Tag Archives: Buying a home

10% Minimum, Raising the Wrong Bar

If you’ve been in the market for a mortgage in the last couple of months there is almost no chance you haven’t noticed the talk of an increased minimum down payments from 5 to 10% on loan amounts over $500,000.  What this means for you?  Well if you’re buying a house under 500k, nothing, if you’re buying a house over 500k?  Simple, instead of putting a down payment of 5% … Read More

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Mortgage Matters

Does your mortgage matter?  Are you better off renting?  Sometimes life can feel like a daily grind.  Working to pay your bills and your mortgage, just trying to get through to the weekend so you can finally relax.  Resentment can build up pinching pennies to save up for a week’s vacation.  Some of us have even settled on renting instead for a couple hundred dollars less a month to spend … Read More

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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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Credit Cards Can Boost Your Credit Score

Credit cards can boost your credit score.  Having a healthy credit score is an important asset and can help you buy or lease a vehicle, borrow for investments and RRSP’s and secure a mortgage to buy that dream home.  Boosting  your credit score is particularly important to: Young Canadians with no credit activity New Canadians with no Canadian credit history Applicants coming off of a bankruptcy Applicants working to repair … Read More

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High Housing Costs Hurting Canadians

A letter from the Federation of Canadian Municipalities cites the high cost of housing as the most urgent financial issue facing Canadians today.  “Housing costs and, as the Bank of Canada notes, household debt, are undermining Canadians personal financial security, while putting our national economy at risk,” quotes the document addressed to Stephen Harper. The letter was put forth by the Federation of Canadian Municipalities, who represent over 90% of … Read More

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How Much Mortgage Debt is Too Much Debt?

The Canadian government is concerned about our level of consumer debt, including mortgage debt, and so are most Canadians.  When surveyed however, the vast majority of Canadians feel comfortable with their own level of debt.  The question remains, how much debt is too much debt. The yardstick our Department of Finance has been using is the ratio of debt to disposable annual income.  Let’s look at that at the household … Read More

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Jubilant July for Toronto Real Estate

The Toronto Real Estate Board (TREB) announced that 2013 brought the 3rd best July on record.  Not only did sales rocket by 16% but average sale prices also shot up by 8% to $513,246.  This is particularly good news for an industry that typically sees a summer slowdown July and August. The implication of these strong numbers is that tighter mortgage rules imposed by the Department of Finance (DOF) have … Read More

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