The House: February 5, 2024

Welcome to The House your bi-weekly dose of Canadian Mortgage news. We dive into industry news, updates, and more for professionals in the Mortgage industry.

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What’s Happening:

• nesto and M3 announce an exclusive partnership as the lender forays into the broker channel.  Additionally, nesto recently announced their strategic partnership with Canada Life. 

• Pineapple Financial, a tech-focused mortgage brokerage, launches their custom e-sign technology.

• Strive Capital, now been a lender for over two years, enters the uninsured space as of last week.

• The Federal Government has extended the foreign buyer ban until 2027.

Mortgage Rates (HR) - Banks

• 5-year fixed - 5.14%

• 4-year fixed - 5.69%

• 3-year fixed - 7.04%

Mortgage Rates (HR) - Digital Lenders

• 5-year fixed - 4.84%

• 4-year fixed - 5.04%

• 3-year fixed - 5.19%

Market Updates:

• The Bank of Canada held the overnight lending rate at 5% at their January 24th announcement.  With this announcement, some economists are predicting we will not see any rate cuts until mid-year.  The next BoC update is on March 6, 2024.

• OSFI leaves stress test rate unchanged. 

• Canadian Bond Yields, which largely impact fixed-rates, have been on the rise.

Market Trends:

• Prime rate sitting at 7.2%

• Inflation edged slightly up to 3.4% in December

• Canadian rent prices ended 2023 up 8.6% YoY, according to rentals.ca.

• Home sales increased 8.7% month-over-month in December, while new listings decreased 5.1%.

• Rent inflation in Alberta grows at the fastest pace in 40 years, highest in the country at a 14% increase last year. 

• Stats Canada outlines mortgage debt trends, stating Canada’s youngest homeowner demographic (households aged less than 35 years) as the only cohort to have reduced their debt since interest rates have started to rise.

Events

• Mortgage Symposium Ottawa - February 13, 2024

• Canadian Mortgage Awards - May 2, 2024

Who’s Hiring:

• Neo Financial, VP, Mortgage Growth and Strategy

• Rocket Mortgage, Mortgage Agent (Remote).

• BMO, VP of Mortgage Specialists.

• nesto, Mortgage Advisor

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