With Toronto house prices topping more than $1 million, one mortgage broker in that city’s market sees the need for a rise in interest rates.
“I think the low interest rates are pushing up the home prices to a point where it is a little scary,” says Anthony Spadafora, principle broker at Mountainview Mortgage – The Mortgage Centre. “I think you have two extremes – super-high prices and super-low rates. One definitely influences the other. I don’t think you will see a crash, but you will see a plateau. But a little bit of rates moving up would be good to soften this crazy market we’re in.”
Last month, the average sale price of a resale detached house in Toronto reached $1.15 million, up 18.2 per cent just from May 2014.
Spadafora and Carolyn Callero started Mountainview Mortgage back in October of 2014, with Spadafora assuming the mantle of principle broker and Callero as owner.
“We’re a small company, but we’re doing really well,” he says. “Volumes are up, and it has been a great 2015. It was a great move for us, Carolyn and myself.”
But the past few years of low rates and rapidly climbing home prices in the GTA have created what Spadafora calls a crazy situation.
“I think it has been a five-year run, since 2008,” says Padafora. “When BMO put out that 2.99 out, and they released it another year; then another year – you know?” he laughs, “Now they are advertising 2.74, and we’re advertising 2.64. It’s crazy.”
Spadafora has 12 years as a broker under his belt, having previously worked in the hospitality industry in which he credits his current success in the mortgage space, being among the top 75 brokers in Canada, Spadafora has received sales awards for the last three years.
And while it may be “crazy” at the moment, he wouldn’t trade being a mortgage broker for anything.
“I really love being a mortgage broker,” he says, “and enjoy meeting new people.”