FSCO 13047
Valko Financial Ltd.

Honesty Integrity
Commitment Professionalism

Home Sales Continue to Break Records in May 2021

The Kitchener-Waterloo housing market continued to break records in May 2021. The month saw a total of 854 residential properties sold through MLS, up 100.9% from May 2020. “While last May home sales were restrained due to the pandemic, May 2021 was another extraordinary month of home buying and selling activity,” says Nicole Pohl, President of KWAR. “Prior to 2020, the previous 10-year average number of residential sales for May was 656.” Residential properties sold in May 2021 included 485 detached homes (up 85.8% from May 2020), 106 apartment-style condominium units (up 152.4%), 74 semi-detached (up 72.1%) and 188 townhomes (up 138%). The average price of a home in Kitchener-Waterloo was $740,103 in May 2021, up 30.4% from May 2020. The average price of a detached home was $868,990, up 32.6% from May 2020. Additionally, condominium units sold for an average of $457,935 (up 38.6%), semi-detached for $659,975 (up 36.8%) …
Continue reading

Stress Test Rule Changes Confirmed

Breaking Mortgage News The current rule for mortgage approvals is that you must qualify as if the interest rate is 4.79% or your contract rate plus 2%, whichever is higher. This is known as the stress test rate. Its purpose is to determine if someone can still afford their home even if rates were to rise. Effective June 1st, 2021, the stress test rate is being raised to 5.25% on both insured and uninsured mortgages. It is estimated that this increase will decrease homebuyers’ purchasing power by around four to five percent. Unfortunately, as of June 1st, most pre-approvals under the previous stress test will no longer be accepted and you must qualify at the new rate. If you currently have a pre-approval with Valko Financial, please call our office at (519) 745-8019 to review the amount that you are qualified for. We are still committed to arranging mortgage financing for the purchase of your …
Continue reading

Thinking of refinancing your mortgage? Read this first

Tracy Valko was recently interviewed by The Globe and Mail on the ins and outs of mortgage refinancing. Check out a snippet from the article below! Tracy Valko, principal mortgage broker, and owner of Valko Financial Ltd., based in Kitchener, Ont., says many people who refinance today opt for variable-rate mortgages, with interest currently as low as 1.45 percent. They can usually lock in at a fixed rate with the same lender down the road, without fees or penalties. “It’s hard to know where interest rates are going to go,” she explains. A variable-rate gives you time to see what’s going to happen with the economy and “let the dust settle.” Valko suggests that clients use their interest savings and any extra funds they may have saved from reduced lifestyle costs because of the pandemic to aggressively pay down their mortgages through lump-sum or “privilege” payments. At the same time, …
Continue reading

Number of Home Sales in April Second Highest on Record

The Kitchener-Waterloo housing market continued to break records in April 2021. The month saw a total of 843 residential properties sold through MLS, up 263.4% from April 2020. “Even if we do not take into account April 2020, when Ontario was in the early days of its state of emergency, it was still an exceptional number of homes sold last month,” says Nicole Pohl, President of KWAR. “The previous 10-year average number of residential sales for April was 618.” Residential properties sold in April 2021 included 484 detached homes (up 233.8% from April 2020), 111 apartment-style condominium units (up 382.6%), 67 semi-detached (up 294.1%) and 181 townhomes (up 285.1%). The average price of a home in Kitchener-Waterloo was $757,906 in April 2021, up 34.3% from April 2020. The average price of a detached home was $899,315, up 36.9% from April 2020. Additionally, condominium units sold for an average of $441,887 …
Continue reading

OSFI Proposes Rule Changes to The Stress Test

The Office of the Superintendent of Financial Institutions (OSFI) recently proposed a mortgage rule change to help slow down the overheated housing market. The current rule for mortgage approvals is that you must qualify as if the interest rate is 4.79% OR the contract rate plus 2%, whichever is higher. This is referred to as the Stress Test. The OSFI is proposing that on uninsured mortgages (mortgages with 20% down or more), the stress test rate is increased to 5.25% OR the contract rate plus 2%, whichever is higher. Below is an example of how much income it would take to qualify for a $300,000 mortgage at no stress test, the current stress test, and the proposed changes. The OSFI is inviting industry stakeholders to submit feedback on the rule changes by May 7th, 2021. OSFI will reveal its final plan for the rule changes on May 24th, 2021, with an enactment date of June 1st, 2021. As a heart-centred team that advocates for fair …
Continue reading

