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  • Writer's pictureRichard Greaves

The 5 I's affecting real estate in 2022

Richard Greaves: Hi It’s Richard Greaves Alpine Realty and today I'm here with Greg Foss who is a mortgage broker and partner with a mortgage connection.

Richard Greaves: So tell us about Mortgage Connection before we get started, and I know you are the face of Canmore - so how big is the company and what have they got planned for 2022?

Greg Foss: Yeah, very busy year so I've been in Canmore for 6 years now and with Mortgage Connection now for 3. Mortgage Connection we're one of the largest brokerages in Canada, so what that means to you and to the clients is that we're able to get certain products that other banks or the other mortgage brokers can't get which usually means better interest rates.

Richard Greaves: Okay Great - So today you are here to help me talk about the five I’s that we've come up with that are going to influence the real estate market in 2022 - they are interest rates, inventory, internet, inflation and the last one immigration we will have a little bit of a Twist on so if you stay tuned we’ll get to that at the last point of our discussion today.


Richard Greaves: Okay so first point - interest rates, Greg tell us what is going on with interest rates in the market right now, and how it affects you?

Greg Foss: Yeah absolutely there's a lot going on and 2022 is going to be a very interesting year for interest rates so what we've been seeing in the news that is coming out is that the Bank of Canada is going to want to start raising interest rates. The big part of that which will touch on later is because of inflation - and so their plan is to see that they would like to see interest rates start to rise in the summer of this year and so there's two things that we need to keep in mind when we talk about interest rates. We have variable interest rates and fixed interest rates.

Variable interest rates are determined by the bank of Canada - so when they make a decision that will affect a variable rate mortgage the fixed rates are determined by the market, let's say the stock market and so when the economy is doing well or not well and there are certain determining factors that will go up and down.

So what we're seeing now is the recovery is economic recovery is full steam ahead and what that means is bad news for interest rates so that would be an increase in fixed rate because the market our economy is doing well we start to see fixed rates rise and in the Bank of Canada's looks at everything and they said well you know things are moving along very well let start