Mortgage News Repayment Options Increasing your payment frequency to biweekly accelerated can save you a significant amount of interest over the term of your mortgage and help you pay your mortgage off faster. Most lenders offer the following payment options: Monthly Semi-monthly Biweekly Biweekly accelerated Weekly Weekly accelerated   How do biweekly accelerated payments save you interest over the life of your mortgage?   Let's look at an example. If your monthly mortgage payment was $1,000/month, the table below demonstrates monthly, biweekly, and accelerated biweekly payment options. You save money with a biweekly accelerated payment plan because you pay the equivalent of 13 monthly payments per year. On this schedule over the life of your mortgage you will reduce your mortgage amortization from 25 years to 22 years and 3 months. March 27, 2024 Questions About Credit? What is a credit score? A credit score is a statistical formula that translates personal information from your credit report and other sources into a three­digit score. Credit scores can range between a low of 400 to a high of 850. In general, the higher your score, the more creditworthy you are to the lender and the less likely you will become delinquent on credit extended to you. Credit scores are one of the primary tools a lender uses when determining the risk in lending money to you. Creditors use credit scores, among other things, to determine whether or not to grant you a mortgage (or credit) and if so, how much credit and at what rate.   What can I do to improve my credit score? Pay all of your bills on time. Paying late, or having your account sent to a collection agency, has a negative impact on your credit score. Try not to run your balances up to your credit limit. Keeping your account balances below 75% of your available credit may also help your score. Avoid applying for credit unless you have a genuine need for a new account. Too many inquiries in a short period of time can sometimes be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can actually repay. A flurry of inquiries will prompt most lenders to ask you why. However, most scoring formulas will not penalize you if, for example, you are shopping for the best car loan rate or mortgage rate. March 20, 2024 Understanding Land Transfer Tax for Home Buyers         Purchasing a home is an exciting milestone, but it's important to understand the financial obligations involved. One such obligation in Ontario is the Land Transfer Tax (LTT). In this article, we will provide an overview of the LTT, including how it is calculated, potential refunds for first-time homebuyers, and important considerations for buyers.    What is Land Transfer Tax (LTT)?  Land Transfer Tax is a fee imposed by the Ontario government on the purchase or transfer of land or an interest in land. It is typically paid by the buyer and is based on the purchase price of the property.    Calculation of Land Transfer Tax  The amount of LTT payable depends on the purchase price of the property. The current LTT rates Provincial can be found at the bottom of the article.     First-Time Home Buyer Refund To assist first-time homebuyers, the Ontario government offers a refund of the LTT. Eligible first-time homebuyers can receive a refund of all or part of the LTT, helping to reduce the upfront costs of purchasing a home. It's important to note that as of January 1, 2017, the eligibility for the first-time homebuyer refund program is restricted to Canadian citizens and permanent residents.   Considerations for Home Buyers When budgeting for your home purchase, it's crucial to consider the LTT. It is wise to consult with a mortgage broker or a knowledgeable real estate professional to estimate the LTT amount based on the purchase price of the property. This will help you plan and manage your finances effectively.  Additionally, it's essential to factor in other costs associated with buying a home, such as legal fees, home inspections, appraisal fees, and moving expenses. These expenses can add up, so being prepared financially is key.   Next Steps Understanding the Land Transfer Tax is essential for homebuyers in Ontario. By familiarizing yourself with the LTT rates, potential refunds, and other associated costs, you can make informed decisions when purchasing a home. Consult with a mortgage broker at Mortgage Brokers Ottawa for personalized guidance throughout the homebuying process and to explore available mortgage options.  Remember, buying a home is a significant investment, and being well-informed about the financial aspects will help ensure a smooth and successful homebuying experience.   Current LTT Rates Provincially:   ONTARIO   In Ontario, you’ll pay a land transfer tax based on your home’s value.   0.5% of the first $55,000 of the home’s value.  1.0% of any additional value between $55,000 and $250,000.  1.5% of any additional value between $250,000 and $400,000.    2.0% of any additional value between $400,000 and $2 million.    2.5% of any additional value that’s more than $2,000,000 if the land contains no more than two single-family residences.    Toronto   0.5% of your home’s value up to $55,000.  1.0% of any amount between $55,000 and $250,000.  1.5% of any amount between $250,000 and $400,000.  2.0% of any amount between $400,000 and $2 million.  2.5% of any amount between $2 million and $3 million.  3.5% of any amount between $3 million and $4 million.  4.5% of any amount between $4 million and $5 million.  5.5% of any amount between $5 million and $10 million.  6.5% of any amount between $10 million and $20,000,000.  7.5% of any amount above $20 million.    ALBERTA  Alberta doesn’t have a land transfer tax.   Instead, the government charges two fees: one to process the transfer of the property title and another to register your mortgage.   You’ll pay $50 plus an additional $2 per $5,000 of the property’s purchase price for the title transfer.  For the mortgage registration, you’ll pay $50 plus $1.50 for each $5,000 of your mortgage amount.    SASKATCHEWAN  You’ll pay a transfer fee equal to 0.4% of your property’s value.   You’ll also pay a set fee based on your mortgage amount as follows:  For mortgages under $250,000: $180  For mortgages between $250,000 and $500,000: $250  For mortgages between $500,000 and $750,000: $500  For mortgages between $750,000 and $1,000,000: $750  For mortgages above $1,000,000: $1,000    B.C.   B.C.’s tiered-rate system means more expensive homes result in a higher rate. You’ll pay:  1% of the first $200,000 of your home’s value.  2% of any amount between $200,001 and $2,000,000.  3% of any amount greater than $2,000,000.    MANITOBA  In Manitoba, you’ll pay:  No tax on the first $30,000 of your home’s value.  0.5% of any amount between $30,001 and $90,000.  1.0% of any amount between $90,001 and $150,000.  1.5% of any amount between $150,001 and $200,000.  2.% of any amount over $200,000.    QUEBEC  Each municipality in Quebec administers its own land transfer tax.  Montreal’s land transfer tax is based on your home’s value.  0.5% of your home’s value up to $55,200.  1.0% of any amount between $55,200 and $276,200.  1.5% of any amount between $276,200 and $552,300.  2.0% of any amount between $552,300 and $1,104,700.  2.5% of any amount between $1,104,700 and $2,136,500.  3.5% of any amount between $2,136,500 and $3,113,000.  4.0% of any amount above $3,113,000.    NEW BRUNSWICK  New Brunswick charges a 1% rate of the home’s value in many cases.    NEWFOUNDLAND  Newfoundland doesn’t have land transfer taxes, but you’ll pay a fee to register your mortgage.  The fee is $100 plus $0.40 for every $100 of your home’ value above $500.    PRINCE EDWARD ISLAND  The property transfer tax on Prince Edward Island is 1% of the greater of the home’s purchase price or its assessed value.  So, if the purchase price was $250,000, the transfer taxes will be $2,500.    NORTHWEST TERRITORIES  In the Northwest Territories, you’ll pay fees based on your home’s value and your mortgage’s value. [10]  You’ll pay $2.00 for each $1,000 of your home’s value, with a $1 minimum. If your home’s value is above $1 million, you’ll pay $2,000 plus $1.50 for each $1,000 of value above $1 million.  If you take out a mortgage to pay for your home, you’ll pay $1.50 for every $1,000 of the mortgage amount, with a minimum of $80.    YUKON FEE DETAILS  You’ll pay a flat fee, which is based on your home’s value, and an additional fee based on the change in value since your home was sold.   The variable fee, called the assurance fund fee, is $20 for the first $10,000 your home’s value has risen since it was last sold plus $10 for every additional $10,000 of increased value.  The flat fee is:  $50 for a home value of less than $100,000.  $150 for home values between $100,000 and $500,000.  $350 for home values between $500,000 and $3 million.  $550 for home values between $3 million and $10 million.  $750 for home values above $10 million.     March 13, 2024 Bank of Canada Rate Announcement March 2024         The Rate Increase In a recent announcement, the Bank of Canada maintained the overnight rate at 5%, announcing no change to the current rate. The bank is also maintaining its policy of quantitative tightening. The Bank's Governing Council decided to maintain the policy rate and continue normalizing the Bank's balance sheet. They are concerned about the persistence of inflationary pressures and want to see sustained easing in core inflation. They are also monitoring the balance between supply and demand in the economy, inflation expectations, wage growth, and corporate pricing behavior. The Bank is committed to ensuring price stability for Canadians. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The Bank of Canada maintaining the policy rate means that mortgage payments would stay the same as they were. Getting Back on Track Inflation in Canada eased to 2.9% in January, mainly due to lower goods prices. However, shelter prices remain high, contributing the most to inflation. Core inflation, which excludes volatile items, is still around 3% to 3.5%. The Bank expects inflation to stay close to 3% in the first half of the year before gradually decreasing. If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement March 6, 2024 Open House - The Real Estate & Mortgage Show: March 4th 2024         In this week's podcast featuring Sheri Creese, the discussion revolves around the current state of mortgages and the housing market. Despite a stagnant rate environment, there's optimism about the future.   Economists are predicting a drop in rates by June, although the exact extent remains uncertain given the complexity of various economic factors. Interestingly, the housing market shows signs of improvement, with increased listings, higher numbers of houses sold, rising average house prices, and decreased days on the market.   Pre-approvals and applications are on the rise, indicating heightened buyer activity. Notably, there's a shift away from over-market listing prices, particularly in the $500,000 to $750,000 range, which constitutes the largest bracket for average home prices. However, inventory remains a challenge, with builders slow to respond to demand.   The podcast also delves into the intricacies of mortgage arrangements, including the involvement of parents on title for their children, considerations for maximizing land transfer tax benefits, and cautions against joint titles with friends. Additionally, insights are shared on various mortgage options, such as the implications of the first-time buyer incentive and the advantages of shorter-term mortgages in a declining rate environment.   Legal aspects, like "renoviction" and tenant rights, are also highlighted, emphasizing the importance of understanding legal obligations in property management. Overall, the podcast provides valuable insights for both prospective homebuyers and those navigating the mortgage landscape.   To listen to the full episode, click here. March 3, 2024 Down Payment and Mortgage Default Insurance       For most people, the hardest part about buying a home (especially the first one) is saving for the down payment. Many people will not have 20% of the purchase price saved for a down payment. With mortgage loan insurance you can put as little as 5% as a down payment.   Mortgage loan insurance protects the lender from default; most Canadian lending institutions are required by law to have it. If the borrower defaults (fails to pay) on the mortgage, the lender is reimbursed by the insurer. The cost for this coverage is in the form of an insurance premium which is often added to the mortgage, or you can choose to pay in a single lump sum at the time of closing. Canada Mortgage and Housing Corporation (CMHC), Sagen and Canada Guarantee are three major providers of this type of insurance in Canada.   CMHC premiums are as follows:   Minimum Down Payment: Homes Over $500,000 This applies to home buyers who have a down payment of less than 20% and thus require mortgage default insurance. The minimum down payment is 10% for the portion of a house price that exceeds $500,000. Example: To break this down, the minimum down payment for a $600,000 home would be $35,000. That’s 5% on the first $500,000 ($25,000) and 10% on the next $100,000 ($10,000) in price. That would be a blended down payment of 5.8%. February 28, 2024 Navigating Economic Soft Landings: Canada's Experience Holds Insights         The Bank of Canada's ability to orchestrate a 'soft landing' for the economy—a delicate scenario of slowing growth to curb inflation without triggering recession—has been questioned by skeptics. Yet, contrary to doubts, Canada has consistently steered clear of recessions, maintaining a commendable track record. According to recent research by CIBC economists Avery Shenfeld and Ali Jaffery, soft landings in Canada are more frequent than commonly believed. Since the 1980s, over half of the country's easing cycles have achieved this equilibrium, demonstrating the central bank's adeptness in managing economic transitions. In contrast, the U.S. Federal Reserve has had fewer instances of successful soft landings.   The economists emphasize that soft landings entail a gradual pace of rate cuts, typically spanning about six quarters until rates return to neutral. Reflecting on historical data, they note that such cycles commence with monetary policy in a restrictive stance, with rates above the neutral threshold. The exception was the 2014 oil price shock, where rates remained below neutral throughout the period. Examining the implications for the current economic landscape, the report suggests that Canada's easing cycle may span until late 2025, assuming initiation in mid-2024, with rates reaching 2.5% to 3%. However, contemporary challenges differ from past cycles, notably the persistently high inflation levels experienced, which peaked at 8.1% in June 2022. Despite inflation concerns, both the Bank of Canada and the U.S. Federal Reserve remain vigilant, aiming to prevent inflation from remaining elevated. The economists posit that central banks might adjust the pace of rate cuts to support demand while ensuring inflation returns to target levels. In summary, Canada's history offers valuable insights into navigating economic soft landings, emphasizing the importance of gradual adjustments and adaptability to current challenges. Looking at our history will allow us to get a sense of what's to come and help us make informed decisions in our financial lives. Click here for the source. February 22, 2024 Canadian Home Sales Surge In January, home sales in Canada rose for the second consecutive month, showing a 22% increase compared to the previous year. Economists credit this rise to favorable weather across the country and growing buyer confidence anticipating future rate cuts by the Bank of Canada. According to data from the Canadian Real Estate Association (CREA), home sales in January increased by 3.7% compared to December, following a 7.9% gain in December. However, CREA noted that despite these gains, sales activity still lags approximately 9% below the 10-year average. The provinces with the highest increases in sales were Ontario (+6.9%), British Columbia (+4.5%), and Quebec (+4.3%), while Saskatchewan experienced a decline of -4.9%. CREA's senior economist Shaun Cathcart observed a tightening market with increased sales and renewed buyer competition, particularly in areas with the most significant sales growth. However, he also noted that prices are still declining in these areas, indicating ongoing market adjustment. Although home prices have remained stable, they haven't shown the same strength as sales. The MLS Home Price Index (HPI) fell by 1.2% month-over-month and increased by only 0.4% year-over-year. The average national home price, not seasonally adjusted, rose by 7.6% from January 2023 to $659,395. Sales continued to surpass new listings, causing the sales-to-new listings ratio to rise to 58.8%, up from 50% three months ago but still below the 10-year average. Months of inventory tightened for the second consecutive month to 3.7 months in January, down from 5.8 months in December. Economists caution that it's premature to predict the spring market's trajectory based on the recent increase in activity. Factors such as low sales volume in January and significant seasonal adjustments affect interpretation. Moreover, rising bond yields, which influence fixed mortgage rates, could dampen housing demand in the coming months due to expectations of delayed Bank of Canada rate cuts.   Annual Price Difference Per Province Location January 2023 January 2024 Annual price change B.C. $866,876 $960,433 +10.8% Ontario $798,624 $821,624 +2.9% Quebec $450,368 $492,735 +9.4% Alberta $419,912 $471,887 +12.4% Manitoba $319,305 $351,305 +10% New Brunswick $264,400 $283,700 +7.3% Greater Vancouver $1,114,800 $1,161,300 +4.2% Greater Toronto $1,070,600 $1,065,800 -0.4% Victoria $847,100 $847,900 +0.1% Barrie & District $771,400 $766,800 -0.6% Ottawa $602,500 $621,600 +3.2% Calgary $506,100 $557,500 +10.2% Greater Montreal $499,200 $509,400 +2% Halifax-Dartmouth $502,600 $518,500 +3.2% Saskatoon $364,900 $372,800 +2.2% Edmonton $359,500 $370,100 +2.9% Winnipeg $326,800 $334,700 +2.4% St. John’s $318,000 $332,000 +4.4% February 15, 2024 Standard Charges vs. Collateral Charges When we talk about a standard or collateral charge, we are talking about the legal instrument that is used to register the mortgage terms with the Provincial Government to legally record the encumbrance on your property. You usually complete this through your lawyer, but for the purpose of refinances, you can also use title insurance companies to perform this process. The mortgage terms such as the rate or amortization can be the same with either a standard charge or a collateral charge.    STANDARD CHARGE  With a standard charge, the specific details of the mortgage loan, such as the amount, term and interest rate, are included in the charge that is registered on the title to the property. A standard charge only secures the mortgage loan that is detailed in the document, and not any other loans you may have with your lender, such as a line of credit. The lender must provide all of the details of your mortgage, such as payment and prepayment privileges, in a separate credit agreement.  •    A standard charge registers the actual amount of the mortgage specifically. •    A standard charge is therefore able to accommodate an additional or second mortgage if required. •    A standard charge can almost always be assigned or switched to another mortgage lender without requiring new legal work.   COLLATERAL CHARGE  With a collateral charge, the specific details of the mortgage loan might not be included in the charge that is registered on the title to your property. A collateral charge can be used to secure multiple loans with your lender, including a mortgage or a line of credit. A separate credit agreement contains the specific terms of the mortgage loan.    WHAT YOU SHOULD KNOW ABOUT STANDARD CHARGES  Switching lenders: If you want to switch your mortgage loan to a different lender at the end of your term without changing the loan amount, then it may be possible to do so by assigning your mortgage to your new lender. This is referred to as an assignment (or a subrogation in Quebec), the existing charge is assigned to the new lender rather than being discharged and replaced with a new charge.  Registration amount: The charge is registered for the actual amount of the mortgage loan. For example, if you require a mortgage loan of $240,000 to buy a home that costs $300,000, the lender will register the standard charge for the actual amount of the mortgage - in this example, $240,000. Talk to your lender for more details. You only have to make payments and pay interest on the money you actually borrow, not on the amount of the registered charge. Borrowing additional funds: If you want to borrow more money from your lender afterwards, you may be able to do so without having to discharge your current charge, register a new charge and pay the associated legal and other costs. This is possible because the charge might have been registered for an amount higher than your original mortgage loan or because you have paid down your loan and it can now go back up to the higher amount set out in the charge. Access to additional funds is not automatic. You will need to apply for the additional funds and re-qualify based on the lender’s current criteria, the property value and your ability to repay the new loan amount.   Standard Charge Collateral Charge Registration Amount Amount registered is the same as the actual amount of your mortgage loan. Amount registered may be higher than the actual amount of your mortgage loan. Borrowing additional funds at the end of the term You will need to register a new charge. There may be legal, administrative, discharge and registration costs. You may not need to register a new charge if the total amount of all loans is equal to or less than the registered amount of the charge. There may not be any legal, discharge or registration costs. Switching lenders at the end of the term (without borrowing additional funds) Typically, at the end of your term, other lenders will accept an assignment at little or no cost to you. Other lenders may not accept an assignment. You will likely need to discharge your existing charge and register a new charge with the new lender. All loan agreements secured by the collateral charge, such as a line of credit, must be repaid in full or transferred to the new lender. There may be legal, administrative, discharge and registration costs.   February 14, 2024 Which Mortgage Is Right for You? In the complex landscape of real estate financing, selecting the right mortgage type is a pivotal decision that can significantly impact a homeowner's financial journey. As individuals start on the path to homeownership, they are confronted with a plethora of mortgage options, each with its unique features and considerations. This article aims to simplify the diverse array of mortgage types available, giving clarity on the distinctive characteristics of conventional mortgages, high ratio mortgages, open mortgages, fixed-rate mortgages, and variable rate/adjustable rate mortgages. By exploring the nuances of these financial instruments, prospective homebuyers can make informed choices tailored to their specific needs and financial goals.   Conventional Mortgage A conventional mortgage is one where the down payment is equal to 20% or more of the property's value/purchase price. A low-ratio mortgage does not normally require mortgage loan insurance.   High Ratio Mortgage A high ratio mortgage is one where the borrower is contributing less than 20% of the value/purchase price of the property as the down payment. High ratio mortgages must be insured through Canada Mortgage and Housing Corporation (CMHC), Sagen or Canada Guaranty, the three mortgage insurance companies in Canada.   Open Mortgage An open mortgage allows the mortgagor to prepay all or part of the principal amount at any time without penalty. Open mortgages usually have shorter terms of six months or one year, but can include some variable rate/longer terms as well. Interest rates on open mortgages are typically higher than on closed mortgages with similar terms.   Fixed Rate Mortgage A fixed rate mortgage is one where the interest rate is determined and locked in for the term of the mortgage. Lenders often offer different prepayment options allowing for quicker repayment of the mortgage and for partial or full repayment of the mortgage.   Variable Rate/Adjustable Rate Mortgage A variable rate or adjustable rate mortgage is one where the interest rate can increase or decrease during the term. The interest rate varies with changes in prime lending rates. How changes in the interest rate affect your payments will depend on whether your payments are fixed or adjustable.   With there being many different types of mortgages, it really depends on your specific situation. Depending on things like: income, future income, house price, other debts, down payment etc... Different mortgages may be more suitable for you than others. The best way to find out which is right for you, is to talk to your mortgage broker or agent, however, it is good for you to know what the different types are and what they mean. February 2, 2024 Bank of Canada Rate Announcement January 2024 The Rate Increase In a recent announcement, the Bank of Canada maintained the overnight rate at 5%, announcing no change to the current rate. The bank is also maintaining its policy of quantitative tightening. Many industry experts were hoping that the bank would begin lowering rates, however, some lenders have already begun decreasing some of their offered rates. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The Bank of Canada maintaining the policy rate means that mortgage payments would stay the same as they were. Getting Back on Track The Canadian economy has entered a period of weaker growth, which is needed to relieve price pressures. After easing to 2.8% in June, CPI inflation moved up to 3.3% in July, averaging close to 3% in line with the Bank’s projection. With the recent increase in gasoline prices, CPI inflation is expected to be higher in the near term before easing again.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement January 24, 2024 Vacant Unit Tax (VUT) Declaration Period Open The declaration period for the Vacant Unit Tax (VUT) pertaining to the 2023 occupancy year has officially commenced. You can now submit your annual occupancy status declaration through the designated form. To complete your declaration, simply visit Ottawa.ca/VUT or log in to your MyService.Ottawa.ca account. It is mandatory for all residential properties to undergo this declaration process. The annual declarations play a crucial role in allowing the City to accurately implement the Vacant Unit Tax for unoccupied homes, while also encouraging homeowners to reintegrate vacant properties into the housing market. This tax serves as a tool to address affordable housing challenges within the city, with the net proceeds contributing to the City's affordable housing initiatives. Submitting your declaration online is a quick and straightforward process, taking less than 5 minutes. Visit Ottawa.ca/VUT and click on "Submit Declaration." Ensure you have your Roll Number and Access Code, both provided at the top of this notice, before proceeding. Alternatively, you can log in through MyService.Ottawa.ca and submit the declaration via your property tax account. For a step-by-step guide, refer to the Quick Guide available on the website. All declarations must be completed by March 21, 2024. Late submissions are subject to a fee of $250. Failure to submit the declaration will result in your property being considered vacant, and the Vacant Unit Tax will be applied on the Final Tax bill in June 2024. Please be aware that all declarations are subject to audit, and providing false information may lead to a fine of up to $10,000 upon conviction. For a deeper understanding of the reasons behind the implementation of the vacant unit tax, refer to the Vacant Unit Tax Facts handout available for more information. January 23, 2024 Why You Should Open a FHSA The First Home Savings Account (FHSA) was introduced in Canada in 2023 and there are a few reasons why you should open one as soon as possible; regardless if you plan on using it. The FHSA is a unique savings vehicle that combines features of a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA). Here is why you should open one if you are a prospective first time home buyer:   Benefits of FHSA: Contributions are tax-deductible for the year they are made, similar to an RRSP. Income, capital gains, and dividends earned in the account are tax-free, similar to a TFSA. No tax consequences when withdrawing money for the purpose of purchasing an eligible home. Contribution Limits and Carryover: First-time homebuyers can contribute up to $8,000 per year, with a lifetime limit of $40,000. Unused contribution room in a calendar year can be carried over to the following year. Strategic Opening of FHSA: Financial advisors recommend opening an FHSA to accumulate contribution room, even for those undecided about buying a home. Opening the account this year allows for additional contribution room accrual. Transfer Options: If a home purchase decision is uncertain, individuals can initially focus on accumulating contribution room in the FHSA and later transfer the money to it when ready to buy. Unused funds in the FHSA can be transferred tax-free to an RRSP if a home is not purchased. Comparison with Other Options: The TFSA offers more financial flexibility but lacks the income tax deductions of an FHSA. Unlike the HBP, the FHSA does not require repayments, and the $40,000 lifetime contribution limit can be combined with the HBP limit for a total of $75,000. FHSA Uptake and Government Intent: Since its launch, over 250,000 Canadians have opened an FHSA at various financial institutions. The FHSA was created by the federal government to help first-time homebuyers afford a property.   In summary, if you are a prospective first time home buyer but are also uncertain of when you are going to buy; a great strategic option is to open the account now and take advantage of the contribution room accrual. $8,000 per year is the contribution limit, however, since it accumulates year over year, you can maximize the use of the total contribution limit of $40,000 over 5 years. This means you could keep your FHSA open for 5 years and if you suddenly decide to make a down payment on a home, you could transfer any of your existing savings into this account to take advantage of the tax benefits. January 17, 2024 Open House - The Real Estate & Mortgage Show: January 13th 2024 For those Canadians selling their house during the winter, Paul Rushforth provides a couple tips to keep buyers interested. 1. Keep your driveway and steps clear of snow all the time. Especially right before a showing. 