9 Apr

Canadian Home Buying Intentions Highest in 8 years. Mortgage Market Update April 6, 2018

General

Posted by: Anne Martin

 

MARKET UPDATE

Canadians’ home-buying intentions highest in 8 years, poll finds

Despite tighter mortgage lending rules, the number Canadians planning to buy a home has hit the highest level since 2010, according to a new RBC poll.

The annual Home Ownership Poll, released Tuesday, revealed 32 per cent of Canadians say they are likely buy a home within the next two years.

Read more

Best fixed rates are as low as *3.19 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*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 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.24% 3.24%
3 YEARS 3.44% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.19 – 3.59 %
7 YEARS 5.30% 3.79%
10 YEARS 6.10% 3.84%
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.

23 Mar

Government launches consultations on human rights based housing approach. Mortgage Market Update March 23, 2018

General

Posted by: Anne Martin

MARKET UPDATE

Government of Canada launches consultations on the human rights-based approach to housing

So that more Canadians have access to a safe and affordable place to call home, the Government of Canada is taking further steps to recognize and progressively realize a human rights-based approach to housing.

Read more

Best fixed rates are as low as *3.24 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*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 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.24% 3.09%
3 YEARS 3.44% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.24 – 3.59 %
7 YEARS 5.30% 3.69%
10 YEARS 6.10% 3.84%
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.

19 Mar

Barrie residential real estate sales for February 2018

General

Posted by: Anne Martin

The number of residential real estate sales recorded by the Barrie & District Association of Realtors, Inc for the month of February 2018 was 263 units which is down 43.2% from the record set in February 2017.

Year to date sales were 482 units in the first 2 months of the year creating a decrease of 33.2% from the same period of time in 2017.

Within the City of Barrie sales activity was down 45.9%, year over year with the city only seeing 139 units sold in February 2018.  Surrounding areas had a 39.8% decrease in sales activity totaling 127 units.

It seems that factors like the new mortgage stress test coming into affect January 1 moved up sales to the end of 2017 and some closings in early 2018.

The year to date average selling price in the City of Barrie so far is $485,483 causing a decrease of 2.1% compared to last year the same time.  Surrounding areas so far this year was $542,821, increasing prices by 2.2% from 2017.

There was a rise of 125.5% of active listings on the market over the lows of last February with 3.6 months of inventory at the end of February 2018.

See http://creastats.crea.ca/barr/  for further details.

The many factors contributing to the reduction in price and sales numbers including the new government stress test, increased mortgage rates, trade uncertainty and economic factors.  Although none expected, it will be important to watch the Bank of Canada for its decisions on mortgage rate hikes.

12 Mar

Get to know your lenders. March 2018 Newsletter.

General

Posted by: Anne Martin

Welcome to the March issue of my monthly newsletter !

This month’s edition looks at the differences between lenders and the battle between variable vs fixed rate mortgages. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!


Should you go fixed or go variable?

It’s the first and only thing anyone usually asks when you talk about your mortgage: What’s your rate? While everyone can recall their rate off the top of their head, it’s the only detail of the mortgage they remember or care to know. Though the rate is obviously important, your mortgage is so much more than a rate, and if you’re not paying close attention, it can cost you money.

Before we dive deeper, let’s talk fixed rate vs. a variable rate and which one is better. Well, that all depends. First-time homebuyers and older homebuyers typically love the stability of a fixed rate. Keep in mind, seven-in-ten fixed mortgages are broken before the term ends. A fixed rate for five years is fine as long as you stick with a lender that’s going to calculate the penalty if you break your mortgage on the contract rate versus the Benchmark rate. That’s because the Benchmark rate, or as it’s sometimes called the Bank of Canada rate, is higher than your contract rate. Typically a credit union or monoline is the right choice for this mortgage.

Variable rates are great with any lender as it just comes down to who offers the best discounted variable rate. There’s a pretty simple way to decide whether a variable or fixed makes sense, based on rate alone. It’s called the 50-basis point rule. Basically, take the best fixed rate out there and the best variable rate out there and subtract the two. If the number is less than 50 basis points, there is strong argument to go for a fixed rate. However, if the difference is more than 50 basis points, there’s a solid case to go with a variable.

Pretty simple right? What’s not as simple is the personality of your mortgage. It may not seem like it, but yes, your mortgage has a personality. Think of it like a shiny sports car. It may look amazing when it rolls off the lot, but as the years go on, does it meet your daily needs? Besides your mortgage rate, you need to consider portability, and whether it can be blended and extended and how penalties for breaking the mortgage are calculated. When people start looking for a mortgage, they’re usually getting advice from friends or their parents, and the only question they’re asking is, what’s the rate? But if they don’t know the details of the mortgage like the ones listed above, you can tell them to stick their head in the sand, because they’re giving you bad advice. And if a mortgage broker is only fixated on the rate, you’re working with the wrong one.

