16 Sep

Are you a first time home buyer? If so, you’ll want to read this. Mortgage Market Update September 16, 2019

General

Posted by: Anne Martin

MARKET UPDATE

Are you a First Time Homebuyer?

Good news for those looking to break into the Canadian housing market: the new federal First-Time Home Buyer Incentive (FTHBI) officially opened for business on September 2nd.

Designed to alleviate mortgage costs for first-time homebuyers, the FTHBI will take a bite out of monthly payments by providing shared equity loans of 5% toward the down payment of a resale home and 10% for newly-built homes. By boosting the size of buyers’ down payments, the FTHBI whittles down monthly mortgage costs, offering some relief on the costs of homeownership.

Thinking of buying a home? Let’s chat!

Best fixed rates are as low as *2.59 – 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% 3.04%
2 YEARS 3.74% 2.89%
3 YEARS 3.89% 2.89%
4 YEARS 3.94% 2.94%
5 YEARS 5.34% *2.59 – 3.69 %
7 YEARS 5.80% 3.44%
10 YEARS 6.10% 3.7%
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.
30 Aug

How millennials view home ownership. Mortgage market update September 30, 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

Millennial Views on Partners & Home Ownership

Investment options and long-term savings have typically not been seen as sexy – until now.

A recent HSBC study found that many Canadian millennials – aged 23 to 38 – are attracted to partners based on their home buying aspirations.

Of the 1,077 surveyed, 12.7% said that property goals and home ownership topped their list of what they look for in a partner. This was compared to 2.8% of respondents who said appearance was a high priority. Because looks don’t last forever, but an investment property will.

Best fixed rates are as low as *2.59 – 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% 3.04%
2 YEARS 3.74% 2.89%
3 YEARS 3.89% 2.89%
4 YEARS 3.94% 2.94%
5 YEARS 5.34% *2.59 – 3.69 %
7 YEARS 5.80% 3.44%
10 YEARS 6.10% 3.7%
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 Jun

Monthly Mortgage Newsletter, Consumer Digest June 2019

General

Posted by: Anne Martin

3 steps to take you from Pre-approval to getting the keys

Picture this: You’ve finally been able to put away enough for a down-payment on your dream home. It’s taken you five years of diligent saving, but you did it! You have also been diligently working on improving your credit score and paying off debts and are at a place of financial stability. So, first of all, KUDOS TO YOU! Second…now what do you do? Here are the three steps that will take you from browsing new homes to getting the keys to your new place.

STEP 1: PRE-APPROVAL

This should actually be the step BEFORE house hunting. Visiting your mortgage broker to get pre-approved is the first step anyone looking to buy a home should do. When you meet with your broker for the first time they will:

  • Have you fill out an application (or you might be able to fill out one online)
  • Pull your credit
  • Determine what your maximum purchase price will be.

Be aware that you will also be asked for additional information when you visit your broker to apply, including a letter of employment/pay stub, down payment verification, two years notice of assessment and/or T4’s, a void cheque, and a number of other potential documents.

Once you are pre-approved it’s house hunting time for you! The benefit of having this done BEFORE you start looking is that you can work with your realtor to find properties within that price range.

When you do find just the right home for you, it’s on to step two.

STEP 2: APPROVAL

If you were able to provide the bulk of the paperwork for your pre-approval, then it will be smooth sailing from here. You may have to supply a few pieces of updated information but otherwise, it’s up to the lender to do the hard work at this point.

Now that you have final sign-off and are waiting for the final conditions to be met, it’s on to step three.

STEP 3: FINAL STEPS

Your broker will notify you once the conditions have all been met, and the lender will send the paperwork over to the Lawyer’s office. The lawyer will take a few days to go through the mortgage and prepare it for your final sign off. When you go, you will be asked to present:

  • Void Cheque
  • Two forms of identification
  • Balance of the down payment in the form of a bank draft

On the day of funding, the lender will send the funds to the lawyer who sends them to the seller’s lawyer who upon receiving the funds will give you the all clear.

All that’s left is to hand you the keys to your new home!

As one final step, keep asking questions at each stage of the mortgage process. You should check in with your mortgage broker if you have any questions along the way. They are happy to guide you through the process of not only getting a mortgage but also having a mortgage too!

Is owning a home truly the best bet?

If you’re reading this and just bought your first home, or you’ve been a homeowner for years, there’s good news. You can feel confident you made the right decision for your long-term economic wellbeing. That’s according to the findings of a study by Mortgage Professionals Canada, the national association that represents the mortgage industry.

