Edmonton finally has snow on the ground. It’s much later in the season than normal but the storms and flooding that swamped BC just left a big dump of snow for us and it’s here to stay for a while so that means Christmas is on the way.
Have you planned your Christmas yet? We are not planning to go anywhere this year due to Covid so we will stay home and focus on traditional things and keep it simple. A live tree would be nice given the amount of plastic ones being sold in the various stores around town as the pine scent they give off will help make special memories of this time for Fionna.
November has been an interesting month so far here in Edmonton. With the snow holding off longer than usual we did see extra activity early in the month then it eased off as the temperature dropped but spiked up again, probably due to the changing interest rates coming in the next couple months. In the Single-Family market this has caused many homes to receive offer in one or two days if they are priced right. Booking showings for buyer clients, several times the showing is confirmed but just before we can view the property it goes pending. Buyers generally like to buy before there is snow on the ground as you can see the outside condition but I feel coming changes to interest rates are still fueling the market.
Single-Family sale prices are following the traditional curve as we head into the winter market but looking at condo sales the numbers are lower now than they have been for the previous 2 years.
Variable Rate Vs Fixed Rate, which one is better?
Often my clients would ask me which mortgage rate is better. In my personal experience, variable rate always seems lower than fixed rate, but I prefer a fixed rate as I have better way to keep track the monthly mortgage payment. Since this is such a good question, I invited my mortgage broker Jim Sicotte to share his professional wisdom with us as he always provides value.
About Jim Sicotte – Jim has been in the mortgage industry for over 8 years, and has helped lots of my clients to obtain their mortgage. Jim is a person I can reach during weekends or holidays and always provides timely response. He always provide the best solutions to my clients, very knowledgeable and always love to help out. If you have any questions, please reach out to Jim directly –
The Rate Conundrum – by Jim Sicotte
Fixed rate vs Variable rate, that is the question…at least in the mortgage world right now.
Here is how I explain it to clients. If you are a person who will have trouble sleeping at night every time the Bank of Canada meets to discuss adjusting the Prime Lending rate, maybe a fixed rate mortgage is for you.
On the other hand, for those who may be looking to pay off their mortgage at some point soon, a variable rate mortgage would ensure any prepayment penalty you may incur is limited to three months of interest.
If you are somewhere in between then a nice rule of thumb is, if the variable rate is at least 1% below the fixed rate, consider variable. If the variable rate is within .5% of the fixed rate, consider fixed. If in between 1% and .5% then consider if rates are trending down or up, and are you okay to risk paying a larger pre-payment penalty in order to lock in a rate.
Jim Sicotte
Tel: 780-719-6888
Email: jim@polarismortgageplanners.ca
https://www.polarismortgageplanners.ca
Have you done your Christmas shopping yet? This is the season many people will spend lots of time and money to buy gifts for their friends and family. Buying gifts can show how much we care for the people in our lives, however its important to have a budget on how much to spend, and where to buy it, and when to buy it. Due to Covid, you might need to start shopping in November to avoid the last-minute shopping headaches. Shopping early allows more time to compare the price and stay on budget. This winter quarter will provide some great deals for those looking to buy a home as sellers get more motivated as always happens now there is snow on the ground. So if you are looking to buy and have been pre-approved I am sure your mortgage broker said “no large purchases” as this will effect your ability to qualify for the mortgage you want, so be careful how much you rack up on credit cards this holiday season and make sure you stay on budget.
It is back to the snowy weather! We had so much snow this week! Fionna is helping to clean the snow! Our little helper !
This article contains the opinions of Andrew Barrett and Selena Cheung. Licensed Realtors® with COLDWELL BANKER Venture Realty.
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