Category Archives: Blog

Government Guarantee Gone?

Canada Mortgage and Housing Corp (CMHC) is the country’s largest mortgage insurer, and Jim Flaherty is mulling over whether the government should get out of the mortgage insurance business altogether.  Privatization of CMHC would have its pros and cons to the Canadian market.  A black and white paradigm shift would provide some positive results, but beware the negative tidal wave to come. There are currently 3 mortgage insurers in Canada … Read More

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5 Year Fixed Mortgage Rates vs. 10 Year Fixed Mortgage Rates

With fixed rate mortgages at record lows and the constant threat of a rising variable mortgage rates, fixed rates are gaining in popularity.  A few short years ago just over 50% of new borrowers were selecting fixed rate mortgages; today that number has dropped to more than 85%.  And now with some very attractive 10 year mortgage rate offers you have to ask yourself, “is now the time to lock … Read More

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Buying a Rental Property

Buying a rental property isn’t what it used to be.  With government rule changes and lenders looking to increase their yields, rental properties have become more difficult to finance.  To start with you’ll need to put down a minimum of 20% of the purchase price and will likely pay a premium on the mortgage rate. Mortgage lenders qualify borrowers one of two ways when financing a rental property.  Under the … Read More

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Mortgage Rates Will Rise, Time to Consolidate

Is it just me or is the rising mortgage rate mantra hitting a fever pitch.  It’s well known that the prime lending rate and thus variable rate mortgages are being held below normal levels to help stimulate the economy.  At some point variable mortgage rates will go up and so will mortgage payments.  What’s also true is that your other variable rate debt payments will go up. The fact is … Read More

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Mortgage Rate vs. Mortgage Service

When shopping for a mortgage, the first thing borrowers looks for (and sometimes the only thing) is the best mortgage rate.  While mortgage rate is undeniably the single most important factor in choosing a mortgage, other factors could overwhelmingly make a low rate mortgage a bad choice.  Some of you may be thinking, “What other factors?” Other factors will rank in priority according to an individual’s circumstances, but they’ll affect … Read More

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Buying your Florida Vacation Home

The born in the USA worldwide recession had a devastating impact on the US real estate market with the “sand” states being hit the hardest.  The “sand” states refer to Florida, Arizona and California.  Prime vacation properties for Canadian snow birds priced to sell. The trick is finding a US mortgage lender willing to finance a property for a foreigner.  Typical lending parameters like credit history and employment are difficult … Read More

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3 Steps to the Best Mortgage Rate at Renewal

You’ve been a loyal customer for 5 years and have made every payment on time.  So why is your bank offering you a higher mortgage rate than a new customer?  It’s an all too common story.  Most lenders have posted mortgage rates and discounted mortgage rates.  Typically renewal letters go out at posted mortgage rates which are about 2% higher than the discounted mortgage rates used to lure new mortgage … Read More

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Hot Condo Market Will Chill Mortgage Lenders

The number of Canadian housing starts was strong in March, rounding out a hot first quarter.  According to the Canada Mortgage and Housing Corporation (CMHC), the seasonally adjusted annual rate was 215,600 units in March – up from 205,300 in February.  “The upward movement in March was largely due to an increase in multiple starts, particularly in Ontario and the Prairies.”  Multiple starts refer to condo development as opposed to … Read More

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A Penny for Your Mortgage

The federal budget revealed that Ottawa is retiring the penny and will stop minting new ones as early as this spring.  At a cost of 1.5 cents each it’s no wonder.  It will be interesting to see how businesses and consumers adjust.  I guess the Take-a-Penny / Leave-a-Penny people are out of business!  And how about your mortgage?  A few cents each month can add up to a meaningful amount … Read More

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What a 1% Mortgage Rate Hike Means to You

We’ve all been enjoying record low interest rates.  The low mortgage rates have enabled us to buy bigger homes or just pay less interest each month.  If you’re one of the many Canadians who’ve taken on a bigger mortgage then you may be concerned about rising rates.  And rise they will.  Current mortgage rates tied to the prime lending rate have been strategically held low to help stimulate the economy.  … Read More

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