What The Rate Change Can Mean To You

After six-in-a-row announcements to hold on rates, the Bank of Canada’s rate has now lowered by a quarter-percentage point and is now at 4.75 per cent.

Homeowners with variable-rate mortgages, and Canadians holding other types of debt linked to the central bank’s policy rate, could be the first to experience a reduction in their interest rates. However, the full impact of this change will need some time to unfold for fixed lender rates.

A 25 basis point reduction in interest rates translates to a 0.25% decrease. The savings on a mortgage due to this reduction can be calculated by considering the principal amount, the original interest rate, the term of the mortgage, and the payment frequency.

Here’s an example to illustrate the savings:

Mortgage principal: $300,000
Original interest rate: 3.5%
New interest rate: 3.25% (after 25 basis point reduction)
Mortgage term: 25 years
Original monthly payment: $1,501.87
New monthly payment: $1,461.95
Monthly savings: $39.92
Total savings over the life of the mortgage (25 years): $11,976.61

So, with a 25 basis point reduction in the interest rate, you would save approximately $39.92 per month and about $11,976.61 over the entire term of a 25-year mortgage with a principal of $300,000. ​

The Bank of Canada’s rate decisions do not always directly influence a fixed mortgage rate. For the most part, the bond market influences the fixed mortgage rate. As bond rates change, lenders then begin to adjust their fixed rates. This is a wait-and-see situation right now for the effect on mortgages.

2024 Colours

Curb Appeal – A Big Difference

Most people understand curb appeal without giving it much thought. When you see a house painted in a colour you like or don’t like, curb appeal kicks in. The colour of the house provides a first impression of your home. That first impression begins the process of building interest or lack of interest in your home from a potential buyer.

With a multitude of colours, it is impossible to please everyone when it comes to your house colour but there are many things you can do that will appeal to almost every potential buyer. Each little thing you improve on adds to the overall curb appeal of your home.

Work on the five tips below. These tips will help to move your home’s curb appeal to a higher level. For other FREE tips that can make a big difference in the selling price of your home contact me. Contact | Jack Latimer, RE/MAX Right Move (getjack.info)

If you are thinking about changing the outside colour of your home, Home Decor specialist Emily Bihil has some thoughts at 8 Designer-Endorsed House Colors to Seriously Upgrade Your Curb Appeal (mydomaine.com). Ashley Knierim also has 18 house colours to consider at 18 Exterior Paint Color Ideas for a Beautiful Home (mydomaine.com)

Small Towns, Big Opportunities: OREA’s Rural and Northern Housing Policy Report

The Ontario Real Estate Association (OREA) is hard at work for you, in ways you might not even know about.

In the Lakeland Association of Realtors which covers Orillia and Muskoka, there is a great need for more housing opportunities.  Inventory levels are at an all-time low which is driving prices up to record highs. However, we live in an area of great opportunity to overcome this shortage and for more job creation in the area with the right infrastructure in place.

OREA has been at work encouraging the province to continue the push for more high-speed internet service in more rural areas in Ontario. With more people working from home and most recently with children being schooled online during COVID-19, the need for high-speed internet in rural areas has become clearly a must-have.

Many buyers in our area are unable to branch out in their search for a home because they need high-speed internet service because of working from home. OREA continues to push forward towards success in this area.

The OREA report Small Towns, Big Opportunities ensures that the communities of rural and Northern Ontario are set up for success in the immediate aftermath of COVID-19 and for years to come. The full report is available HERE.

OREA and the Lakeland Association of Realtors also recognize the great need for natural gas service in smaller rural communities. With this service expansion, the opportunity for job creation in rural areas increases dramatically.

Neil Sharma has an interesting article on this topic at Canadian Real Estate Wealth found HERE.

Million Dollar Mortgage Common Place in GTA

Remember that Barenaked Ladies song – If I had a million dollars?

If the lyrics in that song were updated, for many people in the GTA they would be singing along to – If I had a million dollars, I’d pay off the mortgage and have nothing left. A million-dollar mortgage in the GTA is becoming commonplace.

So what does it take to qualify for a mortgage on a million-dollar home? For starters, an annual income of no less than $175,000 and you need about $200,000 for a down payment.

Right now, no matter if it’s a million-dollar home or a $400,000 home, you must pass the stress test which currently means that although mortgage rates remain low, buyers must be able to still be able to handle the mortgage payment if the rates jumped to close to 5%.

Getting pre-approved for a mortgage should be one of the first things you do. If you want more information on this, contact me and review Linda White’s Postmedia article – Million-dollar mortgages now common in GTA HERE.

