GTA Stakeholders' Report - May 2024

Dear Stakeholders,

A Message From Our Founders

As we dive into the topic of mortgage renewal in this month’s issue, I want to extend my sincerest gratitude for your ongoing support and trust in Kirby Chan and Co. Navigating the process of renewing your mortgage can seem daunting, but rest assured, we’re here to guide you every step of the way. Whether you’re renewing your mortgage or considering new home buying/selling opportunities, our dedicated team is committed to ensuring your success.

Thank you for allowing us to be part of your real estate journey. Your satisfaction and peace of mind are our top priorities, and we’re always here to support your real estate needs.

Warm regards, Kirby and Carrie Founders, Kirby Chan & Co.

Interest Rate Impacts on Homebuyers

In the ever-evolving landscape of Ontario’s real estate market, the current interest rate environment is significantly influencing firsttime home buyers, existing homeowners, and downsizers alike. As interest rates change in response to economic conditions, the dream of homeownership and the financial strategies of current homeowners are being recalibrated.

First-time home buyers are particularly feeling the pinch as higher rates translate to increased borrowing costs, directly impacting affordability and access to the housing market. However, relief is available through several avenues: The First-Time Home Buyer Incentive offers up to 10% of a home’s purchase price to reduce mortgage costs for those who qualify, and the Home Buyers’ Plan allows individuals to withdraw up to $35,000 from their RRSPs taxfree for a home purchase. These programs are designed to ease the burden of entry for new entrants into the real estate market.

Existing homeowners, especially those considering refinancing to tap into home equity or reduce their monthly payments, face challenges as rising rates affect the cost-effectiveness of such decisions. Here, banks are stepping in with solutions like extending amortization periods, offering a strategy to manage monthly payment levels by spreading them over a longer term. Additionally, fixed payment mortgage options are becoming a popular choice for those seeking payment stability amidst a fluctuating rate environment, ensuring consistent monthly expenses.

For downsizers, the calculation includes both the leveraging of accumulated home equity against the backdrop of higher interest rates and the consideration of how extended amortization or fixed payment options might support their next purchase.

Banks and government programs together provide a buffer against the immediate impacts of a challenging interest rate climate. With these supports, all segments of Ontario’s housing market—from first-time buyers to those looking to downsize—can navigate the current conditions with informed strategies that align with their long-term housing and financial goals.

Contact us to discuss more solutions for your particular housing needs. Follow us on instagram @kirbychanandco

For more real estate articles, scan the QR code and tap Blog or visit KirbyChanAndCo.com/blog

COMMUNITY YARD SALE

JUNE

8 th 8am-3pm

When: