, Chris Harley, to ask him to give us his thoughts on what to expect regarding Vancouver Mortgages in 2014.
If you’re interested in a quick calculation of what you can afford, take a look at our Mortgage Calculator, otherwise, contact Chris directly, he’ll be more than happy to help you through the process.
Read on for Chris’ take:
After a tumultuous 2013, I expect the Canadian residential mortgage market to be more stable in 2014. There are strong indications from the Bank of Canada that any increases in the prime lending rate this year are unlikely. Economic uncertainty and even possible deflation risks should give the BoC pause on an aggressive rate stance. There is a possibility that longer term fixed rates might edge up a bit as the US Federal Reserve slows down its program of buying up US government bonds, but I suspect that the effect will be minimal. A stable interest rate market will be a positive for the Canadian real estate market.
In Canada, the Minister of Finance Jim Flaherty has indicated publically that he is unlikely to introduce any further policy changes that will make mortgage lending more difficult. A lot will depend on the perception in Ottawa as to whether the market is “overheating” or “normalizing”. My view is that the real estate market is fairly balanced and that further changes to government legislation are unnecessary.
Having said this, lenders are stepping up their due diligence and it takes good team work between your realtor, mortgage broker and legal representation to put deals together and close them efficiently. If I can be of help in 2014, please do not hesitate to call me.