The Mortgage Rate Rise: What Is the Impact?

In August to September of 2013, Canadian banks started to increase their five year fixed mortgage rate. The popular five year closed fixed rate was increased by all of the major banks.

 

Rates are still ridiculously low by historic standards, but quite a bit higher than rates were even last year, when under 3.00% was possible for a five year fixed mortgage. Lower rates are possible with other lenders on a case-by-case basis.

Why have rates increased?

The five year closed fixed mortgage rate is a closely watched metric, and is controlled to a large degree by the bond markets. The rate is priced relative to the yield on a five year Canadian bond. That yield has been increasing as of late, which has caused the banks to adjust their five year mortgage rate upwards.

The primary reason for the increase in bond yields is because the American economy is improving and growing again. This causes many to feel that our GDP may increase, stoking inflation fears. Increased inflation expectations  cause bond buyers to demand higher yields on bond investments. Other factors include our weakening Canadian dollar and a cyclical shift from bonds into stocks globally.

What is the likely impact of a rate increase?

If recent history is any guide, the increase in rates will be short lived - in the sense that the rates have been adjusted up and are likely to stay at their new level throughout the winter. The uptick in rates has caused a boost in the Toronto real estate market, with condos sales and prices showing improvement along with the already strong low-rise home market. This is inevitable, as home buyers who were pre-approved at the lower rates rush to find homes and close deals with home sellers before their pre-approval expires or is adjusted upwards.

 

Once this temporary demand boost is satiated, it's likely that the market will slow over the winter months. If the global economy does not provide any large surprise, it is likely that rates will come down in the spring - or at least the discounted rates offered by banks will fall. Banks will want to boost lending and spur the market during the spring months, so incentives are more than likely during this period.

Our ReMax Real Estate Team uses the following principles to help keep our team focused and efficient. Our realtors and support staff have been implementing these strategies for time management in both work and personal areas of their lives and found themselves to be more productive and less stressed. 

Please read the following tips and remarks from Remax Realtor Jay Magnussen and let us know in your comments tips for how you manage your time, and strategies for improving. Thanks!   

Prioritize tasks. At the start of the day our real estate team sits together to make a list of tasks that need to be accomplished, individually and as a team. Our strategy is to focus our immediate attention on the most important tasks and once those are accomplished time may be given to other tasks or unimportant tasks could be carried forward to next day. In short, prioritize your tasks to focus on those that are more important.

Delegate tasks. Delegation is not running away from your responsibilities but is an important function of management and productivity. Learn the art of delegating work to your co-workers or employees as per their skills and abilities in order to focus your time on tasks best suited to your skill set. This is one of the most valuable tools to Remax Realtor Jay Magnussen "Surround yourself with excellent people, delegate and let them do their job!"

Avoid procrastination. Procrastination is one of the things that badly affect productivity. It can result is wasting essential time and energy. It should be avoided at all costs. As a Realtor and real estate team, we are accountable to oursevles and our clients if we procrastinate and if we do not accomplish tasks. It is a self-driven business. It could be a major problem in both your career and your personal life. CLICK HERE to read 11 tips on how to stop procrastinating.

Create deadlines. When you have a task at hand, set a realistic deadline and stick to it. Try to set a deadline few days before the task so that you can complete all those tasks that may get in the way. Challenge yourself and meet the deadline. Reward yourself for meeting a difficult challenge.

Use a schedule. Realtor Jay Magnussen suggests - "Use technology to it's fullest potential - use the calendar in your smart phone, set reminders, sync your desktop with your other devces so you always have access to your schedule."  If you're not adept with technology, carry a planner or notebook with you and list all the tasks that come to your mind. Make a simple ‘To Do’ list before the start of the day, prioritize the tasks, and make sure that they are attainable. To better manage your time management skills, you may think of making 3 lists: work, home, and personal.

Take breaks. Steal breaks whenever you can. If you can find 10-15 minutes, or if you can afford to take off for 10-15 days periodically. Between tasks - take a walk, powernap, listen to music - take a break! Too much stress can take toll on your body and affect your productivity. The best idea is to take off from work and spend time with your friends and family. You will be better prepared to work once you feel rejuvinated. 

Learn to say no! Politely refuse to accept additional tasks if you think that you’re already overloaded. Take a look at your ‘To Do’ list before agreeing to take on extra work. For some people this can be very difficult, so work at it and reward yourself. 

Stop multi-tasking. Multitaskers often seem to think they get more accomplished, but it’s not always the most productive or efficient route. Studies have shown our minds work better when we are truly able to focus and concentrate on one thing. 

