Mortgage Policies Update from Jeremy Nagel

Before I get into updating you on the Jan 1, 2018, mortgage policies and thought on the BOC ahead of tomorrow’s meeting, I would like to make mention of a new TV series, maybe you have heard of it…Home & Lifestyle. We were at the Lougheed House filming Holiday greetings…what an awesome location!
 
Homes & Lifestyle is a locally produced series, which can be found throughout the week and on Saturdays on both CTV and CTV Two (Saturdays at 11:30 on CTV Two).  As the exclusive mortgage sponsor, filming the show has been a great experience, not to mention a ton of fun. The show also features Kim Hayden (Host/Producer), Jeff Kahane (Real Estate Lawyer) Ana Cummings (Interior Design) and many others including many top producing Realtors… Sam Corea, Tanya Eklund, Corinne Watson & Associates, Lucas Ramage, Kim and Doug Hayden, Crystal Tost, to name a few.
 
Homes & Lifestyles is a cool format supporting local talent. Check it out on CTV and CTV Two.
 
Quick Jan 1, 2018 Policy Update
 
I have had many questions and now that most lenders have been able to receive feedback from OSFI based on their interruptions, here is the 411.
 
You have heard me say, providing you have an executed purchase contract prior to Dec 31, 2017 that old rules will apply. Should there be any material changes to the contract, it could mean new rules will apply…this will be on a case-by-case basis and lender dependent. This is true for most lenders.
 
NEW… A few of the big banks have said they will honor pre-approvals made prior to Jan 1, 2018 based on their rate hold period. This means that if they have an accepted offer after the Jan 1, 2018 date and closing on or before the pre-approval expiry date, the old rules will apply.
 
Lets get those deals in. Give me a shout at 403.710.5863 with any questions.

Bank of Canada Update
 
Speaking of questions, what the heck is the Bank of Canada (BOC) going to do tomorrow?
 
As you may know, I’m a chart nerd. Haha In anticipation of tomorrow’s decision, we are seeing a slight squeeze on spreads for both Fixed and Adjustable/Variable. Below you will find both my Fixed Rate and Adjustable/Variable Rate Barometers depicting the compression, however, I wouldn’t be too concerned at this moment. This is normal leading up to a BOC rate decision.
 
That said, looking at the Adjustable Rate Barometer, the market is suggesting the BOC will remain in its holding pattern. If you look at the two previous increases in July and September, a diving spread is clearly visible in the days leading up to the rate decision. This is not the case today as spreads are still healthy.
 
On the Fixed side, depending on the commentary, we will likely see the bond market settle back down below today’s levels removing any upward pressure.
 
All good news for the housing market as we head into 2018!

 

 

Jeremy Nagel
Your Mortgage Partner
403.242.5547

About Vince Degiuseppe

Born and raised in Calgary. I have been a licensed realtor since 1990 and possess a passion for real estate combined with an in-depth understanding of both the buying and selling process. I take the overwhelm and worry out of the process through the relationship I develop with you, my expertise and dedication. I am your Realtor for Life!