Category Archives: Blog

Mortgage Rates Keep Prices High

After a period of steep year-over-year sales declines, the number of homes changing hands is back on a steady course.  “Last year’s deep downturn in Canadian home sales appears to be fading” according to Sal Guatieri, Bank of Montreal economist.  The tighter mortgage rules clearly had an impact on the number of transactions, knocking out many potential first time buyers, but it didn’t impact home prices like the Department of … Read More

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CMHC’s Volume Cut in Half

Stricter mortgage rules on CMHC insured mortgages have had a profound impact on the housing market as well as the insurer itself.  CMHC reports that in the first quarter of this year the number of housing units insured dropped to 52,078 from 114,045 over the same period last year.  This translates to a drop of underwritten insurance to $8.2 billion down by 56.8% from $19 billion last year. The good … Read More

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Variable Mortgage Rate Forecast – May 2013

Mark Carney’s last rate announcement came and went without much fanfare.  Variable mortgage rates will remain the same at least until the next announcement date on July 17th, 2013 and likely well into the latter half of 2014. The Bank of Canada’s language hasn’t changed much from its previous interest rate announcement stating that low rates “will likely remain appropriate for a period of time, after which some modest withdrawal … Read More

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Fixed Mortgage Rate Forecast – May 2013

You can expect 5 year fixed mortgage rates to move up slightly over the next 30 days.  Fixed mortgage rates are tied to the bond market as most mortgage lenders issue bonds to raise the money to lend out as residential mortgages.  The lower the yields on the bonds they have to pay out, the lower the fixed mortgage rates they can offer.  The bond market has been on a … Read More

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Save $12,000 on Your Next Mortgage

Mortgage penalties are a necessary evil and should be closely scrutinized when negotiating your next mortgage.  Choosing a mortgage solely based on the interest rate could cost you over $12,000 in future penalties overshadowing any interest savings. Forced to comply with new federal regulations, mortgage companies must now fully disclose their penalty formulas and must provide an on-line penalty calculator. It would be worth your while to submit your mortgage … Read More

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Housing Market to Drag Economy

A report released today by the Canadian Association of Accredited Mortgage Professionals (CAAMP) predicts significant job losses coming in the wake of the slowing housing market.  Analysis by Chief Economist Will Dunning points out that fewer sales mean fewer housing starts which will ultimately lead to fewer jobs.  Housing starts are already down by 15% from the 2011/12 average and its projected that the total drop will approach 30% by … Read More

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Canadians Comfortable with Their Mortgages

A survey of more than 2,000 Canadians conducted and compiled by Maritz Research Canada concludes that Canadians are comfortable with the amount of their mortgage debt.  The key findings are: ·         80% of mortgages have an original amortization of no more than 25 years ·         18% of mortgage holders increased their monthly payments in the past year. ·         16% of mortgage holders made lump sum payments on their mortgages during … Read More

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Know Your Reasons Why!

We all have goals in life.  Some we write down, others we keep at the back of our mind.  Nonetheless, we all have a future vision to which we aspire.  Whether, it’s to lead a healthier life, to meet the love of your life, to travel to an exotic locale or to simply pay off that darn mortgage, if it’s important enough to you, you will achieve it. Achieving your … Read More

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Toronto Residents Forced to Rent

The Department of Finance seems to be getting its wish of reducing the amount of mortgage debt, but is it in the best interest of Canadians?  MLS data revealed that the number of Toronto condos leased in the first quarter of this year soared by over 31 per cent compared to the same period last year.  Alternatively, the number of new Toronto condos sold in the first quarter of this … Read More

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Mortgage Experts in Demand

In a report released by RBC Capital Markets, its estimated that 55% of Canadians get their mortgage from a mortgage expert while the remaining 45% choose to secure their mortgage through a bank branch representative.  Although bank branch representative are authorized to offer mortgages, it’s only one of a multitude of products they are expected to know and offer.  Mortgage experts on the other hand, focus solely on mortgages, a … Read More

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