2. Provide extra mats at the front entrance for those wet and dirty boots. It's already difficult as it is when selling in the winter time, try to avoid simple mistakes that give the wrong impression to buyers. Frank Napolitano explains that this is the first time in a long time we are seeing a low rate of 4.89%. We have another Bank of Canada announcement coming up towards the end of January, and the industry is itching to see what the announcement holds. There may be a possiblity of rate decreases as soon as January, and if not, hopefully in April. To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. January 15, 2024 Unveiling the Canadian Mortgage Charter The Canadian government recently introduced the Canadian Mortgage Charter to address challenges faced by struggling mortgage borrowers. However, the response from industry experts has been largely critical, with some dismissing it as "nonsense" and "political theatre." The Canadian Mortgage Charter Canadians can expect banks to: Allow temporary extensions of the amortization period for mortgage holders at risk. Waive fees and costs that would have otherwise been charged for mortgage relief measures. Exempt insured mortgage holders from re-qualifying under the stress test when switching lenders at the time of a mortgage renewal. Require banks to reach out to homeowners four to six months in advance of their mortgage renewal to inform them of affordability options. Allow borrowers to make lump sum payments to avoid negative amortization or sell their principal residence without incurring prepayment penalties. Waive interest on interest when mortgage relief measures result in mortgage payments that fail to cover interest payments on a loan. Critics argue that the charter doesn't bring much new to the table, merely repackaging existing measures. The Mortgage Professionals Canada association stated that the charter mostly codifies pre-existing measures to protect mortgage holders facing financial pressure due to higher rates. To address misconceptions, there were no changes to the mortgage stress test for insured or uninsured mortgages. The confusion arose from the inclusion of a provision stating that insured mortgage holders wouldn't need to re-qualify when switching lenders, a practice already in place. The difficulty the industry faces with the Mortgage Charter is that it has no legal backing; it's a set of recommendations rather than enforceable regulations. Critics argue that its voluntary nature, with no requirement for big banks to participate, in turn, limiting its effectiveness. Criticism extends to specific principles, such as the idea that lenders could waive prepayment penalties, seen by some as unlikely given contractual obligations. The guideline advising lenders to contact borrowers 4-6 months before renewal is also criticized as many lenders already follow this practice. Moreover, the lack of a clear definition for "vulnerable borrower" raises concerns. While the charter aims to set standards for how lenders assist such borrowers, the absence of a specific definition leaves room for interpretation. In summary, industry experts view the Canadian Mortgage Charter skeptically, considering it more symbolic than impactful. They highlight existing industry practices and question the charter's voluntary nature and lack of legal backing, expressing doubts about its effectiveness in addressing mortgage-related challenges.   If you are experiencing any problems with your mortgage, remember to contact your broker to discuss your options. December 13, 2023 Bank of Canada Rate Announcement - December 2023 The Rate Increase In a recent announcement, the Bank of Canada maintained the overnight rate at 5%, announcing no change to the current rate. The bank is also maintaining its policy of quantitative tightening. While many industry experts were unsure if, yet another increase would be imminent; they are relieved to see that didn’t happen. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The Bank of Canada maintaining the policy rate means that mortgage payments would stay the same as they were. Getting Back on Track The Canadian economy has entered a period of weaker growth, which is needed to relieve price pressures. After easing to 2.8% in June, CPI inflation moved up to 3.3% in July, averaging close to 3% in line with the Bank’s projection. With the recent increase in gasoline prices, CPI inflation is expected to be higher in the near term before easing again.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Article Here: BoC Announcement December 6, 2023 Open House - The Real Estate & Mortgage Show: December 4th 2023 Numerous markets have shown that average spending is down in comparison with the same time in recent years. Since COVID caused a lot of people to save money, it's been increasingly difficult to find those extra funds to spend on things like vacations, investments and housing.   The bond market has been acting like a yo-yo jumping up and down and not showing much consistency. Banks have yet to drop their rates as we await another announcement from Bank of Canada this week.   To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. December 4, 2023 Open House - The Real Estate & Mortgage Show: November 20th 2023 Bank of Canada has held rates since the end of summer and as rates remain high, it has put a slow on the housing market. Over the course of fall we have seen the housing inventory rise, and most people expected house prices to decrease as a result. However, house prices have not changed and are remaining around the same price as a few months ago. Frank and Dory discuss trends and news in the housing and mortgage industry. To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. November 20, 2023 OSFI Update Surrounding Stress Test The recent OSFI report contained a surprising revelation in the mortgage industry. Insured borrowers are exempt from the re-application of the Minimum Qualifying Rate (MQR) when switching lenders at renewal. This exemption was previously not widely known and goes against the assumption that all insured mortgage switches required requalification under the mortgage stress test. Canada Mortgage and Housing Corporation (CMHC) confirmed this policy, allowing the transfer of CMHC-insured loans to another lender under certain conditions. However, it's important to note that lenders may still choose to re-qualify borrowers at their discretion. The mortgage stress test for default-insured mortgages was introduced by the Department of Finance in 2016. Borrowers must qualify at the higher of the MQR or two percentage points above their contract rate, whichever is higher. A mortgage switch is when a borrower transfers their existing mortgage from one lender to another, either at or before renewal. This exemption may lead to more lender options and increased competition, providing borrowers with choices. Lenders are likely to step in to offer these deals, potentially benefiting borrowers in a rising rate environment. However, it's important to emphasize that thorough underwriting standards and risk assessments are still required for insured mortgage switches to prevent fraud or misrepresentation. The exemption does not eliminate the need for these precautions.   To find out if you're able to take advantage of this new policy - contact a broker today. November 8, 2023 Bank of Canada Rate Announcement - October 2023 The Rate Increase In a recent announcement, the Bank of Canada maintained the overnight rate at 5%, announcing no change to the current rate. The bank is also maintaining its policy of quantitative tightening. While many industry experts were unsure if, yet another increase would be imminent; they are relieved to see that didn’t happen. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The Bank of Canada maintaining the policy rate means that mortgage payments would stay the same as they were. Getting Back on Track The Canadian economy has entered a period of weaker growth, which is needed to relieve price pressures. After easing to 2.8% in June, CPI inflation moved up to 3.3% in July, averaging close to 3% in line with the Bank’s projection. With the recent increase in gasoline prices, CPI inflation is expected to be higher in the near term before easing again.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement October 25, 2023 Inflation Trends Offer Financial Respite for Mortgage Holders in Canada For current homeowners in Canada who are diligently paying off their mortgages, the recent inflation data brings some promising insights. In September, the headline Consumer Price Index (CPI) revealed a decline in the inflation rate, with prices increasing by 3.8%, down from the 4% recorded in August. This decrease can have positive implications for those who are managing mortgage payments. Crucially, core inflation measures, which are closely monitored, displayed a slowing trend. The CPI-trim decreased to 3.7% year-over-year, and the CPI-median dropped to 3.8%. These figures signify the slowest pace of inflation in 31 months, indicating potential financial relief for current homeowners who have mortgages to service. As we look ahead to October, experts anticipate that headline inflation may drop further due to favorable base effects. Gasoline prices have seen a reduction of about 7% this month, which suggests that October's CPI might show a notable decrease. This can be particularly beneficial for those with existing mortgages as it could ease the cost of living. One of the significant components contributing to inflation is shelter costs, which have been on the rise. However, it's important to note that the increase has primarily been driven by rent prices. For current homeowners who have transitioned from renting to owning, understanding the dynamics of shelter costs can be insightful for budgeting and long-term financial planning. Additionally, while the per capita index shows a substantial increase in shelter costs, the actual mortgage interest costs have risen over 80% since the Bank of Canada began raising interest rates. This underscores the importance of carefully managing mortgage terms and considering refinancing options to potentially lower your mortgage interest costs. In summary, the recent inflation trends in Canada bring potential benefits for current homeowners who are managing mortgages. With a possible easing of inflation and a more stable financial environment, servicing mortgage payments may become more manageable and affordable, offering some financial respite to those with homeownership responsibilities. This also shows early signs of light for those waiting on the sidelines to get into the housing market as we can anticipate interest rates to begin to decline in the near future.   Stay up to date with the latest news, information and tips with Mortgage Brokers Ottawa. Follow us on social media! Facebook - Instagram - YouTube October 19, 2023 Open House - The Real Estate & Mortgage Show: October 16th 2023 Statistics have shown that housing inventory has risen over the past month while sales have been slower. Some experts are predicting sales to continue to be slow for the remainder of 2023 with hopes of it picking up again in 2024. Interest rates remain high but we've managed to avoid any further increases, and now we are hoping to see interest rates begin to come down in the following months to come. To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. October 16, 2023 Fixed or Variable? High Stakes for Homeowners Choosing between a fixed or variable-rate mortgage has become a high-stakes decision as interest rates sit at historic lows. While variable-rate mortgages lost favor due to Bank of Canada interest rate hikes, fixed-rate mortgages have also risen from pandemic lows. Some borrowers still opt for variable rates, believing that rates have peaked and are comfortable with their payments. Variable rates often have less severe penalties for early loan termination. Frank Napolitano, co-founder and mortgage agent at Mortgage Brokers Ottawa, said he's still seeing some borrowers opt for a variable rate, even noting that a recent client who was struggling with a variable-rate mortgage chose to stick with it after consolidating some other debt and extending the amortization period. "He's decided he's going to go variable only because he believes that the rates are now probably at the peak and the payment that's been set up for him at 25 years is something that he's very comfortable with," Napolitano said. "He's hoping that with so many people struggling that the interest rates are going to come down and then he will consider locking it in, but he wants rates to come down a little bit before (then)." Napolitano adds that variable rate mortgages generally have less onerous penalties than fixed-rate options if you have to get out of your loan early. Traditionally, variable rates were slightly lower than fixed ones, but now, five-year variable-rate mortgages are often more expensive. This means that variable-rate borrowers need Canada's central bank to lower prime rates for savings. The Bank of Canada recently kept its key rate steady but signaled future increases to combat inflation. Variable-rate borrowers must be prepared for potential rate hikes and consider higher monthly payments or longer loan terms. Converting a variable-rate mortgage to a fixed one may incur penalties. Fixed rates offer stability but are currently at their highest in years. To make the right choice, start by examining your budget and actual expenses. Many Canadians are shifting back to fixed-rate mortgages for monthly stability. Some are opting for shorter terms, hoping rates will fall in the future. Seek personalized advice from financial professionals to match the loan with your unique situation, goals, and life stage.   Have questions about your mortgage? Contact a mortgage broker today. October 11, 2023 Open House - The Real Estate & Mortgage Show: October 10th 2023 Average sale price has decreased the past month in comparison with October 2022 and mortgage rates have remained the same over the past couple of months. With the next Bank of Canada announcement on October 25th - we can only hope for rates to decrease. To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. October 10, 2023 Home Appraisals: Who Owns the Report and Why You Might Not Get a Copy Although prospective homeowners are typically responsible for the cost of their home appraisal, many are unaware that they usually won't receive a copy of the appraisal report. The reason behind this lies in the fact that the professional appraiser hired to assess a home's value doesn't actually work for the prospective homeowner. In the world of mortgage lending, the saying "he or she who holds the gold, makes the rules" holds true. In other words, the party responsible for commissioning the substantial loan for mortgage financing has the authority to determine who pays for the appraisal. This can be confusing for homeowners, especially when compared to other financial processes. For instance, financial institutions are obligated to provide clients with copies of their credit score assessments, even if a third party requests it. This transparency ensures that everyone involved understands a person's creditworthiness. So, who owns the appraisal report? According to the Appraisal Institute of Canada (AIC), which represents most appraisers, the appraisal report belongs to the entity that commissioned it. In the context of financing, this means it belongs to the lender. Keith Lancastle, interim CEO at the AIC, explains that even though homeowners foot the bill for the appraisal, they are not the appraiser's client. The appraiser's primary obligation is to their client, which is the entity that contracted them for the appraisal, typically the lender. The Canadian National Association of Real Estate Appraisers (CNAREA) shares a similar stance on appraisal ownership. They follow the Uniform Standards of Professional Appraisal Practice (USPAP), where the report is considered the property of the client, which may not always be the party that pays for the appraisal. However, the client has the authority to share the report with other parties as long as confidential or licensed data is not compromised. These strict guidelines on appraisal report ownership are in place to ensure that lenders receive the specific information they require. Different lenders may have distinct lending criteria, so an appraisal tailored for one lender may not be suitable for another. Christopher Bisson, founder of appraisal tech company Value Connect, notes that appraisers prefer to know who the report is intended for to align it with the criteria that specific lenders typically request. This avoids unexpected discrepancies when switching from one lender to another. While it's possible for appraisers to release the results of an appraisal with their client's permission, this doesn't happen frequently. However, clients may access appraisal reports in their early stages. Some mortgage representatives receive draft copies and make them available to borrowers. Bisson recommends this approach when it's unclear which lender will handle a mortgage application. By informing the appraiser about the likely lender type, the report can be prepared according to that lender's criteria, reducing surprises. Lancastle suggests that lenders may be hesitant to release appraisal reports to maintain a competitive advantage. This practice of homeowners paying for the appraisal has become a standard in the mortgage industry, forming part of the business model established by the lending community. September 28, 2023 Open House - The Real Estate & Mortgage Show: September 18th 2023 With interest rates being so high, Canadians are having a hard time keeping up with the payments. Those who own rental properties are losing cashflow and having to sell their properties. Rental prices are higher than ever, which means that those who are trying to sell a rental properties are having a hard time getting their tentants to leave. OSFI introduced the stress test before the pandemic hit, which at the time was a great idea. Now that rates are over 5%, people now need to qualify at 7%-8%. Discussions have risen about modifying the stress test now that rates have potentially hit their peaks to allow more first-time home buyers to enter the market.   To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. September 18, 2023 Why Should I Get Pre Approved? If you are looking for a new home, be sure you are pre-approved. With a mortgage pre-approval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend. The mortgage professional that you work with to get pre-approved will let you know for certain what you can afford based on lender and insurer criteria, and what your payments on a specific mortgage will be. Licensed mortgage professionals can lock-in an interest rate for you for anywhere from 60 – 120 days while you shop for your perfect home. By locking in an interest rate, you are guaranteed to get a mortgage for at least that rate or better. If interest rates drop, your locked-in rate will drop as well. However, if the interest rates go up, your locked-in interest rate will not, ensuring you get the best rate throughout the mortgage pre-approval process. In order to get pre-approved for a mortgage, a mortgage professional requires a short list of information that will allow them to determine your buying power. A mortgage professional will explain to you the benefits of shorter or longer mortgage terms, the latest programs available, which mortgage products they believe will most likely meet your needs the best, plus they will review all of the other costs involved with purchasing a home. Getting pre-approved for a mortgage is something every potential home buyer should do before going shopping for a new home. A pre-approval will give you the confidence of knowing that financing is available, and it can put you in a very positive negotiation position against other home buyers who aren’t pre-approved.   Looking to get pre approved for a mortgage? Contact a mortgage broker today. September 13, 2023 Bank of Canada Rate Announcement - September 2023 The Rate Increase In a recent announcement, the Bank of Canada maintained the overnight rate at 5%, announcing no change to the current rate. The bank is also maintaining its policy of quantitative tightening. While many industry experts were unsure if, yet another increase would be imminent; they are relieved to see that didn’t happen. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The Bank of Canada maintaining the policy rate means that mortgage payments would stay the same as they were. Getting Back on Track The Canadian economy has entered a period of weaker growth, which is needed to relieve price pressures. After easing to 2.8% in June, CPI inflation moved up to 3.3% in July, averaging close to 3% in line with the Bank’s projection. With the recent increase in gasoline prices, CPI inflation is expected to be higher in the near term before easing again.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement September 6, 2023 Open House - The Real Estate & Mortgage Show: September 5th 2023 On this episode the big topic is the upcoming Bank of Canada announcement on September 6th 2023. Many economists are predicting that there will be no change to the prime rate on Wednesday. With the constant increases over the past year, Canadians have been feeling the strain on the dollar within the past few months. Typically when interest rate hikes occur, it can take about 6 months to feel the effects in the economy. The Bank of Canada is trying to prevent a recession by increases rates, however, some economists say there will be a mild recession while others say there won't be a recession at all. To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. September 5, 2023 Open House - The Real Estate & Mortgage Show: August 28th 2023 Frank Napolitano and Paul Rushforth discuss mortgage and housing industry news. Then next Bank of Canada announcement is on September 6th and the industry is hoping for rates to stay the same but would also be expecting another quarter point increase.   To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. August 28, 2023 Open House - The Real Estate & Mortgage Show: August 21st 2023 Frank and Dory discuss current housing trends as the housing market has slowed down. Canadians are being more cautious before buying with the uncertainty of the future for interest rates. Again we see many people sitting on the sidelines in anticipation. The next Bank of Canada announcement is on September 06th.   To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. August 21, 2023 Mortgage Portability Options Selling your current home and moving into a new one can be stressful enough, let alone worrying about your current mortgage and whether you’re able to carry it over to your new home.   Porting enables you to move to another property without having to lose your existing interest rate, mortgage balance and term. And, better yet, the ability to port also saves you money by avoiding early discharge penalties.   It’s important to note, however, that not all mortgages are portable. When it comes to fixed-rate mortgage products, you usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current interest rate.   With variable-rate mortgages, on the other hand, porting is usually not available. As such, upon breaking your existing mortgage, a three-month interest penalty will be charged. This charge – which can be a surprising $1,500-$4,000 penalty at closing – may or may not be reimbursed with your new mortgage.   <SUBHEAD> Porting Conditions While porting typically ensures no penalty will be charged when you sell your existing property and buy a new one, some conditions that may apply include: Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day. Other lenders offer a week to do this, some a month, and others up to three months. Some lenders don’t allow a changed term or force you into a longer term as part of agreeing to port you mortgage. Some lenders will, in fact, reimburse your entire penalty whether you are a fixed or variable borrower if you simply get a new mortgage with the same lender – replacing the one being discharged. Additionally, some lenders will even allow you to move into a brand new term of your choice and start fresh. There are instances where it’s better to pay a penalty at the time of selling and get into a new term at a brand new rate that could save back your penalty over the course of the new term.   While this may sound like a complicated subject, your mortgage professional will be able to explain all of your options and help you select the right mortgage based on your own specific needs.   If you would like a mortgage agent to take a look at your mortgage situation and give you suggestions - contact a mortgage broker today.   August 16, 2023 Open House - The Real Estate & Mortgage Show: August 14th 2023 Frank Napolitano of Mortgage Brokers Ottawa and Paul Rushforth of Paul Rushforth Real Estate discuss predictions for what's to come in Fall 2023, especially regarding the next Bank of Canada announcement on September 6th 2023. You can catch them live Saturday mornings on CFRA 580 CFRA.   To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. August 14, 2023 Open House - The Real Estate & Mortgage Show: July 29th 2023 Frank Napolitano of Mortgage Brokers Ottawa and Paul Rushforth of Paul Rushforth Real Estate discuss the hottest topics of the mortgage and housing industry. You can catch them live Saturday mornings on CFRA 580 CFRA.   To listen to the latest full episode, click here. Contact your Mortgage Broker today for trusted advice. August 2, 2023 How You Can Reduce Your Monthly Payments The two topics we hear most about these days are inflation and interest rates.   We can help with that. Even with the current interest rate environment we have been able to help our clients reduce their monthly payments by consolidating their debt or through other strategies. Please see a debt consolidation example below.   If you are looking to reduce your monthly payments, please contact us by phone or email, one of our agents would love to help. Contact a broker today. August 2, 2023 Open House - The Real Estate & Mortgage Show: July 18th 2023 After the Bank of Canada announced yet another rate hike last week, we are beginning to wonder when it will end. Shortly after the pandemic the BoC announced that interest rates would stay low for a long time and encouraged Canadians to spend, however, the opposite has happened. Listen to Frank and Dory discuss the current interest rate environment and other issues in the mortgage and housing industry. To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. July 18, 2023 Bank of Canada Rate Announcement - July 2023 The Rate Increase In a recent announcement, the Bank of Canada raised its target for the overnight rate by ¼% to a new overnight rate of 5%. This decision also led to the Bank Rate being set at 5% and the deposit rate at 5%. The bank is also maintaining its policy of quantitative tightening. While most of the mortgage and housing industry were hoping to see another rate hold; another increase was expected. In Canada, the economy performed better than anticipated in the first quarter of 2023, with a GDP growth rate of 3.1%. The demand for services continued to rebound, and there was an increase in spending on goods sensitive to interest rates. Additionally, the housing market activity has recently picked up. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.25% means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal while other variable-rate mortgages will see an increase to the monthly payment. Getting Back on Track The bank predicts Canada’s economy grew by 3.6% in 2022, slightly stronger than was projected in October. Inflation has declined from 8.1% in June to 6.3% in December. Year-over-year measures of core inflation are still around 5%, but 3-month measures of core inflation have come down, suggesting that core inflation has peaked.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement July 12, 2023 10 Questions You Should Ask Your Agent 1. If I have mortgage default insurance do I also need mortgage life insurance? Yes. Mortgage life insurance is a life insurance policy on a homeowner, which will allow your family or dependents to pay off the mortgage on the home should something tragic happen to you. Mortgage default insurance is something lenders require you to purchase to cover their own assets if you have less than a 20% down payment.   2. What steps can I take to maximize my mortgage payments and own my home sooner? There are many ways to pay down your mortgage sooner that could save you thousands of dollars in interest payments throughout the term of your mortgage. Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal (the true value of your mortgage minus the interest payments) per calendar year. This will also help reduce your amortization period (the length of your mortgage). Another way to reduce the time it takes to pay off your mortgage involves changing the way you make your payments by opting for accelerated bi-weekly mortgage payments. Not to be confused with semi-monthly mortgage payments (24 payments per year), accelerated bi-weekly mortgage payments (26 payments per year) will not only pay your mortgage off quicker, but it’s guaranteed to save you a significant amount of money over the term of your mortgage.   3. Can I make lump-sum or other prepayments on my mortgage, or will I be penalized? Most lenders enable lump-sum payments and increased mortgage payments to a maximum amount per year. But, since each lender and product is different, it’s important to check stipulations on prepayments prior to signing your mortgage papers.   4. How do I ensure my credit score enables me to qualify for the best possible rate? There are several things you can do to ensure your credit remains in good standing. Following are five steps you can follow: 1) Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards so they’re below 70% of your limits. 2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there’s a balance at the end of the month, this affects your score – credit formulas don’t consider the fact that you may have paid the balance off the next month. 3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. The best bet is to pay your balances down or off before your statement periods close. 4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. Use these cards periodically and then pay them off. 5) Don’t let mistakes build up. Always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.   5. What amortization will work best for me? While the lending industry’s benchmark amortization period is 25 years, and this is the standard that is used by lenders when discussing mortgage offers, and usually the basis for mortgage calculators and payment tables, shorter or longer timeframes are available – to a maximum of 30 years. The main reason to opt for a shorter amortization period is that you’ll become mortgage-free sooner. And since you’re agreeing to pay off your mortgage in a shorter period of time, the interest you pay over the life of the mortgage is, therefore, greatly reduced. A shorter amortization also affords you the luxury of building up equity in your home sooner. Equity is the difference between any outstanding mortgage on your home and its market value. While it pays to opt for a shorter amortization period, other considerations must be made before selecting your amortization. Because you’re reducing the actual number of mortgage payments you make to pay off your mortgage, your regular payments will be higher. So if your income is irregular because you’re paid commission or if you’re buying a home for the first time and will be carrying a large mortgage, a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be the best option for you.   6. What mortgage term is best for me? Selecting the mortgage term that’s right for you can be a challenging proposition for even the savviest of homebuyers, as terms typically range from six months up to 10 years. The first consideration when comparing various mortgage terms is to understand that a longer term generally means a higher corresponding interest rate. And, a shorter term generally means a lower corresponding interest rate. While this generalization may lead you to believe that a shorter term is always the preferred option, this isn’t always the case. Sometimes there are other factors – either in the financial markets or in your own life – that you’ll also have to take into consideration when selecting the length of your mortgage term. If paying your mortgage each month places you close to the financial edge of your comfort zone, you may want to opt for a longer mortgage term, such as five or 10 years, so that you can ensure that you’ll be able to afford your mortgage payments should interest rates increase. By the end of a five- or 10-year mortgage term, most buyers are in a better financial situation, have a lower outstanding principal balance and, should interest rates have risen throughout the course of your term, you’ll be able to afford higher mortgage payments.   