Founder, Principal - DV Capital Private Lending Realtor, Forest Hill Real Estate Inc. Perspective on the real estate and mortgage market
Toronto
Joined February 2022
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Many impending 5-year term maturities without any ability to refinance/swap lenders without writing *large* cheques.
You were warned
"the median price of a detached home in Brampton hit $930,000 in September, a 37.4 per cent drop from March, 2022, when median prices were $1.486 million."
In Brampton, the house value decline bites hard /via @globeandmail theglobeandmail.com/real-est…
Since I last posted about mortgages and real estate, one thing remains clear:
Financial endurance, or lack thereof, continues to determine whether households can hold through market conditions or must sell.
Losses have been & will be realized, deferred or, hopefully, avoided.
Do you believe current interest rate levels are the reason for this real estate market?
When a qualified homebuyer can obtain a rate in the high 3% range and make an offer on a home that, in many cases, is less expensive than before?
Rates?
Home prices?
Both?
Something else?
Seeing & hearing an unprecedented rise in frequency & complexity of financial schemes.
Mind manners, but normalize asking friends & family, especially seniors, if they’ve received strange calls, emails or 'investment' offers.
Stay vigilant out there.
🔎A developer is now offering a 2026 Cadillac SUV or $85K cash value towards the purchase price of 1-3 bedroom condo apartment unit purchases in Markham.
You’d have to run the numbers and take into account a futures purchase, but interesting nevertheless.
25bps rate cut
Illustration of monthly interest from market peak to present (pre-adjusted +/- for HELOC/variable):
March ’22: $500K @ 2.70% = $1,125/m
July ’23: $500K @ 7.20% = $3,000/m (+167%)
Sep ’25: $500K @ 4.45% = $1,854/m
Still up 65% from the low.
@bankofcanada
🔎What's new in the private lending space? Pricing competition: private money starting as low as Prime + 1.10% (plus fees). Why? Prioritizing lower yields over higher risk. Issue? When do lower returns become unacceptable to investors & are there enough low-risk deals out there?
25bps rate cut
Illustration of monthly interest from market peak to present (pre-adjusted +/- for HELOC/variable):
March ’22: $500K @ 2.70% = $1,125/m
July ’23: $500K @ 7.20% = $3,000/m (+167%)
Sep ’25: $500K @ 4.70% = $1,958/m
Still up 74% from the low.
@bankofcanada