For most people, finding the right home begins with a house-hunting strategy combining personal preferences, guidance from others (including your Remax Real Estate Agent) and a mix of neighborhood exploring and online searches.

For some, the search takes a while; others find what they want right away. In either case, our Calgary and Okotoks Real Estate Team will be a huge resource of insight and guidance, working through issues or complications that arise along the way; and pointing you in the right direction. 

ReMax Realtor Jay Magnussen has provided this general outline of what to expect during a home purchase, from the buyer's perspective:

Buyers make a purchase offer - This is it! You've found the home of your dreams, looked over disclosure documents, reviewed comparable sales data, talked it over with your agent and submitted an offer. The sellers may accept your first offer, but more often will return a counteroffer. In fact, additional negotiations are common, and your agent will help you through this generally stressful stage. 

Buyers put up a deposit - To solidify your intent to buy, you'll place a deposit on the property. The amount varies, but is generally at least 1 percent of the purchase price. Note: This money counts toward your down payment later.

Buyers apply for a mortgage - This step is streamlined if you have already been preapproved for a loan (it is most common practice to be prequalified before even making an offer) so now you will complete the loan process. The lender inspects title history and orders a property appraisal. The lender needs key information about the property before granting a loan. This is when potential problems can come to light. For example, the appraisal could show a lower value than the purchase price, or the lender could have trouble finding comparable homes. Also, the title search could turn up liens or other problems. 

A home inspection takes place - You'll hire an inspector – our ReMax Real Estate Team can suggest a couple trustworhy and qualified home inspectors – to check the home and point out minor and major problems that should be fixed before closing. At this point, you still have the option of backing out of the deal. Through your agent, you'll submit a list of requested work, and the sellers have the option to complete the tasks, do some of them but not others, or reject the request. The sides will negotiate until reaching an agreement.

Removing conditions - If the house passes inspection, appraisal and title search, and everything is good to go, then all contingencies can be removed, paving the way to a closing. 

Closing time arrives - Once conditions are removed and financing is set, all parties sign a seemingly endless stack of documents, and the transaction closes.

Packing begins - When the final signatures are in place, it’s time to put down the pens, shake hands, exchange smiles and start packing for the move!

Remax Realtor Jay Magnussen and his team have a bounty of strong recommendations from all of their past clients and the following testimony from a recent Okotoks client is no differnt! Please read on and see why ist pays to choose The Jay Magnussen Real Estate Team if you are buying or selling a home in Okotoks or Calgary.  

"My husband and I have moved several times throughout our lives and used many different realtors.  The team of Jay Magnussen was definitely a new and very positive experience!  Jay and his team really went out of their way to “sell our house”.  Jay personally attended every showing  of our home.  He was able to point out all the special features about our home that people would have missed.  Communication between my husband and I and Jay’s team was exceptional.  The pictures taken of our home were also outstanding.  We could not be more pleased with this great team!  Highly, highly recommended!!!" - Jerry & Tara Epp

CLICK HERE to read more client testimonials for The Jay Magnussen Real Estate Team. Or contact us today to find out what we do for our clients that helps us to sell homes faster for the most money! 

A mega, Asian-style, shopping mall is in the works for a location just off of Highway 2, north of Calgary and south of Cross Iron Mills shopping center. The huge market style complex will house more than 500 stores as well as dining & entertainment.

CLICK HERE to watch a virtual tour of the Horizon Mall from Global Calgary. 

Sales for the project are underway with some major players looking at setting up shop. This will bring an extra boost to the local economy (not that Calgary really NEEDS it). 

“Calgary is the place to be for anything. It’s a leader in the nation for retail sales, growth, disposable income. It’s a very attractive place to invest both as a developer and for merchants to run businesses because the vacancy rate is so low,” said Eli Swirsky. Swirsky is the president of The Torgan Group which is developing the project with The MPI Property Group, said construction is expected to start in late 2014 with completion in late 2016.

You read more about the Horizon Mall in this article from The Calgary Herald. 

Like any other large retail, commercial project this will have a vast positive impact on the City of Calgary. Not only bringing in more options for shoppers but offering jobs, opportunities for entrepreneurs, more tax dollars for the city and it will make the Calgary real estate market more competitive. No doubt there will be many people looking for housing in the city creating a stronger demand for current inventory. 

If you are moving to Calgary please call us first for your best chances at finding the perfect home in Calgary. 

Okotoks ReMax Realtor Jay Magnussen volunteered for another year at the 2nd Annual Okotoks Wishmaker Walk held on Oct. 19 at Ethel Tucker Park. ``It is wonderful to see this event grow, and to see our community support such a great cause`` said Jay Magnussen. 

