14 May

Consumers Digest. May 2019 Mortgage Newsletter

General

Posted by: Anne Martin

Welcome to the May issue of my monthly newsletter!

This month’s edition looks at accessing your home’s equity to invest and getting to know your lender. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!


Accessing your home’s equity to invest

To tap into your home’s equity, it all starts with refinancing your home. If you own a home, the equity you have built up in it is one of the most valuable assets you have available to you. It is also much more accessible than taking out a large loan. In many cases, home equity loans and lines of credit can offer you a lower interest rate as compared to other types of loans while providing you with access to credit for investment purposes.

Often times we see clients who refinance in order to:

  • Renovate their home
  • Purchase a secondary property for investment purposes
  • Debt consolidation
  • Business Development
  • Assisting their children’s post-secondary education
  • Financing through a “life event” such as illness

In this particular article, we are going to highlight the value of utilizing your home’s equity to reinvest in other investments such as:

  • rental properties
  • stocks
  • bonds
  • mutual funds
  • RRSP’s
  • RESP’s

The first question that people ask is how much can I borrow? Generally speaking, you can borrow up to 80% of the appraised value of your house. For example, if your home value of $650,000 assuming one qualifies, they can access up to 80% of $650,000 which would be $520,000, if their current mortgage is $450,000 they may be able to get a home equity line of credit for $70,000 (totaling $520,000).

Working with your mortgage broker, you can go through the refinance and approval process if this is something you are interested in accessing. It is always a good idea to consult with your broker and understand the personality of your mortgage—there may be limitations of how much equity you can access and the conditions relating to the refinancing. There are also potential costs associated with this type of refinance including:

  • appraisal fees
  • title search
  • title insurance
  • legal costs

Keep in mind that these potential costs can be rolled within your new loan amount and will not be “out of pocket.”
Now, if you have been approved and are utilizing your home equity for one of the above investments (after speaking to your financial planner/advisor first) and can expect to see a higher rate of return than the interest you are paying to borrow the money, then it is worth considering. We emphasize that you should always proceed with caution and get advice from sound professionals before choosing to invest your hard-earned money.

We have found that this type of investing works extremely well for many and is a safer and less risky way to access funds for further investment purposes. We recognize that this option may not be suitable or comfortable for some, but it is a viable way to capitalize on the equity sitting in your home and make it work for you! If you have questions or are interested in learning more, please do not hesitate to contact a mortgage professional near you.

 

Get to know your lender

One of the biggest aspects of a mortgage is figuring out the best lender. Since every file is unique, a good mortgage broker will likely tell you there’s no “best” lender. Instead, it will be those unique qualities in your mortgage that will determine which lender you’re going to use.

In a typical mortgage, there are three potential types of lenders: the big banks, credit unions and monolines.

A Bank

A bank is a financial institution that accepts deposits, lends money and transfers funds. They are listed as public, licensed corporations and have declared earnings that are paid to stockholders. A key point: they are regulated by the federal government-Office of the Superintendent of Financial Institutions. Everyone knows the big banks and they are considered to be trusted. If you decide to use a fixed-rate mortgage from a big bank, keep in mind the penalty to break the mortgage will be larger than other lenders. The big banks are best for a variable rate, since the penalty will be smaller.

Credit Unions

Credit unions also deposit, lend and transfer funds. However, after that, we run into some differences between the two. Credit Unions have an elected Board of Directors that consist of elected members from their community. They are local and community-based organizations and unlike the banks, they are not federally but provincially regulated. The advantage to a credit union is they are not subject to the recent stress test rules announced for uninsured mortgages, so they can still service debt under the older rules. The credit unions calculation for penalties are typically friendlier to the borrower and if there are credit issues, they tend to be more understanding than the big banks.

Monolines

Monolines specialize in a single type of financial service, such as consumer credit, home mortgages, or a sole class of insurance. While monolines are often used by mortgage brokers because they are broker friendly, there are some advantages to the consumer. Monolines usually offer better discounted rates, while how they calculate the penalties can be friendly to the client. The biggest knock is they’re just not as well-known or trusted like a bank. It should be noted the major investors in monolines are the big banks, so there’s nothing really to fear.

