Open House- The Real Estate & Mortgage Show: June 23, 2018

Host Steve Gregory is joined by Frank Napolitano of Mortgage Brokers Ottawa and Paul Rushforth of Paul Rushforth Real Estate talking everything mortgage and real estate.

Steve states that there are just over 5,000 listings in the Ottawa market. There tends to be a peak around the beginning of July before things start to cool off a little towards the end of summer.

Frank notes that there is an anticipated mortgage origination slow-down towards the end of the year given the impact of the stress test on Canadians. With the job report release next week, experts are split as to whether the Bank of Canada will increase on the July 11^th announcement. Given the uncertainty in the trade negotiations and the rate of inflation, the government may need to re-evaluate their stance on increasing the prime rate. Frank reminds listeners that the best mortgage rates are for purchasing a property with less than 20% down payment and the highest rates are for refinances up to 80% LTV.

Frank discusses mortgage penalties with Steve and Paul explaining that if a person breaks their bank mortgage within the first year of obtaining it, the penalty is significantly lower given the calculation is based from a 5 year rate to a 5 year rate comparison. The calculation for the interest rate differential penalty is very convoluted to many consumers. Frank goes on to explain the behind the scene insurance that affects the mortgage rate discounts banks and lenders offer.

Steve notes that there has been some buyer frustration with multiple offers and houses going for over asking price. Traditionally people were more comfortable selling their home first, this year people are now buying first to ensure they find a home that is suitable. There has been less choice and inventory on the market this year. The town house market in suburbia is still the most popular segment that is selling quickly.

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