Happy New Year,
Were you prepared for the real estate frenzy that erupted in 2020? Did you jump into the market as a new buyer? Did you escape the rush of the city for rural lands? Or, did you find yourself paralyzed by the slew of changes in all aspects of life?
Not many of us knew how to respond in 2020, and you may still be wondering how to proceed as 2021 gets going. One thing is certain, all of us at Spin Mortgage are here for you to discuss your personal portfolio and how the current environment impacts you. Below we will summarize the notable shifts in the market.
But first, one positive we took from this very quiet holiday season was the time to reflect and appreciate this business we feel fortunate to call our own. We are filled with gratitude for your loyalty to our company, thank you for choosing to work with Spin Mortgage.
Our goal in 2021 is to continue to provide you with a mortgage experience that makes you smile. As residential lending experts we strive to fit into your life. We don’t want you to be annoyed, overwhelmed or frustrated by the mortgage process. Our aim is to slip in and out of your daily routine as seamlessly as possible. For you that might mean we are here to answer your questions several times a day, or perhaps it means we tiptoe around your busy life silently. Whatever your needs, we are here for you.
Along with a seamless customer experience, we also pride ourselves on being mortgage experts, but the truth is a pandemic is uncharted territory for all of us and there is no general way to proceed. We encourage all our clients who are interested in making a shift to contact us for personalised advice.
Read below for a brief summary of what is happening in the mortgage world.
While Fall and Winter are typically slower seasons in residential real estate, the latter third of 2020 was a buying frenzy. Many social factors of the pandemic, combined with the lowest mortgage rates ever offered in Canadian history have inspired many Canadians to jump into the market. Even those who are not willing to take the risk of purchasing have benefited from the low rates by restructuring their mortgages. You may be wondering if you should be capitalizing on these low rates? We would be lying if we said yes; your answer requires a personal assessment of your portfolio. We promise to always provide our unbiased advice, get in touch if you would like us to have a look at your file.
If you are feeling a touch weary of these unbelievably low mortgage rates, we don’t blame you. The reason behind these low rates is the government is trying to soften the impact of the pandemic on the economy. This is called quantitative easing, essentially the government is printing money in an effort to keep the economy afloat. It is impossible to know how long this will continue for; the Bank of Canada and reputable economists have indicated that rates will remain low until 2023; but nothing has been set in stone. Depending on how soon the impact of Covid-19 settles and when the economy recovers, we could see rates increasing sooner. So before you start shuffling things around make sure you have a buffer should the rates shift unexpectedly.
Another thing about these low rates is that the restrictions are often quite limiting. It is important to read the fine print before reaching for the lowest rate. Have a look at this blog that will provide a bit more insight into some of these restrictions.
If you can make city money and live in a more affordable area why wouldn’t you do it? With everyone working from the comfort of their home, all the great minds started to think alike. Real estate in small towns, smaller cities, suburbs and rural areas has exploded as city folks have severed the leash of their office commute. Again, we think this might be a tad impulsive as no one is certain how long remote working will continue. What will happen when businesses summon staff back to their urban offices? The questions remains, do you have a buffer should you need it?
Ultimately, what you do with your money is up to you. Here at Spin Mortgage we are residential lending experts, we pride ourselves on providing unbiased advice based on our collective 58 years in the industry. While other channels may be urging you to jump on low rates imminently, we find that a bit irresponsible. We typically recommend that you try to live within a comfortable range, and try to stay away from the limits. Living within your means ensures you have some wiggle room should life intervene (or a global pandemic surfaces).
While we wish we could provide a recipe for what to do in terms of real estate what we can offer you is our promise to always be up to date with current information and to disclose it transparently.
Looking forward to chatting with you soon,