Latest news with #ButlerMortgage
CTV News
05-05-2025
- Business
- CTV News
Toronto's unsold condo rate has reached ‘an incredible level': expert
Ron Butler, principal broker of Butler Mortgage, shares his outlook on Canadian housing market, with a focus on what's happening to Toronto's condo market.
Yahoo
07-02-2025
- Business
- Yahoo
'Radically less': Canadian fixed-rate mortgages falling on lower bond yields
Fixed mortgage rates in Canada have fallen in recent days as risks to the economy push Canadian bond yields to significant lows, a mortgage expert says. Five-year government bond yields recently hit their 'lowest point in a year,' Ron Butler, a mortgage broker at Butler Mortgage, told Yahoo Finance Canada. Fixed-rate mortgages, which follow the trajectory of bond yields, have consequently fallen, with some available rates below four per cent, Butler says. 'There was a brief moment of sub-4.0 in September 2024, and that went away,' he said. 'And now we're back.' In September, however, those rates were for high-ratio mortgages, which involve down payments of less than 20 per cent and are guaranteed by the Canada Mortgage and Housing Corporation, but which come with an additional cost for mortgage default insurance. Today, Butler says, even uninsured mortgage rates are turning up below four per cent, with CMHC-insured rates even lower. 'If it's a high-ratio mortgage, 3.89, that is radically less than it was a year ago,' he said. Fixed rates have come into 'a normalized interest rate environment,' a range in which they are more palatable to more people, says Frances Hinojosa, CEO and co-founder at Tribe Financial Group. 'Even though the sentiment with some economists is that prime's going to be back down through a lower level at the end of the year, some clients are not 100 per cent sure of it and they don't feel secure that it's not a guarantee,' she said. 'And with fixed rates now being a lot lower compared to where they were a year ago, there's more of a comfort level saying, 'OK, that fixed rate seems fine to me. I'm comfortable with the payments.'' The implications of falling rates for people about to renew are significant. 'For consumers, it's always smart to not take the first offer that you get on your renewal to actually shop it around,' said Hinojosa. 'We've been talking about this for years, but this year it's more important than ever to see what bank is going to give you the best rate.' Because of the volume of mortgages up for renewal this year, banks are being 'hyper-aggressive' to retain mortgage customers, Hinojosa says. 'In a lot of situations, if you have more loyalty with that institution, you'll get a far better interest rate.' 'Once you have an actual quote' from another bank, Butler says, 'your bank will react.' For home buyers, the situation isn't as clear, Butler notes. 'The guy who's got a renewal, he has only one question: am I getting the best deal?' he said. But those thinking about buying need to ask whether they're getting a good rate and whether they're buying at a good time. The same economic worries putting pressure on bond yields and lowering mortgage rates point to a recession, Butler says, and a possible drop in home prices if it's severe. 'I mean, some people say that 2008 was a recession in Canada, but it only lasted 11 months,' he said. 'That's not a real recession. It didn't go that deep. I was around in like 1990 and the prices of houses fell for four years.' In spite of economic uncertainty, Hinojosa says market conditions — with rates much lower than a year ago, considerable availability, and stable prices — have increased activity at her business. 'I am noticing an uptick in individuals now at this time of year compared to the last two years, actually considering buying their first home, which is very very positive because we did not see this momentum last year,' she said. 'I think these buyers have always been around. They were just waiting for the right moment to be coming in. And then when we're getting into a more balanced market out there in terms of housing and inventory, clients are being more realistic about what their house would potentially sell for.' John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android. Sign in to access your portfolio
Yahoo
31-01-2025
- Business
- Yahoo
Housing market optimism could fade if Canada enters trade war with U.S.
Recent optimism in the housing market from interest rate cuts could soon fade away if Canada enters a trade war with the United States, according to one expert. Ron Butler, a broker with Butler Mortgage, said the outcome of tariffs on both sides of the border could change the current buying sentiment in Canada. One factor that could affect homebuyers is the downside risk of unemployment. 'Bad economic news is bad for housing,' Butler said in a recent interview with the Financial Post's Larysa Harapyn. 'People are always going to be cautious about buying a house if they think their jobs could be in jeopardy.' U.S. President Donald Trump has threatened to impose 25 per cent tariffs on all imports from Canada and Mexico on Feb. 1 if the two countries don't clamp down on border security. If the U.S. enacts its tariff scheme, Canada has promised to hit back with matching retaliatory measures. Butler said that the outcome of the tariffs will also have an impact on Canadians' interest in variable-rate mortgages. 'We just don't know what the outcome of these tariffs could be,' he said. 'It could be terrible. It could be just not great.' Another factor that could affect home sales is low construction activity over the past year in two of the country's major markets: Ontario and British Columbia. 'Virtually, there's nothing to buy,' said Butler. The outlook for the condominium market for the next 12 months also appears to be lacklustre, particularly in Southern Ontario. The main reason for that, according to Butler, is that people who bought condos five or six years ago that are coming into completion now are all overpriced. 'It's just going to get worse. It's very clear that it gets a little bit worse every day,' he said. Butler said the story is not much different south of the border where high interest rates are holding down U.S. home sales. 'Their new home sales have kid of collapsed in the same way that parts of Canada have collapsed,' he said. Quirky co-op ownerships hard to beat on price and location Mortgage rates are at the mercy of one man • Email: novid@ Sign in to access your portfolio