The organization decided to take a deep dive and compare owning versus renting in Canada, and conclude which one option would be the best financial decision in the long run.

As it turns out, the cost of ownership was lower than the cost of renting in more than three quarters of the 266 combinations or cases studied.

As of the second quarter of 2018, the monthly cost of owning was lower than the cost of renting for 72 (just 27% of the 266 cases).

But, the study noted, costs of homeownership include considerable amounts of repayment of mortgage principal. This is a form of saving. When this saving is considered, the “net” or “effective” cost of homeownership is correspondingly reduced.

On a net basis, the cost of ownership is lower than the cost of renting in 202 of the 266 cases (76%), according to the study.

On average across the 266 cases, the monthly cost of owning exceeds the cost of renting an equivalent dwelling by $541 per month. But, when the principal repayment is considered, the net cost of owning is $449 less than the cost of renting.

MPC’s study also found the largest element of the ownership cost (the mortgage payment) is fixed for some time. The result is that the cost of renting will increase more rapidly than the cost of homeownership. The analysis projects the costs of owning and renting for five years and 10 years, assuming that all of the cost components (apart from the mortgage payments) rise by 2.5% per year. The study concluded that homeownership becomes increasingly advantageous over time.

The study concluded by the time the mortgage is fully repaid in 25 years (or less) the cost of owning will be vastly lower than the cost of renting, in every one of the 266 cases. On average across the 266 cases, the cost of owning is projected at $1,549 per month versus $4,655 for renting equivalent dwellings.
HOMEOWNER TIPS…
5 Ways to Stay Cool Without Air Conditioning:

  1. When it’s cooler outside than inside, open your windows instead of using air conditioning. Use a window fan, blowing toward the outside, to pull cool air in through other windows and to push hot air out. When it’s hotter outside than inside, close your windows and draw window coverings against direct sunlight.
  2. On hot days, delay heat-producing tasks, such as dishwashing, baking or doing laundry, until the cooler evening or early morning hours.
  3. Caulk around window and door frames, use weather stripping on exterior doors, and have a professional seal gaps where air can travel between the attic and your living space.
  4. Use energy-efficient lighting in your home. CFL and LED light bulbs operate cooler and cost less to use because most of their energy produces light instead of heat. Incandescent light bulbs, on the other hand, lose 90% of their energy as heat.
  5. Leafy shade trees planted on the east and west sides of your home can improve comfort and decrease cooling needs by blocking heat and sunlight. You’ll still have the benefit of heat from the sun in the winter, after the leaves fall. Check with your local garden centre for recommendations.

 
DID YOU KNOW…
There are two types of debt: secured and unsecured. When you borrow money to buy a house, the bank can take back the house to recoup their money if you don’t pay the debt. That means the debt is secured – it’s being balanced against something that you want to keep, and gives the bank some measure of security that it’s going to be able to recover the money it’s loaned you. Unsecured debt, on the other hand, means the bank can’t reclaim the thing you’re buying with the borrowed money. (Credit card debt is unsecured, and so are student loans.)

 

  • opener
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.

 

opener

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.
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.
25 Oct

Bank of Canada benchmark rate increases. October 24, 2018

General

Posted by: Anne Martin

 

Bank of Canada Update

The Bank of Canada (BoC) raised its trendsetting interest rate by a quarter percentage during its latest rate meeting Wednesday – bringing the benchmark to 1.75%.

This was an expected hike, as The BoC and economists had hinted at another increase this year. The new United States-Mexico-Canada Agreement (USMCA) – formerly known as NAFTA – pretty much sealed the deal for a hike this month as it settled a large source of trade uncertainty.

The key rate has been raised five times since June 2017 – to 1.75% from 0.5% – and is at its highest in nearly a decade.

Overall, rates are expected to gradually increase over the next couple of years, returning to more normal levels, since rates have been near historic lows for several years.

This means now’s the perfect time to start home shopping if you’re in the market for a new property and/or examine your debt levels. Pay particular attention to unsecured debt such as credit lines that are impacted by rising rates as well as high-interest credit cards.

I can help you build a plan to pay debt down as quickly as possible so you’re cutting down on the amount of interest you pay. Answers to your questions are just a call or email away.

