17 Jan

Positive news for national home sales.


Posted by: Anne Martin

home financing


The Canadian Real Estate Association released December 2016 statistics which showed a rise in home sales of 2.2% month over month.  This increase eliminated half of the decline in November which was the largest decline in more than four years.  This was probably in response to the tightening of mortgage rules.  The real estate and mortgage industries usually go hand in hand because mortgages are an integral part of home purchases.

Activity was up in 60% of all markets led by Calgary and Edmonton which is great considering the slowdown they experienced due to oil reductions and wildfires.

For 2016 the number of homes sold set a new record.  New home sales were up 6.3%, mostly in the first half of the year before the new mortgage legislation.  Unfortunately, its not expected that 2017 will show as much of a boost to the economy because the new rules have made it more difficult for first time home buyers to buy their first home.  Taking some of them out of the market.

The number of new listings fell by 3% in December as compared to November.  Most sizably in B.C. lower mainland, Calgary and the GTA. Along with several other Ontario locales, supply and demand in Barrie was tightly balanced. Being situated in Barrie and watching the markets closely I saw that even at Christmas time, many homes sold with multiple offers.  Unusual for this time of year.  

Prices continue to rise in Canada but this rise has diminished in recent months because of the softening of home prices in BC’s mainland following the introduction of the new 15% land transfer tax for foreigners.

All in all, 2016 ended with some major changes to the mortgage environment, we are expecting that it will take a few months longer for the affects to take hold and lenders and mortgage professionals digest our new realities.

Keep in mind that just because rules have changed, it doesn’t mean that you will be pushed out of the market.  Contact a mortgage professonal who has the know how to navigate these new waters.

For more info by Dr. Sherry Cooper

Chief Economist for Dominion Lending Centres    http://ow.ly/Xv143086bOX

13 Jan

The spring market is coming. Time to get that mortgage preapproval.


Posted by: Anne Martin

I know its still cold and snowy out there, at least it is in Barrie where I am, but it’s good time to consider getting a mortgage pre-approval if you are considering purchasing a home in the near future.

As you probably already know, the federal government made some substantial rule changes in October and November 2016.  Not only will first time home buyers who have minimal down payments be affected, most home purchasers will see some change in their mortgage qualification.  Unfortunately, you may qualify for less than you did several months ago.  This was done in order to protect home buyers who need mortgage insurance from affordability issues should interest rates climb in the next five years.

This change involved an increase in the mortgage qualifying rate.  Previously, a higher than charged interest rate was used to qualify for mortgage terms less than 5 years or variable/adjustable interest rates, however, going forward most insured mortgages of any term will need to qualify at this rate.  Currently, 4.64%.  You don’t pay that, you will pay whatever the rate as specified on your contract.  This rate varies from lender to lender and mortgage to mortgage.  

Because of other changes to mortgage rules pertaining to government backed insured mortgages we now have a big spread of interest rates available. The rate you will receive will now be determined by qualification, lender programs and your situation.  

With lenders evaluating policies because of government changes to insured mortgages coupled with changes in the economy, we may soon see some moderate rate increases. Therefore, if you are considering buying a home in the near future, its best to obtain a mortgage pre-approval ASAP.  Not only will your application be viewed by a lender, your interest rate will be locked in for 90 to 120 days,

If you don’t find a home in that period of time, you may receive an extension of the expiry date, but best to be safe than sorry!  

So, the moral of the story, if you have any thoughts to making that purchase soon, contact a mortgage broker today.

For some further details, check out this article https://dominionlending.ca/news/now-time-get-pre-approved-mortgage


6 Jan

Unexpected Job Surge & Trade Surplus in Canada


Posted by: Anne Martin


 Canada Jobs

In December Canada showed an unexpected gain in full time jobs (.3% or 53,700 jobs) for the first time in a while.  Full time job growth actually outpaced part time!

Full time jobs in December rose 81,300 over November, the biggest gain since March 2012.  On the whole employment in Canada grew 1.2% in 2016 as compared to .9% in 2015.  

Canada’s trade balance showed a surplus in November for the first time since September 2014, while exports rose 4.3% strengthened by exports of metallic and non metallic products along with an increase in exports to countries other than the US.    

The job gain made 2016 a breakout year from some of the slowest job growth since World War II.  The trade surplus means energy and manufacturing companies may have been contributed to by consumer spending on houses and cars.

Ontario’s unemployment rate was modestly down by .1 % from 2015.  

Its expected that interest rates will continue to increase this year given the sale of bonds in anticipation of moves in the US tax cuts, increased spending on infrastructure and cut regulations, leading to possible higher budget deficits.  It all begins January 20 when Trump takes office.

Read more at http://ow.ly/ooqQ307L7fT

Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres



3 Jan

How important is your credit score.


Posted by: Anne Martin

Credit report

Many people don’t understand how important their credit score really is.  The difference between paying all your bills on time and a few recent late payments can shift your credit worthiness and possibly disqualify you for the mortgage you want.  Subsequently, the home you would like to buy or the refinance of your existing home.

Most lenders  today are looking for a score well into the 600s with a minimum expectation by the insurers of 600.

Maxed out and over the limit credit cards can reduce your score significantly.

If you are considering a purchase or refinance, it is of the utmost importance to keep an eye on your credit score via www.equifax.ca to ensure that the report is accurate and that you are maintianing your credit in a favourable fashion to meet your goals.

Working for a mortgage broker in Barrie as a mortgage agent, I have facilitated many mortgages for people with “bruised” or credit and have found that whatever the challenge was that got you to where you are, I can usually find a solution for you too.

If you are considering a mortgage refinance or property purchase, feel free to get in touch.  Opinions are always free!   Anne Martin 705-791-6683  anne@ndlc.ca

Check out this article written by 


Dominion Lending Centres – Accredited Mortgage Professional
Pauline is part of DLC Innovative Mortgage Solutions based in Coquitlam, BC.