7. Is my mortgage portable? Fixed-rate products usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current rate. With variable-rate mortgages, however, porting is usually not available. This means that when breaking your existing mortgage, a three-month interest penalty will be charged. This charge may or may not be reimbursed with your new mortgage. While porting typically ensures no penalty will be charged when you sell your existing property and buy a new one, it’s best to check with your mortgage broker for specific conditions. Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day, while others offer extended periods.   8. If I want to move before my mortgage term is up, what are my options? The answer to this question often depends on your specific lender and what type of mortgage you have. While fixed mortgages are often portable, variable are not. Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day, while others offer extended periods. As long as there’s not too much time between the sale of your existing home and the purchase of the new home, as a rule of thumb most lenders will allow you to port the mortgage. In other words, you keep your existing mortgage and add the extra funds you need to buy the new house on top. The interest rate is a blend between your existing mortgage rate and the current rate at the time you require the extra money.   9. What steps can I take to help ensure I don’t become a victim of title or mortgage fraud? The best way to prevent fraud is to be aware of how it’s committed. Following are some red flags for mortgage fraud: someone offers you money to use your name and credit information to obtain a mortgage; you’re encouraged to include false information on a mortgage application; you’re asked to leave signature lines or other important areas of your mortgage application blank; the seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing; or the seller or developer rebates you money on closing, and you don’t disclose this to your lending institution. Sadly, the only red flag for title fraud occurs when your mortgage mysteriously goes into default and the lender begins foreclosure proceedings. Even worse, as the homeowner, you’re the one hurt by title fraud, rather than the lender, as is often the case with mortgage fraud. Unlike with mortgage fraud, during title fraud, you haven’t been approached or offered anything – this is a form of identity theft. Following are ways you can protect yourself from title fraud: always view the property you’re purchasing in person; check listings in the community where the property is located – compare features, size and location to establish if the asking price seems reasonable; make sure your representative is a licensed real estate agent; beware of a real estate agent or mortgage broker who has a financial interest in the transaction; ask for a copy of the land title or go to a registry office and request a historical title search; in the offer to purchase, include the option to have the property appraised by a designated or accredited appraiser; insist on a home inspection to guard against buying a home that has been cosmetically renovated or formerly used as a grow house or meth lab; ask to see receipts for recent renovations; when you make a deposit, ensure your money is protected by being held “in trust”; and consider the purchase of title insurance.   10. How do I ensure I get the best mortgage product and rate upon renewal at the end of my term? The best way to ensure you receive the best mortgage product and rate at renewal is to enlist your mortgage broker once again to get the lenders competing for your business just like they did when you negotiated your last mortgage. A lot can change over a single mortgage term, and you can miss out on a lot of savings and options if you simply sign a renewal with your existing lender without consulting your mortgage broker.   Even if you currently have a mortgage, you can contact one of our brokers today and ask these questions about your own mortgage. It may be worth asking to get a strategy lined up for the future.   Visit here to contact a mortgage broker today. July 5, 2023 Have You Considered a 50/50 Mortgage? Hybrid mortgages – also known as 50/50 mortgage products – include an equal mix of fixed-rate and variable-rate components within your single mortgage. This means you get the best of both worlds – the security of fixed repayments with the flexibility of a variable rate. Although there was a time in recent years when mortgage experts considered a variable-rate mortgage as the obvious choice to save mortgage consumers money over the long term, with fixed rates remaining near historic lows, a 50/50 mortgage may be a great alternative for you. In essence, since it’s extremely difficult to accurately predict rates over the long term, a 50/50 mortgage offers interest rate diversification, which can help reduce your level of risk. If you opt for a 50/50 product, half of your mortgage is locked into a five-year fixed rate and half is at a five-year variable rate. You can lock in your variable-rate portion at any time without paying a penalty. As well, each portion of the 50/50 mortgage operates independently – like two separate mortgages – yet the product is registered as only one collateral charge.   The 50/50 mortgage product is well-suited to a variety of borrowers, including those who: Would normally go fully variable but are afraid prime rate is at its bottom Aren’t comfortable being locked into a fully fixed rate Can’t decide between a fixed or variable mortgage Savvy first-time homebuyers   Some features of the 50/50 mortgage include: 20% annual lump-sum pre-payment privileges 20% annual payment increase ability Portability (the option to transfer your existing loan amount to a new property without penalty)   As the 50/50 option is a fairly new offering, according to a recent study by the Canadian Association of Accredited Mortgage Professionals (CAAMP), 5% of Canadian mortgage holders have 50/50 mortgages compared to 28% with variable-rate mortgages and 68% with fixed-rate mortgages. But many experts believe the 50/50 mortgage is quickly gaining momentum.   If you would like a mortgage agent to take a look at your credit situation and give you suggestions - contact a mortgage broker today. June 28, 2023 Open House - The Real Estate & Mortgage Show: June 24th 2023 Rising rates have been a trend in 2023 again, and they are affecting every Canadian's cash flow and cost of living. Frank and Paul discuss how it is affecting Canadians and some ways that people are stayed ahead of the rate increases.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. June 26, 2023 Bank of Canada Rate Announcement - June 2023 The Rate Increase In a recent announcement, the Bank of Canada raised its target for the overnight rate by ¼% to a new overnight rate of 4¾%. This decision also led to the Bank Rate being set at 5% and the deposit rate at 4¾%. The bank is also maintaining its policy of quantitative tightening. While most of the mortgage and housing industry were hoping to see another rate hold another increase was expected. In Canada, the economy performed better than anticipated in the first quarter of 2023, with a GDP growth rate of 3.1%. The demand for services continued to rebound, and there was an increase in spending on goods sensitive to interest rates. Additionally, the housing market activity has recently picked up. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.25% means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal while other variable-rate mortgages will see an increase to the monthly payment. Getting Back on Track The bank predicts Canada’s economy grew by 3.6% in 2022, slightly stronger than was projected in October. Inflation has declined from 8.1% in June to 6.3% in December. Year-over-year measures of core inflation are still around 5%, but 3-month measures of core inflation have come down, suggesting that core inflation has peaked.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement June 7, 2023 Open House - The Real Estate & Mortgage Show: June 3rd 2023 The market report for May 2023 has been released, and is showing that there has been an increase in the number of listings and sales in Ottawa. This is good news for the housing market and the largest improvement we've seen in the past year. To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. June 6, 2023 Tips for Improving Your Credit Score In today’s economic climate of tighter credit requirements and increased unemployment rates taking their toll on some Canadians, there’s no doubt that many people may not fit into the traditional banks’ financing boxes as easily as they may have just a year ago. Your best solution is to consult your mortgage professional to determine whether your situation can be quickly repaired or if you face a longer road to credit recovery. Either way, there are solutions to every problem. Mortgage professionals who are experts in the credit repair niche can help credit challenged clients improve their situations via a number of routes. And if the situation is beyond the expertise of a mortgage professional, they can help you get in touch with other professionals, including credit counsellors and bankruptcy trustees.   If you have some equity built up in your home and still have a manageable credit score, for instance, you can often refinance your mortgage and use that money to pay off high-interest credit card debt. By clearing up this debt, you are freeing up more cash flow each month.In the current lending environment, with interest rates at an all-time low, now is an ideal time for you to refinance your mortgage and possibly save thousands of dollars per year, enabling you to pay more money per month towards the principal on your mortgage as opposed to the interest – which, in turn, can help build equity quicker.   Following are five steps you can use to help attain a speedy credit score boost:   1) Pay down credit cards. The number one way to increase your credit score is to pay down your credit cards so you’re only using 30% of your limits. Revolving credit like credit cards seems to have a more significant impact on credit scores than car loans, lines of credit, and so on.   2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month.   3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders may view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring agencies that you’re regularly maxing out your cards. The best bet is to pay your balances down or off before your statement periods close.   4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. You should use these cards periodically and then pay them off.   5) Don’t let mistakes build up. You should always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.   If, however, you have repeatedly missed payments on your credit cards, you may not be in a situation where refinancing or quickly boosting your credit score will be possible. Depending on the severity of your situation – and the reasons behind the delinquencies, including job loss, divorce, illness, and so on – your Mortgage Centres Canada mortgage professional can help you address the concerns through a variety of means and even refer you to other professionals to help get your credit situation in check.   If you would like a mortgage agent to take a look at your credit situation and give you suggestions - contact a mortgage broker today. May 31, 2023 Open House - The Real Estate & Mortgage Show: May 27th 2023 The bond market has been seeing some twists and turns recently and we have been seeing some leniency with allowing new housing to begin construction. To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. May 28, 2023 Transitioning from Renter to Homeowner Transitioning from renter to homeowner is one of the biggest decisions you’ll make throughout your lifetime. That’s why it’s essential to surround yourself with a team of experts – including both a mortgage and real estate professional – to walk you through the steps to home ownership, answer all of your questions and concerns, help you decide what kind of home you can afford and get you pre-approved for a mortgage.   With interest rates still hovering around “emergency” levels – low rates never before seen by your parents and even your grandparents – now is an ideal time for first-time homebuyers to embark upon homeownership.   Down payment The main reason many renters feel they can’t afford to purchase a home has to do with saving for a down payment. But there are many solutions available today that can help first-time buyers with their down payments.   Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.   Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. You must, however, stay with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.   Educating and coaching There’s an endless amount of information available to prospective homeowners – through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you really need, therefore, is education and coaching as opposed to being bombarded with more information.   Speaking to a mortgage professional in order to obtain a pre-approval prior to setting out home shopping can help set your mind at ease, because many first-time buyers are overwhelmed by the financing and buying processes, and often don’t know what it truly costs to purchase a home. Real examples can go a long way in showing you what it costs to buy a home in your area versus what you’re currently paying in rent. For instance, if a renter is currently paying $800 per month, with that same payment (including taxes) they could afford to buy a $120,000 home. And assuming real estate values increase 2% per year over the next five years, the new homeowner would have accumulated $27,000 in equity in their home. If they continue renting, however, this $27,000 has generated equity in someone else’s home. Last year, a $5,000 increase was made to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.   And if you’re part of a couple making a home purchase together, you can each withdraw up to $25,000 from your RRSPs.   Planning to purchase your first home and move away from renting? - contact a mortgage broker today. May 25, 2023 Open House - The Real Estate & Mortgage Show: May 23rd 2023 On this episode Frank and Dora discuss what the current mortgage and real estate market is telling us, as well as discuss what we can expect for the rest of 2023.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. May 23, 2023 Open House - The Real Estate & Mortgage Show: April 29th 2023 Frank and Paul discuss the current state of the housing market. Inventory is currently low compared to a usual spring market, and Frank and Paul forecast that as rates begin to come down in late 2023 we will see housing prices begin to rise. To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. May 1, 2023 Remaining Proactive In Trying Times With the uncertainty of the economy racing through everybody's minds, planning for the future and potential job loss is one of the most important undertakings you can make to ensure you can pay your mortgage in an uncertain economy.   Mortgage Brokers Ottawa Professionals often suggest you put money aside each pay period so you can place six to 12 months’ worth of mortgage payments into a short-term GIC as security for a possible job loss. And, best of all, if your job remains secure, you can take the money out of your GIC and make a pre-payment back on your mortgage on your anniversary date, which can end up saving you thousands of dollars in interest payments.   Refinancing to access your home’s equity But if it’s not plausible to save money each pay period, refinancing to access the equity you’ve already built up in your home is another valid option for planning ahead in uncertain times.  In addition to freeing up money to store future mortgage payments in a GIC, some of the money can also be used to pay off high-interest debt – such as credit cards – and get you and your family off to a fresh financial start.   You will find that taking equity out of your home to pay off high-interest debt can put more money in your bank account each month. There are penalties for paying your mortgage loan out prior to renewal, but these could be offset by the extra money you acquire through a refinance.   With access to more money, you will be better able to manage your debt. Refinancing your first mortgage and taking some existing equity out could also enable you to make other investments, go on vacation, do some renovations or even invest in your children’s education. Keep in mind, however, that by refinancing you may extend the time it will take to pay off your mortgage.     Options for paying your mortgage down quicker There are many ways to pay down your mortgage sooner that could save you thousands of dollars in interest payments throughout the term of your mortgage.  Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal (the true value of your mortgage minus the interest payments) per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money.   Another way to lower the time it takes to pay off your mortgage involves changing the way you make your payments by opting for accelerated bi-weekly mortgage payments. Not to be confused with semi-monthly mortgage payments (24 payments per year), accelerated bi-weekly mortgage payments (26 payments per year) will not only pay your mortgage off quicker, but it’s guaranteed to save you a significant amount of money over the term of your mortgage.   If, for instance, you have a $100,000 mortgage, an interest rate of 5% and an amortization period of 25 years, your monthly mortgage payment would be $581.60 and your total payments for a year would be $6,979.20 ($581.60 x 12).   To understand the savings accelerated bi-weekly mortgage payments can make, take the monthly mortgage payment of $581.60 and divide it by two ($581.60 ÷ 2 = $290.80).  Next, take that payment and multiple it by 26 to arrive at your total payments for the year ($290.80 x 26 = $7,560.80).   As you can see, by using the monthly mortgage payment plan, you’ve made payments totalling $6,979.20 for the year, while using the accelerated bi-weekly mortgage plan you’ve made payments totalling $7,560.80 – a difference of $581.60.    Basically, with accelerated bi-weekly mortgage payments, you’re making one additional monthly payment per year. Using this example, you would reduce the amortization on your $100,000 mortgage from 25 years to just over 21 years and your total savings on interest over the life of the mortgage would be just over $12,000.   By refinancing now and paying off your debt or putting money aside for future mortgage payments, you can put yourself and your family in a better financial position.   For tips on getting ahead without already owning a home, read our article here: Budgeting Towards Ownership   For assistance with refinancing or details regarding prepayment penalties - contact a mortgage broker today. April 26, 2023 Open House - The Real Estate & Mortgage Show: April 24th 2023 Frank and Dora discuss current housing statistics, local mortgage and housing news, and the ongoing government worker strike.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. April 25, 2023 First Home Savings Account The First Time Home Buyers Savings Account (FHSA) in Canada is a type of account that offers tax benefits and helps first-time homebuyers save money towards their first qualifying home purchase. Contributions made to the FHSA account are tax-deductible, similar to an RRSP, and qualifying withdrawals for purchasing a first home are non-taxable, similar to a TFSA. However, with an FHSA and unlike the Home Buyers’ Plan, the funds do not need to be paid back.   Eligibility Individuals who are 18 years or older, Canadian residents and first-time homebuyers are eligible to open an FHSA account.   Parameters The account can stay open for 15 years, until the end of the year that you turn 71, or at the end of the year following the year in which you make a qualifying withdrawal from an FHSA for the first home purchase, whichever comes first.   Contributions and Deductions Annual contributions to the account are capped at $8,000, with a maximum lifetime contribution of $40,000. Unused contribution room can carry forward to the following year up to a maximum of $8,000. Individuals would be able to claim an income tax deduction for contributions made in a particular taxation year.   If the savings in the account are not used for a qualifying home purchase, they can be transferred to an RRSP or RRIF account on a non-taxable basis. The funds transferred to an RRSP or RRIF will be taxed upon ultimate withdrawal. If not transferred but instead withdrawn, FHSA funds would be subject to taxes.   What is a qualifying withdrawal? Must be a first-time homebuyer and a resident of Canada at the time of the withdrawal to the acquisition of the qualifying home. You must have a written agreement to buy or build a qualifying home located in Canada before October 1 of the year following the year of withdrawal. You must also intend to occupy the qualifying home as your principal place of residence within one year of buying or building it. How is the FHSA different from the Home Buyer’s Plan? With the current Home Buyers' Plan, Canadians can withdraw up to $35,000 from their RRSP subject to eligibility and conditions, then pay back the funds to their RRSP over 15 years.   Unlike the Home Buyers’ Plan, with an FHSA, the funds do not need to be paid back.   Our brokers are here to guide you on which investment option, or combination of options, will help you reach your home ownership goals. If you want to know more about the FHSA - contact a mortgage broker today. April 19, 2023 Mortgage Minute: Your Questions Answered Q: There's been some rumors about a 40 year amortization. Is that going to happen? A: I don't think so. It doesn't feel like it. Certainly, OSFI has no interest in making it easier for Canadians to get mortgages just yet. We went through a traumatic, in their eyes, a traumatic period where too many Canadians took mortgages that maybe once interest rates started to go up, they really couldn't handle. So they want to make sure that that doesn't happen again.   Q: Why is my bank asking me to renew one year from my maturity when my interest rate is substantially better than the rates they're offering me now? A: It’s a retention tool, there is no other common sense logical explanation to it other than to try and get the client to stay with them for an additional four years. So if they have a year left, you know, sign up for a new five year. I would caution Canadians maybe to think twice about doing that and think a third time, because really every single bank economist has predicted for interest rates to come down over the next 6 to 12 months.   Q: How can we get more information about mortgage relief programs that are available? A: Anybody that bought with less than 20% down the default insurers all have plans in place to assist Canadians. So what they can do is things like maybe interest only payments for the next three months, six months. And if you remember when COVID started, we had that pause in payments for 3 to 6 months. All those programs are available if you apply for them. So if you're really suffering through some hardship, inflation's got the best of you. Maybe you've had a job loss or anything else has happened. Reach out to your institution first that's got your mortgage. And if they're not giving you any solutions, then ask the institution to tell you which default insurer. There's three of them out there, there’s CMHC, Sagen and Canada Guarantee.   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here April 18, 2023 Open House - The Real Estate & Mortgage Show: April 17th 2023 Houses are selling quickly and inventory is currently short, this is indicating a favourable market for sellers. Frank and Paul discuss current inflation, housing, mortgage and economy news and as always answers questions from public callers.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. April 17, 2023 Open House - The Real Estate & Mortgage Show: April 10th 2023 Frank attends a mortgage conference and brings back with him some advice and insights on what was discussed. Frank and Paul discuss what issues need to be fixed in the mortgage and housing industries and what is most likely going to happen. To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. April 12, 2023 Bank of Canada Rate Announcement - April 2023 The Rate Increase As widely expected, BOC has announced it will again hold its target for the overnight rate at 4.50%.  This being the second rate hold means inflation is beginning to come down and the BOC has acknowledged that a pause to rate increases was the right decision. The hold on rates was expected by the market and was already built into the longer-term bond market pricing. The bond market has been declining while remaining optimistic that the central bank would pause further interest rate hikes, which it effectively has done.  This is great for consumers as we see downward pressure on the fixed term interest rates. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.25% means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal while other variable-rate mortgages will see an increase to the monthly payment. Getting Back on Track The bank predicts Canada’s economy grew by 3.6% in 2022, slightly stronger than was projected in October. Inflation has declined from 8.1% in June to 6.3% in December. Year-over-year measures of core inflation are still around 5%, but 3-month measures of core inflation have come down, suggesting that core inflation has peaked.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement April 12, 2023 Determining The Best Mortgage Term Choosing the mortgage term that is right for you can be a challenging proposition for even the savviest of homebuyers. By understanding mortgage terms and what they mean in dollars and sense, you can save the most money and choose the term that is right for you. The first consideration when comparing various mortgage terms is to understand that a longer term generally means a higher corresponding interest rate. And, a shorter term generally means a lower corresponding interest rate. While this generalization might lead you to believe that a shorter term is always the preferred option, this is not always the case. Sometimes there are other factors, either in the financial markets or in your own life, which you will also have to take into consideration when you select your mortgage term length. If paying your mortgage each month places you close to the financial edge of your comfort zone, you may want to opt for a longer term mortgage, for instance ten years, so that you can ensure that you will be able to afford your mortgage payments should the interest rates increase. By the end of a ten year mortgage term, most buyers are in a better financial situation, have a lower principle balance due, and should interest rates have risen, will be able to afford higher mortgage payments. If you are shopping for a mortgage for an investment property, you will likely want to consider choosing a longer mortgage term. This will allow you to know that the mortgage payments on the property will be steady for a long time and allow you to more accurately project your future income from the property. Choosing the right mortgage term is a unique decision for each individual. By understanding your personal financial situation and your tolerance for risk, a mortgage professional can assist you in choosing the mortgage term which will work the best.   If you want to know more about mortgage terms - contact a mortgage broker today. April 6, 2023 Mortgage Minute: Your Questions Answered Q: Now for another mortgage minute with Frank Napolitano. He's here to answer some frequently asked questions when it comes to mortgages and the housing market in our city. Morning, Frank. Good morning. All right. Let's get right to it. The budget comes out today, so we often will see if there's anything in there. And we're asking, are there any housing or mortgage changes coming that might help young Canadians who aspire home ownership? A: We hope there is. We're not confident that there is. We've been lobbying the government association for many, many months. Maybe increasing amortization to 30 years for first time homebuyers would be a nice start, especially with the interest rates as high as they are. But I'm not so sure, or at least we feel like it might not be in this budget. I know that the new home savings plan is out where, you know, a young Canadian will be able to put $8,000 away every year, up to $40,000, and have that as a down payment. But really, there's already a TFSA that they can use. There's already the RSP that they can put money in. So, I'm not sure that that one moves the needle in any way. I think what we need is hopefully interest rates to come down as inflation starts to temper and maybe a 30-year amortization would be a good start for the government. Help us out on.   Q: With the cost of everything going up. We've accumulated some credit card balances and we need a new car. Our bank that we have the mortgage with has turned us down as we missed a couple of credit card payments recently. Our current mortgage is at 2.09% and has two years left. We don't want to break that mortgage. Are there any other options for us? A: There are, again, just because one bank turns you down, the bank that you have your current mortgage with doesn't mean that another lender wouldn't say yes, especially if you've just got some minor blips on your credit history. If you've got the equity in your home, which many people that have in this case, it sounds like they've got, they’re three years into their purchase, into their home.   Q: My husband lost his job in 2020 and we had no choice but to file a consumer proposal as our debts got out of control. He has since found a better job, and we have one year left to pay off our proposal. But we just received an inheritance, and we'll be paying it off. And we will have funds left over for a down payment towards a house. Will we be able to qualify? A: It's tough. If the down payment is significant enough, they probably will. They would need a minimum of 20% down. The way it works with the consumer proposal very similar to bankruptcy. Bankruptcy, your debt is just wiped. On a consumer proposal. You agree to pay a certain percentage of it. So, they'll look at your income and say, you're right, you're in over your head. But you should be able to pay 30%, though the creditors might say, give us 30% of what you owe us over a five-year period kind of thing or four-year period.   