Record Smashing Number of Home Sales in March 2021

The Kitchener-Waterloo housing market broke records in March 2021. The month saw a total of 993 residential properties sold through MLS, up 72.7% from March 2020. “This is the first time we’ve sold more than 900 homes in a single month,” says Nicole Pohl, President of KWAR. “The second-highest number of sales occurred in May 2017 when there were 816 sales through our MLS® System.” Residential properties sold in March 2021 included 593 detached homes (up 69.4% from March 2020), 124 apartment-style condominium units (up 82.4%), 79 semi-detached (up 216%) and 197 townhomes (up 49.2%). The average price of a home in Kitchener-Waterloo was $765,393 in March 2021, up 30.8% from March 2020. The average price of a detached home was $899,460, up 32.3% from March 2020. Additionally, condominium units sold for an average of $423,470 (up 12%), semi-detached for $652,669 (up 32.5%) and townhomes for $622,258 (up 35.9%). There …
Continue reading

5 Tips for Selling Your Home This Spring

The Spring housing market is here! The start of the new season brings sunshine, flowers, and an overly competitive market for home buyers and sellers. If you’re looking to put your home up for sale, you’ll want to have all of your bases covered to capture the attention of buyers and secure the best possible offer. Here are 5 simple tips to sell your home this spring! Do a thorough cleaning of your home A clean house will always give off a better impression to people touring your home. Dust off all surfaces, lamps, and furniture to give your home that extra sparkle. Next, remove any clutter throughout your home. This could include cleaning off the kitchen counters or tidying up the kids’ toys. If you don’t have the space to put something away, it never hurts to donate it to a non-profit organization. Check for winter damage The snow …
Continue reading

Housing Continued to Surge in February

Click here for the full article by Dr Sherry Cooper, Chief Economist at Dominion Lending Centres. Today the Canadian Real Estate Association (CREA) released statistics showing national home sales hit another all-time high in February 2021. Canadian home sales increased a whopping 6.6% month-on-month (m-o-m), building on the largest winter housing boom in history. On a year-over-year (y-o-y) basis, existing home sales surged an amazing 39.2%. As the chart below shows, February’s activity blew out all previous records for the month.  The seasonally adjusted activity was running at an annualized pace of 783,636 units in February. CREA’s revised forecast for 2021 is in the neighbourhood of 700,000 home sales. Strong demand notwithstanding, sales may be hard-pressed to maintain current activity levels in the traditionally busier spring months absent a surge of much-needed new supply. However, that could materialize as current COVID restrictions are increasingly eased and the weather starts to improve. The month-over-month …
Continue reading

Bank of Canada maintains overnight rate at 0.25%

The Bank of Canada announced today that the overnight rate of 0.25% will hold. The Bank rate and deposit rate will hold at 0.50% and 0.25% respectively. The overnight rate is the interest rate at which major financial institutions borrow and lend money amongst themselves. The lower the overnight rate is, the less expensive it is for Canadian consumers to borrow money. Canada’s economy continues to recover from the coronavirus pandemic, exemplified by a GDP growth of 9.6% in the final quarter of 2020. GDP growth in the first quarter of 2021 is also expected to be positive, contradicting early forecasts in January. Consumers and businesses adapting to current restrictions and the continued surge of the housing market are key contributors to the recovery of the economy. While the economy has improved, there still remains economic slack given the uncertainty of the virus and the journey to economic growth. The …
Continue reading

March Home Checklist

The start of a new month always comes with a list of to-dos. As Spring is right around the corner, there are a few things you might want to check up on around the house. To prepare your property for the new season, check out our March Home checklist! Check your walkways, driveway, and roof for winter damage Once winter has passed and the snow has melted, check key areas around the exterior of your house for winter damage. It is important to do routine maintenance checkups like this to avoid long-term damage and more expensive repairs down the road. Get ready for tax time The tax-filing deadline in Canada isn’t until April 30, but getting everything organized this month will make things a lot less stressful. Go through your paperwork, update your files, and gather all of your important documents in one place. Spring clean your mirrors and surfaces …
Continue reading

Why use a mortgage broker?

While the banks can only offer you their own mortgage products, we have access to hundreds of options from Canada’s largest banks, credit unions, trust companies, and financial institutions.

Plus countless other reasons, let us explain more.

Why a Broker?

We are highly recognized and awarded.

We take great pride in our commitment to our clients and we have been recognized for it! See why we are the leaders in the mortgage industry.

Learn More

Request a call

Please provide the best time to call so we can ensure that we schedule your call at a time when we can reach you.