Best fixed rates are as low as *3.54 – 3.69 % for a 5 year fixed,
variable rate mortgages from as low as p-.95%
Prime Rate was 3.70%, many lenders have raised theirs to 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 3.14% 3.10%
1 YEAR 3.34% 3.29%
2 YEARS 3.74% 3.44%
3 YEARS 3.89% 3.54%
4 YEARS 3.94% 3.64%
5 YEARS 5.59% *3.54 – 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.

15 Oct

The art of leveraging. Consumer ‘s Home Digest October 2018.

General

Posted by: Anne Martin

Welcome to the October issue of my monthly newsletter!

This month’s edition looks at getting a mortgage for an investment property any why the banks offer different rates. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!

The art of leveraging

For some people, just owning one property and having a single mortgage is enough to handle. But for others, home ownership can be a gateway to owning multiple investment properties. You might be thinking: there’s no way I can turn the value of my modest home into a real estate empire. Ok, maybe not an empire, but you can take the equity of your home and, with the right investment, get a return far greater than a stock portfolio.

Most people are trained to stay out of debt and don’t want to consider using the equity in their home to buy an investment property. But they haven’t realized the art of leveraging.

If you’re using equity from your primary residence to buy an investment property, keep in mind that the interest you’re using is tax deductible. Consider that you’re also buying an appreciating asset, and if you compare a real estate portfolio with a stock portfolio, there is no comparison.

Who is a good candidate? You might be surprised to learn you don’t need to make six figures to get into the game.

Essentially, you just have to be someone who wants to be a little smarter with their down payment.

Before you go down that road, there are some quick things you need to know.

With investment properties, the minimum down payment will jump to 20 or 25 per cent from five percent. Rental income from the property can be used to debt service the mortgage application, while some lenders will have a minimum liquid net worth requirement outside of the property.

Most lenders also limit the number of mortgages in a portfolio. Usually, after five mortgages, you’ll be considered a commercial file. However, a mortgage broker can work with other lenders to increase the number of investment properties.

Typically, when you’re considering a mortgage, you’re looking at the rate. But the rate is less important compared to your cash flow and future equity position. If it all sounds like a bit much, consulting a mortgage professional with an understanding of investment financing is the best way to start.

Most people who get into investment real estate think they’ll only end up buying one property, but that’s not usually the case. A broker will prep you for a 10-year plan of purchasing property and position you accordingly. A broker will also have a good understanding of the alt-side of lending and how you can benefit from that type of financing.

A mortgage broker with the right experience and understanding of financing rental properties can be an invaluable resource.

Does the bank have your back?

If your mortgage is coming up for renewal, you’re probably keeping a close eye on rates. But it can be a little bewildering to see the banks offering a bunch of different rates.

If you’re left wondering why, the short answer may be a little harsh. The banks offer different rates because they can, and consumers are brainwashed to believe the banks have their best interest in mind.

So what can you do to get the best rate? To start, know that the bank does not have your best interest in mind. Then, reach out to a mortgage broker for help.

A mortgage broker has no bias opinion on what lender they’re going to use. A reputable broker only thinks about your best interest when deciding where to put the mortgage and has multiple lenders to choose from who compete for your business.

If you’re about to embark on the renewal process, you might want to try this approach. Tell your bank you’re working with a top mortgage broker and you intend to call them back every day to get their best five-year fixed and variable rate.

If your mortgage broker can’t beat that rate, you’ll likely be advised to stay there. However, most of the time, your broker will be able to get you a better rate, just based on the number of different lenders in which they have access.

You’ll likely go back to your bank, who may match the new lower rate, but you should ask yourself an important question: If they really valued your relationship, why didn’t they just offer you that rate in the first place?

With a bit of homework and a mortgage broker, nine out of 10 times you will get you a better rate.

Lastly, you need to keep in mind a mortgage is more than just a rate. You need to consider the personality of your mortgage, and certain aspect like the penalties to break the mortgage and if it’s portable. These are things a mortgage broker can help you figure out.

HOMEOWNER TIPS…
Fall Lawn Care:

What you do for your lawn during the fall will have a great impact on what your lawn will look like next spring. There are four simple steps you can take to help ensure your lawn will be healthy, green and the envy of the neighbourhood next year:

Aerate. This means to puncture your lawn with small holes throughout to allow the fertilizer, sunlight, water and important nutrients that grass needs to grow deep within the ground;
Fertilize. Basically this means feed your lawn before it goes to sleep for the winter;
Overseed. This is when you spread new grass seed all over your existing lawn with a spreader; and
Mow. In November, mow your lawn one more time as short as you can without scalping your lawn. This will help all the other steps above work better.