5 Year Fixed 4.54%

5 Year Variable 2.65%

Open House - The Real Estate & Mortgage Show: October 23rd, 2021

Open House - The Real Estate & Mortgage Show: October 23rd, 2021

Date Posted: October 25, 2021

There has been a slight increase to fixed rates over the last few weeks with bond markets and inflation rising. The fixed rate market may continue to see fluctuations over the next few months.   

A listener called in to discuss his mortgage renewal strategy after his bank contacted him to discuss new rates. Frank advises to look at what the loan-to-value of your mortgage is to see what options are available with your Mortgage Broker. If you find that you are closer to the end of your mortgage term with a rate higher than today’s rates, it’s worth having a conversation with your Mortgage Broker to potentially renegotiate your mortgage rate sooner rather than later.

New construction is down given the shortage of supplies and labor which means that builds are taking longer. This can make it challenging when you are selling your existing home at the right time that you are not carrying both homes or sell too early and have to find accommodation while you wait for your new home.

The Ottawa Real Estate market has slowed tremendously over the last few weeks in comparison to the past year and a half. Listings are still on the low side with 1824 currently on the market which isn’t uncommon with the holiday season approaching. Anyone looking for a home right now are in a mindset to buy so taking a home off the market to re-list in the spring may miss those buyers. The rental market is still extremely active with almost the same number of homes for sale as there are rentals in Barhaven, Kanata, and Orleans neighborhoods. We are still in a slight sellers’ market, but indicators are pointing towards a more balanced market over the next several months. This is good news for those buyers that are still actively looking. Those vendors are not losing out with the change in market. They have benefitted with a terrific value increases.  In January 2020, the average sale price was $441,000. Today, the average sale price is $648,000.

In terms of mortgage rates, although the inflation numbers are spiking the bond markets which leads to the slight increase in fixed rates, variable rates have remained low with no increases to the prime rate. Prime rates may start to increase in the next year but if you’re the type that you can handle the increases down the road, it might be the rate for you. Alternatively, if you set your payments to what they would be if you had chosen a fixed mortgage, you can insulate yourself from some of the potential future increases.

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