Jack Latimer Sales Representative REMAX Right Move, Brokerage
In this month’s newsletter:
- The Bank of Canada’s key interest rate change and what it means to you.
- Local update on average sale prices and inventory level of homes in the area.
- A video tour of the Simcoe County Affordable Housing building at 250 West St. N. Orillia
- You could be one of 20 winners of a $1,000 house cleaning.
- Win a $200 Visa Gift Card.
Bank of Canada Rate Change
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 mortgage terms, and the payment frequency.
Here’s an example to illustrate the savings:
(This does not reflect current rates and is only an example if a rate was lowered by 0.25%)
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. It is the bond market that influences the fixed mortgage rate. As bond rates change lenders then begin to adjust their fixed rates.
The recent reduction remains a wait-and-see situation for what might unfold with fixed mortgage rates.
Local Market Update
(Numbers quoted are for Single Family/Detached/Freehold/Non-Waterfront Homes)
For the most part, the inventory level (number of Freehold homes for sale to serve the number of buyers in the market) has increased this year. Last month was a more balanced market compared to a seller’s market last May for most local areas.
For single-family, freehold (non-waterfront) homes, the inventory level at the end of May was 4 months for Orillia, 4 months for the combined townships of Oro-Medonte, Severn and Ramara, 4 months for Midland/Penetanguishene, while Barrie had only 2 months of inventory. 4 months equates to a balanced market while Barrie’s 2 months for the most part would indicate a seller’s market still exists.
For average sale prices within the same criteria, Orillia has seen a 6.36% drop in the average sale price last month compared to May 2023. The township regions including Oro-Medonte, Severn and Ramara had a 5.61% increase this year over last May, Midland/Penetangushene is up 1.47% and Barrie is 3.52% lower than last May.
Average Sale Prices – May 2024
- Orillia – $629,663
- Oro-Medonte/Severn/Ramara – $968,912
- Midland/Penetanguishene – $664,181
- Barrie $797,745
20 lucky winners will get $1,000 towards a professional cleaning service — perfect if you’re going to be moving into a new home soon, getting ready to sell your home soon, or the home you are in now needs a good deep clean and you would like someone else to do it for you.
There’s no cost or obligation to enter. Enter the REMAX House Cleaning draw below.
Take a Video Tour of 250 West St. N. Orillia
I recently had the opportunity to tour the new Simcoe County Affordable Housing building at 250 West St. N. Orillia (the former site of ODCVI). If you are like many people who have driven by the site for the past two years and now wonder what it looks like inside, join me on the video tour.
Recommended Service Provider Survey
Take part in my Recommended Service Provider Survey and you will be entered to win a $200.00 VISA Gift Card.
My buyers and sellers often ask me for the name of a good plumber, electrician, lawn care provider and more. With your help, I can add the names of folks who provide great service to my list and then be able to pass those names along to those asking.
Your help with this is greatly appreciated. Check out the Service Provider Survey and pass along your recommendations.
Good luck and Thank you!
Just Released and Now FREE for You
I just released two new books, one for Sellers and one for Buyers. Both are loaded with valuable information.
I have a limited number of hard copies available for FREE or you can read the books online FREE. Click the links below for the book that interests you.
How To Sell Your Home Fast For Top Dollar
Are you ready to tap into the best-kept secrets of successful home sellers? You can sell any home in any market when you know these secrets. This book reveals the most effective tactics to get the most money possible out of your home in the shortest amount of time. These strategies have helped sell thousands of homes, and now, you have them all at your fingertips.
The strategies in this book have been thoroughly tested and proved effective time and time again. Don’t miss out on this opportunity to learn tips and tricks employed by the wealthiest home sellers!
The Complete Guide To Buying A Home
Buying a home can be interesting to say the least. This book details the buying process in any market, with strategies and advice to help the process go as quickly and smoothly as possible. These strategies have helped thousands of people buy their homes in a timely manner – and most importantly – for a reasonable, or in some cases an amazing price.
You’ll discover the best ways to search for your desired home, how to compare your needs versus wants, negotiation tips, what to look for in a home loan, steps to take during a home inspection, and a full rundown of the closing process.
I hope you found something of value in this newsletter.
Please take the time to enter the chances to win this month and good luck on those draws.
Could I ask you a favour? Please share this newsletter with a friend who might also find this and future content valuable.
SUBSCRIBE
If someone forwarded this newsletter to you and you would like to be on the mailing list yourself for future newsletters, hit the subscribe button.