Now that you know a little about the lenders, you need to know how a mortgage broker can help. A typical broker will have access to up to 90 lenders. That can be a real advantage, because if your mortgage isn’t fitting into the right box, a great broker will turn over every stone and work with the lenders to find a solution. And since a broker has a number of different lenders to choose from, they’ll understand each of the lender’s guidelines to get you the right mortgage.

HOMEOWNER TIPS…

Choosing a Home Security Company:

Once the decision has been made to have a security system installed in your home, don’t simply open the phone book or go online and choose the very first company listed. It’s best to talk to friends and neighbours to see what company they use. Find out if they have been pleased with the company. Also make sure that you check with the Better Business Bureau to see if there have been any reports made against the company. Look for a company that has been around for several years and seek references from some of their existing customers.

 

DID YOU KNOW…
Mortgage repayments should not account for any more than 40% of your monthly income, preferably less. Anything more is considered “mortgage stress” because it leaves you with little, if anything, left over once other homeownership costs and living expenses are accounted for. I can help you stick to what you can afford.

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1 May

Report on affordable neighbourhoods in Barrie

General

Posted by: Anne Martin

On Thursday April 25th, 2019 the Barrie Advance published the results of a report written by Zoocasa comparing home prices in the City of Barrie to Toronto.

An average home in Barrie sold for$494,488 in March while the average home in Toronto sold for $830,043.  This provides proof of the affordability of Barrie as compared to Toronto.  The report even broke it down by neighbourhood and displayed approximate income needed to purchase in that neighbourhood.  It then compared required income in  to the actual average income of the neighbourhood.  It only found one neighbourhood in the City of Barrie where the home prices exceeded the needed income.  This neighbourhood was also the most expensive in town in the south east end called Innishore.

Sales were up 12% in March 2019 as compared to March 2018.  Zoocasa reports that the resurgence in Barrie is due to the spillover of Toronto residents looking for affordable options.

The report also states that rents are rising in the city of Barrie according to Padmapper.    Barrie has the 6th highest rental cost of $1380 for a one bedroom apartment, up 3.8% from a year ago.  A two bedroom in Barrie is down to $1500 a month, or 5.1% over March 2018.

Unbelievable!

Please visit this article for further info:    http://ow.ly/DxBi30oBEFi 

26 Apr

General

Posted by: Anne Martin

Welcome to the April issue of my monthly newsletter!

This month’s edition looks at protecting your pre-approval and options for up or downsizing. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!


Protecting your pre-approval

People mistakenly believe once they’ve been pre-approved or approved by a lender it’s all done.

But what they don’t realize a lender may pull their credit 30 days prior to close. They also don’t realize lenders can request updated documents in that time. And, if some of the original information that got you the mortgage approval in the first place changes, and for the worse, you could lose your financing. Here’s a short list of actions that could put your approval on pause:

Having additional credit reports pulled by another broker or lender

The lender will often pull your credit again right before financing. If the lender sees that other brokers or lenders have pulled your credit, the lender views this as credit seeking and it can put your funding in jeopardy.

Applying for additional credit elsewhere

The lender calculates your debt based on the amount of credit you have. If you are applying for new credit, the obvious assumption is that you are planning on using it. Don’t get any new credit until the closing date is passed.

Closing out credit accounts

Credit is not a bad thing… unless you are having a hard time managing it. Old credit shows a long history of being able to handle credit. Lenders like that, so don’t rush to cut up your credit cards just yet. If you can, make above your minimum monthly payments to get in a better standing with your current accounts.

Moving money around without a paper trail

When you settle with the bank on the contract of the mortgage, the lender will require bank statements showing your saved money. They look at the history along with the balance. If there are any unusual deposits, you will need to explain where the money came from. Be prepared to show a paper trail. If your downpayment comes from savings, keep in mind the bank will want 90 days bank statements to ensure the money is accounted for.

Increasing your debt

The lender always looks at your debt-to-income ratio. If you increase your debt, you can risk going over the maximum amount of debt compared to your income.

