Stewart J Lowe & Associates

Direct: 403-850-0669 |

We have seen many challenges in the housing market over the past few years. Housing prices
have been up and down; housing sales were down but have rallied in many areas of the country
in the last half of 2019. The government also introduced the First Time Home Buyer Incentive
(FTHBI) to help buyers with their down payments and lower their mortgage payments. Yet,
affordability continues to be a hot topic across Canada.

Mortgage rates inched up slightly for variable rates and lines of credit however the Bank of
Canada left the Prime lending rate at 1.75%.  Growth in Canada did slow in the third quarter of
2019, yet consumer spending expanded moderately, supported by stronger wage growth.
Housing investment remained strong throughout the year.

We’ve also seen a slight increase to fixed-rates due to the upward pressure on bond yields and
increases to the cost of funds. Still, rates are relatively low – perhaps this is the new normal.  
According to a recent report, an increase in consumer confidence could be a key factor affecting
the housing market in 2020. 

The report found that Canadians have adjusted to the mortgage stress test, which was introduced
three years ago, and only two-in-ten Canadians say that the mortgage stress test negatively
affected their ability to purchase a home in 2019. 

The report also found and that older millennials are now moving into their peak earning years
and will drive the market in 2020 with more than half (51%) of Canadians are considering
buying a property in the next five years, especially those under the age of 45. This is up from 36% at the same time last year.

Cathy McMurrich, AMP
TMG - The Mortgage Group
Mortgage Broker, Commissioner for Oaths
Cell: 403.660.1169 Office: 403.568.8817
toll free: 1.855.887.4936 fax: 1.855.887.4937

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