Q: Is it better off to wait if waiting is an option, then to let those two years pass, build up your credit? If I mean, whether you have the 20%? A: Well, if you have the 20%, it's a crystal ball at that point. Like do you want to buy a house now. Do you want to continue to rent? Is the option where you're living now still available, or do you have to move? Many factors come into play, but like I don't know what, you know, whether houses are going to be worth 20% more or 5% less. Interest rates should be lower a year or two from now, so maybe waiting a year might be worth it because then at that point the interest rates are back to kind of normal. So, it all depends on some people just are really anxious to be in homeownership because they feel every year they wait, it gets tougher and tougher.     For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here April 4, 2023 Open House - The Real Estate & Mortgage Show: April 3rd 2023 Canada recently released the plans for the 2023 budget which you can read here.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. April 3, 2023 Foreign Buyer Ban Update The Canadian government has announced new amendments to the regulations surrounding the country’s foreign homebuyer ban. The ban came into effect on January 1st as an attempt to improve affordability for Canadians looking to buy a home. Since January, the act and its regulations have caused confusion and unintended consequences for Canada’s real estate industry, including some developers shelving plans to build new housing. The changes, announced Monday, expand exceptions to allow non-Canadians to purchase residential properties under certain circumstances and seemingly address many of the concerns raised over the last few months.   Amendments to regulations Exception for development purposes There is now an exception for development purposes. This exception allows non-Canadians to purchase residential property for the purpose of development. The prohibition no longer applies to vacant land The prohibition previously applied to all lands zoned for residential and mixed-use, but it now only applies to developed residential properties. More work permit holders eligible to purchase a home Another amendment will enable more work permit holders to purchase a home to live in while working in Canada. Work permit holders are eligible if they have 183 days or more of validity remaining on their work permit or work authorization at the time of purchase and they have not purchased more than one residential property. Increase in the corporation foreign control threshold Lastly, the control threshold has increased from three per cent to 10 per cent for privately held corporations or privately held entities formed under the laws of Canada or a province and controlled by a non-Canadian.   Read the full article here. March 29, 2023 Open House - The Real Estate & Mortgage Show: March 27th, 2023 House prices have dropped tremendously over the past 6 months making it a great time to enter the housing market. After 8 consecutive rate hikes from the Bank of Canada, their previous announcement concluded in a rate hold. This indicates that housing prices might not drop further than where they currently are sitting. House prices began dropping as the demand decreased and inventory increased. Now that rates will prospectively begin to come down, the inventory will slowly become less which in turn drives up the demand and the prices. If you’re consider getting into the market, now is a great time.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. March 27, 2023 Mortgage Minute: Your Questions Answered Q: The Bank of Canada is expected to finally pause interest rate hikes this week. How long will they pause for, and will we see fixed rates start to come down? A: It's a great question. And finally, I think tomorrow morning we're going to hear Tiff Macklem say he's pausing the increases to prime rate. I think it'll feel very good for first time homebuyers who have been sitting on the sidelines because, again, they're concerned about interest rates continually going up. We've seen that the home prices have come down. Do I think fixed rates are going to come down? I think it's a gradual decrease. The fixed rates because of the strong labor numbers that we've seen over the last two months. We've seen the bond markets tick up a little bit, which means fixed rates haven't started coming down yet. The reports come out in the next week or two and then by then if the labor reports come in back to normal, then I think we'll start to see the fixed rates come down. Q: We had to file for a consumer proposal two years ago and have another two years left to pay it off. With growth of equity in our home, we'd like to borrow to pay it off early. Our current mortgage with our bank is at a very good rate and they have declined us for additional funds. What other options do we have? A: Yeah, so normal that the bank would turn it down, because banks are very they don't take that risk very well. If there's a consumer proposal or a bankruptcy, they usually don't lend any money out. But there are options a little more expensive. But what you need to understand what a lot of clients need to understand is that what you want to do is if you can pay off that consumer proposal, then suddenly you get discharged. And the rule of thumb is that if you go two years of discharge, then you're able to borrow again. Q: My husband is a salaried employee, but I've been self-employed for just over a year but in the same field of work for five years. My bank tells me that we don't qualify for a mortgage unless I have a full two years of being self-employed. And there are, are there any other options available if I want to buy a house sooner? A: I say the same thing to a lot of clients. Just because one bank says no doesn't mean another bank or another lender says no. They have different ways of looking at employment, such as self-employed, especially if you're in the same industry and you've decided to go as an independent contractor instead of a salaried employer. So, what some lenders will do is they'll ask you for six months bank statements just to show the income continually coming in. And if that's the case, then they'll make that exception on that employment. And you don't have to wait until your year or two full years of self-employed.   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here March 21, 2023 Open House - The Real Estate & Mortgage Show: March 20th, 2023 With the latest announcement from Bank of Canada stating they were keeping the overnight right the same – we can only predict that rates will slowly start to come back down over the next year. The market has already begun to change in terms of house prices, number of houses on the market and of course interest rates. We are now seeing some buyers enter the market despite the still high rates, but planning for them to come down in the next year or two. All points to good news in the market, which is news we have been waiting quite some time for now.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. March 20, 2023 Refinancing To Pay Off Debt With the high cost of holiday gift-buying and entertaining now behind you, this may be the perfect time to get the New Year off to a fresh start by refinancing your mortgage and freeing up some money to pay off that high-interest credit card debt. By talking to mortgage professional, you may find that taking equity out of your home to pay off high-interest debt associated with credit card balances can put more money in your bank account each month. And since interest rates are at a 40-year low, switching to a lower rate may save you a lot of money – possibly thousands of dollars per year. There are penalties for paying your mortgage loan out prior to renewal, but these could be offset by the extra money you could acquire through a refinance. With access to more money, you will be better able to manage your debt. Refinancing your first mortgage and taking some existing equity out could also enable you to make investments, go on vacation, do some renovations or even invest in your children’s education. Keep in mind, however, that by refinancing you may extend the time it will take to pay off your mortgage. That said, there are many ways to pay down your mortgage sooner to save you thousands of dollars. Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal (the true value of your mortgage minus the interest payments) per calendar year. This will also help reduce your amortization period (the length of your mortgage), which, in turn, saves you money. If homeowners fail to take the time to thoroughly research their options through a mortgage professional and, instead, simply sign renewal offers received from their bank, credit union or other lender, they could end up paying thousands of dollars more per year in interest. Simply by shopping your mortgage with a qualified mortgage professional, you can access the banks as well as other lenders that you may not have considered, but which can often offer interest rate specials or other attractive terms. In the current credit-crunched lending environment, now more than ever it’s important to take the time to contact a Mortgage Centre Canada mortgage professional to find out your options. By refinancing now and paying off your debt, you can put yourself and your family in a better financial position. It’s very important to not rack up your credit cards after refinancing, however, so set your goals and budgets, and stick to them!   If you want to know more about refinancing - contact a mortgage broker today. March 15, 2023 Bank of Canada Rate Announcement - March 2023 The Rate Increase As widely expected, BOC has announced it will hold its target for the overnight rate at 4.50%.  After eight consecutive increases, inflation is beginning to come down and the BOC has acknowledged that a pause to rate increases was the right decision. The hold on rates was expected by the market and was already built into the longer-term bond market pricing. The bond market has been declining while remaining optimistic that the central bank would pause further interest rate hikes, which it effectively has done.  This is great for consumers as we see downward pressure on the fixed term interest rates. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.25% means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal while other variable-rate mortgages will see an increase to the monthly payment. Getting Back on Track The bank predicts Canada’s economy grew by 3.6% in 2022, slightly stronger than was projected in October. Inflation has declined from 8.1% in June to 6.3% in December. Year-over-year measures of core inflation are still around 5%, but 3-month measures of core inflation have come down, suggesting that core inflation has peaked.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement March 8, 2023 Budgeting Towards Homeownership Transitioning from renter to homeowner is one of the biggest decisions you’ll make throughout your lifetime. It can also be a stressful experience if you don’t plan ahead by building a budget and saving prior to embarking upon homeownership. Budgeting is a core ingredient that helps alleviate the stress associated with money issues that can sometimes arise if you purchase a home without knowing all of the associated costs – including down payment, closing expenses, ongoing maintenance, taxes and utilities.   The trouble is, many first-time homeowners fail to carefully think about their finances, plan a budget or set savings aside. And in this society of instant gratification, money problems can quickly escalate. The key is to create a realistic budget based on your goals. Track your spending and make your dollars go further by sticking to your budget once it’s in place. Budgeting offers a step-by-step formula for figuring out how to best save your hard-earned money to invest in homeownership. Start by listing your household income, then your household expenses, and review your spending habits. All of this can be done on a pad of paper or on a computer spreadsheet.  Keeping receipts for everything that you purchase will enable you to accurately keep track of where your money is going each month so that you can review and make necessary changes to your plan on an ongoing basis. Examine all areas of your life from entertainment to the type of food you buy, where you buy your food and clothes, and how and where you travel. Also look at your spending personality and make necessary adjustments. Are you a saver, a splurger, a spontaneous shopper or a hoarder? Become smarter with your money and avoid impulse buying.   Budgeting provides you with the opportunity to re-evaluate your needs and wants. Do you really need the magazine subscriptions, the gym membership and all the other things you may spend money on each month? Although everyone needs some “me time” to wind down, could you not get that by taking a walk or reading a good book you borrowed from the library?   If you can set your budget solidly in place before you head out home or mortgage shopping, you will be far more prepared to purchase your first home.   Following are three top tips to help you prepare for the purchase of your first home: Set up a savings account. You can deposit a predetermined amount into this account each pay period that you will not touch unless it’s absolutely necessary. This will enable you to put money aside for a down payment and cover closing costs, as well as address ongoing homeownership expenses such as maintenance, taxes and utilities.   Save up for big-ticket items. As you accumulate money in your savings account, you will be able to also save for specific purchases to help furnish your home – avoiding the buy now, pay later mentality, which can have a negative impact on your credit when you’re seeking mortgage financing.   Surround yourself with a team of professionals. When you’re getting ready to make your first home purchase, enlist the services of a licensed mortgage professional and a real estate agent. These experts are invaluable to you as you set out on the road to homeownership because they help first-time buyers through the home purchase and financing processes every day. They will be able to answer all of your questions and set your mind at ease. A mortgage professional has access to multiple lenders, and can help you get pre-approved for a mortgage so you know exactly what you can afford to spend on a home before you head out house hunting, while a real estate agent will be able to match your needs with a house you can afford. Both parties will negotiate on your behalf to ensure you get the best bang for your buck. And, best of all, these services are typically free. They will also be able to refer you to other reputable professionals you may need for your home purchase, including a real estate lawyer and home appraiser. If you want to find out where you're currently at and learn what you need to do - contact a mortgage broker today. March 1, 2023 Mortgage Minute: Your Questions Answered Q: With the latest job reports in both Canada and the US. Will this prevent a recession and mortgage rates going up instead of coming down this year? A: Obviously, the job report was extremely healthy. That being said, the inflation numbers come out today. It’ll be interesting to see what that number stands at. It's expected to come down quite a bit. And that should at least keep the Bank of Canada on the sidelines for a little bit. We'll see fixed rates go up a little bit, but we'll see a little bit of a roller coaster for the next couple of months and then it's expected that rates will start to steadily go down.   Q: With home title fraud on the rise, how can you protect yourself from this happening to you? A: So a good way to protect yourself. Listen, if you if you purchase a home over the last 15 years, good chance that you already have title insurance. It's something that the lawyers put on. But if you've had your home for longer than 15 or 20 years, you might want to check with the lawyer that that did the transaction for you and find out whether you have title insurance. And if you don't, it's you know, it's a few hundred dollars to get this title insurance. And then what that does is that protects you in case anybody does. Does do any fraud against you on your property and perpetrates you then the title insurance company takes care of it for you.   Q: A couple has great rate of 2.29% on their current mortgage with two and a half years left. But they want to sell our current home and buy another one. What options do they have to keep this great rate and move it to our new home? A: Most lenders offer portable mortgages. You can go on to online mortgage brokerages and they offer you these great rates, but they take away some of the some of the things that should come with a mortgage, like the portability in this circumstance. We have had the odd occasion, where our clients called us and said, my lender's telling me it's not portable. We don't deal with any lender that doesn't do portable mortgages because of scenarios just like this. You get to transfer the mortgage over as long as the closing dates align. Most lenders have a 90 day period where you can put the mortgage over, so, if the sale happens and the purchase happened within 90 days of each other, you can take the mortgage over from one house to the other and all you pay is administration fee.   Q: What about bridge financing? People are wondering if it's expensive. A: The bridge financing itself is inexpensive, but people need to understand that a bridge loan is only available if you've purchased a home at no conditions and sold the home in no conditions. Your house being for sale doesn't trigger a bridge loan, because if your house is just for sale and hasn't sold yet, you have to do financing. But if it's actually sold firm with no conditions and your purchase is firm with no conditions then you can do a bridge loan again, most lenders will let you do up to 90/120 days. The bridge loan itself is not expensive, but you got to remember that you own two homes for that period of time, two insurances, two utilities, two mortgages. For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here February 28, 2023 Open House - The Real Estate & Mortgage Show: February 21st, 2023 Frank, Josh and Steve discuss what's going on in the bond markets, predicitons for the future increases from Bank of Canada and current real estate trends.   To listen to the full episode, click here. Contact your Mortgage Broker today for trusted advice. February 21, 2023 Real Estate Title Fraud What Is Real Estate Title Fraud? Real estate title fraud is a serious crime that can cost you thousands of dollars and months of your time. Here's how to protect yourself from this scam. If you're buying or selling a home, you probably have several things on your mind: getting a fair price for your property and making sure that the other party is trustworthy enough to close on time. Unfortunately, some unscrupulous sellers will try to take advantage of these concerns by deliberately falsifying the title history of their property. Typically, someone falsifies the legal documents associated with a property sale to hide past issues that may have caused problems for previous owners or renters. These issues could include liens against the home (such as unpaid taxes), foreclosures or divorces that had not been settled legally before the sale went through, or even criminal activity involving one or more parties involved with the property over time (such as drug dealing). This practice is known as real estate title fraud, and it can result in very costly consequences for unsuspecting buyers. How to Protect Yourself from Real Estate Fraud 1. Always make sure that you're buying land from a reputable seller. If someone approaches you claiming to be a real estate agent, find out if they're employed by a licensed firm. 2. Never sign anything without having it reviewed by an attorney—especially if it involves transferring property ownership. This will help ensure that your interests are protected in case something goes wrong down the line. 3. Ask for proof of ownership, such as an official deed or other document with a seal on it (and make sure that seal hasn't been tampered with). You should also make sure that whoever is selling you this land has permission from the owner(s) of any adjoining properties to sell it to you as well! 4. Check the property records for any liens or other claims against the land. If there are any, find out if they're valid and how you can resolve them with the owner(s). 5. Make sure that there aren't any zoning laws prohibiting what you want to do with your new land (for example, building a house on it). If there are, you may be able to get a variance or special permit from the appropriate municipality. 6. Check with your local building department to see if any permits are required for whatever construction you want to do on your land.   Always use a trusted mortgage broker and real estate agent when buying or selling your property. Find a reliable mortgage broker here. February 8, 2023 Bank of Canada Rate Increase - January 2023 The Rate Increase As widely expected, BOC has announced a further increase of .25%, for an overnight rate of 4.50%.  This is the bank’s eighth consecutive increase, and potentially it’s last, as the bank has indicated it intends to pause stating “If economic developments evolve broadly in line with the MPR (Monetary Policy Report) outlook, Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increase.” A quarter point increase was expected by the market and was already built into the longer-term bond market pricing. The bond market has been declining while remaining optimistic that the central bank would indicate it intends to pause further interest rate hikes, which it effectively has done.  This is great for consumers as we see downward pressure on the fixed term interest rates. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.25% means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal while other variable-rate mortgages will see an increase to the monthly payment. Getting Back on Track The bank predicts Canada’s economy grew by 3.6% in 2022, slightly stronger than was projected in October. Inflation has declined from 8.1% in June to 6.3% in December. Year-over-year measures of core inflation are still around 5%, but 3-month measures of core inflation have come down, suggesting that core inflation has peaked.   If you have questions about your own mortgage, and the best strategy for you, please contact your broker today.   Read The Full Articles Here: BoC Announcement January 25, 2023 Vacant Unit Tax Residential Vacant Unit Tax   The Residential Vacant Unit Tax (VUT) went into effect for Ottawa homeowners for the 2023 fiscal year. Homeowners must now annually declare their property status through Ottawa’s online portal. The program started off a little rocky with citizens being confused about the system and the online portal had issues on launch day, but it now seems to be working properly. Here is everything you need to know about the new tax:   The additional tax of 1% will only be required by homeowners whose properties remain vacant for more than 184 days. This excludes commercial, industrial, and multi-residential properties. Properties that are occupied as a principal residence, tenanted property, family members/friends using as principal residence or properties qualifying for one of the exemptions will not be subject to the tax but the owner still must declare the property status annually.   If your property is vacant for more than 184 days, the vacant unit tax will be added to the final tax bill in June. The VUT is subject to the same penalties for non-payment as property taxes, including the 1.25% interest added on the 1st of every month and the tax sale process. The unpaid VUT also forms a lien on the property. If you falsely declare your property status or fail to provide information when requested, you may receive a fine of up to $10,000 in addition to the payment of the tax.   The purpose of the VUT is to encourage homeowners to occupy or rent their properties, thereby increasing the housing supply. After the announcement of the Foreign Buyer Ban, the VUT could also discourage foreign buyers whom already own real estate from letting it sit vacant.   To read more about the newly added VUT, you can read here. Sources: Ottawa.ca & CTV January 18, 2023 Foreign Buyer Ban Canada’s foreign homebuyer ban went into effect on January 1st, 2023, and will remain in place for two years. Housing affordability remains a concern for Canadians and interest rates are still rising. Those with variable-rate mortgages are paying hundreds more per month and those with fixed-rate mortgages who have yet to renew are terrified of rising interest rates. The foreign buyer ban is put in place to prevent foreign buyers from buying large amounts of properties to use as investment homes. The ban will increase number of homes on the market and gradually helping to decrease the price of homes. According to the Parliamentary Budget Office, the average cost of a home is 67 per cent more than what the average Canadian household can afford.   Which properties are included in the ban? The Prohibition on the Purchase of Residential Property by Non-Canadians Act states that all residential properties including detached homes or similar buildings, semi-detached houses, rowhouse units, residential condominium units and other similar premises. The legislation applies to residential properties located in an area with a total population of at least 100,000 people with at least 50,000 living in its core (known as a census metropolitan area) and an area with a core population of at least 10,000 people (known as a census agglomeration).   Who is exempt from the ban? There are some exceptions to the ban, including, those in Canada with temporary work permits, refugee claimants and international students who meet certain criteria. The ban does not apply to those who are Canadian citizens or permanent residents, and it also does not apply to non-Canadians looking to rent a residential property in Canada. Non-Canadians with a spouse or common-law partner who is a Canadian citizen, permanent resident, person registered under the Indian Act or refugee are also exempt. Those who are in violation of the ban can be fined up to $10,000 and may be required to sell the property they purchased. Those who knowingly assist a non-Canadian with their purchase can also be fined.   Have any questions? Contact your mortgage broker here.   Sources: CMHC, CBC January 11, 2023 Open House - The Real Estate & Mortgage Show: January 7th, 2023 The experts anticipated 5,000 new jobs in December, and we ended up with 104,000 new jobs. This may be because the retail industry is very busy around the holidays, and everybody needs extra help. However, we’re more curious to see how those numbers play out in the first three months of 2023. When looking at average house sale prices in December were down 1.2% and our number of sales were down 30%. Year to date our number of sales were down 25%. December of 2021, we had 20,289 sales and in 2022 we had 15,288 showing that we are down a lot compared to last year. Although it’s tough to compare to previous years with the surges in numbers from COVID, it is still useful to gauge where we currently are at compared to other years. As we hope that interest rates slowly creep down over 2023, so do the first-time homebuyers who have been patiently sitting on the fence, waiting for that time. Experts are predicting that the spring 2023 housing market will sprout some roots and begin to grow again, and we will start to see some of those sitting on the fence make the first leap into the market.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. January 9, 2023 Inflation Rate Cooled to 6.8% Canada's inflation rate cooled to 6.8 per cent last month as prices for gasoline and furniture went down, but the cost of food and rent went up. Mortgage interest costs surged by 14.5% compared with November last year, while rent posted a 5.9% increase across the board. Grocery bills increased at an 11.4 per cent annual pace last month, up from the 11 per cent increase seen in October. Statistics Canada reported Wednesday that gasoline prices across the country fell by 3.6 per cent during the month. They're still up by 13.7 per cent compared to where they were a year ago, but that's down from the 17.8 per cent annual increase clocked the month before. These results arrived at a critical time between Bank of Canada interest rate decisions, with the central bank having indicated in its most recent statement that it would be deciding whether its policy rate needed to rise further following a series of hikes this year. There will be one more consumer price index (CPI) report that will be released before the Bank’s first announcement of 2023, with the inflation rate expected to serve as a key indicator of whether the central bank deems more rate increases are necessary. Inflation surged to a 30-year high in July, peaking at 8.1% before ticking slowly downwards in recent months.   Sources: CBC News, Canada Mortgage Professionals December 22, 2022 OSFI Announcement on Stress Test The Office of the Superintendent of Financial Institutions (OSFI) made an announcement this morning on the Minimum Qualifying Rate (MQR) for uninsured mortgages as an outcome of its annual review. Uninsured mortgages are residential mortgages with a down payment of 20 per cent or more. OSFI  announced that the minimum qualifying rate (MQR) for uninsured mortgages will remain the greater of the mortgage contract rate plus 2 per cent or 5.25 per cent, which had been previously announced in June 2021. With the Bank of Canada’s recent increase of 50 points to the target overnight rate to 4.25% on December 7, mortgages are being tested at much higher rates than the MQR. This also means that with any future rate increases, mortgages will be tested at even higher rates than the MQR. With ongoing rate increases and an economy with high rates of inflation, borrowers are required to pass the “stress test” meaning they will need to qualify for a mortgage at the current posted rate + 2%, approximately 6% - 7%. Although this protects borrowers against future rate increases, it also tightens the criteria to be approved and thus diminishing the number of people who can qualify for a mortgage. Mortgage Professionals Canada, an Association made up of Mortgage Agents and Brokers from across Canada has been lobbying for a review of the practice of applying the stress test to renewals and mortgage transfers.  The current rules reduce competition and potentially leave mortgage holders in a vulnerable position of having to remain with their current lender at maturity.  OSFI has indicated that they will begin the review process on this topic and similar underwriting policies in January of 2023, they expect the review process will take several months.   Read the full press release from OSFI here. For more information on your mortgage, contact your broker December 15, 2022 Bank of Canada Increases Rates by 0.50% The Rate Increase The Bank of Canada raising the overnight rate to 4.25% indicates we're still riding the wave of inflation, and it may take longer for the waters to settle. For some Canadians, that means they’ll continue to feel the pinch. Inflation around the world remains high and broadly based. This reflects the strength of the global recovery from the pandemic, a series of global supply disruptions, and elevated commodity prices, particularly for energy, which have been pushed up by Russia’s attack on Ukraine. The strength of the US dollar is adding to inflationary pressures in many countries. Tighter monetary policies aimed at controlling inflation are weighing on economic activity around the world. As economies slow and supply disruptions ease, global inflation is expected to come down. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.50% means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal. And if your trigger rate is reached, you can anticipate higher monthly costs. Getting Back on Track "The Governing Council expects that the policy interest rate will need to rise further," the bank said. "Future rate increases will be influenced by our assessments of how tighter monetary policy is working to slow demand, how supply challenges are resolving, and how inflation and inflation expectations are responding." The bank predicts Canada’s growth will slow from 3.25 per cent this year, to just under 1 per cent in 2023. Global growth will also decrease to 1.5 per cent next year, a slowdown not seen since 1982, excluding the COVID-19 pandemic and the 2008 financial crisis.   Read The Full Articles Here: BoC Announcement For more information on your mortgage, contact your broker December 7, 2022 Open House - The Real Estate & Mortgage Show: December 5th, 2022 Although rates are high and it’s a tough time to beat that qualifying process; it is still a great time to buy. If you can stomach 1-2 years of higher mortgage payments, you will be able to take advantage of lower rates when they drop. If you take a 1–2-year variable rate, this will give you an opportunity to renew at a lower rate when your renewal comes up. When looking to purchase a home in a time like this, it is best to get as much information you can for your mortgage. Talk to multiple brokers and make some calls to find out what all your options are. It would not be the best idea to take a 5-year fixed rate right now because rates are so high. This means if rates do come down in 1 or 2 years, you are stuck with your high interest rate for 5 years. On the other hand – if you are looking to sell your home, you are going to want to make it stand out on the market. Gone are the times of the pandemic where you could list your house as is and it would sell almost instantly. There are simple things you can do such as decluttering and de-personalizing; but there are also small upgrades you can make to boost your homes value. Check out our article on the top home projects to boost home value. To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. December 5, 2022 How to Pay for Renovations How to Pay for Renovations   Renovation mortgage financing is one of the most popular renovation financing options for new homebuyers. It allows you to add the cost of the renovation to the mortgage when you purchase your new home. It also goes by other names such as purchase plus improvement mortgage; however, they all allow you to pay for the renovation with minimum down payments as low as five per cent. This can often be a smart move for first time homebuyers as they may not have enough saved to purchase their house and immediately take on a renovation project. An advantage of adding the renovation costs to your mortgage is that you will almost certainly get a better interest rate than you would with a line of credit or a credit card.   How does renovation mortgage financing work?   Although every lender has different criteria, here are some standard measures for renovation mortgage financing: You assess what renovation needs to be done and provide a rough estimate. Get firm quotes from licensed contractors. Get approval from your lender. Take possession of the home and start renovation. After the renovations are completed and approved, your funds are released.   Can you use an existing mortgage to pay for renovations?   Mortgage refinancing is an option you can look into if you do not want to obtain the funds in other ways such as lines of credit or loans. Mortgage refinancing considers how much you still owe on the house, allowing you to borrow up to 80 per cent of the appraised value. This allows you to spread the payment over a long period of time and pay less interest than a line of credit or loan. To qualify, the renovation must make sense based on the property’s value and potential value.   Want advice on your plans to renovate? Contact your mortgage broker today. November 30, 2022 Open House - The Real Estate & Mortgage Show: November 26th, 2022 As the Bank of Canada keeps increasing rates, it continues to “widdle” down that dream of owning a home. However, if you can stomach the increased rates right now, it is a great time to get into the market. With some townhouses down to the $500,000 range you would be getting a great deal from earlier this year when they were in the $700,000 range. Although nobody can predict the future, we have seen this year that things can change very quickly. Back in March we were seeing rates around 2-3% whereas now, we are seeing rates have doubled and are sitting around 5-6%. We can only predict that rates will come down as inflation comes down and that is forecasted for 2023/2024.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. November 29, 2022 Mortgage Minute: Your Questions Answered Q: We are thinking of selling our home next summer as we approach retirement and downsizing to a condo. We have a small mortgage on our home and the maturity is in March, once we sell and downsize, we won’t have a mortgage but need to decide what to do in February, any advice? A: Open mortgages are 7/8/9% on open mortgages – if the mortgage is small, then I would go for a variable rate mortgage and if you have some cash sitting on the outside, you can apply that to your mortgage with your prepayment privileges to get that principal down quicker.   Q: I bought a house in August 2020 and took a 5-year mortgage with a rate of 1.79%, I have just been transferred to the US and will need to sell my house, will my lender allow my purchaser to take over my mortgage as with todays rates? I would think it would help me sell for top dollar. A: Of course, you would have people salivating at the 1.79% - the vendor just needs to acknowledge that you are still responsible for that mortgage until your renewal happens. The buyer could assume your mortgage however, if there were anything to go wrong, the law states that it would fall on to the mortgage holder.   Q: We are selling one of our investment properties and a prospective buyer asked if we would consider a vendor take back mortgage, are there any risks to this? A: We are seeing more of this only because it’s much more difficult to qualify with high rates these days. You need to be careful if you’re the vendor because you are taking all the risk. If property values are to depreciate, then you’re the last 20% that gets paid, people could just walk away from the property and now you would need to sue them to get your money back.     For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here November 24, 2022 Open House - The Real Estate & Mortgage Show: November 19th, 2022 Housing inventory is showing a little lower than it typically would at this time of year, however, because of the high interest rates the inventory is sitting on the market longer than it has earlier this year. If you are looking to purchase a house, you do have time to shop around before you make your decision. Rates have been moving down in the past week or two for 5-year fixed rate mortgages and we will know where the variable rate goes in the next week. We are forecasting rates to come down more significantly in the second quarter of 2023.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. November 22, 2022 October Housing Statistics Members of the Ottawa Real Estate Board sold 987 residential properties in October through the Board’s Multiple Listing Service® (MLS®) System, compared with 1,670 in October 2021, a decrease of 41%. October’s sales included 758 in the residential-property class, down 40% from a year ago, and 229 in the condominium-property category, a decrease of 44% from October 2021. The five-year average for total unit sales in October is 1,554. By the Numbers – Average Prices*: The average sale price for a condominium-class property in October was $445,691, an increase of 9% from 2021. The average sale price for a residential-class property was $677,873, decreasing 5% from a year ago. With year-to-date average sale prices at $780,390 for residential units and $456,470 for condominiums, these values represent an 8% increase over 2021 for residential-class properties and a 9% increase for condominium-class properties. “After the volatility of the past two pandemic years, which was unsustainable, the market is correcting and adjusting,” says Penny Torontow, Ottawa Real Estate Board President. “The slowdown is compounded by Bank of Canada interest rate increases, which further exacerbates buyer hesitancy and weakens people’s purchasing power—especially first-time homebuyers.” “Demand is still high, and with increasing inventory available, Buyers have more choices and time to shop for their new home. However, the ongoing speculation about where prices and interest rates are headed shakes consumer confidence and has made some prospective Buyers take a wait-and-see approach.”   Source: Ottawa Real Estate Board Click here to read the full press release. November 16, 2022 Mortgage Minute: Your Questions Answered Q: Our mortgage renewal is in the spring and our bank has advised us that we should early renew now as rates could be significantly higher in May but we can’t afford for our payment to go up by $800 per month, what options do we have? A: The option is to sit tight. We’re seeing inverted bond yields which means the shorter-term bonds are higher rate than the longer-term bonds. Generally, when we see that we tend to go into a recession. When we go into a recession, we see rates to come down. If your payment is really hurting you, then you might think about re-amortizing your mortgage to a longer term. If you do believe rates are going to come down, it may be worth it to switch to a variable rate mortgage so that when rates do come back down you can lock in at a lower rate.   Q: We’re getting married in summer 2024 and currently living with our parents for free but we’re struggling to decide whether to buy in 2023 or in 2024, what do you think? A: We’re at an interest rate high, so your costs are extremely high. A lot of young people are sitting on the sidelines waiting to buy a home when rates to come back down. When rates do come back down there will be limited inventory as all these people jump on buying. My advice to my niece who’s in a similar situation is to stay at home as long as you can while it doesn’t cost you anything.   Q: If we’re heading into a recession and mortgage rates do fall, should we opt for a 1 or 2 year mortgage on our renewal in January? A: Generally speaking, if you take a 1 or 2 year it’s generally lower rate than a 5-year, but today you’ll see that it is very similar to the 5-year. If you do believe interest rates are coming down, then a 1 or 2 year will give you an out sooner if they do.   Q: I’ve just separated from my husband and would like to keep the matrimonial home however my bank tells me that without a final separation agreement, they can’t assist me, are there other options? A: There are other options, but they might be more expensive from a private lender. However, banks do require the agreement to be a notarized agreement as there has been fraudulent cases in the past so there is no way to get around that. There are options out there, just give a mortgage broker a call and they can provide you with some options that are out there.   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here November 15, 2022 Open House - The Real Estate & Mortgage Show: November 15th, 2022 With interest rates so high people wonder how it could be a good time to purchase a home right now? Although interest rates are high, this means they will have to come back down. If you purchase now and can stomach the higher payments for a year or so, you will see interest rates come back down and be in a great position with your home. We won’t see interest rates start to come down until inflation rates come down. Many are worried about a recession, but a recession may not be the worst thing for the housing market. A recession will cause interest rates to fall and when it does there will be many more people who can afford to purchase a house. Once that happens, inventory will become very low, and it will become tough to find a home. If you’re considering listing your house, now is a great time to start the process. Even if you’re not selling for a few months, it’s in your best interest to start the process and get pictures taken while the grass is still green, and we don’t have snow yet. It’s better for listings when you can see your backyard for how it is, have better curb appeal and have overall better pictures to help sell your home. Remember, people should take the mortgage that best suits their needs at that time. If you want to discuss your situation and figure out what best fits your needs, reach out to your mortgage broker.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. November 15, 2022 Open House - The Real Estate & Mortgage Show: November 5th, 2022 New housing numbers came in showing 45% less homes sold in October than in September. In September there were about 1700 home sold and in October there were just over 1000. Although we were expecting a drop in numbers, this amount of decrease was more than expecting. Typically, 1000 homes sold in a month would reflect December sales. As the economy inches closer and closer to a recession, lots of discussion is appearing around mortgage rates and terms. Short term mortgage owners are coming up for renewal and are faced with the daunting rates of today. People are asking what’s the best decision between renewing, switching to a variable rate or start renting instead. There could be an entire article written on this topic – however, if you’re locking into the rates of today you will be paying a high interest rate for potentially a long period of time. If you take the variable rate now, you may be paying more for the next year or so, but as rates come back down, you could then lock into a lower rate. If you are unsure about what to do with your current situation, contact your mortgage broker to get the best advice. If you’re buying into the housing market, the best time is always now. Home prices will still increase over time, and you’re always in a better position if you buy real estate and wait instead of waiting to buy real estate.     To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. November 8, 2022 Ontario Proposes Sweep to Housing Regulations The Progressive Conservative government has promised to build 1.5 million homes in 10 years and introduced new legislation intended to speed up development. The new legislation will allow up to three residential units on one lot without needing bylaw amendments and free from development charges, they propose to freeze, reduce, and exempt fees associated with new home construction to speed up building, and affordable housing, non-profit housing and inclusionary zoning units will also be exempt from various charges. While these changes are the bulk of the Conservative’s plan, they also said rental builders would see reduced development charges (with larger discounts on family sized units), plans to introduce more housing density near transit stations, and using surplus government lands, modular homes, and rent-to-own programs. These plans could see many more homes added to municipalities and can now offer more multi-unit lots to be built without as many fees or hassle.   Read the full article here. Want advice on your plans to build, purchase or sell? Contact your mortgage broker today. November 2, 2022 Mortgage Minute: Your Questions Answered Q: We just got married and are ready to buy our first home together. While I’ve been with the government full time for four years – my partner has only been there for 18 months and still on a year-by-year contract. Our bank advised us that we won’t qualify until we’re both full time; but we had friends in the same scenario, and they were approved. Have the rules changed that won’t let us qualify? A: I think it’s on a bank basis – in that scenario maybe they need to go somewhere else. If you contact a mortgage broker, they have access to numerous banks and could find a bank that could qualify them based on their situation.   Q: I just went through a separation and would like to buy a house for myself and my kids to live in instead of renting. With the interest rates at elevated levels, I don’t think I can qualify on my own, my parents are offering to help, but they do not want to have ownership on the home. Can they sign for the mortgage but not be on the ownership of the home?   A: The difference between a co-signer and a guarantor is that the co-signer gets on title of ownership whereas the guarantor does not. Some banks do not allow guarantors, so if you are in that position, reach out to your mortgage broker who could find a bank that allows guarantors.   Q: We thought we used good judgement by choosing a variable rate mortgage but now our mortgage has increased over $600 per month, and we hear more increases are coming. We are stretched and need cash flow relief, otherwise, we will be using our credit cards for payments and interest rates are even worse. Do we have any options? A: Anybody that took a variable a year a go did so with good faith. At the time it was a good decision, however, the Bank of Canada mislead people with their assumptions and the problem we face now is constant increases. The difficult decision is locking into a fixed rate or wait. This all is based on inflation and what the future holds. Your options are locking into a fixed rate at 1 or 2 years or a 5-year fixed rate. To explore your options, reach out to your mortgage broker for the best advice.   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here October 31, 2022 Bank of Canada Rate Increase - October 26th 2022 The Rate Increase The Bank of Canada raising the overnight rate to 3.75% indicates we're still riding the wave of inflation, and it may take longer for the waters to settle. For some Canadians, that means they’ll continue to feel the pinch. Inflation around the world remains high and broadly based. This reflects the strength of the global recovery from the pandemic, a series of global supply disruptions, and elevated commodity prices, particularly for energy, which have been pushed up by Russia’s attack on Ukraine. The strength of the US dollar is adding to inflationary pressures in many countries. Tighter monetary policies aimed at controlling inflation are weighing on economic activity around the world. As economies slow and supply disruptions ease, global inflation is expected to come down. The bank predicts Canada’s growth will slow from 3.25 per cent this year, to just under 1 per cent in 2023. Global growth will also decrease to 1.5 per cent next year, a slowdown not seen since 1982, excluding the COVID-19 pandemic and the 2008 financial crisis. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.50% means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal. And if your trigger rate is reached, you can anticipate higher monthly costs. Getting Back on Track "The Governing Council expects that the policy interest rate will need to rise further," the bank said. "Future rate increases will be influenced by our assessments of how tighter monetary policy is working to slow demand, how supply challenges are resolving, and how inflation and inflation expectations are responding." The bank predicts Canada’s growth will slow from 3.25 per cent this year, to just under 1 per cent in 2023. Global growth will also decrease to 1.5 per cent next year, a slowdown not seen since 1982, excluding the COVID-19 pandemic and the 2008 financial crisis.   Read The Full Articles Here: Bank of Canada Announcement For more information on your mortgage, contact your broker October 26, 2022 Open House - The Real Estate & Mortgage Show: October 17th, 2022 As we move through 2022, we continue to see less people applying for mortgages and less people qualifying for mortgages. As the interest rates remain high, it is keeping people from making it through the stress test to get their mortgage. We are seeing more listings come on the market; however, sales remain flat. This means we can predict that sale prices will come down further than they have over the past couple months. We have seen some lenders introduce a 35-year amortization to lower that monthly cost, therefore, making some people able to qualify for their mortgage. Industry leaders are wanting the government to implement longer amortization periods across the industry and can only hope they will take action. The stress of qualifying clients for mortgages has created a unique case of fraud within a group of real estate agents. CBC has uncovered an interesting case of agents who were providing fraudulent bank statements, T4 slips and more at a fee to their client to qualify them for a mortgage. You can read the full article here.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. October 17, 2022 Open House - The Real Estate & Mortgage Show: October 1st, 2022 Today’s housing market is changing by the area. Some areas of Ottawa having homes with multiple offers and some areas have houses sitting on the market for weeks without offers. Same goes for the number of listings available; some areas have great selection whereas others may only have a couple. Prices on some townhomes have been dropping back down from the peak they hit over 2022, leaving people with the question of whether to jump on it now or wait even longer. It’s always difficult to predict what will happen in the future, however, it’s always better buy and wait instead of waiting to buy. Michael Hapke from Advanced Mortgage Investment Company joins the show and shares some numbers from their just finalized fiscal year. With average returns sitting around 7.5%, investing in mortgages has been proving to be a great way to invest your money. They are forecasting their average rate for the following year to be around 8%. You can make an appointment to get more information and find out if investing in mortgages is suitable for you.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. October 3, 2022 August Housing Statistics Members of the Ottawa Real Estate Board sold 1,137 residential properties in August through the Board’s Multiple Listing Service® System, compared with 1,565 in August 2021, a decrease of 27 per cent. August’s sales included 850 in the residential-property class, down 27 per cent from a year ago, and 287 in the condominium-property category, a decrease of 28 per cent from August 2021. The five-year average for total unit sales in August is 1,603. “August is a traditionally slower month in Ottawa’s resale market ebb and flow cycle due to summer vacations. Compounding the slowdown in market activity, Buyers are uncertain about their purchasing power given impending additional interest rate hikes,” states Ottawa Real Estate Board President Penny Torontow. “The lightning speed at which homes were selling at the start of 2022 is a thing of the past, evidenced by Days on Market (DOMs) inching closer to that 30-day mark. We have also observed a return to standard financing and inspection conditions and fewer multiple offer scenarios,” she adds. •    The average sale price for a condominium-class property in August was $421,966, an increase of 4 per cent from 2021. •    The average sale price for a residential-class property was $707,712, increasing 5 per cent from a year ago. •    With year-to-date average sale prices at $795,978 for residential and $457,771 for condominiums, these values represent a 10 per cent and 9 percent increase over 2021, respectively.* •    2,093 properties were listed in August, boosting inventory to nearly 3 months for residential class properties and 2.2 months for condominiums. Source: Ottawa Real Estate Board Read full press release here.   September 28, 2022 Open House - The Real Estate & Mortgage Show: September 24th, 2022 In 2022 we’ve seen a rollercoaster of a housing market, and it continues to follow that trend. Although housing prices are slowly coming down from their peak, we are seeing interest rates continue to trend at a high level. This is increasing the number of houses on the market as we see less and less people qualifying for mortgages or opting out of buying right now. Inflation is driving up costs of food, oil and in turn, increasing interest rates. We are seeing this reflect into all different markets and affecting Canadians. We can only predict that this will change as time passes and look toward what the spring/summer of 2023 market will look like. Stats Canada released new housing market statistics which showed that the gap between the amount of people renting and the amount of people owning is beginning to narrow. We are seeing more and more people choosing to rent houses.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. September 26, 2022 Open House - The Real Estate & Mortgage Show: September 17th, 2022 Another week shows evidence of the market slowing down. More houses are on the market and are staying on the market longer than any point this year. Although this market may not be favoring sellers, buyers have a great opportunity to shop around and take their time when buying. The current difficulty facing buyers are the climbing rates. After the previous rate increase from the Bank of Canada of .75%; buyers are sitting on the fence and considering waiting until they see those rates come back down. The rental industry also facing the same issues with rent prices rising in parallel with mortgages payments. Before it we were seeing mortgages payments cheaper than monthly rent prices, but now rent prices are almost on par with mortgages payments. This is leading more people to choose rentals to avoid the qualifying process, debt at high interest rates and any future rate increases.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. September 19, 2022 How Co-Ownership Could Get You Closer to Your Own Home From the outside looking in, a mixer on a balmy evening in mid-June in a trendy downtown Toronto neighbourhood appears to be a social event like any other. Drinks are flowing and the conversations are too. But this one has a specific purpose: to help people who are interested in buying a primary residence with others, including strangers. “Co-ownership seems to be on everyone’s mind,” Parimal Gosai, one of the event’s hosts, tells Global News. “Housing prices are increasing, inflation and gas prices too. People’s incomes have not met those increases for a long time.” Proponents of co-owning say the unaffordability crisis plaguing Canada’s most expensive housing markets has driven a surge of interest in shared ownership. What used to be a fairly niche endeavour is now becoming more commonplace as evidenced by new mortgage products and services designed specifically for multiple co-owners. Gosai and his co-founder Lesli Gaynor created a digital matchmaking platform called Husmates, which launched in December of last year. It’s designed to connect people looking to co-own property together in the Greater Toronto Area. “It’s like Bumble, Hinge or Tinder for real estate. It’s not a romantic dating app. It’s strictly for owning property together,” he explains. “We understand that this is not utopia. We know there will be issues. But the idea is that we use design to make it intentional so you’re not just piling on top of one another,” he says. The “housing crisis” is a major driver of recent and more widespread interest in co-living. “It’s not exactly a new idea; people have been doing it for years in different cultures. But what we’re doing is trying to bring that age-old idea into a downtown North American concept.”   For more information, contact your broker. To read the full article click here. September 15, 2022 Bank of Canada Rate Increase - Sept 7th 2022 The Rate Increase The Bank of Canada's raising the overnight rate to 3.25% indicates we're still riding the wave of inflation, and it may take longer for the waters to settle. For some Canadians, that means they’ll continue to feel the pinch. The bank attributes the war in Ukraine, ongoing COVID-19 lockdowns in China and volatile commodity prices as the main drivers of elevated global inflation. With inflation digging into daily expenses and rising rates making variable-rate mortgages, loans and other debt more expensive. Statistics Canada reported inflation rose by 7.6 per cent in July, down from its peak of 8.1 per cent in June. The drop was mainly due to a decrease in gas prices; however, other price measures for food and services remained high. The Bank of Canada’s efforts to slow inflation has led to interest rates rising throughout the year. The target overnight rate has already risen from 0.25% in January to 3.25% as of September. What Does This Affect? The Bank of Canada’s target overnight policy rate affects the interest you pay from lenders like banks. The higher the overnight rate, the more interest you’ll pay. The increase of 0.75 means that for some variable-rate mortgages more of the money you pay each month will be going to interest rather than the principal. And if your trigger rate is reached, you can anticipate higher monthly costs. Getting Back on Track Raising interest rates slows spending, which helps put the brakes on inflation. Unfortunately, it’s necessary for a prolonged period of slowed growth to help the economy get back on track. The neutral rate is a rate that doesn’t stimulate or restrict the economy. Presently, the estimated neutral rate is 2.5%. “Being at 3.25%, it would be in restrictive territory, which means at some point it needs to come back down to what they estimate the neutral rate is.” Explains Karyne Charbonneau, senior economist with CIBC. “They will want to make sure that that inflation is back sustainably […] It's hard to predict exactly when that will be at this point.” For more information on your mortgage, contact your broker   Read The Full Articles Here: BoC Announcement Interview with Karyne Charbonneau September 7, 2022 Open House - The Real Estate & Mortgage Show: September 06th, 2022 The next Bank of Canada announcement is coming up this September and economists are estimating it will increase by another .25%. Economists believe this may be the last increase for 2022 as we are beginning to see costs slowly coming back to normal. Within the Ottawa housing market, we are seeing that different areas are reflecting different results. Some areas leaning more towards being a buyers’ market, and some remaining a sellers’ market. There have been some clients who are asking if it is best to wait to sell their house until Spring of 2023 – however, it is nearly impossible to tell if you would be in a better or worse position that far ahead. On the other side of the coin, we are seeing a lot of buyers who end up qualifying for a mortgage but after seeing what their mortgage payment would be, they decide to wait a little longer to purchase a home. If you are in the position of looking to buy or looking to sell, the hard truth is that it is currently a difficult time to predict what will be happening in the future. If there is a representative trying to sell you based on what will happen in the future, it may not be worth it and may be best stay on the safest side possible. If you want more advice based on your specific situation, contact your mortgage broker.