CanadaMortgageNews.ca

Mortgage growth has slowed… so why are BANKS winning & CONSUMERS losing?

I reviewed some recent stats that explain how overall mortgage growth has fallen to its lowest level in the past 17 years!

Overall, mortgages outstanding across Canada total more than $1.5 trillion. And, while this total continues to increase year over year, the rate of growth has decreased. We should pay attention to this!

Typically, when we experience lower mortgage growth or no growth at all, house prices will follow suit and come down.

But, why aren’t the banks up in arms over this given that they make huge profits by lending money? (More on this below.)

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Posted 4 weeks ago Mortgage News

‘Renovictions’ should motivate you to BUY, not rent!

Do you need motivation to buy and own your home? Well, read this.

I read an article recently about “renovictions” courtesy of Rentals.ca. (This is geared more for Ontario and BC residents.) This is a new word that you’ll be hearing more often, I’m sure.

Here’s my warning and words of advice… Attention renters: If you’re currently renting a condo or house with below market rents, you’ll want to read this.

And I’ll skip to the bottom line for a moment: If you’re renting, you should give serious consideration to buying and owning so that you have control over your place of residence.

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Posted 1 month ago2 Comments Bank News

Remember when I said rates could go down, not up?!

If you’re a regular reader of this site, you’ll know I’ve been very skeptical and critical of the Bank of Canada (BoC) for continuing to increase interest rates. It just hasn’t made sense.

The BoC raised rates FIVE TIMES between July 2017 and October 2018. That’s a 1.25% increase. For anyone with a $300,000 mortgage, your payment increased by $189 per month. Or, to put it another way, for every $100,000 of mortgage, your payment went up by around $63 per month.

Yet, we kept hearing that the BoC wanted to raise rates further. Economists and other experts were saying we should expect more rate increases by the end of 2018! Wow!

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Posted 2 months ago Money saving tips

Thinking of buying a home? Contribute to your RRSP so you can borrow tax-free!

If you’re planning to buy your first home anytime soon, you may be able to take advantage of a helpful federal government program. This enables you to withdraw money you’ve already contributed to your registered retirement savings plan (RRSP) and use it towards anything related to your home purchase, including your down payment, closing costs or real estate fees.

But, the key is that the funds must be in your account at least 90 days before you can withdraw them under the Home Buyers’ Plan (HBP).

You can withdraw up to $25,000 ($50,000 per couple) from your RRSPs tax- and interest-free to buy or build a qualifying home for yourself or a related person with a disability.

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Posted 2 months ago Bank News

What’s the TRUE Impact of Policy Changes on the Canadian Mortgage Market?

It’s certainly not what the Bank of Canada (BoC) is claiming!

The BoC recently released a document detailing what it believes to be a positive report on the Canadian Mortgage Market, but this article clearly shows how out of touch our government is.

The BoC is applauding their statistics… yet, these numbers show that the government appears to be measuring affordability as a multiple of one’s income – and not by the proven, standard method of debt servicing ratios. This is very odd and, quite frankly, I find it absurd.

Continue reading “What’s the TRUE Impact of Policy Changes on the Canadian Mortgage Market?”