Category Archives: Blog

The Miracle of Compound Interest Can Make You Rich

The miracle of compound interest can make you rich.  A house is the biggest asset you will own in your lifetime.  If you pay off your mortgage quickly using the miracle of compound interest, then you will be privileged with an impressive net worth. Take the example of Penny Morepayment.  If Penny buys her first home for $375,000 at the age of 30 and takes out a mortgage of $300,000, … Read More

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The Home of Your Dreams is Within Reach

The home of your dreams is still within reach.  Weather you’re currently renting and saving to buy your own home or are currently a home owner and dreaming of that ideal home, be advised, that home is within reach.  All the talk about an overvalued housing market and the implementation of the tightest mortgage rules in decades shouldn’t discourage you from working towards the home of your dreams.  The Canadian … Read More

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Life is Short, Make your Mortgage Shorter

One positive consequence of the tighter mortgage rules is shorter amortizations.  While extending your mortgage over 40 years may make your payments more manageable and allow you to qualify for an even bigger home, you may never live to see your mortgage burning party. In pricier markets, the rational has been that you will enjoy significant capital appreciation that can contribute to your retirement savings.  Many are also under the … Read More

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RBC Starts Paying Realtor’s For Mortgage Referrals

Ever wonder how a Real Estate agent picks their team?  Well usually they partner with lawyers, mortgage agents, and home inspectors that are experts in their field, professional in their dealings, and can be be trusted to provide top notch service and products.  RBC is trying a different approach.  Royal Bank of Canada (RBC) is offering real estate agents $1,000 for referring first time buyers to them. First time buyers … Read More

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4 Year Mortgages Make a Comeback

It must be Spring time, the mortgage wars are back.  It seems like a repeat of last year with Bank of Montreal (BMO) reducing the rate on their 5 year “no frills” mortgage to 2.99%.  There’s something about a rate below 3% that kicks off a flurry of responses from the competition.  Along with the usual warnings about the added costs of going with a “no frills” option, the banks … Read More

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CMHC Cutting Programs

Effective May 30th, 2014 CMHC will be discontinuing 2 existing mortgage programs and  further tighten Canada’s mortgage market.  Self-employed borrowers will no longer be eligible for CMHC insurance unless they are able to verify sufficient income through traditional sources.  Also being cut, is the the 2nd home mortgage program. CMHC’s rationale for this move is that these programs are no longer core to the insurer’s objectives, and only represent a … Read More

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CMHC Poised to Increase Mortgage Insurance Premiums

The annoucement made earlier this year by CHMC regarding increases to their mortgage insurance premiums is set to take effect Thursday of next week.  The 2 other mortgage insurers are following suit making this a unilateral price increase in the oligopic mortgage insurance industry. You still have a chance to avoid the increase by getting your mortgage approved by CMHC before the May 1st deadline.  However in order to give … Read More

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Bank of Canada Stands Pat

Yet again, the Bank of Canada decided to stand pat when it comes to interest rates. The Bank announced it would maintain its target for the overnight rate at 1% – a decision that spells good news for variable rate holders.  The primary reason for the decision was low inflation – something that is expected to continue for the remainder of 2014. While consumer energy prices and a low Canadian … Read More

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Increase Your Mortgage Payments

Paying off your mortgage is a common goal for homeowners.  The monthly obligation of mortgage payments is usually a family’s biggest financial burden, and the sooner it’s gone the better.  Getting rid of your mortgage is a little like pulling off a Band-Aid.  You can minimize your mortgage payments today and make your cash flow as comfortable as possible or you can put everything you have towards your mortgage to … Read More

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CMHC Mortgage Premiums Set to Soar

Despite billion dollar profits, stricter lending guidelines and a robust housing market, CMHC is spearheading an increase to mortgage insurance premiums.  These premiums are a necessary evil for home buyers with less than 20% downpayment.  The new premiums take effect May 1st, but don’t impact mortgage applications that have been submitted prior to the May 1 deadline regardless of the actual closing date.  As is standard practice in this oligopoly, … Read More

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