Online brokerage reports strong recent numbers
Online brokerage nesto reported that November saw a slight decrease in overall mortgage purchase hesitancy among buyers compared to prior months.
“Mortgage interest rates are at the highest point since pre-pandemic, so it makes sense that ‘just looking’ continued to have a majority stake at 58% of nesto applicants, compared to 42% who were ‘ready to buy’,” the brokerage said in its latest report. “However, in line with the new purchases apps received, we noticed a small hike in the previously downward trend in clients who are ‘ready to buy’, coming up 5% since last month from 37% to 42%.”
During November, nesto reported no changes in the variable rates it offered across all Canadian markets, while the gap in rate variance narrowed as fixed-rate products and variable-rate offerings continued to catch up to each other.
“For the first time since 2006, the best variable rate is 0.46% higher than the best fixed rate,” nesto said. “In November 2022, the number of changes in the variable rate offered to nesto clients was 0. This also resulted in a decrease in overall rate changes, from seven in October to just three this month.”
How expensive was the average online mortgage purchase in November?
nesto said that Ontario’s median down payment increased by $22,500 in November, while Quebec’s declined by $15,000.
“As expected in a cooling market, November greeted us with a small, but much appreciated decrease in median purchase price in Quebec, Ontario, and Alberta,” nesto said. “Meanwhile, median down payments are in contrast between Ontario and Quebec.”
On a national level, nesto reported overall decreases in purchase price ($450,000 to $430,000) and median down payment ($53,000 to $45,000) in November.
