Mortgage Trends for 2023

December 28, 2022 | Posted by: Ron Chan

Mortgage Trends for 2023 Winnipeg Manitoba Canada

We recently covered mortgage rate predictions for the year ahead, and now it’s time to look towards mortgage trends for 2023. By taking note of key trends that already gained momentum  as 2022 came to a close, you will be ahead of the game when it comes to your upcoming home purchase. Without further delay, let’s review!

3 Mortgage Trends that Canadian Home Buyers Are Already Spearheading for 2023 (and why you should too)

Trend 1: Renewed Fixation on Fixed Mortgage Rates

The theme for all mortgage trends in 2023 is rooted in the fact that Canadians are exhausted by uncertainty. As a result, even the most staunch variable mortgage rate supporters are jumping ship into fixed rate territory. Fixed mortgage rates may traditionally be higher over the entire life of a mortgage, but right now there seems to be little benefit with variable rate mortgages. The constant increases (following the Bank of Canada prime rate) through 2022 have soured many.

That said, buyers and investors are looking more towards short term fixed mortgage rates (i.e. 3-year) over traditional 5-year programs. They want to enjoy the certainty of consistent payments today, BUT they also want to capitalize on the near certainty that borrowing rates will inevitably fall between 2024-26. 

Variable mortgage rates are far from dead, but they are trending significantly downward for 2023. Short term fixed rates are finding that sweet spot that new buyers appreciate.

Trend 2: Seeking Alternative Forms of Home Financing

Canadian real estate investors and buyers have grown tired of being at the mercy of Bank of Canada announcements. They are also weary (and wary) of the uncertain words of politicians along with decision0making made by narrow-sighted lenders at the Big 6 banks. 

In 2023, a greater number of buyers are taking power into their own hands by seeking the services of alternative private lenders to finance their mortgages. These lenders are less vulnerable to market forces and aren’t as strict when it comes to credit history. View more on the benefits of alternative private lenders. The only challenge, is finding a reputable one. This (and more) is addressed in the final mortgage trend for 2023, below.

Trend 3: Increased Demand for Mortgage Brokers

Uncertain times in the real estate market increase the demand for assistance. There is only one professional that truly has your best interests at heart - a mortgage broker. 

Demand for mortgage brokers is shooting through the roof as we enter 2023. Buyers/investors seek services in getting more favorable mortgage renewals and refinancing, lower than marketed variable/fixed rates, and as alluded to in mortgage trend #2 above - gain access to alternative private lenders. If you really want to take the power away from the traditional powers-that-be, partner with a mortgage broker near you. 

If located in the Greater Winnipeg area, call mortgage specialist Ron Chan today at 204.290.9950.

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