home prices in most Canadian real estate markets have yet to see any sort of meaningful impact from the Cova nineteen pandemic right now though is this the beginning of the came real estate crisis and we just hit the tip of the iceberg because mortgage arrears rates those are mortgages too there are 90 days or more behind starting to creep up the Bank of Canada has a report out projecting that they will be double what they were in the 2008 crisis later next year and twenty percent of cane households don't have two months of mortgage payments saved up well low interest rates which are right now at all-time lows and a reduced stress test would be enough to keep prices where they are in the Katyn real estate market afloat we're over all that and more on this episode ball / a real estate hey guys welcome back to Bald Prairie real estate my name is Mathew Pfeiffer I'm a real estate agent in Regina Saskatchewan now if you like this sort of content real estate news market updates all those tips and tricks I've got for you go ahead hit that like and subscribe button right now I really appreciate all the support you guys have been giving me thank you very much now what do you get from a pampered cow well you get spoiled milk of course hey guys if you guys are watching this when I first post it's the Maine long weekend I hope you guys are enjoying your long weekend trying to get out have some fun I know it's tough you can maybe spend as much time at the lake or with family and friends that's what I'd like to be doing normally on this weekend but we can't do that so instead I'm gonna try to get on my bicycle get a little bit of a ride in and get some work done if you wanted to know a little bit more about me personally and I put my Instagram handle right here you can go ahead and follow me not much for business on there it's mostly just personal stuff like my coaching life astronomy cycling those kind of nerdy things that I like to do but go ahead you can follow me and kind of learn a little bit more about me so this book episode of all pre real estate is give me more when those informal real estate run links so I won't go through a couple of news topics here a couple of ones we're gonna go over here first and foremost is mortgage rates are in arrears those are starting to creep up a little bit and the bank can is projecting those to go even higher secondly we're going to talk about where current mortgage rates are right now and a possible small reduction in the stress test allowing you to purchase a little bit more of a house and the third thing I've got kind of a bonus tip I think it's me really really important for buyers going forward is some of the new programs that are available through a few of the different lenders and these are cashback programs and low interest rates for things like small renovations and repairs grab all that more on this episode okay let's get into it here first topic so what I want to go over here is mortgages that are in arrears so for those who don't know a mortgage in rear is a mortgage that has not been paid for at least 90 days and these things get reported and tracked by government CMHC stats Canada etc why that's important is obviously people are behind on their mortgage or in danger of losing a house to foreclosure rate now those rates have started to creep up a little bit and there's a new report out from the Bank of Canada that they expect those mortgages in arrears rates to be double what they were in the 2008 crisis later on next year that's a pretty scary headline and I can see it already in the comments cuz people in telling me for an awfully long time how wrong I am about the real estate market and the crash is near hold up one second here I want to talk a little bit more about a reality and not just the headline Thank You Canada's projecting those mortgages and readers rates to go up to 0.8% 0.8 percent of all mortgages maybe ending up in a rare state by the middle of 2021 what does that give you in context to see another situation like the 2008 mortgage crisis in the United States just before that market crash their mortgage arrears rate was three point five percent or five times higher than what the Bank of Canada is projecting right now so yes this is not good when people are behind on their mortgages yes this will cause some people have to sell their house at a lower price or end up in a foreclosure situation but those headlines are a lot scarier than the potential reality 0.8 percent of all mortgages significantly lower than even the worst times in Canadian history the 1990s recession is a really good example that again to people around 3% mortgage arrears raise so yes the headline sounds scary but the reality isn't quite as scary as the headline next is a little update on the Canadian mortgage stress test again if you don't know what that is that's a qualifying rate you have to qualify at two full points or in this case it's now maybe attention gonna go down to five point zero four percent you have to qualify on that in order to qualify for a mortgage what they're trying to do is see if interest rates go up is a buyer able to withstand those higher interest rates now that's started the year at five point one nine percent it's gone through a couple of drops now it looks like it might actually drop here potential below five percent of four point nine nine now this is not a massive change here for an average buyer it's gonna lie to spend a couple thousand dollars more it's not a significant amount but anytime that starts to come down a little bit closer in line with where current mortgage rates are that is better for people are gonna purchase because they can spend a little bit more money this is really only gonna help people that are on the absolute razor's edge of being able to afford a house or not build afford a house and while we're talking mortgages here I want to talk quickly about where mortgage rates are at ever since this Kovach nineteen pandemic has hit us mortgage rates have gone all over the place up down sideways you name it it's tough to even talk to people mortgage rates because they're changing so much so fast new programs are coming in and out but talk a little bit more about that later on as we're chatting here I'm gonna scroll through some of the mortgage rates but what you're seeing is all the big banks around two point five nine percent the mono lenders are kicking around about two point four five percent and that is May fifteenth here May long weekend so there's some great rates out there if you are in the market you are looking to buy go talk to your bank or mortgage Berg right now and get on those great mortgage rates get those locked in because these are fantastic rates gonna make those houses even more affordable okay bonus topic time and so what I want to talk about here is some of the new programs that are being put out by a few of the different lenders so these are cashback programs designed as allowing you to be able to do small improvements or repairs on a house when you've bought it this is a little bit different than the mortgage plus improvements program you may be aware of so that is your buying house for say three hundred thousand dollars you end up extending that mortgage to say three hundred twenty five thousand dollars in order to do some renovations on the house the problem with the mortgage plus improvements program is you have to have the money up front to be able to do those repairs and then it's reimbursed as well if you sell the house before the mortgage is paid out they make you pay out Plus improvements right off the bat but these new cash back programs herbs structure a little bit differently they're not designed for major renovations they're designed for smaller things like fixing an AC unit that's falling apart a furnace that's on its last legs and you can actually even use them as a little bit debt consolidation to pay down some credit card debt things like that so what you can do is get these cash back workers with their low interest rates and they give you the money up front so if you have to replace that furnace you can do that a lot of first-time buyers who have really scraped together every single dollar they've got in order just to have the downpayment cover legal fees etc this is really good for those types of buyers because I get it you probably don't have a lot of extra cash you know five thousand dollars to fix a furnace kicking around so a program like this is fantastic it's a lower interest rate and it's prorated if you sell the house before you've got the mortgage paid out so you're not paying a substantial amount to get out of the house and you sell it as well unlike some of the mortgage plus improvements or some of the cash back programs of years past it actually isn't gonna cost you more money than the amount of money or boring some of those programs before if you're a born $5,000 it might cost you eight nine ten thousand dollars to borrow it really wasn't a good situation to be doing that I understood if you had to do it you had to do it these programs are a lot better so if you're in a position especially as a first-time homebuyer and you want to get access to all these programs talk to your mortgage broker your lender these programs are really good and help you do those small little repairs around a house when you're buying it so if this is your first time checking out ball pretty real estate thank you for stopping by appreciate it I hope I was able to give you some information that you found valuable if you want to know more about say being a first-time homebuyer I've got a whole series of videos gonna have them right here they go over first time homebuyer topics but if you just want to know more about the real estate market what's going on what's the latest market stats I've got the my most recent video right here you can check it out plus I'm gonna set up as a playlist you can go through and see where the real estate market has been and how its progressing forward through the years thanks a lot for watching guys enjoy your long weekend

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