The biggest, and most common offence to this rule is buying a new car or obtaining a big box store credit card.

Don’t be tempted! If you want to keep your current pre-approval amount, keep your ratio steady.

Moving up or down the property ladder

At some point, the place that we thought would be our forever home for one reason or another just isn’t working. That’s the time to consider moving up in size or potentially downsizing depending on where you are in life.

If you’re feeling squeezed or have a little one on the way, your current digs may not be enough. If you want to upsize during your mortgage cycle, keep in mind you’ll be breaking your mortgage and will have to go through the entire qualification process again.

That means you will need to re-qualify at the current rates offered by lenders and be subject to government changes and recent “stress test” rules. You’ll also be breaking your mortgage which will come with a variety of penalties depending on the terms in your mortgage and the lender. You may be able to port the mortgage, essentially taking the existing mortgage and its terms and transferring it to another property, but not all mortgages are portable. You’ll need to talk to a mortgage broker to find out if this is an option for you.

Moving on UP

If you’re trying to move from a condo or apartment to a single-family home, it’s all about the pros and cons. First, you have to decide if you can afford to make the move and buy something bigger. A larger purchase price comes with larger closing costs. Depending on the province in which you reside, you’re Property Transfer Tax will be larger and you’ll be paying realtor fees on the sale of the home you’re leaving. Canadians typically pay between 2.5 and five per cent their home’s selling price in realtor fees.

Don’t forget the costs of owning a single family home. Unlike a strata, you are responsible for all the maintenance of your home. One rule of thumb is to consider saving one per cent of the purchase price of your home each year for maintenance. If your home cost $500,000, that would mean $5,000 a year in savings. The good news is you won’t have to pay a monthly strata fee and you won’t be kept up at night worrying about a special assessment for major repairs on the building.

Scaling it DOWN

There comes a time when owning a home becomes a little too much to handle. The cleaning, the yardwork and the maintenance can be a pain. And why keep extra bedrooms when they’re just collecting dust? It may be time to downsize. If you’re mortgage free, depending on where you live, you could actually be sitting on a gold mine. While you may be in for a windfall, there are costs to selling your existing home for something smaller and cheaper.

  • Realtor commission (between 2.5 and five per cent depending on where you live in the country and what you are able to negotiate). In Toronto for example, the standard realtor rate is 5%. So for a $1,000,000 home, you would need to pay the realtor $50,000.
  • Closing costs and legal fees – approximately 1.5 per cent of the purchase price
  • Miscellaneous costs – $1,000-plus (moving expenses, upgrading appliances and buying new furniture)
HOMEOWNER TIPS…

Exterior Renovations:

If you’re thinking of selling your home, or you simply want to spruce it up, exterior renovations can significantly increase its value and curb appeal. Aside from more expensive undertakings such as new roofing and siding, there are some projects you can take on yourself, such as creating attractive flower beds or purchasing a new front door. With each project completion, you will be happier with your home, and increase its appeal to buyers when it comes time to sell!

You also need to consider strata or condo fees and the potential for special assessments on the building and all the standard costs that come with buying a place, even if there’s no mortgage.

Another more recent option to the real estate landscape is reverse mortgage. A reverse mortgage is a loan secured against the value of your home. It is exclusively for homeowners aged 55 years and older. It enables the homeowners to convert up to 55% of the home’s value into tax-free cash. With a reverse mortgage, you maintain ownership of your home. You only have to repay the loan once you chose to move or sell.

DID YOU KNOW…
There are eight preset dates per year on which the Bank of Canada makes decisions which affect variable rate and short term fixed rate mortgages. The last increase to the Prime rate by the Bank of Canada was in 2018. No increase is expected anytime soon.

Longer term, i.e. the five year term, fixed rates are influenced by the bond market, and this is arguably less predictable and more volatile.

