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AuthorSteve Garganis

As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.
Posted Mortgage News

Bridge Loans… the what and why!

brown wooden bridge over green trees

Bridge loans are short-term loans that bridge the gap between two different closing dates. More commonly used when an existing homeowner sells their home, and buys another home, with two different closing dates. But bridge loans have become a very popular way to take possession of that new home while it’s empty for 2 or 3 weeks to allow for renos. Best of all, it’s really inexpensive!

THE OLD WAY

In the past, most homebuyers would have their selling and buying dates match. It’s always been a bit of a juggling act as you have to pack your moving truck and unpack it, all in less than a day. Somehow, everyone manages to get it done… but talk about one of the most stressful days in your life, moving ranks right up there! Throw in some kids, maybe a dog, and a house full of stuff and you have a real chore on your hands.

THE NEW WAY Continue reading “Bridge Loans… the what and why!”

Posted Finance

Housing crisis.. Made in Canada

It’s really not that complicated.  If you really want to resolve the housing crisis you just need to do these FIVE things

  • 1. Bring back 35 year amortization periods and increase qualifying home prices to $1,250,000 or higher.
  • 2.Remove rent control rules.
  • 3.Halt new immigration until we can build up enough support services to handle what we have already. *(exception below)
  • 4.Cut back on the municipal, provincial gov’t Red Tape to build any type of residential housing and that includes purpose built rental apartment buildings.
  • 5.Create a hiring program to entice and incentivize people to get into skilled trades …and bring over people from outside Canada if you have to (this would be my exception to point 2 above)
  • Do this and you’ll soon have more housing units available than you could even dream of.  It could be done in 3 to 5 years.  It’s just not that complicated.
Continue reading “Housing crisis.. Made in Canada”
Posted 3 Comments on Interest Rates to Stay As-is for Now. But When Will They Rise Again? Mortgage News

Interest Rates to Stay As-is for Now. But When Will They Rise Again?

The Bank of Canada governor, Till Macklem, made no change to interest rates on April 21st, the 3rd of 8 annual meetings dates. This comes as no surprise, though, There wasn’t a chance of an interest rate hike anyway. You can read more on this here .

Continue reading “Interest Rates to Stay As-is for Now. But When Will They Rise Again?”
Posted 2 Comments on New, tougher mortgage stress test?  What will this do to our red hot real estate market? Mortgage News

New, tougher mortgage stress test?  What will this do to our red hot real estate market?

There is big news that was announced earlier this month and it might affect home buyers in the market for a mortgage. The Office of Superintendent of Financial Institutions (OSFI) released a proposal to increase the qualifying mortgage rate for uninsured mortgages. Uninsured mortgages are ones where there is more than a 20% down payment.

The new qualifying rate will increase from the posted 5 year fixed rate, which is currently 4.79%, to the contract rate plus 2% or 5.25%, whichever is greater. This would effectively qualify consumers for 4% less mortgage. On a $1,000,000 purchase with a $200,000 down payment, buyers would qualify for around $755,000 vs $800,000.  

Many are concerned that this could have an effect on our market by slowing it down. 

Continue reading “New, tougher mortgage stress test?  What will this do to our red hot real estate market?”