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. September 6, 2022 Open House - The Real Estate & Mortgage Show: August 20th, 2022 It’s August 2022 and interest rates are still slowly rising which means people with variable rates will be looking at increased payments. That is, of course, unless you are with TD or Manulife who provide a True Variable Mortgage which means when rates increase your payment doesn’t increase but your ratio of interest and principal changes. Instead of having the total payment increase, your payment stays the same, however, the amount of interest taken from that payment increases instead. This is a good option for people with investment properties as you’ve likely already budgeted for the payment on the mortgage, and when using a True Variable Mortgage – that number won’t change. A new interesting trend we’ve seen in Ottawa is young homebuyers beginning to team up to buy a house together. Two couples have teamed up to purchase a house together now in the hopes that 5 years down the road they will have enough equity built to be able to buy their own houses separately. This is a trend that is common in Europe and in some places in United States but is now making its way into Canada. If you’re thinking of taking on this strategy, make sure there is an agreement in place to determine what happens with specific scenarios such as divorce or loss of life. Nostalgia Festival is coming up this week from Wednesday August 24th to Sunday August 28th which is a festival at Lebreton Flats and features the best cover bands across the nation. Official cover bands for bands like Aerosmith, Rolling Stones, AC/DC, Metallica and more will be performing every night. You can get your tickets online on the Nostalgia Fest website. August 22, 2022 Cheapest Ways to Boost Your Home Value Let’s face it, we just passed a giant boom in the real estate industry. Homes are selling for almost $200,000 more than they were two years ago. After just passing a big spike in the market in March – you’re going to want to squeeze in every ounce of value when selling your home. There’s a lot you can do without having to jump into extensive renovation projects.   Deep Clean Your home simply cannot be too clean to sell. Invest in a deep cleaning, either by using your own elbow grease or hiring a professional cleaning service. In addition to the regular cleaning chores of dusting, vacuuming, and mopping, be sure to tackle rarely cleaned areas including vents, baseboards, cabinets, blinds, and doorknobs. Steam-clean the carpets, wash the walls and windows, and replace any broken windows or screens.   Improve Your Kitchen One of the things buyers look for above all else is a great kitchen—but remodelling your own can cost a lot. Instead of a complete overhaul, change out the little things. Ugly cabinets? Paint, new hardware, or even resurfacing costs less than a full replacement.   Paint Panache You may love your red walls, but chances are that a prospective buyer will not. Add a fresh coat of interior paint in a neutral colour, such as white, sand, or putty. A semi-gloss paint will make the walls seem brighter; an eggshell finish can be used to hide minor imperfections, such as drywall dents or small plaster cracks.   Lighten and Brighten Junky light switch and outlet covers can age a home, so install new ones to upgrade your space. Consider dimmer switches but first make sure that your existing electrical wiring can handle it. Be sure to turn off the main electrical power to the room before doing any work on an outlet or switch.   Pressure Wash Power washing can transform the exterior from bland to beautiful and increase the overall curb appeal of your house. So, use a power washer on your home’s exterior siding, sidewalks, driveways, and decks. If you don’t own one, you can rent a powerful unit from a local hardware store or hire a power washing firm.   Give Appliances a Facelift If your appliances look tired, dented, or perhaps don’t match, you can order new doors to make them look cohesive and clean again.   Check For Hardwood Floors Hardwood floors are a very desirable feature—and they're often hiding right under your wall-to-wall carpeting. Pull up a small corner of the carpeting in an inconspicuous area to check the condition of the floor. If there is hardwood underneath, you can remove it and restore the original floors—much more cost-effective than replacing the carpeting or installing new floors.   Add a Closet The price difference between a 3-bedroom and 4-bedroom home is significant. If you have an office or den, add a closet to it so it can be considered a bedroom. You’ll invest $1,500 or less, but you'll likely gain a lot more than that in your asking price.   Remove Popcorn Ceilings Once in fashion, nothing says “mid-twentieth century” or “there’s a lot of cracks up in here” than popcorn ceilings. They are a major turn-off for a lot of buyers. They are easily removed, but it’s a messy process. Just be sure to test a sample first to ensure the material doesn't contain asbestos, which should be handled by a qualified professional contractor. Contact your trusted Mortgage Professional today.  August 19, 2022 Open House - The Real Estate & Mortgage Show: August 13th, 2022 The last BoC (Bank of Canada) interest rate increase has slowed down the market quite a bit. We are no longer in the times of a seller’s market and are in a more balanced market today. House prices are slowly coming back down to a reasonable level, and we are seeing some areas of the market favouring buyers and some favouring sellers. As mentioned in previous radio shows, you are still getting a great deal if you are selling your home today. We saw a big spike in March and April of 2022 but comparing with 6 months ago, houses are still selling for $90,000 more than they were on average. We are predicting another increase from BoC in September will be around .25%. Inflation numbers are predicted to come in between 6% and 7% after the month of August which will ideally result in a .25% increase in September. They will have 3 more meetings this year with possible increases, however, it is difficult to predict what amount the increases will be this early.   To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. August 15, 2022 Open House - The Real Estate & Mortgage Show: August 6th, 2022 With a slow down in the market, the number of sales dropped down in July to 1110. However, average sale prices increased again by 3.8% to $645,000. Year-to-date, the number of sales is down but average sale prices increased by 9.9% to $719,000 to end July. Despite the last 4 months prices decreasing, we are still up $74,000 over the last 7 months. We are teetering towards a more normal, balanced market and this gives buyers more time to review their financing and inspection options. The bond market has started to retract, and the non-bank lenders have decreased some of the five-year fixed rates to the mid-4% range. When it comes to looking at all your options, bank and non-bank alike, it’s best to review with your Mortgage Agent. With the interest rates at their current levels, given the qualifying criteria and cash flow, investors and first-time home buyers are sitting on the side lines. Frank discusses bridge financing with a caller, explaining that bridge financing is when the existing home has a firm sale of offer and there is a time delay between closing on the new home and closing on the existing home. This can be challenging when there are no mortgages on either property. Paul discusses transferring property from a parent to a child for a future rental property. Best practice would be to discuss with your lawyer and accountant. To listen to the full episode, click here.  Contact your Mortgage Broker today for trusted advice. August 8, 2022 Buy or Sell First? In the aftermath of increasing Bank of Canada rates and interest rates, markets across the country have begun to cool into a more balanced market. “Certainly over the past few years, the pandemic years specifically, the market has been crazy and lots of multiple offers were happening all across the country – people were being forced to buy first,” says Stacey Evoy, president of the Ontario Real Estate Association and a real estate broker at Royal LePage Triland Realty in London, Ont. “It put people in an uncomfortable situation, but they knew that their house was going to sell.” Homes were selling over asking and multiple-offers were common place and the odds of finding a buyer for an existing home was an easy task. Now, we are seeing a transition to a more traditional market with more choice and less competition. Average prices are still significantly higher than they were 2 or 4 years ago. “It’s still a good market, but a little bit less crazy than we’ve been in the last two years,” she says. “I would say that we’re getting back to a healthy market, one where both sellers and buyers have advantages. It’s more of what we would call a fair market.” “Interest rate increases have been quick to cool demand and bring prices down from historic highs that peaked in March.” Aside from the market, buyers and sellers should consult with their team of realtors and mortgage professionals, asses their financial situation, and consider the risks. “It’s harder to estimate perhaps what your home will sell for than it was, say, a few months ago, as well as how long it’ll take for your home to sell. That changing environment makes it harder to estimate what that sale may look like and when it may happen.” Notes Craig Munn, spokesman for the Real Estate Board of Greater Vancouver. The market has come down from record levels to more typical sales levels, he adds. “There’s a little bit more selection for homebuyers to choose from and a little bit more time to make your decisions on the buying side,” he says. “On the selling side, it means it’s taking a little longer for homes to sell and you really need to look at the price you’re setting for your home as well, to ensure that it’s aligned with the current market conditions.” Read the full Globe and Mail article here.  Contact your trusted Mortgage Professional today.  August 4, 2022 Open House - The Real Estate & Mortgage Show: July 18th, 2022 A big change came to the mortgage industry last week when the Bank of Canada decided to increase the prime rate by a full percentage to a new rate of 2.5%. This came as a shock to most people as they were predicting only a .75% increase. This brings buyers and sellers a new challenge as it will make qualifying for a home that much more difficult. There are now only a few lenders that can provide people with rates under 5%. Only a few can offer rates around 4.79% which is now beginning to look like a good deal in comparison to other rates in the industry now. With talks of a global recession happening next year – people are now wondering what the best decision is between a fixed rate and variable rate. The important information you need to know now is that if a recession does happen and you are on a fixed rate, you will be charged a penalty to match the difference in the rate. If rates drop a significant amount, the penalty amount will be a such that you would still be paying the same amount of the rate that you’re at. If you are on a variable rate there is a chance that your payments could end up being lower if the rates do drop. If you are uncertain or want more information, always reach out to a mortgage agent or broker and they can provide you with the best advice to suit your specific situation.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  July 18, 2022 Bank of Canada Rate Increase - July 13th 2022 The BoC (Bank of Canada) has proceeded with an increase to the overnight rate of 1.00% to bring the new overnight rate to 2.50%. This is .75% above the pre-pandemic rate level we saw in 2020, where many economists felt we were headed prior to COVID.   The BoC dropped their overnight rates to historic lows in 2020, brought on by the pandemic in a bid to keep the economy stable; this was not meant to be a lasting measure.  As businesses start to regain sales growth and in consideration of the current inflationary levels, the BoC wants to bring rates into a range more consistent with the current economic reality. The chart below highlights the correlation between the BoC rate, bank prime rate, and the fixed and variable mortgage rates.  What does that mean for borrowers? In the period following a BoC rate change, most lenders will also increase their prime lending rate. While the discount to prime for mortgage holders will remain the same, this could mean an increase in payments.  We broke down what a 1% increase to a variable rate mortgage at prime with a discount of 0.5% using a 25 year amortization. This would be an increase of just over $53 per $100,000 of mortgage. Any greater discount to prime would lower that amount.  If you have questions about your mortgage or financing, talk to your trusted Mortgage Agent today.  Read the full announcement here. July 13, 2022 Open House - The Real Estate & Mortgage Show: July 12th, 2022 The number of sales in June were down 29% in comparison to previous months. The average sale price was up 4.7% year over year. When looking at year to date sales are down 16.1% but the average sale price is still up 10.4% with the average sale price sitting at $727,000. These numbers are looking as we expected them too after a long two years of increases in prices and sales. With housing prices and inflation rising we are seeing fewer young Canadians purchasing their first homes in the market. Statistic from Toronto showed that 87% of young Canadians under 30 years old said they believed they would never be able to own a home if they stayed in Toronto. We hope to see changes made in the mortgage industry that will allow young Canadians to enter the housing market. As we move through 2022 and slowly recover from the COVID pandemic we are seeing some people moving back into the city as they return to offices and try to avoid the rising costs of gas. Even though you can get more house for your dollar outside of the city, some people can not justify the cost of the commute anymore.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  July 12, 2022 Mortgage Minute: Your Questions Answered Q: We’ve had some glitches in our credit over the last 2 years due to job instability as a result of the pandemic. We are worried it may impact our ability to refinance our mortgage on our maturity later this year as we’d like to consolidate all of our debts into our mortgage. What can we do to put ourselves in a good position to be approved? A: You have to start early. Get on top of it now. You might want to pull your own credit report or start to process to get a mortgage refinance in place. If you’ve missed some major payments or major flaws it could impact you where you won’t be able to refinance your mortgage and you will need to find an alternate solution to refinance your debt.   Q: Our mortgage matures in May 2023, and we have a very competitive rate of 2.89 per cent. Our bank has advised us they can renew our mortgage now to secure today’s rates as they expect rates to be higher next summer. What should we do? A: The experts including Bank of Canada didn’t know rates would be this high 6/7 months ago. For a bank to say rates will be higher next summer is just false. I would encourage people to stay patient, rates will eventually slow down. If you are unsure of a situation like this – reach out to a mortgage broker and they will often give you great advice on what you’re actually being offered.   Q: We bought a town home as an investment property from a new home builder 18 months ago. We finally get the keys next month. Are there any tips that you can share with us on how to choose the best possible tenants? A: Tenants in often cases have more rights than the landlords do. Number one: treat your investment properly and do your homework on possible tenants. After you’ve met with them and ask for their history. If they’re moving places every year that’s a red flag. Number two: get the client to pull their own credit check for you. If they succeed at that level, then you can give them $100 off their first month to cover the cost. This way you know they are good with their payments.   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here. July 5, 2022 Open House - The Real Estate & Mortgage Show: July 2nd, 2022 The summer of 2022 is beginning to show tons of signs of a regular housing market. We are seeing many people sell their house before beginning to look for that house to purchase. This shows signs of a normal market and possibly even heading towards a buyer’s market as there are now options when it comes to buying. If you were on the edge about selling or buying in the past 24 months – now is a great time to make that leap with the ease of mind and extra time to make sure you’re happy with your purchase decision.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  July 4, 2022 Open House - The Real Estate & Mortgage Show: June 27th, 2022 The start of summer was on June 21st which brings many factors such as the summer heat. Now is a great time to check in on your air conditioning unit and get it serviced. Especially if you have purchased a house in the late spring, you might want to make sure it is working properly. With concerns of inflation still in news rotation – people continue to wonder if it is a suitable time to sell and are worried that they are not selling their house for as much as they think they should. It is important to note that two years ago houses were selling for $200,000 less on average than what they are today. There was a spike in March 2022 which makes it seem like you are selling for less right now, however, this is still no comparison to what you would have gotten if you sold even just one year ago. Another big concern people are facing are the increase in their mortgage payments. A big consideration is to endure paying the rates right now or changing the amortization rate to a longer period to lower your payments. This all comes down to your personal situation. Ideally most people want to pay off their mortgage as quickly as possible, however, most people want to do so while also having a stress-free and enjoyable life. This is up to you if you think lowering your payments by a couple hundred dollars will relieve stress enough to make it worth it. Over the pandemic we have seen a lot of people move to the outskirts of towns as they were working from home for cheaper houses. Now that people are slowly returning to the office and gas prices are much higher than before – we are predicting that people may make the decision to move back into the city to compensate for those expensive commutes. To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  June 27, 2022 Open House - The Real Estate & Mortgage Show: June 20th, 2022 As interest rates continue to rise and we look at another .75% rate increase in July from the Bank of Canada, sales on homes are slowing down drastically. While many sold their home over asking price in the last two years – we are currently looking at a different kind of market. Homes are being seen to stay a lot longer on the market with less offers, and in most cases are selling under asking price. This goes to say that if you did sell your home or are still planning to sell your home – you are still in a good position. Houses are still selling at higher prices than they were two years ago so you can still get good value for selling your home. The real estate market is a long-term investment, and if you feel like you’re not in a great position for your purchase or sell – just wait a year and you will be glad you made that decision. To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  June 20, 2022 Mortgage Minute: Your Questions Answered Q: Our mortgage renewal is up in spring 2023. How high can rates go up in the next 9 months and is it worthwhile to early renew today? A: 12 months ago, Governor of Bank of Canada said interest rates would lay low for a long time which has not been the case. If your mortgage is up in March, it’s a tough decision to make – if you’re locking in you’ll give up a much lower interest rate so it might not be worthwhile. The data shows we’re trending upwards, therefore, today, or tomorrow Bank’s most likely will announce 5-year fixed are up again. It depends on what your mortgage is and how much spending room you have.   Q: We chose a variable rate mortgage last year and having remorse at our decision. What should we do? A: There is still a big gap between a variable and fixed rate. We have never seen double .5% increases and are looking at another .75% next month. At this point you might want to sit tight. Otherwise, you would look at converting your variable rate which is in the 3%-4% range to a 5% or more fixed rate.   Q: Bank of Canada issued an announcement last week to prepare Canadians for a mortgage payment hike of up to 40% for anyone who has a mortgage maturing in 2025-2026. Could this really happen? A: It could happen, however the Bank of Canada told us rates wouldn’t be going up but they have already. So for them to announce this – it is certainly a possibility.   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here. June 15, 2022 Open House - The Real Estate & Mortgage Show: June 11th, 2022 Inflation is the topic of 2022 as Canadian’s worry they will not be able to afford their houses. Frank and Paul discuss the problems we are facing and the leading contributors to the constant increase in in the cost of living. Prime rate has increased .5% two times in a row which has not happened in the past 30 years, and now, we are hearing of a possible .75% increase in July. The cost of living has increased exceptionally when taking in the cost of food, oil, and gas. It is nearly impossible to accurately predict what will happen a year or two from now as things can change at any time. What we can expect is the housing market to correct itself. We’ve seen a rampant increase in housing costs over the past two years and Canadians can’t afford it if they stayed on this path. This means housing prices will need to settle down for buyers or else they will not sell. As more houses stay on the market longer, the total number of listings will increase, and we will slowly return to a normal market.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  June 14, 2022 Open House - The Real Estate & Mortgage Show: June 6th, 2022 New housing market statistics show that volume of sales is down 21% from May last year and sold 1800 residential properties which is less than May of last year. We are currently below the 5-year average for volume of sales. Despite the inventory gap from the Ottawa storm – we are over the 5-year average by about 5%. We are seeing steps towards a balanced market once again. Increased rates have become the norm in the market over the past two years – some are finding that rents on properties such as town homes are becoming cheaper than mortgage payments. For instance, a mortgage of $700,000 with 5% down would breakdown to an estimated $3500 monthly payment including tax and any other fees. Whereas the rent on that same property would typically be in the $2000 range. Some people are wondering if it is worth it to buy a house now. Looking at high interest rates and the troubles that Canadians are having in affording homes; we can only estimate that it will take a little more time until we see interest rates fall.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  June 6, 2022 Mortgage Minute: Your Questions Answered Q: We’re on the fence as to whether we should lock our variable rate mortgage in, our bank is recommending locking in but all the homework we have done suggests that staying variable now that rates have increased is likely a better option, what should we do? A: It’s always a tough decision when rates go up. The difference between a variable and a fixed is quite significant. For most customers I try to find out where they are financially and determine the best result. Most people like set payments; if you’re on a variable you can go in and set your payments a little higher so you know you are safe for any further increases.   More information on fixed vs. variable rate mortgages here.   Q: We purchased a home a month ago closing end of July, but we are just listing our home next weekend and hoping for a closing date of end of August on our sale so that we have some time to paint the new home before moving in, can we apply for a bridge loan before our house is sold? A: You can only apply for a bridge loan once the house is sold. If you are still waiting for the house to sell you cannot apply for a bridge loan. If your home isn’t sold you will need to apply for a refinance and qualify.   Q: My partner and I went through a consumer proposal 3 years ago due to a job loss, we have since gotten back on our feet and are thinking of buying a home in the near future, would we qualify for a mortgage with the consumer proposal still on file? A: Once you’ve paid off the consumer proposal, you need to have 2 years of re-established credit. If you have a significant down payment, there are alternative lenders that will lend to you.   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here. June 3, 2022 Bank of Canada Rate Increase - June 1st 2022 The Bank of Canada today increased its target for the overnight rate to 1½%, with the Bank Rate at 1¾% and the deposit rate at 1½%. The Bank is also continuing its policy of quantitative tightening (QT). Inflation globally and in Canada continues to rise, largely driven by higher prices for energy and food. In Canada, CPI inflation reached 6.8% for the month of April – well above the Bank’s forecast – and will likely move even higher in the near term before beginning to ease. The Bank will use its monetary policy tools to return inflation to target and keep inflation expectations well anchored. The increase in global inflation is occurring as the global economy slows. The Russian invasion of Ukraine, China’s COVID-related lockdowns, and ongoing supply disruptions are all weighing on activity and boosting inflation. The war has increased uncertainty and is putting further upward pressure on prices for energy and agricultural commodities. Global financial conditions have tightened and markets have been volatile. Canadian economic activity is strong and the economy is clearly operating in excess demand. Job vacancies are elevated, companies are reporting widespread labour shortages, and wage growth has been picking up and broadening across sectors. Housing market activity is moderating from exceptionally high levels. With consumer spending in Canada remaining robust and exports anticipated to strengthen, growth in the second quarter is expected to be solid. With the economy in excess demand, and inflation persisting well above target and expected to move higher in the near term, the Governing Council continues to judge that interest rates will need to rise further.   To read the full announcement click here. Contact your Mortgage Broker today for trusted advice. June 1, 2022 Open House - The Real Estate & Mortgage Show: May 30th, 2022 The Ottawa storm took a toll on a lot of properties the previous weekend. Many homes suffered damage from trees and high winds and others suffered the damages of lost food from the extended period without power. If you’re selling your home, it is your responsibility to fix any damage before selling. It is generally a good option to have a home equity line of credit for situations like this. Qualifying for a mortgage is getting increasingly difficult by the day and we see more and more people turning to private lending to get their mortgages. We also see more people getting qualified for variable rate mortgages rather than fixed because it is easier to qualify on a variable. Again, as a reminder for everyone buying, selling, or renting – we get questions all the time asking if the market is going to crash. The market has seen constant increases in almost everything over the past two years and we are finally beginning to see everything settle down. The best way to look at it is the market is going to stabilize. Don’t panic because we are now able to get back to a regular market.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  May 30, 2022 Ottawa Storm - Dealing with the Damage The storm in Ontario and Quebec has caused significant damage to our communities. Thanks to our friends at Trigon Insurance who have put together some information that may help if you've sustained any damages to your property:   1.  Damage from fallen trees Typically, the disposal of the actual tree itself is not covered under a homeowner’s policy; however, the resulting damage it caused to your house or fence could be covered, and subject to your policy deductible.   2.  Missing roof shingles Roof damage from windstorms is typically covered under a standard homeowners insurance policy.  Damage will be subject to your policy deductible. Tip:  Do all that you can do minimize further damage to your home by tarping damaged areas to prevent water from entering the house.   3.  Spoiled food in your freezer Most companies provide some type of coverage for spoiled food in your refrigerator or freezer. This coverage may be subject to a maximum limit of coverage, and may be subject to your policy deductible, depending on the insurance company. Tip:  Make a detailed list of the items being disposed of and their approximate value so you can advise your broker of what needs to be reimbursed.   4.  Car damage If you have Comprehensive or All Perils coverage on your car, you're covered for damage from fallen objects (that includes trees!).  The damage would be subject to your deductible, but it would be considered a 'not-at-fault' claim which won't affect your insurance rates.   We hope everyone is staying safe out there! Contact your broker if you’re unsure about any damage to your property. May 25, 2022 Open House - The Real Estate & Mortgage Show: May 24th, 2022 As we proceed through 2022, we continue to see more proof that the market is slowing down. Especially throughout the pandemic we saw a massive spike in house prices, home sales and interest rates. Now, we can see the climb in house prices is slowing down, and we are seeing more houses staying on the market for longer. Even though interest rates are still rising, the Bank of Canada prime rate is still less than it was two years ago. Comparing now with the past shows that we are slowly resuming a normal market. To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  May 24, 2022 Mortgage Minute: Your Questions Answered Q: What should you do with your amortization? A: You can choose a 30-year amortization to give you a little more cash flow and flexibility. You can always readjust your payments to pay off your mortgage earlier. Pre-payment privileges allow you to pay more than your scheduled payment which goes directly to paying down the principal. More info on prepayment privileges here   Q: What should you do with your debt when you’re buying a home? A: You can include some of your debt into the mortgage; however, you need do have at least 5% down payment and your debt can not equal more than the total of the mortgage on your home.   