Skip to content
Posted Mortgage News

Govt pondering tightening mortgage rules further?

The Federal Minister of Finance, Jim Flaherty, made some comments about possible mortgage tightening policies…. see both Winnipeg Free Press, Reuters, and the Financiap Post.  The govt is concerned about a possible ‘overheating’ of the housing market.

The honorable Minister just needs to wait for September’s figures to put that concern to rest.   The numbers aren’t out yet, but early indications show that the housing market has definitely slowed down.  Prices are flat and in some cases, have decreased.

Further tightening of Canada’s mortgage policies are not necessary in my opinion… but this does bring up an interesting situation for anyone that is refinancing their mortgage or looking to buy a house…

My advice…get your mortgage preapproved immediately….no need to chance any possible rule change….

Posted Real Estate Trends

Mls will be more readily available to consumers

On thursday September 30th, the Canadian Real Estate Association (CREA) and Competition Bureau of Canada came to an agreement to allow easier access to their Multiple Listing Service (MLS).  More details from the Globe and Mail.

Earlier this year, the Competition Bureau was making a lot of noise for CREA claiming that the MLS should be more readily available to consumers…  it seems this new compromise will allow a seller the option of choosing services from a licensed realtor.  It’s sounding like we could start to see flat fees being charged by companies to list their home on MLS.

Watch for more ‘For Sale By Owner’ companies (FSBO) to pop up in the coming months…. but also beware of deals that sound too good to be true… One of the concerns raised by CREA is that we could see shoddy service and even fraud.  I guess time will tell….  As always, get recommendations, seek professional advice and opinions…

Posted Mortgage Tips

Sell your home with a below market interest rate

Saw an article this week that talked about low mortgage rates being used an incentive to help sell your home faster.   Most mortgages are assumable, meaning the buyer of your home can take them over upon qualification.

If interest rates increased significantly, then having a 3.69% mortgage could lead some buyers to your home.

Another strategy that is used during a slower housing market is to buy the interest rate down to below market rates… this is something that would need to be negotiated at the time of signing the mortgage but it is offered by a few major lenders…

Posted Case study

Uncover the hidden equity in your home

Turn on the TV, listen to the radio, read a newspaper or talk to someone at the office water cooler.   What are we hearing?  ‘House prices fall’….  ‘Mortgage rates are going up’…

Okay, are you ready to hear some good news?   Let’s talk about what’s really happening and how YOU can benefit.

Firstly, house values are actually stable according to the Canadian Real Estate Association (CREA).  The article goes on to say that House sales may cool this fall due to a robust Spring market and that house prices may fall.  Hey, that’s okay.. we don’t want to see a runaway market… but that should trigger us to do something now.   Take advantage of these incredibly low rates.

Interest Rates are at historical lows and yet I don’t see much news coverage about that…did you know that a 5 year fixed rate can be had for around 3.69% and in some cases even better for qualified borrowers….   Variable rate is also great… 2.30% is an excellent rate…. and Economists are forecasting for no real increases until the Spring…

REFINANCE WHEN RATES ARE LOW

It’s really no secret…. you’ve heard of buy low and sell high?… well, with interest rates it’s ‘borrow when rates are low and get rid of high interest rate debt’….. This is the best time to borrow money. Here’s how you can benefit….

Let’s suppose your situation looks like this:

  • have a house worth $350,000
  • a mortgage balance of $200,000 @ 5.00% with payments of $1,100/mth.
  • credit cards $8,000 @ 12.00% with payments of $240/mth
  • a line of credit $10,000 @ 6.00% with payments of $300/mth
  • car loan of $15,000 @ 6.00% with payments of $480/mth
  • you want to invest some money into rrsps or resps or some other GOOD investment for $20,000….
  • your monthly payments total $1,640.

Here’s what you could be doing:

  • increase your mortgage by up to $80,000 to $280,000
  • pay off all that debt and take the extra funds (up to $47,000) and invest or use as you require
  • your payment based on today’s 5 year fixed rate of 3.695 would be $1,427/mth
  • your payment based on today’s Variable rate of 2.30% would be $1,227/mth

Your cashflow would actually improve and you would put money in your pocket.

This is just one example of how you could benefit… we all have different needs and different situations…get your finances analyzed by a qualified Mortgage Broker.   See how you could benefit….It’s a great time to borrow…

Posted Interest rates

More speculation that interest rates will remain low

We’re starting to see more evidence that the recovery is not going as well as the Bank of Canada first thought.   Inflation has dipped slightly, even with the HST.

CIBC Chief Economist, Avery Shenfeld, says we are beyond the ‘Great Depression of 2008-09 but we are in the ‘Great Disappointment’ of  a sub-par recovery.   He’s forecasting for interest rates to remain flat until the spring of next year, followed by only gradual increases thereafter.

Great news for anyone that has a mortgage…