 

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21 Mar

Home Buyer Incentives announced in the Federal Budget. Mortgage Market update March 21, 2019

General

Posted by: Anne Martin

Anne Martin
Mortgage Agent #M1000225739 Collier St. #306
Barrie Ontario L4M 1G5
Phone: 705-791-6683 | Email: anne@ndlc.ca
http://www.barriemortgagelocators.com

MARKET UPDATE

Homebuyer Incentives
Federal Budget Proposed Changes

Two key first-time homebuyer incentives were tabled in the federal budget on March 19th. The first is a shared-equity mortgage plan and the second is an increase to the existing Home Buyers’ Plan.

Eligible homebuyers who have the minimum down payment for an insured mortgage can apply to finance a portion of their home purchases through a shared-equity mortgage with Canada Mortgage and Housing Corporation (CMHC). Annual household income must be below $120,000, and the program is expected to begin this summer.

CMHC would offer a 10% shared-equity mortgage for a newly-constructed home or a 5% shared-equity mortgage for an existing home.

The Home Buyers’ Plan withdrawal limit will be increased from $25,000 to $35,000 (or from $50,000 to $70,000 per couple), providing first-time buyers with greater access to their Registered Retirement Savings Plan to buy a home.

Planning to buy your first home? Let’s discuss your options!


Best fixed rates are as low as *3.49 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.95%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.


Terms Bank Rates Our Rates
6 Month 3.34% 3.30%
1 YEAR 3.59% 3.49%
2 YEARS 3.74% 3.39%
3 YEARS 3.89% 3.44%
4 YEARS 3.94% 3.49%
5 YEARS 5.34% *3.49 – 3.69 %
7 YEARS 5.80% 3.89%
10 YEARS 6.10% 4.14%
Rates are subject to change without notice. *OAC E&OE

 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

7 Mar

Mortgage Market Update February 6, 2019. Bank of Canada, no changes.

General

Posted by: Anne Martin

BANK OF CANADA UPDATE

The Bank of Canada has announced “No Changes!”

Economic growth has been slower than initially anticipated in 2019. This is largely due to continued trade tensions, oil prices and a slower housing market. Economists remain divided on whether the next move will be a cut or a hike. Next announcement coming April 24th, 2019.

MARKET UPDATE

Look into different mortgage features

Mortgage portability is an important mortgage feature. Let’s face it, life happens. And that means it’s possible that you’ll want or need to move from your current home during the lifecycle of your existing mortgage.

In this case, you’ll want to ‘take your mortgage with you’ – transfer it to your new home. ‘No frills’ low-rate mortgage products often don’t enable you to port your mortgage. As such, you could face thousands of dollars in penalties to break your current mortgage, depending on the specific rules set out by your current lender.

Have questions about portability or other mortgage features to keep in mind? I’m here to help!


Best fixed rates are as low as *3.49 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.95%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.


Terms Bank Rates Our Rates
6 Month 3.34% 3.30%
1 YEAR 3.59% 3.49%
2 YEARS 3.74% 3.54%
3 YEARS 3.89% 3.44%
4 YEARS 3.94% 3.64%
5 YEARS 5.59% *3.49 – 3.69 %
7 YEARS 5.80% 4.04%
10 YEARS 6.10% 4.14%
Rates are subject to change without notice. *OAC E&OE

 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

12 Feb

The ABC’s of alternative lending. Consumers Report February 2019.

General

Posted by: Anne Martin

Welcome to the February issue of my monthly newsletter!

This month’s edition looks at alternative lending and the qualifications of your mortgage agent/broker.
Please contact me with any questions or comments on the information below.
Thanks again for your continued support and referrals!


The ABC’s of alternative lending

Most homebuyers, when it comes to their financing, want the best rate possible. And that usually means turning to either the big banks, credit unions, or monoline lenders. In the mortgage business, these lenders are typically called, “A” lenders. If you’ve got good credit, a good job and decent down payment, you’re probably looking at one of these A lenders. But there are some people who don’t fit into conventional lending, and that’s where you might hear the term “Alt A”, or alternative lender. An alternative lender is a mortgage company backed by investors offering mortgage financing with different guidelines on credit and debt servicing and a focus on the property and exit plan.

