Kamran Etessam
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How U.S.-Canada Trade Tensions Could Impact Your Mortgage and Homeownership Goals
February 27, 2025
With ongoing market uncertainty, staying informed is more important than ever—especially when it comes to your mortgage and real estate decisions. Recent trade tensions between Canada and the U.S. have created ripple effects across the economy, potentially influencing mortgage rates, home prices, and overall affordability.
What’s Happening & Why It Matters
The U.S. recently announced new tariffs on certain Canadian goods, prompting Canada to respond with its own trade measures. While a temporary 30-day suspension is in place, uncertainty remains about what’s next. If additional tariffs come into effect, we could see:
✔ Higher Costs for Homes & Renovations – Many building materials are imported from the U.S., so increased costs could slow new home construction and drive up renovation expenses.
✔ Shifts in Mortgage Affordability – The Bank of Canada has cut interest rates six times recently. However, concerns over inflation from tariffs could pressure the Bank to pause or even reverse rate cuts. On the flip side, if trade disruptions slow the economy, further rate cuts may still be possible.
✔ Changes in Buyer & Homeowner Decisions – Some buyers may rush to secure lower mortgage rates, while others might hold off for more economic clarity. Regional housing markets could see different impacts based on affordability and demand.
What This Means for You
➡ If you have a variable-rate mortgage: Your payments have likely decreased with recent rate cuts, but future changes could be uncertain. Inflation could slow or stop further cuts, while a trade war could trigger additional reductions.
➡ If you have a fixed-rate mortgage: Now might be the perfect time to explore refinancing before market conditions shift. Locking in a lower rate could save you thousands over the long term.
➡ If you’re planning to buy: Rising construction costs could lead to a tighter housing supply and push home prices higher. Acting sooner rather than later could help you secure a better mortgage rate and deal.
Let’s Talk About Your Options
Market uncertainty can feel overwhelming, but with the right strategy, you can stay ahead. Whether you're looking to buy, renew, or refinance, now is a great time to review your mortgage options.
I’m here to help you navigate these changes with expert advice tailored to your unique situation.
💡 Need expert mortgage advice? Let’s talk! I can help you navigate the process and improve your chances of approval.
Warm regards,
Kamran Etessam
Your Trusted Mortgage Broker
🏡 5 Reasons Your Mortgage Application Could Be Denied & How to Fix Them!
February 24, 2025
If you're shopping for a mortgage, it's crucial to know what it takes to qualify. But just as important is understanding what might be holding you back from approval. Here are five key factors that could impact your chances of getting a mortgage loan:
🔹 Low Credit Score – Lenders want to see a strong credit history. Check your credit score and work on improving it.
🔹 High Debt-to-Income Ratio – Too much debt compared to your income can reduce your approval chances. Pay down existing debts if possible.
🔹 Insufficient Down Payment – A higher down payment can increase your approval odds and lower your interest rate.
🔹 Unstable Employment History – Lenders prefer steady employment with consistent income. If possible, avoid changing jobs before applying.
🔹 Inaccurate or Missing Documentation – Ensure all paperwork is complete and accurate to avoid delays or denials.
💡 Need expert mortgage advice? Let’s talk! I can help you navigate the process and improve your chances of approval.
Warm regards,
Kamran Etessam
Your Trusted Mortgage Professional
Managing Debt as a Homeowner: Smart Strategies for 2025
February 12, 2025
Household debt levels in Canada have reached record highs, making it more important than ever for homeowners to manage their finances wisely. If you’re carrying high-interest debt, refinancing your mortgage could be a smart way to reduce your monthly payments and improve your cash flow.
Refinancing to Reduce Debt
Refinancing your mortgage allows you to consolidate high-interest debts—such as credit cards and personal loans—into a lower-rate mortgage. This strategy can:
✔ Lower your overall interest costs
✔ Free up more cash each month
✔ Simplify your finances with a single payment
If you’re considering refinancing, reach out to me to explore your options and see if this strategy is right for you.
Protecting Your Credit Score
Your credit score plays a crucial role in determining how much money you can borrow and the interest rates you qualify for. To keep your score in good shape:
✔ Use no more than 35% of your available credit
✔ Avoid maxing out your credit cards
✔ Make payments on time and in full whenever possible
For example, if your total credit limit is $15,000, try not to use more than $5,250 at a time. Even if you pay your balance in full, high usage can make lenders see you as a risk. Keeping your credit utilization low can help you qualify for better mortgage rates and financial opportunities.
Take Control of Your Debt
Managing debt wisely can improve your financial future. Whether you’re looking to refinance, consolidate debt, or improve your credit score, I’m here to help. Let’s discuss your options and create a strategy that works for you!
Warm regards,
Kamran Etessam
Your Trusted Mortgage Professional
Is Pre-Construction Still Worth It?
January 06, 2025
Buying pre-construction homes used to be a sure path to capital appreciation, but that’s no longer guaranteed. Here's a real-life example that highlights the risks:
- Purchase Price: $729,900 (Oct 2021)
- Appraised Value at Closing: $630,000 (Dec 2024)
- Additional Costs: $45,000 (e.g., upgrades, levies, property taxes)
While the buyers avoided bidding wars, they faced unexpected costs, a $100K loss in value, and higher mortgage rates due to market changes.
Key Takeaways for Pre-Construction Buyers:
- Budget for extra costs like levies and upgrades.
- Work with a real estate lawyer to understand all fees.
- Be prepared for market fluctuations that may lower appraised values.
- Secure flexible financing early, and explore the builder's lender for better options.
Pre-construction can offer benefits, but as the market shifts, careful planning and budgeting are critical.
Have questions or need advice on pre-construction purchases? Let’s connect!
Warm regards,
Kamran Etessam
Your Trusted Mortgage Professional
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