Category Archives: Blog

Flaherty Slams on the Brakes

The issue of Canadian debt levels has found a permanent place in the news.  Specifically, increasing levels of consumer debt is being cited as the reason for Jim Flaherty’s need to tighten mortgage rules yet again this summer.  With Canadian debt to income ratios approaching US pre-crash levels there’s been much panic that a US style Real Estate crash is coming to Canada. The primary reason for higher debt levels … Read More

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , , | Leave a comment

Debt Levels Not Too High

It seems callous to say it, but Ottawa is making too much noise about Canadian debt.  Of course we’d all like to be debt free and there are some of us who are in over our heads struggling with job loss and debts payments, but that’s not what Ottawa’s targeting.  Mark Carney and the Bank of Canada have been looking at the national debt to income ratio which can be … Read More

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , , | Leave a comment

Are Non-Bank Mortgages Safe?

There are dozens of mortgage companies across the Country providing consumers with a broad array of choices.  Although there are only a small number of banks, they dominate the market due to their strong brand names and their vast branch networks.  But that doesn’t mean they’re better. Non-bank mortgage lenders offer mortgages with similar and sometimes better pre-payment privileges, features and benefits.  More importantly they often offer lower mortgage rates.  … Read More

Posted in Blog, Canadian Housing Market, Personal Finance | Tagged , , , , | 1 Comment

Mortgage Rules Squeeze Out First Time Buyers

Canada’s Minister of Finance, Jim Flaherty, has tightened mortgage rules 4 times in as many years.  The objective was to slow down the housing market and to keep Canadians from racking up too much debt.  Speaking on CBC radio this past weekend, Mr. Flaherty indicated that no more rule tightening will be done.  “We’ve done enough, I do not intend to do any more” Mr. Flaherty announced on the radio … Read More

Posted in Blog, Canadian Housing Market, Government Policy | Tagged , , | Leave a comment

3 Tips to Boost your Credit Score

Having a good credit score is an essential part of not just getting a good mortgage rate, but also for qualifying for a mortgage in the first place.  If your score falls below 600 then some immediate action is needed.  Here are some steps you can take to boost you numbers. Make payments every month While this may sound like a no brainer some people don’t think that missing a … Read More

Posted in Blog, Personal Finance | Tagged , , | 4 Comments

Credit Score Determines Mortgage Rate

Your credit score is an essential component in qualifying for a mortgage and can determine your mortgage rate.   Main stream mortgage lenders are looking for a minimum credit score of 600.  Although an even higher score may allow you to qualify for a larger mortgage, it won’t get you a better mortgage rate. A score lower than 600 however will get you a significantly higher mortgage rate. Not only … Read More

Posted in Blog, Mortgage Rates, Personal Finance | Tagged , , | Leave a comment

BMO’s 2.99% Mortgage Rate Eliminates another “Frill”

It came back with a twist.  The BMO 5 year fixed 2.99% no frills mortgage rate came back on the weekend, but was only available to on-line customers.  It initially caused quite a stir with the minister of finance because of concerns that it will lead to more consumer debt.  BMO’s retort was that their no-frills mortgage limits the amortization to 25 years so borrowers must pay-off their mortgage faster.  … Read More

Posted in Blog, Mortgage Rates, Personal Finance | Tagged , , , , | Leave a comment

Appraisals Don’t Determine Purchase Price, the Market Does!

Constant government mortgage rule tightening and warnings of too much consumer debt has put property valuations and appraisals under a microscope.  Many critics are concerned that mortgage participants aren’t performing sufficient due diligence on a property’s value, and are contributing to escalating values and debt. The truth is neither a lender nor an appraiser can decide a property’s value.  That decision is left up to market forces.  The definition of … Read More

Posted in Blog, Canadian Housing Market | Tagged , , , , | Leave a comment

Variable Mortgage Rate Forecast – October 2012

Variable mortgage rates are dependent on bank prime lending rates which are dependent on the Bank of Canada interest rate.  The Bank of Canada has 2 scheduled interest rate announcement dates remaining for 2012; October 23rd and December 4th. The current interest rate has remained unchanged for the past two years, the longest period of static interest rates since the mid 1950’s.  The chance that this streak will break in … Read More

Posted in Blog, Mortgage Rates | Tagged , , | 1 Comment

Fixed Mortgage Rate Forecast – October 2012

The fixed mortgage rate forecast is beginning to sound like a broken record as we keep repeating the same things over and over again.  5 year fixed mortgage rates are tied directly to the 5 year government of Canada benchmark bond yield which doesn’t look like it’ll be making any significant changes in the months ahead.  This 5 year benchmark bond yield has mostly been bouncing between 1.2% to 1.6% … Read More

Posted in Blog, Mortgage Rates | Tagged , , | Leave a comment