Alternative lenders are typically there for people coming out of a bankruptcy, with bruised credit, or are self-employed and need to prove some sort of cash flow.

Borrowers will generally need to have minimum 20 to 25 percent down, there will be applicable lender and broker fees and rates will be higher than conventional lenders. But the rates may not be as high as you think. Some of these Alt A lenders are offering one-year rates between 4.35 and 5.8 per cent. Using an Alt A lender can be a great stepping stone towards a conventional mortgage with the best discounted rate and no fees.

With addition of tougher mortgage rules and stress tests, more people are turning to an alternative lender out of necessity.

If someone has enough equity, there’s always a lender who can assist with financing, but it will come with higher rates and fees.

If you find yourself on the outside of conventional lending, a well-qualified mortgage professional can help you navigate the alternative lending space to help you get the best product that fits your needs

Qualified to make sure you qualify

If you need open-heart surgery, you want to be sure the doctor in the operating room knows what he/she is doing. You want to know they’ve got the professional education, skills and experience to carry out the life-saving procedure.

You would expect nothing less from the person handling the biggest financial decision of your life – your mortgage broker.

Though a mortgage broker doesn’t need quite the same qualifications as a heart surgeon, there are still rigorous standards each mortgage professional must meet to do their job.

While regulations can vary in each province, mortgage professionals need to be registered with a government body and be licensed to carry out broker activities.

First, each broker must complete a provincially approved course for mortgage brokering. These courses are offered through various colleges and institutions and can take days or months to complete. In Ontario, for instance, after completing the course, aspiring brokers need to be hired by a Financial Services Commission of Ontario licensed brokerage, in which the brokerage applies to the commission for that particular broker’s licence.  Licences must be renewed every 2 years, and are subject to mandatory relicensing education.

Agencies like FSCO have the power to investigate public complaints, hand out fines, and suspend or revoke licences of brokers.

Not only are courses for mortgage brokers a good foundation, bit it’s these organization’s background and criminal checks that are most important.

Consumers can take comfort in knowing that their mortgage broker has gone through a rigorous screening process before they have any contact with them. The standards in place are also good at weeding out people in the industry.

There are a number of online resources available to the public through the various licensing agencies. Don’t be afraid to ask your mortgage broker about their background; they’ll be more than proud to share with you their qualifications.

HOMEOWNER TIPS…

Homeowner Insurance:

Much like car insurance, the higher the deductible you choose, the lower the annual premiums will be on your home insurance. But the problem with selecting a high deductible is that smaller claims/problems such as broken windows or damaged sheetrock from a leaky pipe, which will typically cost only a few hundred dollars to fix, will most likely be absorbed by you as the homeowner.

 

DID YOU KNOW…
Now’s the perfect time of year for a free mortgage check-up. With Spring on its way and interest rates still hovering near historic lows, it makes sense for us to revisit your mortgage and ensure it still meets your needs. Perhaps you’ve been thinking about refinancing to consolidate debt, purchasing a rental or vacation property, or you simply want to take a vacation. Whatever your needs, we can evaluate your situation and help you determine what’s right for you.
28 Jan

Staying Cool in the 2019 market. Consumer’s Home Digest January 2019.

General

Posted by: Anne Martin

Welcome to the January issue of my monthly newsletter!

This month’s edition looks at ways to stay cool in the housing market and making 2019 your turnaround year. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!

Staying cool in the 2019 market

With each New Year, comes the promise of renewal. But for some, the changing calendar can bring anxiety. Especially when it comes to finances. And if you’re getting all worried about mortgage rates after seeing frequent increases the last 18 months, you really shouldn’t fret, and here’s why.

We’ve been spoiled as borrowers for years. Interest rates have been at generational lows for some time. It’s given many of us the opportunity to get into the housing market and find our dream homes. But what goes down must always come up? Maybe that’s not completely correct, but it was only a matter of time before rates climbed back to a more traditional area. As we left 2018, the Bank of Canada rate was 1 3/4 per cent. The reality is, if the economists have it right, rates are going to continue to rise for the next 12 to 24 months. The best fixed-rate mortgage could be at six per cent when all is said and done.

