Real Estate Market Update, Tips & More
Welcome to the very first edition of The Monthly Mo. We are keeping things short and useful: a quick read on the economy, where mortgage rates sit today, and a tool we think every Toronto resident should know about.
Economy at a glance
Canada added roughly 180,000 new jobs in the most recent release, a stronger than expected print that surprised most forecasters. The Bank of Canada is now holding the overnight rate steady as it waits for inflation and employment to line up. Good news for variable rate borrowers hoping for stability, and a reminder to fixed rate borrowers that this cycle is far from over.
Mortgage rates, this week
Here are the ranges we are seeing from our preferred brokers for a high ratio, insurable mortgage on a primary residence in Ontario. Actual offers depend on your credit profile, down payment, and lender.
If you are shopping for a mortgage right now, shop aggressively. The spread between the best and worst offers we see is commonly 0.30 to 0.50 percentage points, which on a $700,000 mortgage is real money over a 5 year term.
Tool we love: the MORO app
MORO is a local Toronto app that bundles TTC, GO Transit, Bike Share, Presto, and car share routing into a single screen. For anyone house hunting in the core, it is a great reality check for what a daily commute from a given neighbourhood actually looks like, door to door.
Before you make an offer on a place, plug the address into MORO and simulate the commute you will actually be doing. We have seen more than one buyer change their mind after discovering that a 4 km trip to the office is really 45 minutes with a transfer.
What we are watching in January
- The first Bank of Canada rate decision of the new year and any shift in language about cuts
- Early TRREB data for December, which will tell us whether holiday listings actually cleared
- New listing inventory in the under $900k condo segment, where demand has been strongest
Thanks for reading our very first newsletter. If you have questions about how any of this applies to your own plans, just reply to this email. We read everything.