How October Birthdays Style Their Home

Welcome to October

Besides celebrating Thanksgiving in October, if you also celebrate a birthday this month did you know that you could have a messy home and a praiseworthy backyard. Those are two things that identify people born in October.

Those born in October can also often have vivacious personalities and can connect well with others. They’re often the life of the party. And, when it comes to making decisions in life – or in their home décor – they tend to be bold risk-takers.

If you were born in October or you know someone who has a birthday this month find out more about those born in October and the style of their homes HERE.

10 Things to Consider Before Renewing Your Mortgage

Before you renew your mortgage it is important to review where you’re at, where you want to go and what is best for you.  That involves doing a little homework before you sign for your mortgage, but it can save you thousands of dollars in the long run. 

One of the biggest errors many people make when it comes time to remortgage is not asking for better rate.  Just because you have a mortgage, it doesn’t mean you have to remain with your current lender when it is time to renew.  There could be other options that are much better for you and rate is only one thing to consider.  

Cory Davis provides you with 10 Things to Consider Before Renewing Your Mortgage at this Real Estate 101 feature through Realtor.ca

Home Furnishings Trend: Brass is Back

For years brass has been on the sidelines, but it’s making a comeback. Here are ways homeowners can incorporate the finish to add glamour and help homes stand out.

After years of chrome, stainless steel, and nickel being the shining stars of interior metals, brass is back and starting to steal the show.

As with many home furnishings trends, the comeback was inspired by what’s occurring in fashion. In this case, gold and rose gold watches became influencers a few years ago, says Chicago designer Tom Segal of Kaufman Segal Design, who thinks that home furnishings styles tend to be cyclical. Now he’s adding small brass details to rooms in the same way a gold watch might peek out of a shirt cuff.


Credit Scores and Mortgages

The last five years has once again shown that rising house prices make buying the right house a good investment. However, that can’t be said for all buyers. 

With the wrong mortgage, even the right house can turn into a financial disaster for a buyer.

The rules surrounding being approved for a mortgage can be frustrating for some, but they are in place to actually protect you from heading into something that is not right for you. 


Simply put, finding a mortgage while having a poor credit rating isn’t totally impossible, but what becomes possible isn’t always good for you. You need to ensure you are getting into a manageable mortgage or your dream of getting a house can quickly become a long term nightmare.

Among other things considered in approving a mortgage, the lender checks credit scores. To qualify for the best interest rate, you typically need good credit and good credit scores. Most established mortgage lenders do not offer loans to people with bad credit, but some lenders might lend to borrowers with lower credit scores.

For a buyer recognized as having a low credit score the mortgage funds, if secured, will normally come with a higher interest rate than the average posted rates from leading lenders. The reason for the higher rate is understandable.  The lender sees the borrower as a higher risk. The source of funds for lower credit score buyers can sometimes be found through private lenders who are willing to take a chance on someone with a lower credit score, but the private lender will want a higher return in doing so.

In Canada, credit scores range from 300 (just getting started) up to 900 points, which is the best score. 650 is the magic middle number – a score above 650 will likely qualify you for a standard loan while a score under 650 will make things difficult.  

Whether you have a good credit score or a low credit score it is advisable to shop around for the best mortgage rate and mortgage terms. You need to know in advance of agreeing to a mortgage of any possible hidden costs in the event you ever need to be relieved of the mortgage commitment down the road. 

As an example, there might be a penalty if you were to sell your home prior to the expiry date of the terms of the mortgage you agreed to. You also need to ask if your mortgage would be portable to another home purchase and if there is any cost in doing so.

There can be large financial penalties with some mortgages when you go to sell and you have not reached the full term of your current mortgage.

Higher interest rates can mean higher mortgage payments and a can also mean a longer time to pay down the mortgage principal depending on your payment schedule which can be a huge added expense over the long haul.  

Being approved for a loan can be a happy day for a potential buyer, but it doesn’t necessarily mean you should get over-excited until you do your homework about the terms for that approved mortgage.

Deal with a trusted lender who clearly outlines all the details of your mortgage. There are many banks, credit unions and mortgage brokers who can assist you in this area and I would be happy to provide you with several contacts. 

Whatever you do, don’t stick your head in the sand to many of the realities that exist surrounding getting a mortgage from just anyone.

There is no cost or obligation for you to utilize any of my buyer services including details you should consider when getting a mortgage and how to go about it.   I would be happy to answer some of your questions and put you in contact with a qualified mortgage consultant. Contact me if I can assist in any way.