So rather than be scared, be educated.

Fixed rates are typically tied to the world economy where the variable rate is linked to the Canadian economy. When the economy is stable, variable rates will remain low to stimulate buying.

Adding to the rise in rates are the government stress test rules. In the fall of 2017, OSFI, (the Office of Superintendent of Financial Institutions) the agency that regulates the financial industry, announced tighter rules on mortgages. The biggest change related to uninsured mortgages, or homebuyers with 20 per cent or more for a down payment. These people are now required to go through a “stress test” or qualify using a minimum qualifying rate.

The changes came a year after a similar stress test was introduced for insured mortgages.

It will be up to the federal government if the rise in rates will make them reconsider the stress tests in place. But unless something changes, rates are going to rise. It’s important to keep in mind, a quarter point increase in the BOC rate equates to $13 on every $100,000 of mortgage. It’s not insignificant, especially if you’re carrying a million dollar mortgage, but it’s also very survivable.

In fact, the rates are the only thing we have no control over. There are some things you can do to take the power back. If you’re carrying some hefty credit and consumer debt, a refinance is something to consider. Yes, refinancing your mortgage mid-cycle might mean you lose that ultra-low rate you got a couple years ago, but getting rid of your high-interest debt could save you thousands a year. It may also be the time to have a conversation with your mortgage broker about a transfer. If you got a mortgage prior to 2016, making a switch and resetting your amortization at the rates now may be better than waiting a couple years when your mortgage is up for renewal.

Don’t get hung up on what the rates are doing and where they’re at. There’s lots of things to consider, but fear isn’t one of them.

Making 2019 your turnaround year

It’s become a bit of a cliché to talk about resolutions at the start of the New Year. You’re going to be inundated with pitches to exercise more, “eat right” or pick up a new hobby. These resolutions start out with the best of intentions but ultimately most of us can’t manage to keep them. Within a few days or weeks, we’re back to our old habits. Perhaps only a psychiatrist knows why we can’t keep our resolutions. While giving up the sweets might seem like an impossible task, getting into some good financial habits at the start of the year is easier than you think. And there is no better time to look at what you might be doing right and perhaps wrong when it comes to your finances and make a change to see a more prosperous 2019. These are by no means brand new ideas but rather tried and tested concepts worth considering.

  • Set and write down your financial goals for the year. Having these goals written down will help you stay on task. Review them as often as you need to.
  • Review your household budget. Sometimes we get caught off guard by just how much money we’re spending every month. Take a good look at those expenses, and if there are a few items you can cut, go for it. Everyone has something they spend their money on they think they can’t live without. But being fiscally responsible takes some discipline.

 

  • Pay down your credit cards. Credit can be a great thing. It helps get you out of a bind when you need it, or help with an important purchase you can pay for later. But having too much credit-card debt can hurt in the long run. Try to pay off as much of your credit-card debt as you can. Every little bit helps.
  • Plan for an annual review day. That means sitting down with your accountant, financial planner, even your mortgage broker to see where you are with your finances. Can you pay a little more for your mortgage? Is there a new government policy or an investment that you haven’t heard about from which you could benefit? Financial professionals are up to speed on all the latest options and can advise you accordingly.
  • Be realistic. We’re constantly squeezed between the things we want to buy and the bills we have to pay. You’re not likely going to go from zero to hero financially in a month, but taking a few easy steps, making good choices and chipping away at your debt will start to pay off.

These are just some basic tips to follow. With so many experts and places to look for financial advice, there’s really no excuse not to use the turn of the calendar to get started.

HOMEOWNER TIPS…

The majority of wealthier Canadians mortgage their homes by choice. 67% of high net worth Canadians (those with $500,000 or more in investable assets) with a mortgage have the cash to pay off their home – in full – but don’t, according to a survey for Investors Group. Their reasons for holding on to their mortgage vary, including tax planning and income-generating rental properties. In Canada, mortgage interest on rental properties is tax deductible.

