Hey there, homeowners and future homebuyers! 👋 We've got the lowdown on what to expect in Canada's housing market this year, and it's not all sunshine and rainbows. According to insights from Manulife Investment Management, the surge of mortgage renewals is about to hit, and it might just ruffle a few feathers.

In its 2024 outlook shared with CMP magazine, Manulife's global macro strategist, Dominique Lapointe, spills the beans on how this renewal frenzy could throw a curveball at our economic growth and tighten our purse strings. 🤔💸

So, what's the scoop? Well, it turns out that a whopping 43% of outstanding mortgages had already renewed when the Bank of Canada started cranking up interest rates in 2022. And brace yourselves – that number is expected to jump to 60% by the end of this year! 📈🏦

According to Lapointe, this accelerated refinancing schedule in the Great White North is quite the opposite of our neighbors down south. Unlike the U.S., where most mortgages are fixed for 30 years, our five-year terms are causing a bit of a stir. 🍁🏠

Hold onto your toques, because the Canada Mortgage and Housing Corporation (CMHC) estimates that a whopping 2.2 million mortgages will be hit with an interest rate shock in 2024 and 2025. That's nearly half of all outstanding mortgages in the country! 😱💔

But wait, there's more! Lapointe predicts that this might lead to a dip in overall consumption in 2024, especially with the prospect of higher monthly payments. Yikes! 📉💼

Now, before you start envisioning a housing market crash, take a breather. Manulife's 2024 outlook suggests that while a slowdown in housing activity is on the horizon, a full-blown meltdown is unlikely. Phew! 😅🏠

But here's the real talk – higher mortgage rates might put a dent in housing demand, leading to a rare moment in the first half of 2024 when home prices might take a dip. Brace yourselves, homeowners! 📉🏡

So, what's the silver lining? Well, according to Lapointe, most homeowners seem to think they can handle the impact of those larger mortgage payments. 🛡️💪 So, widespread defaults? Not likely.

But here's the kicker – a "modest contraction" in real GDP might be on the horizon, with lower consumer spending and a chill housing market being the culprits. 😬📉

But fear not! There's a glimmer of hope in the second half of the year if the Bank of Canada decides to trim its benchmark interest rate, as expected. 🌈🏦

Despite a recent uptick in inflation, Manulife believes the BoC will stick to its guns and continue with rate cuts to support the economy. It's like a financial rollercoaster, folks! 🎢💸

So, buckle up, Canada! The mortgage renewal wave is here, but with a bit of resilience and strategic planning, we might just ride it out. Here's to hoping for lower rates and a thriving housing market in the near future! 🚀🏠 #CanadianRealEstate #MortgageRenewalWave #HomeownershipJourney #EconomicOutlook2024 #VancouverMortgageBroker #NorthVancouverMortgageBroker #WestVancouverMortgageBroker #BurnabyMortgageBroker #CoquitlamMortgageBroker #PortMoodyMortgageBroker #NewWestminsterMortgageBroker #SurreyMortgageBroker #LangleyMortgageBroker #AbbotsfordMortgageBroker #MissionMortgageBroker #MapleRidgeMortgageBroker #PittMeadowsMortgageBroker #ChilliwackMortgageBroker #KelownaMortgageBroker #VernonMortgageBroker #VictoriaMortgageBroker #VancouverIslandMortgageBroker #BestMortgageRates #BestMortgageBroker 🏡✨