Life happens and our circumstances change. You really want to make sure the mortgage will work for you in the future before you sign on the dotted line.

Get to know your lenders

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…

Burglar Prevention:

Whether you’re home or away on vacation, a few simple precautions can make your home less attractive to burglars. These include: Ensuring your outdoor lighting illuminates all entrances to your home; Cutting back shrubbery discourages burglars from hiding near window and doors; Keeping windows and doors locked at all times; Making certain your garage door is closed and locked; Installing a peephole in your front door; Securing windows and sliding glass doors with auxiliary locks (special door pins, available at home improvement stores, can prevent your sliding doors from being lifted from their tracks during a burglary attempt); Installing deadbolt locks on all exterior doors; and Never hiding or storing keys or tools outside.

7 Mar

@DLCCanadaInc Economist @DrSherryCooper breaks down today’s Bank of Canada rate announcement.

General

Posted by: Anne Martin

Dr. Sherry Cooper  weighs in on Wednesdays Bank of Canada announcement to hold steady on interest rates.

Of major consideration are the new tariffs announced by Donald Trump on steel and aluminum that may have a profound affect on the Canadian economy, especially when we are in the middle of NAFTA negotiations.

Housing is another factor considered in the decision as the full affects of tightened mortgage rules are still becoming known.  The economy is being monitored.  There has been a deceleration of household debt over 3 months which is good for the economy overall but not as good for the retail industry as people are buying less.

The Bank of Canada acknowledges that interest rates will need to rise given the overall economic outlook however, accommodations are being made to keep the economy on track.

Read more here.

 

7 Mar

Bank of Canada Concerned About Trade Risks

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

Bank of Canada Concerned About Trade Risks

The Bank of Canada held rates steady today, as expected, highlighting “trade policy developments” as an “important and growing source of uncertainty for the global and Canadian outlooks.”

Read more

Best fixed rates are as low as *3.09 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*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 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.24% 3.04%
3 YEARS 3.44% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.09 – 3.59 %
7 YEARS 5.30% 3.69%
10 YEARS 6.10% 3.84%
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.

27 Feb

Canada raises red flag at credit rating giant. Mortgage Market Update Feb. 27, 2018

General

Posted by: Anne Martin

MARKET UPDATE

Canada raises red flag at credit rating giant

S&P Global Ratings warns it expects to see more evidence of fraud in Canadian residential mortgages amid high home prices and high household debt.

Evidence of mortgage fraud amid surging home prices and household debt has prompted S&P Global Ratings to lower a key risk metric for Canadian banks.

Read more


Best fixed rates are as low as *3.09 – 3.59 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate is 3.45%

*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 or are considering refinancing, contact me 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 3.14% 3.10%
1 YEAR 3.04% 2.99%
2 YEARS 3.24% 3.04%
3 YEARS 3.44% 3.24%
4 YEARS 3.89% 3.34%
5 YEARS 5.14% *3.09 – 3.59 %
7 YEARS 5.30% 3.69%
10 YEARS 6.10% 3.84%
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.

18 Jan

The Bank of Canada Raises its Key Interest Rate

General

Posted by: Anne Martin

On Wednesday January 17, 2017, as expected, the Bank of Canada raised its key lending rate by one quarter point to 1.25%.  This would put the rate at the highest level since 2009 when the economy was faltering.  This was done even with the cloud looming over NAFTA negotiations.

Economists differ as to the validity of the increase.  We are hearing reports of the economy being in excellent shape with the lowest jobless numbers in decades but according to other economists predictions we may be heading for a slow down in housing markets due to interest rate increases and tougher mortgage rules that could take many prospective home owners out of the market.  Higher interest rates may amplify household debt or perhaps people will buy less and within their means, causing a reduction in consumption, which again is not good for the economy.

My gut says that there has to be a happy medium somewhere between consumerism and debt management where we can spend enough to keep the economy moving but not too much to put ourselves in too much debt.

We are expecting three rates hikes this year causing the overnight rate to increase to 1.75%.  Many lenders have already increased their prime lending rate to 3.45% increasing variable rate mortgages.  If you are in a variable rate mortgage, this is a good time to discuss your options with a broker.

As always, I’m still seeing people who want to consolidate their debt into their mortgages in order to reduce interest costs and improve cash flow.  I don’t think there will be an end to this option, especially if you have lots of equity in your home.

In my opinion, we are still in great shape. To put today’s rates in perspective, interest rates climbed to 21% in the early 1980s.  We are lucky to be living in a country where our government, no matter the party, is looking out for our interests to ensure this doesn’t happen again.

For more info on the rise in Bank of Canada rates check out this article by Dr. Sherry Cooper, economist Dominion Lending Centres.  https://dominionlending.ca/news/bank-canada-raises-rates-cautiously/

16 Jan

NDLC Monthly Newsletter for January 2018.