Q: What is a HELOC? A: Some institutions offer a home equity line of credit (HELOC) which his similar to a second mortgage, but the interest is typically a lot lower. This is a great option to do some upgrades and renovations to your home to increase its’ value. There are some fees that come along with it however you typically get a great return on the investment. More info on HELOCs here   Q: What is default insurance relief? A: Anyone who purchased a home with less than 20% down will have a program called default insurance. Typically referred to as CMHC however, there are 3 default insurers out there. All three have this program for when something impacts your paying of your mortgage. You can contact these insurers which may allow you to get help on your payments for up to 12 months. More info on mortgage default insurance here   For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here. May 19, 2022 Open House - The Real Estate & Mortgage Show: May 16th, 2022 The growing question in 2022 is how can young Canadians afford a down payment on their first house? It seems increasingly difficult to find a strategy to make it possible and it is seeming almost impossible for most. According to Frank Napolitano, there should be a change in the length of amortization that is available to home buyers. Typical 25-year amortizations are becoming almost impossible to afford for most young Canadians, and questions of allowing 30- and 35-year amortizations are beginning to rise. Mandatory house inspections are another growing question. Many Canadians are using their life savings to purchase that home and many of them are ending up with daunting repairs on a home they thought were safe and up to code. As the Ontario elections are coming up, we can expect to see talks about cost of living and housing in party leaders’ platforms. We hope that there can be some change made to help Canadians towards purchasing their first home.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  May 16, 2022 Backyard Upgrades for the Best ROI With the spring weather booming, it is a great time to look at what improvements can be made in your backyard. Often the backyard is looked past in terms of upgrades, however, it can bring a lot of value to your property. Here are some upgrades that can provide the best return on investment for your property. Deck While traditionally decks were an afterthought and weren’t big money makers, now they can often bring in 75% ROI or even more. The key to deck installations is keeping with the overall value and size of the house. You don’t want to add an over-the-top luxurious deck on a tiny house or a tiny deck on a large-scaled house. Rule of thumb is to have one part deck to five parts yards. Trees One of the best ways to add value to a yard is to plant a tree. Mature trees almost always add to the property’s perceived value. As soon as you move into a house it’s a good idea to plant some trees. This way when it comes to sell – whether it’s 10 or 20 years down the road – they’ll be a good size. It’s best to stick with medium sized trees so they don’t overshadow the house. Privacy Fence Sometimes adding a fence can be looked at as a maintenance project rather than a value-adding addition. However, in certain scenarios, a privacy fence can be a welcomed addition and add value to the house. Neighbourhoods where fences haven’t been added yet would be a great time to talk with your neighbours and split on the cost to add fencing. If you get enough neighbours on board, you can sometimes get a discount from a single company. Simple Landscaping According to Scott McGillivray from HGTV “simple landscaping is the best way to add value to a home”. Beautiful and extensive landscaping can be very nice to look at but one of the first thoughts that pops in a buyer’s mind is “that’s way too much work for me”. A simply designed yard can provide extra value and show very well when selling. Maintenance This is by far the most factor to keeping up the value of your home. Small maintenance jobs here and there will save dozens of headaches and thousands of dollars in the long run. Small cracks should be fixed as soon as possible, keep the yard from getting overgrown and don’t let your deck fall into disrepair. Maintaining good care of your property will ensure you don’t lose any value in your home and could possibly even raise the value.   You can also use the equity in your house to take on some of these larger projects. Want more info? Check out our article on using the equity in your home for renovations here. May 11, 2022 Open House - The Real Estate & Mortgage Show: May 9th, 2022 As spring 2022 takes off we are beginning to see more of a normal housing market. House prices are still climbing slowly, however number of sales are down in comparison to last year. With comparing to last year, we are seeing a lot of change but comparing to a normal market pre-pandemic, we are starting to see a bit of normalcy and regular trends are beginning to come back. Traditionally it was in the sellers’ best interest to make their home show-ready before selling. Over the pandemic that was less of a factor as homes were selling no matter what the condition of the house. Now, we see we are falling back to the regular market and homes that show better are tending to get more attention. Looking at politics and the upcoming elections, we can expect some parties to mention changes for the housing market in their campaigns. After mortgage industry events over the past week, we’ve heard concerns of the Ontario market, and in particular Toronto. With young Canadians unable to afford to buy any houses and turning to other cities to buy, concerns for Toronto becoming an elderly dominated city are growing. To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  May 9, 2022 Should I Lock In to a Fixed Rate? When interest rates begin to rise, we get asked this question a lot. There is no right answer and every person’s situation is unique and could have a different answer. Typically, you would need to assess your own situation to find which answer is best for you. We’ve put together some questions and scenarios you should consider to find out what would work best.   Have you had any sudden life changes? Did a spouse stop working? Did you have an additional income added? Depending on your situation, it may be best to increase your monthly payments using the pre-payment privilege feature afforded with your mortgage. Why? If rates will be increasing from 2% to 4% over the next year, you may find it’s best to increase your own payments to that 4% amount now, so that when the increase happens you are insulated against the increase. Furthermore, all additional payments go straight to paying down the principal on your mortgage.   Are you having trouble affording your payments? If you are already maxed out and don’t have much breathing room for the rates to increase, it may be best to lock in your current rates. The rates are forecast to rise over the next year or two, so you know now this will be the lowest rate you’re going to get for a while. It may be best to lock in your rate.   Is the fluctuation of rate changes stressing you out? There is no point in stressing over things that you have some control over. If locking into a rate would give you peace of mind, then it may be worth doing so. Variable rates can save you some money, however, if it’s causing stress to you on a day-to-day basis then it may be worth locking in to alleviate your worries.   Every person has their own unique situation, and different strategies suit certain situations more appropriately. The best thing you can do for yourself is try to plan ahead instead of making last minute and impulse decisions. If you want more information for your specific situation, contact your broker for expert advice. Click here to find a mortgage broker today. May 5, 2022 Open House - The Real Estate & Mortgage Show: April 30th, 2022 The big question these days is: will the housing market slow down and will interest rates keep rising? The answer is becoming more and more a big yes. We’ve certainly started seeing rising interest rates over the last two months and they are forecasted to keep increasing. We are also starting to see the housing market begin to slow down in terms of number of sales and sale price. A lot of Canadians are starting to feel that they simply will not be able to own a home and it is beginning to look like the reality for most young Canadians. Until we see a change in the market, housing prices will remain where they are for some time. People holding investment properties are starting to see that it is difficult to make their cash flow from rents. Rental prices haven’t been increasing as much as mortgage payments have and now, we are seeing mortgage payments outweigh the rental income people can receive.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  May 2, 2022 Thinking of Using the Equity in your Home for Renovations? Renovating your home can be an extensive project. There can be a lot of different areas to improve, and it can be tough to decide on which one to go for. However, using the equity in your home to renovate can be a powerful investment and give a great return. We’ve put together some tips to help you think of things you may not already know.   Inspiration and renovation Guide: https://www.architecturaldigest.com/home-renovation-guide Benefits of using the equity in your home for improvement: https://www.bankrate.com/home-equity/home-equity-for-improvement-renovation/ Top questions asked about renovating a home: https://www.architecturaldigest.com/story/joanna-gaines-fixer-upper-tips Dealing with contractors and what questions to ask: https://www.architecturaldigest.com/story/steve-fanuka-finding-a-contractor   Be sure to contact your mortgage broker for advice when using the equity in your home for renovations. April 28, 2022 Open House - The Real Estate & Mortgage Show: April 23rd, 2022 Increasing interest rates are the current trend for 2022. This is driving up the number of listings as homes are taking increasingly longer to sell. Homeowners are still hoping to get that big homerun sale but are ending up surprised with the length of time it takes to sell and the final price they get. However, we are still in a seller favoured market, but the good news is that we are slowly heading towards a balanced market again. As the market slowly becomes balanced, we begin to look at the upcoming changes to blind bidding announced by the Ontario Government. The changes impose an option for sellers to keep bidding private or make them open and public to other bidders. This is receiving controversial reactions from critics because by leaving the choice up to the seller, the seller will likely choose blind bidding every time. This is because it is in the sellers’ favour to keep the bidding blind as you can typically get a higher price out of your home. There are even cases where a buyer will out bid themselves for no reason other than not knowing who the highest bid is. All this to say, people believe the best decision would be to either leave blind bidding how it is, or completely remove it altogether. Leaving the sellers with the choice will make very little change.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  April 25, 2022 Ontario Offers Alternative to Blind Bidding on Real Estate The Government of Ontario will be introducing new regulations to take effect next year which will help make the homebuying process more transparent. According to Ross Romano, the Ontario Minister of Government and Consumer Services, the regulations will enable home sellers to disclose details of competing bids on their properties if they choose and the province wants to give sellers the option of what it calls an “open offer” process. Under the current system of blind bidding, potential homebuyers submit their offers but do not know the contents of competing bids. The law states that real estate brokerages who represent clients must disclose the number of written bids but not the substance of those bids. However, under the new regulations, sellers would have the option to open the bidding process and make all offers transparent. This means that the brokerages who represent them would disclose all details of competing bids at the discretion of sellers. Lesli Gaynor, a real estate sales representative in Toronto, believes that it shouldn’t be an option but rather enforced as the only method or not allowed at all. She believes that if the option is there, nobody will choose to make the bidding process open if the option to keep it blind remains. Mike Schreiner, leader of the Green Party also agrees with these statements as he says it is in the sellers’ best interest to keep buyers in the dark.   For expert advice, contact your mortgage broker. Click here to find a broker. April 20, 2022 Open House - The Real Estate & Mortgage Show: April 16th, 2022 This week Dora Bejaoui fills in for Paul Rushforth and we discuss current number of listings on the market. In the core of Ottawa (Carleton Place to Orleans) we are seeing about 650 residential listings and we are seeing less sales than the number of listings being added. This is good because we are starting to see an increase in inventory. Bank of Canada increased their interest rates last week by 0.50% and interest rates across all banks and lenders have also increased by about 1% over the past two months, leaving us at a 4% average. With inflation affecting the market we can only hope to slowly see a plateau in housing prices to give the country a chance to catch up. The good news is that we are seeing an increase in inventory which is an earlier indicator to a plateau in housing prices. With the addition of new government regulations such as mandatory home inspections, buyers can feel a little more comfortable about buying a home in the very fast paced market we’ve been thrown into over the past two years.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  April 18, 2022 Bank of Canada Rate Increase - April 13 2022 The Bank of Canada today increased its target for the overnight rate to 1%. The Bank is also ending reinvestment and will begin quantitative tightening effective April 25. Maturing Government of Canada bonds on the Bank’s balance sheet will no longer be replaced and, as a result, the size of the balance sheet will decline over time. The bank's rate impacts Canadian businesses and consumers by influencing the rates they pay and receive on things like mortgages, GICs and savings accounts. While the move helped the economy to weather the unprecedented uncertainty of COVID-19, in recent months, inflation has come roaring back to its highest level in decades, prompting the central bank to start unwinding all that cheap credit. The Bank forecasts Canada’s economy will grow by 4¼% this year before slowing to 3¼% in 2023. Economists were expecting the move, and with inflation flirting with six per cent, they expect more to come, at least until the central bank's rate gets up to two per cent — and possibly beyond. Russia’s ongoing invasion of Ukraine is causing spikes in prices in various industries and are putting disruptions on supplies around the world. These factors are the primary drivers of a substantial upward revision to the Bank’s outlook for inflation in Canada. As most economies are emerging from the impact of the Omicron variant of COVID-19, the war in Ukraine is putting a dampen on the recovery time worldwide. China’s economy is facing new COVID outbreaks and ongoing correction to its property market. In the US they have indicated its resolve to use monetary policy tools to control inflation. In Canada, growth is strong, and the economy is moving into excess demand. Growth has been stronger in the first quarter than projected in January and is likely to pick up in the second quarter. Consumer spending is strengthening, exports and business investment will continue to recover, and housing market activity is expected to moderate. To read the full announcement click here. Contact your Mortgage Broker today for trusted advice. April 13, 2022 Open House - The Real Estate & Mortgage Show: April 9th, 2022 This week we look at the comparison in sale numbers and sale prices compared to last year. When looking at number of sales, we saw less sales in March than we did in March 2021 however, we are still more than the 5-year average. In terms of sale prices, we are still seeing huge increases when comparing with previous years. However, there is good news for sellers and buyers. We are beginning to see an increase in listings across Ottawa. Usually, we are hovering around 1100 listings that are active on the market and now we are seeing about 1400 listings currently active. Many listings are coming up in Kanata and Barrhaven areas but are disappearing quick, whereas listings in Orleans are moving a little slower.  The questions can be asked – will we see a decrease in prices soon? The unfortunate answer is no, however, we will most likely begin to see a plateau in sale prices in the future. A big roadblock in bringing housing prices down is the limitations we are seeing enforced on home builders. We know there are many home builders who are ready to build new houses in Ottawa however the process in getting the approval to start has become increasingly difficult. This is putting a big halt on the development of new houses in Ottawa which is also making it hard to keep housing prices down. Big changes have been announced by government in several different aspects of buying, selling, and owning homes. We’ve heard a new announcement about taxing house flippers as a business as well as new implications to make home inspections mandatory when selling your home. Both new rules do have positive and negative impacts depending on which point of view you look at it from. The good news about all these new changes is that they are noticing problems within the industry and are taking strives to make it fairer and more manageable for Canadian homeowners.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  April 11, 2022 New Government Measures to Fight Inflation Economist Rebekah Young from Scotiabank said the federal government will unveil measures to help Canadians with the rising cost of living in its budget this week. Several provinces have already taken steps to ease the burden with Quebec planning to send a $500 cheque to taxpayers earning less than $100,000, Alberta pausing the collection of provincial fuel tax and Ontario planning to temporarily reduce the fuel and gas taxes it collects. Young estimated that those provincial measures will likely equate to between $8 billion and $10 billion in support this year. Though the help from the federal government would take some of the pressure off Canadians, it is known that more government spending is a fuel for inflation. This puts the government in a tricky position; however, it’s looking as if Canadian wages won’t be able to keep up with the rate of inflation. Young predicts that the government will step in and increase its spending to help Canadians with cost of living and that it could amount to $56 billion in new spending by fiscal year 2026-2027. In addition, the agreement the Liberals struck with the New Democrats could add up to $20 billion in additional spending as well. It’s apparent that there will be more spending from the government and there will be actions taken to help Canadians, however, the risk is that of adding to the rise of inflation.   Read the full article here April 6, 2022 Open House - The Real Estate & Mortgage Show: April 2nd, 2022 Paul describes the current market with one word: volatile. If you’ve been following along with the previous shows, you would know that the current state of the housing market is a little all over the place. It is becoming more and more difficult to predict which way the market will move next. Listings are low compared to last year, rates are increasing and some fears of a recession this fall are becoming more and more realistic. If this is the case, that means there is room for opportunity. Based on the current market and the current economy, a recession is what is needed in the current market. We know that the United States is headed for a recession and in past cases Canada follows suit. However, this is not the worst thing that could happen. This could give opportunities for people to get into the housing market at lower costs and could open the door for policy changes for the future. On the other hand, if a recession doesn’t happen – we could see the potential flattening of house prices and rate increases. This is also a good scenario as we can allow people to catch up to the rapid increases we’ve seen recently. Whatever the future will hold, there is always opportunities to be successful with owning a home and managing your portfolio. If you have any concerns, meet with your mortgage broker to find out the best options for your situation.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  April 4, 2022 Canadian Housing Market More Stable Than Many Believe Canada’s housing market is a lot more stable than it looks, despite soaring prices. The average house price climbed by more than 20% year over year in February to a record $816,720, leaving many Canadians worrying about affording houses. A report released Tuesday by Chief Economist Benjamin Tal from CIBC looked at various scenarios for housing over the next five years. If Bank of Canada raises interest rates at a reasonable schedule, price growth would end up flattening and gradual rate increases wouldn’t affect mortgage payments. However, the housing report noted the risk of over-tightening. With inflation being at the highest level in three decades, having eight rate raises per year could lead to a recession. Finally, the report examined what could happen if the federal government removed the principal residence exemption. Adding a capital gains tax on the sale of primary residence could be applied on a prorated basis and such a move could incentivize sellers and in the short-term increase inventory. To find a mortgage broker click here To read the full article click here March 31, 2022 Open House - The Real Estate & Mortgage Show: March 26th, 2022 For two years we’ve seen major changes to our lifestyles and major changes to major industries. The housing market has seen changes in so many aspects it’s interesting to imagine how it was over 2 years ago. Looking at qualifying for mortgages – we’re noticing the process of applying has changed drastically. Typically, when applying for a mortgage, we would expect to provide income verification and apply with good credit scores. Now, it is a different story. On top of having to provide income and credit scores, we have been seeing lenders and banks asking for 3 months of bank statements and questioning any deposits that are not payroll, contacting employers by phone, and investigating every aspect of a persons’ personal books. It’s become so much that we start to question – is it becoming too invasive? Banks are actively voting for government to enforce open banking. Which simply means a persons’ bank account would be opened to investigating by the banks or lenders. They claim this is to rule out money laundering, however, money laundering cases typically occur in less than 1% of the general population. Which, again, brings the question of is it too invasive. After talking with MPC president, who in the past week has been meeting with government officials to find new strategies for first time homebuyers, we’ve learned that there may be hoped to get into the market. The possibility of 30-year amortizations for first time home buyers only and decreased down payments for houses under $1 million shows there may be new regulations put in place. The ongoing concern is for those who purchase a house at peak pries and are leveraged to the maximum – will see more debt than equity if the market decides to go the other way. These regulations have been put in place to avoid this problem from happening, however, the rate of inflation is causing a very difficult situation for getting that first home.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  March 28, 2022 MPC Meets with Government to Find Support for First Time Homebuyers Mortgage Professionals Canada (MPC) is the national association representing Canada's mortgage industry and were in Ottawa this week to meet with key political decision makers to bring support for first-time homebuyers and relieve constraints in the housing market. In the most recent Federal election, we heard Canada’s major political parties promising to make changes to the mortgage qualification stress test and to mortgage insurance qualification. This week, MPC have met with Ministers, Senators, and Members of Parliament to discuss these and other policies that should be implemented. We’ve been seeing how hard it may be for first-time homebuyers to get into the housing market as down payments and income required for mortgage approvals are both on the rise. But moreover, how competitive situations such as bidding wars for have been discouraging for first time buyers.  Some buyers are even choosing to forego a home inspection to make their offer more attractive to the sellers. Our mortgage agents work everyday to help thousands of people buy their first homes, but certain policies prevented many otherwise qualified Canadians from benefitting from home price gains. These Canadians still want to help grow the country’s middle class through homeownership – and we hope that after MPC meets with members of Parliament, we can see some of these policies changed or modified.   To find a mortgage broker click here To read the full article click here   March 23, 2022 Open House - The Real Estate & Mortgage Show: March 19th, 2022 As we see expense costs rising across all industries such as groceries, gas and more – we can also see an increase in fixed rates. This has been making qualifying more difficult for people trying to get their first or second mortgages. If inflation continues to increase at the rate it has – we are predicted to see interest rates, follow suite. We are seeing the question of “how are people affording to get into the housing market” pop up more and more. The reality is that a lot of people are getting their parents’ help to afford that down payment. In addition, we see a lot of people renting out the basement or part of the house to their parents to minimize on expenses. Another factor that is making purchasing a house difficult for new buyers is the speed at which houses are selling. Typically, you could shop around and add a few homes to your list. However, now we are seeing that houses are selling so fast if you take an additional week to ‘shop around’ you are almost guaranteed to miss out on that first house you had interest in. Aside from this – springtime is around the corner and two words come to mind: street appeal. Now is the time to take to the gardens, clean up the yard and the sides of houses. If you’re looking for maximum selling price you want to act as quick as possible. We can only predict that houses will only sell faster and for more value than they did this time last year. If you are buying a house, you want to start your research yesterday and if you are selling your house the best time was also yesterday.     To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  March 21, 2022 The Year of the Condo Demand for condos in Canada’s big cities could hold strong and maybe even increase from the gradual recession of the COVID 19 pandemic. Even though rising interest rates may overall have a dampening effect on Canada’s housing market. National sales figures for February showed month to month growth in the number of units sold from January – however also showed an overall decline of 8% from the same month a year before. While overall stats dipped year over year in Canada, apartment-style units saw large increases in sales last month compared to February 2021. Vancouver, Edmonton, Winnipeg and Hamilton-Burlington all saw apartment sales jump, with Toronto seeing a jump of 38 per cent since 2021. We saw during the pandemic that city people were being told to work from home and were therefore moving out of the city to take advantage of lower priced homes. Now that the pandemic is closing, we see a shift in demand for apartments and condos in the big cities. Because condos saw less price appreciation than residential units outside of the city, we saw the residential home values outpace the condos. This is resulting in residential homeowners being able to take that money and put it back into a city condo. Another contributor to people wanting to move back to the city is the rising gas prices. Again, now that COVID is beginning to see its end, there is an increase of necessary commutes which is contributing to the uproar of condo demand. A good thing to take note of is that the Bank of Canada increases have taken effect on single family homes, and we are now seeing it hit town homes; meaning, condos and apartments are the most affordable units right now. This “trickle down” effect could cause a surge in the purchases of apartments and condos in the following months, especially with additional rate increases from the Bank of Canada. If you need help with financing a condo Contact a Mortgage Broker today!   Read full article here   March 16, 2022 Open House - The Real Estate & Mortgage Show: March 12th, 2022 Two years ago, on March 11th the world was put into emergency mode and shut down for the COVID 19 pandemic. After two whole years of learning to adapt and changing our lifestyles we saw positives and negatives around the world. Some markets have taken off such as the real estate industry and we’ve seen many tech companies such as Zoom see the same effects. Coming out of the pandemic we begin to readjust to standard living and are dealing with fighting off inflation and returning the economy to normal. Before the pandemic we would’ve seen homeowners looking to get approximately $500,000 - $700,000 from selling their homes – now, fast forward to 2022 and we are looking at almost double that amount. We see sellers’ expectations are very high right now and it will be interesting to see how this changes. It’s been said before that the best time to sell your house was yesterday – but this is true now more than ever. Waiting to sell your house is leaving your results entirely to chance while the market is extremely hot right now. A lot of people have moved outside of the city to take advantage of lower prices in the outskirts. However, with the sudden rise in gas prices, this move can see to have a negative impact for those who have a longer commute to work in the city and it can be expected for some to go back on their decision. If you are looking to sell or buy a house – it is a good idea to stay on top of real estate news for the coming weeks as we expect to see lots of changes.