The Okotoks Wishmaker Walk benefits the Children`s Wish Foundation with all proceeds from our local event staying in our area and directly helping families in our community. 

``Our Okotoks real estate team enjoys supporting events like this - where we know families in our community will be directly impacted by everyone`s efforts.`` explained Jay Magnussen.

``Please don`t hesitate to contact us and ask for support for your Okotoks event. We often donate silent auction items or act as a sponsor for local events`` said Jay Magnussen. Jay Magnussen is a long time and highly experienced ReMasx realtor and the founder of The Jay Magnussen Real Estate Team which services Okotoks, Calgary and it`s surrounding areas with their award winning real estate service. 

``We appreciate and feel honored when people have recognized us and chosen to use our services because they know the value of the work we do in the community. And by people supporting us, and receiving top notch real estate service when buying or selling their home, we can give back more and invest in this thriving community.`` Explains Savannah Magnussen, who is the Business Manager, for The Jay Magnussen Real Estate Team.   

Keep up the good work Okotoks, and again - please give us the opportunity to support your local event or cause!

Contact Us today to inquire about donations or sponsorships. 

Our Okotoks Remax Real Estate Team is proud to be supporting the 2nd Annual Okotoks Wishmaker Walk! 

The Okotoks Wishmasker Walk is a suportive 1KM walk around the Sheep River area of Okotoks benefiting the Children's Wish Foundation. This year's event will take place on Saturday, October 19, 2013 at Ethel Tucker Park.

Be sure to say "HI" to Okotoks realtor Jay Magnussen who will volunteering at the event. "This is an opportuntiy to come together to make a difference, to raise awareness and funds so that local families continue to experience the magic of a wish for their children dealing with life-threatening illness" said Remax Realtor Jay Magnussen.

You can REGISTER ONLINE today for the Okotoks Wishmaker Walk. There is a minimum $15 pledge to participate in the walk, and participants are encouraged to collect more donations. You can also MAKE A DONATION online if you're unable to participate. 

Check-in begins at 10:00 am on Saturday, October 19, followed a 'Zumba' warm-up at 10:30 and the ceremonial balloon drop to officially start the walk. 

There will also be plenty of activities for kids and families including roving entertainers, local mascots & bouncy structures. The photo booth will no doubt be a hit again this year. As well as participants and volunteers take great joy in signing the 'Wish Wall'.

Our Okotoks real estate team has donated several prizes including a family movie night gift basket which will be part of the raffle draws. After the 1KM walk you can look forward to a bbq lunch will be served up by the generous folks at Okotoks Sobeyʼs. Family activities will continue in the park until 1pm.

Jay Magnussen will SEE YOU THERE on Saturday, October 19th for the 2nd annual Okotoks Wishmaker Walk.

Okotoks' newest community is Mountain View, a combination of starter, move up and estate homes. Situated on the northwest edge of town overlooking the Sheep River escarptment with stunning west facing mountain views which no doubt was the source of its name. 

For a list of Okotoks' other communities and more information on Mountainview click here. 

OFFICIAL MOUNTAIN VIEW WEBSITE

A mere 20 minute dirve from Calgary, Okotoks has become one of the fastest growing towns in Western Canada. With it's lingering small town charm, Okotoks now offers some of the conveniences and ammenities of a largeer city - Costco, Home Depot, a variety of shopping & dining options and more. 

Folks shopping for a new home in Mountain View of Okotoks can choose between homebuilders Excel Homes and Sterling Homes. Like any community soon there will be turnover and freshly built, but previously enjoyed homes will be on the market in no time. But at this time the only inventory on the Okotoks real estate market specifically for Mountain View is newly built homes. 

Wether you're interested in buying a brand new home, or in the future an existing home, The Jay Magnussen Real Estate Team should be your first call. Our Okotoks real estate specialist Jay Magnussen has extensive experience negotaiting with home builders to get our clients the best price on a new home. It costs you nothing to have an agent represent you in a real estate purcahse transaction then you have the added value of experience and knowledge on your side. 

Give us a call if you would like more information on buying a home in Mountain View or one of Okotoks' other communities. 

Our Calgary & Okotoks Real Estate Team is thrilled to have such an amazing and loyal client base - this is truly what allows us to thrive as one of the top REMAX realty professionals in Okotoks & Calgary. We appreciate your repeat business as well as your referrals. 

We enjoy taking opportunities to thank our outstanding clients and this is one...  We extend you the invitation to join Remax Realtor Jay Magnussen at a private screening of Disneys PLANES movie at the Canyon Meadows Cinemas! More info below...

CLICK HERE TO VIEW 'PLANES' MOVIE TRAILER

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