General

Posted by: Anne Martin

HAPPY NEW YEAR!
Welcome to the January issue of my monthly newsletter !

This month’s edition looks at the new mortgage rules that just came into place and budgeting in the New Year.
Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!


Mortgage rule changes explained

 

By now, we’re all aware of the major mortgage rule changes that have started to come into effect at the start of the year. To recap, in October, the Office of Superintendent of Financial Institutions, or OSFI, introduced tighter rules on mortgages set for Jan. 1, 2018. While there were several changes announced, the biggest affects consumers with uninsured mortgages, who must now undergo a qualifying stress test. More specifically, under the new rules, non-insured mortgage consumers (buyers using a conventional mortgage with a down payment worth 20 per cent or more of the purchase price) must now qualify using a new minimum qualifying rate.
The minimum rate will be the greater of the five-year benchmark rate published by the Bank of Canada or the lender’s contractual mortgage rate plus two percentage points. The stress test for non-insured mortgages applies to both fixed- and variable-rate mortgages.

The new qualifying rules effectively reduce the buying power of a consumer with an uninsured mortgage by 20 per cent, according to industry experts. Paul Taylor, the president and CEO of Mortgage Professionals Canada (MPC), a national association that represents the mortgage industry, described the impact of the new rules as a “purchasing power haircut.” And he‘s concerned just how much impact the new rules will have on the real estate market and economy in general.
While Taylor doesn’t expect major price reductions in hot markets like Vancouver and Toronto, he suggests it could be more detrimental to struggling economies in other regions of the country like the Prairies and Atlantic Canada.
“Reducing the number of people who can afford those homes now is only going to exacerbate the problem,” he says, adding that when someone’s largest asset loses value, they tend to spend less. “When house prices come down, you can potentially create a recessionary environment in pockets across the country.”

How we got here

For the government to poke around the mortgage industry is nothing new. In October 2016, Ottawa introduced a number of changes including a stress test that meant all new or insured mortgages needed to qualify at the greater of either the Bank of Canada posted rate for mortgages or the contract rate plus two percentage points.
It caught the mortgage industry off guard. In the months that followed, it also galvanized organizations like MPC to lobby politicians and bureaucrats in Ottawa on behalf of the industry. Now, MPC is calling on the federal government to reduce the new stress test to three quarters of a percentage point. If someone is locked into a five-year term, their equity and income will likely increase during that time, Taylor explains, but the proposal also meets OSFI’s intent to encourage a more risk-averse lending environment.

In response, officials with OSFI provided background on the proposed rule changes. A spokesperson for OSFI explained that the regulator’s job is to “prepare federally regulated financial institutions to navigate a number of severe but plausible scenarios, while continuing to provide financial services to Canadians and maintaining the confidence of the public.” “As residential mortgage lending represents a material portion of activities at many federally regulated financial institutions we regulate, it is important that lending practices in this area be governed prudently and with appropriate risk controls,” the backgrounder continues. Predicting how housing and economic environments will develop is challenging, but OSFI recognizes the potential risks caused by high household indebtedness across Canada, and by high real estate prices in some markets. OSFI reviews its guidance on an ongoing basis to ensure it is aligned with industry practices and! the evolving financial services environment. We are not waiting to see those risks crystallize. Rather, we are being proactive and adapt our standards to the evolving housing markets and economic environment.”

Those feeling battered by all the new obstacles can take heart, though. The head of MPC doesn’t expect any further changes until after the next federal election in 2019. “I’d like to think they’re [the government] done,” Taylor says. “I don’t have a crystal ball, but my suspicion is you won’t see much else.

Making 2018 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 2018. 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…
Let the heat reach you:

 

Dust or vacuum radiators, baseboard heaters and furnace duct openings often and keep them free from obstructions such as furniture, carpets and drapes.

Replace/Clean Furnace Filters:

Check and clean or replace furnace air filters each month during the heating season. Ventilation system filters, such as those for heat recovery ventilators, should be checked every two months.

4 Jan

2018 might just be the year to buy a home! Mortgage Market Update

General

Posted by: Anne Martin

MARKET UPDATE

2018 might just be the year to buy a home!  Canada’s real estate market is bound to take a hit this year thanks to the government’s new mortgage rules that took effect on January 1st.

The rules, aimed at making sure Canadians can afford to meet their monthly mortgage payments if interest rates rise, will intentionally make it harder for buyers to qualify for an uninsured mortgage.

Read more

Best fixed rates are as low as *2.84 – 3.49 % for a 5 year fixed,
variable rate mortgages from as low as p-.85%
Prime Rate is 3.20%

*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 3.14% 3.10%
1 YEAR 3.04% 2.89%
2 YEARS 3.24% 2.54%
3 YEARS 3.44% 2.99%
4 YEARS 3.89% 2.89%
5 YEARS 4.99% *2.84 – 3.49 %
7 YEARS 5.30% 3.69%
10 YEARS 6.10% 3.74%
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.”