Market Update - July 2018

Once again it’s that time when there is a debate over whether Bank
of Canada (BoC) is going to increase its overnight rate which is
sitting at 1.25%
at present. With the recent stats showing strong
job growth and steady wage increases for June, many economists
have revised their predictions and see the high possibility of BoC
having another rate hike by a quarter percent on Jul 11th, Wed. If it
happens, we expect another waive of rate increases across all
mortgage terms.

If you are an existing owner and your mortgage is coming up for
renewal within the next four months, it is a good idea to lock the
rate before Wednesday to avoid this possible rate hike. Likewise, for
home buyers, it is important to lock your rate sooner than later.   

On another topic
, it is interesting to learn that Vancouver has the
lowest delinquency rate in Canada compared with other major cities
despite being one of the most expensive cities to live in. A recent
report from Equifax (
one of the largest credit bureau companies that
provide credit ratings) shows Vancouver’s delinquency rate was
0.68% at the end of first quarter of 2018. This is 0.4% below the
national rate.

Enjoy your summer everyone!

Michelle Feng
Owner, Verico Smartymortgage
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