Canadians only need a 20% down payment for investment properties; if you are planning to buy a home to live in yourself, you only need a 5% minimum down payment. However there are some parts of the country like Southern Ontario and BC where you would need a minimum of 20% to purchase a property [...]
If you have a variable rate mortgage, expect mortgage rate increases to increase your monthly payment. If you have a fixed rate mortgage and are soon due for renewal, you will be facing higher interest rates to choose from, and higher payments there as well.
If you lock into a fixed rate mortgage, at the end of your term (which can be short, like six months or a year, or as long as ten years – averages are usually 1-5 years) you have to negotiate new mortgage terms based on the new, current rates, which may be higher or lower [...]
Putting down a large lump sum early in the life of your mortgage can pay off in the long run, by reducing the overall interest that accumulates on the principal. This can take years off your mortgage, and make your subsequent payments more effective in that more of them go toward principal than interest.
Many lenders will also allow you to increase your mortgage payment amount up to double the original amount in a year, known as ‘doubling down’, without any penalty. You can usually also increase your payment frequency which will reduce the total interest accumulated on your mortgage, and result in a faster payout.
A real estate broker can provide a letter of opinion of value or LOV, which is similar to an appraisal. The real estate broker uses their knowledge of the neighborhood, the property itself, market trends and other relevant factors to provide a professional opinion as to the property’s value. This can be used to present [...]
If your line of credit balance is high relative to your income, that can definitely affect your ability to be approved for a mortgage, since you need to show that you can afford to comfortably carry your monthly mortgage payments.
In: Real Estate News29 Sep 2011
Many people underestimate the importance of their credit score. This blog will highlight some of the problems that can arise if you don’t pay attention to your credit score. Credit makes the world go around. Without a credit score, or if you have a poor credit score, it could prevent you from buying a car, [...]
Enjoy your weekly Rates & News updates! Mortgage Rates: 1yr 2.89% 2yr 2.99% 3yr 2.69% 4yr 2.89% 5yr 3.19% 6yr 4.29% 7yr 4.49% 3yr variable closed (Prime – .65%) = 2.35% 5yr variable closed (Prime – .60%) = 2.40% Canada mortgage rates keep sliding How Much Lower Can The Yields Go Interesting insights from CREA: [...]
No indication of rates increase as the rates sit tight at 3.19% for 5 year fixed mortgages. The lowest in Canada’s history. I would urge everyone to lock their mortgages now to take advantage of these low rates before the Bank of Canada will start increasing the prime rate again. Rates: 1yr 2.89% 2yr 2.99% [...]
Mortgage Rates Continue To Slide, But How Much Longer? Rates: 1yr 2.89% 2yr 2.99% 3yr 2.69% 4yr 2.89% 5yr 3.19% 6yr 4.59% 7yr 4.49% 3yr variable closed (Prime – .70%) = 2.30% 5yr variable closed (Prime – .60%) = 2.40%
In: Real Estate News6 Sep 2011
Everyone has their budget for buying their next home. This “budget” starts out at an amount that the buyers know they can comfortably afford. Then buyers typically end up putting in offers for the maximum that they can afford, and eventually they end up buying the home for much more than they can afford, and [...]
You might have to accept apologies on this blog post because it might see somewhat like a rant. But seriously, how much money should Canadians be expected to pay for a home? How much debt should a family take on in order to have a home in a good neighbourhood in Toronto. Perhaps some people [...]
There are many factors that affect the price of housing. Supply, demand, jobs, geography, demographics, advertising, peer pressure, Government regulations (CMHC) and interest rates all affect house prices in their own way. Clearly interest rates have a definite impact on the price of homes. You could speculate that interest rates are the most important factor [...]
Welcome to the Spring/Summer of 2011, where multiple offers on homes are the norm, 105% and higher above asking price is not uncommon, and mortgage rate fluctuations of 0.35% can happen overnight. In my 11 years in this industry I have not seen this particular set of circumstances all occurring at once and to the [...]
Have you ever found yourself saying ‘Wow this would be the home of my dreams but man the bathrooms or kitchen is out of date, or its going to need some repairs or renovations to make this home just right.’ Don’t immediately walk away from that open house or place your home on the market [...]
There seems to be a shift in thinking for our young Canadians. A recent study conducted by RBC found that 55 per cent of legal age Canadians under 35 are considering holding off on a home purchase till next year. This result is 10 percentage points above the national average. For many their main argument [...]
When talking about the future of rates there are many factors to consider among them are the local economy, world economy, Bond Markets, World Markets, and current political climate. But predicting the future of rates is like predicting where a helium balloon will end up if you let it go. You got a general idea [...]
In January, Canadian Finance Minister Jim Flaherty announced changes in the nation’s mortgage rules, limiting the amortization period on “high-ratio” mortgages, and imposing new constraints on home equity lines of credit. Beginning on March 18, 2011, the maximum amortization on a home mortgage with less than 20% down will drop from thirty-five to thirty years. [...]
In: Real Estate News17 Jan 2011
The new mortgage rules just announced, state that the new maximum amortization will be 30 years, instead of 35 years. What does this mean for affordability and home prices in Canada Example: Let’s take an example of a family that makes $100,000 a year and has a $30,000 down payment. When they purchase a home, [...]
Big news just announced in the housing market is that Finance Minister, Jim Flaherty just announced the following changes to the mortgage rules in Canada: * Mortgage amortization periods will be reduced from 35 years to 30 years. * The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per [...]
This real estate video discusses 6 steps to help buyers improve their credit score in order to make sure that they are able to obtain financing for their mortgage at a low rate. Often buyers with poor credit scores will be required to pay a higher interest rate on a mortgage. Here are 6 tips [...]
Porting a mortgage basically means to take a mortgage from one property to apply it to another property. Porting a mortgage is very common in Canada. In the real estate porting a mortgage video below, we discuss the different aspects of “Porting a Mortgage in Canada“. Some of the things that you should be aware [...]
Lot of negative news out there as sales numbers drop but we have seen our share of bad news over this last year, lets hope this one is temporary, as always. Good news rates are down and falling, that should keep things moving, and the summer market is nearing an end. Rates: 1yr 2.44% (-0.10%) [...]
The entire real estate industry has been in turmoil for several months now due to the sub prime mortgage meltdown and the credit crunch that followed it. While the National Association of Realtors® said September home sales are up by 5% over the same period last year they also said that the average sales price [...]
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You have done your home shopping and have found that perfect dream home. Now it is time to finally apply for a mortgage. Shopping for a home is exciting, but applying for a mortgage can be complicated. It is best to be as educated about the mortgage application process as you can be. Do plenty [...]
The Central Bank announced a .25 per cent cut to its overnight lending rate today in reaction to the slowdown in the US economy, with the major banks quickly falling in line. The prime lending rate now stands at 5.75%, and further cuts are expected to follow as the global economy responds to the US [...]
Real estate news in Canada including buy and sell information, local market updates, guides, tips for Canadians in the real estate market.