A couple of weeks ago, we saw headline inflation creep up to 2.0%. While this is the Bank of Canada's actual target rate, it seemed to cause more fear than ease among the public. A closer look at the 2.0% print reveals that the biggest gains were property taxes and shelter costs, with rents continuing to rise in many areas across the country.

Perspective is important. A year ago, we would have celebrated if we had known the October 2024 CPI report would show headline inflation at 2.0%. Although occasional upward fluctuations in inflation are expected in the coming months, we feel strongly that the overall trend will remain downward for at least the next 6 to 9 months.

Canada's third-quarter GDP results were released today, and they were underwhelming. The economy grew by only 1.0% during the quarter, falling short of the Bank of Canada's projection of 1.50%. This has sparked predictions of a "jumbo rate cut" at the Bank of Canada's final interest rate meeting of the year on December 11th. At this meeting, we believe Governor Tiff Macklem will announce a reduction in interest rates of at least 0.25%, with a coinflip chance of a larger cut of up to 0.50%. A "jumbo" cut of 0.50% would lower the Bank of Canada prime rate to 5.45%, enabling many variable-rate mortgage holders to ring in the New Year with an interest rate that starts with a "4."

Canada's employment report, due next Friday, could be the final piece of the puzzle. If we see unemployment tick above 6.5%, it will likely be the final piece of information Tiff Macklem will need to pull the trigger on a consecutive 'jumbo cut' - to finish the year.

As always, we will keep you informed with up-to-the-minute rate info and updates. Look out for our December newsletter, which we will send immediately following the Bank of Canada's interest rate announcement. Stay tuned!

Last October marked the peak high for fixed rates in Canada, with major banks having nothing better to offer than rates around 6.25%. What a difference a year makes! Just yesterday, our office secured approval for a customer from a major bank for 3.94% on a CMHC-insured mortgage.

It’s worth noting that this rate approval may have been a one-off. We've only seen this at ONE of the major banks, and it was for a home purchase with less than a 20% down payment (CMHC insured). In addition, it was approved on an exception basis since we had to fight hard with the bank's management and leverage the client's assets into the final equation. Other banks are significantly higher for the same term, and this rate could disappear at any time - as it’s not even a published rate. The good news? The 4% barrier for 5-year fixed rates has been breached!

If you’ve been working with us or following our newsletters, you know we've consistently forecasted that 5-year fixed rates will bottom out in the 3.49% to 3.99% range in 2025 (the lower part of that range for renewals/conversions/insured mortgages, and the higher part of the range for conventional mortgages). What does this mean? Now is the time to start seriously considering locking in a 5-year rate next year, or even sooner. Economists remain divided on how long these lower rates will last, making 2025 a pivotal year for many mortgage holders.

That's right, our final webinar of the year, "Mortgage Year in Review and Preparing for What's to Come in 2025" is scheduled for the same day as the final Bank of Canada interest rate meeting of the year:  Wednesday, December 11th - and we'll begin the webinar at 6:30pm EST.  We will undoubtably have lots to discuss, and we are looking forward to preparing everyone for what is expected to be a very active 2025 in the real estate market and the mortgage world.

Our team has been busy on the road this past month. Here's a glimpse of what we’ve been up to.

MPC National Mortgage Conference

Held in Montreal, this conference brought together Better Mortgage Select management, led by Lorenzo Podda and Marko Vidovic, along with Vice President, Daniel Patton. There is so much quality information shared at this conference each year. Our team had a fantastic time networking with lender partners and strengthening relationships that will lead to more approvals and better interest rates for our clients. 

Fall Impact Conference, hosted by Our Neighbourhood Realty

Our very own, Michael Zanzini, was an expert guest panelist at this event hosted by Our Neighborhood Realty. He shared valuable insights on the looming mortgage renewal cliff in 2025 and 2026 and provided excellent advice for future mortgage seekers.

Another great time with our friends and partners at Smart Home Choice

Vice President, Daniel Patton, and Mortgage Agent, Michael Zanzini, met with referral partners at Smart Home Choice, led by founder, Gary Hibbert. Gary and his team are cooking up some things for the new year, and together, they strategized for an exciting 2025 in the real estate world.

Just a friendly reminder to come visit us on our socials, where we put out a ton of videos with tips and information to help you navigate the wild world of mortgages! Check out the links below and give us a follow!

As always, if you have any questions or want to do some mortgage planning, feel free to reach out to us at: