Latest In Mortgage News: Toronto And Vancouver Home Sales Surge In September

Toronto and Vancouver home sales surged in September, with the GTA reaching a new record of 11,083 and the MLS Home Price Index Composite Benchmark for all home types rising 14% year-over-year. Condos experienced a slower overall pace of growth, while Vancouver had its best year on record in terms of the number of homes sold. Demand-supply conditions have tightened considerably for single-detached homes, but house price declines are still expected, with a peak-to-trough decline of 7%. The housing market is expected to decline by 9-18% peak-to-trough in 2021, according to a report by Moody's Analytics. Condo segments in key urban centres could be adversely affected by a drop in immigration.

Regional dynamics will remain in play, with Montreal and Ottawa still showing steady appreciation, while Calgary and Edmonton have been pulling down on the 13-metro area composite index. The head of the Canadian Mortgage and Housing Corporation (CMHC) stands by the agency's forecast for home prices to decline by 9-18% peak-to-trough. An interest-only mortgage product is available for those looking for a unique solution to their financing requirements. Neighbourhood Holdings recently launched a 3-year interest-only mortgage with rates starting at 5.95%. This product is aimed at increasing borrower stability and can be paid out at any time with a prepayment penalty of just three months' interest. It is available to all brokers, has a maximum LTV of 65-70%, and can be paid out at any time with a prepayment penalty of just three months' interest.