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Important Mortgage Updates Thursday March 19

Mortgage Updates 03-19-2020

Important Mortgage Updates Thursday March 19

Welcome to today’s update.  

Canada and the banks announced a six month deferral of mortgage payments.  I have been fielding many calls on how this works and the answer is different for each financial institution.  I will be posting updates as they become available. Some of the financial institutions have not yet come out and said they will give a full six months of deferred payments, while others have. It’s still early but I will keep you informed as the details roll out.

Another update on the rates. Fixed rates are up again slightly. Variable rate pricing for new applications has increased as well. Most financial institutions are now offering variable rates at prime (Prime: 2.95%) or just minus .05%. No surprise as stock market jitters is spooking everyone.

This will pass and we will come out okay on the other side of this. That’s my message.  We’re all in this together and we will come out of it together. Call or message me if you need anything. My team and I are here to help.  

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Important Mortgage Updates

Important Mortgage Updates 03-18-2020

Important Mortgage Updates

There have been many changes lately and there will be many more to come. As this is a critical and fast-moving situation, I wanted to get these updates out and will be updating you regularly as we all work through this.

We’ve all heard about the Bank of Canada rate cuts.  Two one-half percent rate cuts in less than two weeks. Unprecedented. And while common logic would dictate that mortgage rates would fall, that’s not exactly happening.

Continue reading “Important Mortgage Updates 03-18-2020”

Rate Cuts and Pending Deals – A quick note

As the dust starts to settle on yesterday’s Bank of Canada rate cut, here’s some clarification on what happens next.

To all my pending clients or clients with something on the go, your rates will be automatically adjusted downward.

For new clients, prospective purchasers, or people that want to take advantage of these falling rates, don’t hesitate to reach out to my office today. I am happy to discuss how you can take advantage of this.

Your best interest is my only interest.

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Adjustments to the Mortgage Stress Test

Adjustments to the “Stress Test” don’t go far enough

Adjustments to the Mortgage Stress Test

In case you missed it, Finance Minister Bill Morneau announced this week that adjustments to the “Stress Test” are coming on April 6th. While the government says the change will make the stress test qualifying rate more responsive to market conditions, what does that really look like?

On the bright side, this new qualifying rate will probably be lower by around 0.30%.  This will increase the amount of a house one can buy by around 5%.  

Example… $500k increases to $525k.  

On the dark side, this isn’t really making a whole lot of difference. I don’t want to sound pessimistic, but I’d like to point out the shortcomings of his announcement. It’s purely political. They said they would do something and I guess, technically they did. But it really has no significant impact. 

Continue reading “Adjustments to the “Stress Test” don’t go far enough”
Rental properties as a secure long-term investment

Real estate may not be sexy, but…

Rental properties as a secure long-term investment

Rental properties are a secure long-term investment. Note the emphasis on “long-term”.

Check out any seven-year period over the past 50 years (anyone who has read this news site knows that I always recommend buying and holding for at least seven years). Property values have almost always risen.

Sure, the last five or 10 years have seen fantastic appreciation in almost every part of Canada. But, let’s leave capital appreciation out of the equation for now.

Why aren’t we talking about rental income? Or, how about the equity growth through your mortgage being paid down each year?

RENTAL INCOME IS UP, UP, UP!

Part of what makes rental properties attractive is that rent rises with inflation (or even higher, in many cases, as we have seen in urban markets like Toronto and Vancouver). This is how you create your own pension or retirement income! Continue reading “Real estate may not be sexy, but…”

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