DID YOU KNOW…
The majority of wealthier Canadians mortgage their homes by choice. 67% of high net worth Canadians (those with $500,000 or more in investable assets) with a mortgage have the cash to pay off their home – in full – but don’t, according to a survey for Investors Group. Their reasons for holding on to their mortgage vary, including tax planning and income-generating rental properties. In Canada, mortgage interest on rental properties is tax deductible.
7 Jan

What’s in store for 2019. Blog by Dr. Sherry Cooper economist for DLC.

General

Posted by: Anne Martin

 

 

 

 

 

Dr. Sherry Cooper offers her predictions for 2019.

1). Canada’s economy will continue to under perform the U.S.

2.) Canada’s population growth will lead the G7 by a wide margin.

3.) Canadian consumers are tapped out

4.) The Fed and the Bank of Canada will raise rates in 2019 by more than the market currently expects.

5.) Even with only modest rate increases in 2019, consumers will be impacted because they are so heavily exposed to debt.

6.) This effect will be offset by stronger wage growth

7.) Rising interest rates will squeeze government spending for the feds and provinces with significant debt loads.

8.) Corporate balance sheets will be negatively impacted by higher interest rates

9.) Canada could be caught in the crosshairs of a U.S.-China trade war, but free-trade deals with Europe (CETA) and China (CPTPP) will reap benefits

10). Comparable to last year, housing in 2019 will not fuel Canada’s national economy, thanks to macroprudential policy measures and modestly higher interest rates. Housing accounted for a record-high percentage of overall economic growth and job creation until early last year.

For the full blog, please visit

What’s In Store For 2019?

 

 

 

6 Dec

Bank of Canada holds its rate. Mortgage Market Update December 6, 2018

General

Posted by: Anne Martin

MARKET UPDATE

Bank of Canada Update

As expected, the Bank of Canada held the current interest rate at 1.75%.

Dominion Lending Centre’s Chief Economist Dr. Sherry Cooper breaks down the Bank of Canada rate announcement.

15 Money Saving Tips

There are many ways to save money and build strong lifelong financial habits and skills. And with a new year approaching, now’s a great time to get started!

Here are 15 money-saving tips to live by.

Looking for ways to save more by paying your mortgage off quicker? I’m here to help!

Best fixed rates are as low as *3.49 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.95%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

 

Terms Bank Rates Our Rates
6 Month 3.34% 3.30%
1 YEAR 3.59% 3.49%
2 YEARS 3.74% 3.54%
3 YEARS 3.89% 3.65%
4 YEARS 3.94% 3.64%
5 YEARS 5.59% *3.49 – 3.69 %
7 YEARS 5.80% 4.04%
10 YEARS 6.10% 4.14%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.

26 Nov

Reminder about identity theft. Mortgage Market Update November 23, 2018

General

Posted by: Anne Martin

 

MARKET UPDATE

An important reminder about identity theft

As the holiday season quickly approaches, and we’re making more purchases that ever, it’s important to be mindful of identity theft while fulfilling your wish lists.

Identity theft is a serious crime that can negatively impact your credit score without you even being aware.

Click here to learn how to protect your personal information, and prevent identity theft and credit fraud.

Have questions? I’m here to help!

Best fixed rates are as low as *3.59 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.95%

*High Ratio/Quick Close Specials
This is a critical time to sit down and review your household financing needs. Please do not hesitate to contact me should you have any questions.

If you are in the market for a home, book an appointment today to see how the recent regulatory changes by the Office of Superintendent of Financial Institutions will affect your purchase.

**rates subject to change with market conditions – *OAC  **conditions apply E. & O. E.

 

Terms Bank Rates Our Rates
6 Month 3.34% 3.30%
1 YEAR 3.59% 3.49%
2 YEARS 3.74% 3.54%
3 YEARS 3.89% 3.65%
4 YEARS 3.94% 3.64%
5 YEARS 5.59% *3.59 – 3.69 %
7 YEARS 5.80% 4.04%
10 YEARS 6.10% 4.14%
Rates are subject to change without notice. *OAC E&OE
 **Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.”

 

Check with your Dominion Lending Centres Mortgage Professional for full details and to determine what rate will be available for you.