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  March 14, 2022 Retiring? You have many options to explore. Several homeowners nearing retirement are looking at the rising value of their homes and are realizing it may be easier to retire than they think. Many clients have seen in this windfall of the Canadian real estate market a more active retirement, potentially more travel, leisure, and fun - especially if they relocate to a less expensive community. One person had reportedly sold their home for $300,000 over asking and chose to put the profits into a dividend-investing account. They then took the proceeds from their investment and put it towards rent, making their investment pay for their cost of living. For retirees who can continue maintaining their homes - and don’t want to deal with the hassles of relocation or tight property markets - a home-equity line of credit (HELOC) is an option to help take advantage of surging home equity. It’s a line of credit secured by the equity in your home, which can be accessed on an as-needed basis. Borrowers only need to make interest payments on the loan until they sell the home. A related product is a reverse mortgage, which provides regular payments to homeowners out of the home’s equity. No interest payments are required until the home is sold. We’re also seeing more creative solutions, such as helping a child buy their own home, then relocating to an in-law suite on the same property – a two-birds, one-stone solution. There are many options you can explore to make your retirement a stress-free end to your working career. Give us a call to find out how you can retire happily. Click here to find the closest office to you! March 10, 2022 Open House - The Real Estate & Mortgage Show: March 5th, 2022 Average sale price in the first two months of 2022 went up by $76,000 or 33.2% with the average sale price sitting around $722,000. This is just from looking at the year-to-date changes from the beginning of 2022. Over 30% of parents are helping their kids by co-signing on their mortgages. Total number of listings on the market right now are sitting around 1000 which is still sitting at a low compared to the regular market. We are seeing a big change in the conditions when buying a house. Typically, we would see a lot of conditions on home inspections and others before accepting the sale, however, now we see that if you enter a sale with any conditions, it is likely your offer won’t even be considered. Prime rates have increased by a quarter point over the past week, and we can forecast it to increase another quarter point next month. We see a lot of things happening in the world including Ukraine-Russia, which is resulting in a lot of uncertainty in the markets. As we see rates rising again it may cause a lot of urgency and panic for consumers however, if you look at where rates were before COVID started two years ago, we are still sitting at lower rates than we were. This means over the past two years there was a big opportunity to save, and we are just getting back to where we were at. People selling their home are looking to take advantage in the increase to house prices and are getting a little greedy when trying to price their houses. We saw the same thing last year and there was a bit of a shift in June to favour buyers so we can expect to see shift this year. If you are looking to sell your house, now is the time to do it. Guest speakers raise good points on raising rents for tenants. When trying to increase rent, you are only able to raise the rent by the percentage set for that current year. This year in 2022 the increase is set to 1.2%. This means if you are looking to increase rent for your tenants you can only do so one time at the rate of 1.2%. If you have not increased rents over several years, you still can only increase the rent one time by the rate for the current year. This brings to question if it’s worth increasing rents when you have a good tenant. A great tenant is nine times out of ten more valuable than making an extra $200 in the year.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  March 7, 2022 Bank of Canada Rate Increase - March 02 2022 The Bank of Canada raised its benchmark rate from 0.25 per cent to 0.5 per cent on Wednesday March 3rd, 2022. This move is forecasted to be the first of a series of additional small rate hikes this year to tame inflation that has risen to the highest point in decades. This is the first time the Bank has raised its rate since 2018. Pre-pandemic, the Bank’s rate was 1.75 per cent before it was quickly cut down to the rate of 0.25 per cent to help the economy. The bank cited news that Canada’s economy grew at a 6.7 per cent annual pace in the last quarter of 2021, a figure that the bank described as “very strong”. “This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed.” The Bank also cited factors beyond Canada’s borders as reasons for its move. Lenders are beginning to move in reaction to the Bank’s hike. Royal Bank is raising its prime lending rate to 2.7 per cent, up from 2.45 per cent. Other banks are also looking to follow suit. Qualified buyers looking to buy a $500,000 home with a $400,000 mortgage could easily get a 25-year variable loan at under 2 per cent; costing them about $1,655 a month. If the central bank were to raise its rate three more times (and the lender followed suit) the buyer’s monthly payment would move up to $1,801 a month – around $200 more every month. Using the increased monthly payment, gross housing costs of mortgage payments, taxes and heat represent a ratio of less than 28% when using Ottawa’s median family income of $102,000 making them well within an acceptable range. The ongoing invasion in Ukraine is a considered a factor to influence inflation and other parts of the economy, the Bank of Canada cited. Canada, being among many other countries, has pledged to no longer import oil from Russia which has contributed to the spike in prices.   March 4, 2022 Bank of Canada Rate Increase The Bank of Canada decides to increase it’s staple interest rate for the first time in three years. The BoC announced Wednesday that it will increase the rates from 0.25 percent, where it has remained since the beginning of COVID-19, to 0.5 per cent. The last time we have seen an increase in the rates was October 2018 when it jumped up to 1.75 per cent. Since then, we have seen a downward trajectory consistently until the latest announcement. After signalling changes a few weeks ago, the BoC announces it would no longer promise to keep the rate at emergency levels. Two years ago this week, we saw the decision to cut its key policy rate to compensate for any economic fallout from COVID-19. At the end of 2021 we have seen a roaring housing market and inflation rates at three-decade highs, which gives signs that it may be time to increase rates from emergency levels. This first increase may have the largest affect on households managing their debt, but we won’t see major affects on the country’s housing market until the rates are raised by a full percentage point according to Douglas Porter of BMO. Typically, a rate hike takes anywhere between 6 months to 18 months until it influences headline inflation. With the annual inflation rate sitting around 5.1 per cent as of January we can only expect it go keep rising with the increase in global oil prices.   See Full Release from Bank of Canada here   For more information on variable rate lending click here March 2, 2022 Open House - The Real Estate & Mortgage Show: February 26th, 2022 The “V” we experienced overt the past two years in the real estate market shows how we were adapting to the situation of COVID 19. We didn’t take much time off in the real estate market. By the time June 2020 came around and we were learning how to cope with changes – the market seemed to explode. We were in a great market in 2020 but we didn’t expect to keep seeing the increases into 2021 and now even 2022. We have even seen the same effect globally. Houses seem to be commonly selling $200,000 - $300,000 over asking price. The new Bank of Canada announcement is coming out as of Wednesday March 2nd and we are expecting changes to the rates. Today we are at the same rate in terms of fixed rates as we were before COVID almost exactly two years ago today. With the invasion of Russia into Ukraine, we expected the stock market to plummet, but we’ve seen the opposite happen. This could change at anytime but what we are most concerned about is if inflation will stay or keep climbing. We see the effects happening in all industries from gas prices to groceries. However, we can suspect that the effects of inflation could keep prime rates from climbing. As house prices rise, we can see the same all over the city, including the outskirts. While typically cheaper to buy a home in the outskirts of town, rising costs of things such as gas are contributing to the costs that need to be factored in to justify saving money with this strategy. The financial market has extreme volatility right now and proves that it has no real direction. This means it could turn on a dime at any time. Real estate, however, never has a ‘bad time’ to buy. With investors starting anywhere between $10,000 – over $1 million, there is always a property somewhere. With interest rates going up, can investors expect a larger return? Over time you will see the rate of return go up. It will take a bit of drag before it does as we see the costs of everything catch up to inflating rates and costs but then will see the returns grow as well. The number of rentals over the last 6-8 months was 4x the amount of there were sales. Now we can see the number almost at the same and seems to be going in the opposite direction. Can you see us going up another 15 points this year? Last year was 15% which would have never been predicted and 42% over the past two years. It’s hard to tell what the next year will see as we come out of the pandemic. We hope to see the increase stay the same and start to level out a little bit. There are a lot of people rushing to get their mortgages before rates continue to rise. This could be contributing to the reason we are seeing more listings appearing on the market. If you wait until May, you may be missing out as rates could make a drastic difference than locking in today. We don’t seem to notice extensile differences between signing on to a 5-year vs. a 10-year mortgage right now. Even with fixed vs. variable, there isn’t enough difference to justify that one is better. If you’re someone that wants to sleep at night and not worry about your rate, then take the fixed rate. It all comes down to what you are most comfortable with.   To hear the full podcast; click here  Contact your Mortgage Broker today for trusted advice  March 1, 2022 The Bank of Canada To Keep Its Key Interest Rate Target On Hold In the latest release, the Bank of Canada has opted to maintain its benchmark rate at 0.25%, the same level it has been since the start of the pandemic in March 2020. It was suspected to raise its key policy rate from 0.25% marking the first of multiple hikes to happen over 2022 according to some economists. “The Omicron variant is weighing on activity in the first quarter. While its economic impact will depend on how quickly this wave passes, it is expected to be less severe than previous waves. Economic growth is then expected to bounce back and remain robust over the projection horizon, led by consumer spending on services, and supported by strength in exports and business investment. After GDP growth of 4½ % in 2021, the Bank expects Canada’s economy to grow by 4% in 2022 and about 3½ % in 2023.” Canada’s own economic growth has resumed with strong employment gains in sectors for those most affected by lockdowns. However, it is taking more time for workers and employers to find the right job and applicants thus contributing to labour shortages in certain sectors. “While COVID-19 continues to affect economic activity unevenly across sectors, the Governing Council judges that overall slack in the economy is absorbed, thus satisfying the condition outlined in the Bank’s forward guidance on its policy interest rate. The Governing Council therefore decided to end its extraordinary commitment to hold its policy rate at the effective lower bound. Looking ahead, the Governing Council expects interest rates will need to increase, with the timing and pace of those increases guided by the Bank’s commitment to achieving the 2% inflation target.” The next Bank of Canada announcement will be on March 2nd, 2022.  To read the full press release from the Bank of Canada, click here. Reach out to your Mortgage Broker today for trusted advice. January 26, 2022 Canadian home prices expected to rise in 2022 Home prices in Canada are expected to rise by 10.5% in 2022 with major cities expected to see the largest increases. In 2021, housing prices jumped by 21.4%. With the continuing low inventory, prices will continue to rise.  While some believe that housing is now overvalued, signals point to a level of demand that will continue to outpace inventory, keeping prices rising on a steep upward trajectory,” Royal LePage president and CEO Phil Soper said in a statement. “That said, I do expect to see price appreciation ease from the unhealthy levels that we have­­­ been grappling with over the last 18 months.” The biggest changes are expected to be in Toronto, Vancouver and Halifax. “In Canada, aggregate price predictions show homes will be the most expensive in Greater Vancouver ($1,375,700), Greater Toronto ($1,256,500) and Ottawa ($806,600), while the lowest prices are expected to be found in Winnipeg ($372,100), Regina ($376,300) and Edmonton ($429,000).” To read the full CTV News article, click here. To learn more, reach out to a Mortgage Broker today. December 21, 2021 Bank Of Canada: No Change To Rate In the latest release, the Bank of Canada has opted to maintain it’s benchmark rate at 0.25%, the same level it has been since the start of the pandemic in March 2020. The Bank has stated that they are ending the quantitative easing (QE) efforts and are moving into the reinvestment phase. Despite progression in global economic recovery, pandemic related disruptions to production and transportation are hindering growth. “Inflation rates have increased in many countries, boosted by these supply bottlenecks and by higher energy prices. While bond yields have risen in recent weeks, financial conditions remain accommodative and continue to support economic activity.” Canada’s own economic growth has resumed with strong employment gains in sectors for those most affected by lockdowns. However, it is taking more time for workers and employers to find the right job and applicants thus contributing to labour shortages in certain sectors. “The Bank now forecasts Canada’s economy will grow by 5 percent this year before moderating to 4¼ percent in 2022 and 3¾ percent in 2023. Demand is expected to be supported by strong consumption and business investment, and a rebound in exports as the US economy continues to recover. Housing activity has moderated, but is expected to remain elevated. On the supply side, shortages of manufacturing inputs, transportation bottlenecks, and difficulties in matching jobs to workers are limiting the economy’s productive capacity. Although the impact and persistence of these supply factors are hard to quantify, the output gap is likely to be narrower than the Bank had forecast in July.” To read the full press release from the Bank of Canada, click here. Reach out to your Mortgage Broker today for trusted advice. December 8, 2021 How a Mortgage Pre-Approval Can Protect You from Rising Rates Over the past few months, there have been many lenders raising their fixed mortgage rates. Rates are beginning to raise sooner than expected. Raising mortgage rates make mortgage pre-approvals much more ‘relevant and meaningful’. The mortgage pre-approval gives you an estimate of how much you are able to borrow from a lender. It also offers a interest rate hold for up to 120 days in many cases. With rates rising having a rate hold for a fixed mortgage rate can be extremely beneficial. Pre-approvals can also be beneficial for variable rate mortgages. “The rate for a variable-rate mortgage is expressed as a discount to the lender’s prime rate – and that discount is what could change during your pre-approval period.” To read more of the Canadian Mortgage Trends article, click here. November 23, 2021 How the Government Hopes to Change the Purchasing Process With the election just passing, the re-elected Liberal government pledged to address the dilemma of the housing market and first-time home buyers. Among the Liberal party’s proposal for the Home Buyers Bill of Rights is an assurance that the process of purchasing a home is “fair, open and transparent”. Included in the protection measures would be a bill to introduce that it is a legal right for a home inspection in order to provide buyers peace of mind. The proposal would also ban blind bidding, obligate lenders to offer deferrals for up to six months after a major job loss and require mortgage lenders to act in the client's best interest to keep fully apprised of the range of choices at their disposal during the mortgage process. On the subject of financing conditions, Frank Napolitano – a managing partner and mortgage agent at the Mortgage Brokers Ottawa brokerage – told Canadian Mortgage Professionals that it was essential for brokers to ensure their client was fully aware of the risk they were potentially incurring by deciding to waive a stage of the purchasing process. “I’m advising clients to tread very carefully,” he said. “From a financing standpoint, if we do our job properly, then we should be able to give them some peace of mind knowing that their financing will be intact based on collecting documentation up front. To read more regarding the proposal and more of the interview with Frank Napolitano; click here. To learn more, reach out to a Mortgage Broker today. November 1, 2021 Bank of Canada: No Change to Rate In the latest release, the Bank of Canada has opted to maintain it’s benchmark rate at 0.25%, the same level it has been since the start of the pandemic in March 2020. The Bank has stated that they are ending the quantitative easing (QE) efforts and are moving into the reinvestment phase. Despite progression in global economic recovery, pandemic related disruptions to production and transportation are hindering growth. “Inflation rates have increased in many countries, boosted by these supply bottlenecks and by higher energy prices. While bond yields have risen in recent weeks, financial conditions remain accommodative and continue to support economic activity.” Canada’s own economic growth has resumed with strong employment gains in sectors for those most affected by lockdowns. However, it is taking more time for workers and employers to find the right job and applicants thus contributing to labour shortages in certain sectors. “The Bank now forecasts Canada’s economy will grow by 5 percent this year before moderating to 4¼ percent in 2022 and 3¾ percent in 2023. Demand is expected to be supported by strong consumption and business investment, and a rebound in exports as the US economy continues to recover. Housing activity has moderated, but is expected to remain elevated. On the supply side, shortages of manufacturing inputs, transportation bottlenecks, and difficulties in matching jobs to workers are limiting the economy’s productive capacity. Although the impact and persistence of these supply factors are hard to quantify, the output gap is likely to be narrower than the Bank had forecast in July.” The next Bank of Canada announcement will be the last for 2021 on December 8th.  To read the full press release from the Bank of Canada, click here. Reach out to your Mortgage Broker today for trusted advice. October 27, 2021 Canadian Real Estate Report- RE/MAX Affordability has shifted demand for condos in wake of higher home prices across the country. The number of condominium sales were sky high between January and August of 2021 which is top expected given the soaring prices of freehold housing. The strongest gains in sales were made in the West, where Greater Vancouver and Calgary saw condominium sales rise 87% and 83% respectively. The Greater Toronto Area led the East in terms of percentage increases in condo sales at 71%, followed by Halifax-Dartmouth at 36% and Ottawa at 29% compared to the same time last year. The greatest upswing in pricing occurred in the East, with both Halifax-Dartmouth and Ottawa posting double-digit price gains of 30% and 18% per cent respectively. “Affordability, coupled with availability, set the stage for the exceptional rebound in condominium sales across Canadian real estate  markets in 2021,” says Christopher Alexander, Senior Vice President, RE/MAX Canada. “Double-digit acceleration in detached housing values revived slumping condominium sales early in the year, with demand shifting into high gear as detached supply dwindled and prices accelerated. Younger buyers have been behind the push for condominiums to date, with most looking to lock in low interest rates and buy before prices climb beyond their means.”   Read the full report from RE/MAX Canada here. Have questions about your home or purchasing a property? Contact your Mortgage Broker today. October 21, 2021 Mortgage Minute: Your Questions Answered Q: The variable mortgage has served us well, nut we are a bit worried that with inflation numbers high,  mortgage rates are likely to increase and we are wondering when should be lock in? A: Since bond markets have gone up in the past week a little over a quarter percentage point. W have already seen some lenders start to increase their fixed rates. It would b e best to start looking into it within the next day of two. It is the best idea to do it sooner rather than later. Q: Our mortgage is up for renewal next spring, can we start the renewal process now or do we have to wait for our bank to connect with us? A: With rates going up, there is nothing wrong with starting the process now. Most lenders can lock in a rate for up to four months. If you lock in a rate today, that will bring you until the end of 2022. Even if your mortgage matures in the spring, it at least gives you a guaranteed rate in case rates go up, which they are expected to do. Q: We purchased a home from a builder but it won’t be ready until Fall 2022. Can or should we lock in a mortgage rate now, or wait until closer to the house is ready? A: It is a good idea to lock in a rate now if you can. With new builds, some mortgage brokers and lenders have access to a one year rate hold but rates won’t necessarily be as low as you are seeing. It is still better though to lock in a rate now than to wait for when the property is ready when rates may be much higher. For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here. October 5, 2021 Annual Pace of Housing Started Slowing in August Canada Mortgage and Housing Corp. stated that the annual pace of housing starts in August slowed compared to July as the ratee of construction continued to slow from such highs this past year. CMHC adjusted the seasonally adjusted annual rate of housing from 270,744 in July to 260,239 in August. The housing market pace slowed as annual rate of urban start fell 4.7% in August to 235,782. Annual rate of urban starts for apartments, condos, and others, dropped 5.7 to 173,120. Single detached urban starts fell 2% to 62,662. The sic month moving average of the monthly seasonally adjusted annual rate of housing starts was 283,971 in August, down from 286,076 in July. For the full CTV News article; click here. Reach out to a Mortgage Broker today! September 28, 2021 StatsCan Finds Mortgage Borrowing Record Statistics Canada state that mortgage borrowing hit a record in the second quarter as the amount Canadians owe relative to their income have increased. On a seasonally adjusted basis that household debt as a proportion of household disposable income rose to 173.1% compared to the first quarter being 172.6%. In other words, there was $1.73 in debt for every dollar of household disposable income. Total borrowing in the quarter rose to $63.8 billion in the second quarter, almost double the first quarter. This was driven by $57.2 billion in mortgage loans while demand for non-mortgage loans was just $6.6 billion. The total stock credit market debt which includes consumer credit, mortgages, and non-mortgage loans total $2.53 trillion with $1.70 trillion of that being mortgage debts. The household debt service ratio, measured as a total obligated payment as proportion of household disposable income, fell to 13.32% in the quarter compared to the first quarter with 13.45%. For the full CBC News article; click here. Speak to a Mortgage Broker today! September 14, 2021 The Bank of Canada To Keep Its Key Interest Rate Target On Hold Amid the fourth wave of Covid-19, The Bank of Canada key rate remains at 0.25 per cent and said it would maintain its current policy of quantitative easing program by buying bonds at a target pace of $2 billion a week. The Bank of Canada reiterated its guidance that would remain unchanged until at least the second half of 2022. The Bank of Canada plans to keep up their efforts to help the economy improve, which is predicted to be seen next year. To read more from The Bank of Canada, click here. Reach out to a Mortgage Broker today. September 8, 2021 Mortgage Minute: Your Questions Answered Q: I have always been a big saver and debt averse and use my debit card to pay for everything. Though, I have been told that this will not help me build my credit. What should I do if I am thinking of buying a home next year? A: In order to buy a home, you must have a credit score. My recommendation is to have one credit card with a decent limit, something higher than 500$. Use this card once a month, whether you put gas on it or to pay for your gym membership then pay it in full after the statement comes in. Be sure that you are getting a credit card that is free with no annual fee. You need to have some kind of credit in order to purchase a home. Q: I have been approached by my landlord to buy the property that I am renting. I feel like I am not ready yet as I still have some student debt and have not saved much for a down payment. They advised me that I could enter into a rent to own agreement with them for the next three years which has me interested. Are there any risks to entering such an agreement? A: The risk is that if you are not ready for years from now, what happens? I would strongly encourage you to meet with a lawyer and make sure that the agreement has outs for you. Generally, the way a rent to own works is if your normal rent is $2000, you would pay a couple hundred above that monthly instead. That extra money paid, goes towards your down payment. Make sure that it is very clear in your contract that that is was you are doing. For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here. August 18, 2021 Renewing Your Mortgage When you first sign for a mortgage, your contract is in effect for a specific period. This is called a mortgage term and it can range from a few months to five years. Coming to the period of your renewal, the lender must provide you with renewal statements at least 21 days prior to the end of your term. The lender also must notify you 21 days prior to your renewal date if they are planning to not renew the mortgage. The renewal statement must include the following: The balance or remaining principal at the renewal date The interest rate  The payment frequency  The term  Any changes or fees that apply When your mortgage term comes to an end, you must pay the amount in full or renew it. At this time, it is a good idea to review your mortgage needs and make sure you have the right product for you. Things to consider at this time include:  If your budget allows you to increase your mortgage payments in order to pay off your mortgage sooner  If you are satisfied with the services offered by your current lender  If you want to consolidate other debts that have higher interest rates and increase the amount of your mortgage For more information on renewing your mortgage, reach out to a Mortgage Broker today! For the full article from the Government of Canada; click here. August 8, 2021 Mortgage Minute: Can You Afford to Buy a New House? With new stress test rules, it may be more difficult in order to qualify for a mortgage. With the previous rate of 4.79% you may have qualified for a $500,000 but now with the current rate of 5.25% you would only qualify for a mortgage of $479,000. With the new rules in place, we are seeing a relatively quick adjustment period for most. It is showing more restraint on younger Canadians and first-time home buyers as they are unable to qualify for as much of a mortgage. With the housing market, having less of a qualifying rate and housing prices being so high it is increasingly difficult for those group of Canadians. The market has been showing some of a cool off period but cannot be necessarily tied to the new stress test changes. With he housing prices lowering it is becoming easier to buy as houses are now going for closer to list price. For more information, reach out to a Mortgage Broker today! To watch the full CTV Morning Live segment with Frank Napolitano; click here. June 23, 2021 Mortgage Planning Tips It is a good idea to plan out your mortgage in advance. By doing this you will be able to save money and be better prepared to deal with anything unexpected financially. Borrow less than you are allowed When mortgage professionals use to rules to decide how much they will lend to you. First, your housing costs should not be more than 32% of your gross income. These costs include, interest, taxes, heating expenses and half of your condo fees if any. Second, your total debt including cars and credit cards, should not be more than 40% of your gross income. When it comes to borrowing the maximum amount, it can be risky. If your income drops, interest rates rise or, your expenses increase, it may make it much harder to make your payments. Think about how higher interest rates would affect your payments. An increase in the interest rate will increase any of your future monthly payments. As an example, if interest rates rise from 5% to 7%, renewing a $250,00 mortgage will cost an extra 300$ a month. It is also a good idea to make the decision to pay off your mortgage faster. Ways to do this include, increasing your regular payment amount, make lump sum payments to your mortgage principal, and/or make accelerated payments. For more information or advice, reach out to a Mortgage Broker today! For the full article CMHC article, click here. June 21, 2021 The Bank of Canada To Keep Its Key Interest Rate Target On Hold Amid the third wave of Covid-19, The Bank of Canada key rate remains at 0.25 per cent and said it would maintain its current policy of quantitative easing. The Bank of Canada reiterated its guidance that would remain unchanged until at least the second half of 2022. The Bank of Canada plans to keep up their efforts to help the economy improve, which is predicted to be seen next year. To read more from The Bank of Canada, click here. Reach out to a Mortgage Broker today. June 9, 2021 Mortgage Minute: Using Real Estate as an Investment Investing in mortgages does not have to be just in hard assets but it can be investing in a mortgage investing corporation or other forms of mortgage investing such as being a lender to individuals looking for mortgages. This is essentially using your assets as a means for others to borrow.   To learn mortgage about investing in mortgages, click here to watch Michael Hapke break explain further. June 9, 2021 Open House - The Real Estate & Mortgage Show: June 5th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  The market is changing day by day, what was reported one day could be completely different the next. The current market is showing a slow down, seeing listings outweighing sales. In the month of May the number of sales were up 71.1% with the average sale price up 32.5%. Year to date, the number of sales are up 64.2%. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice June 5, 2021 Impact of New Mortgage Stress Test Rules As of June 1st, the new qualifying rate for a mortgage has gone up in an attempt to cool the hot housing market.  If you had previously qualified for $500,000 at the previous rate of 4.79% you will now only qualify for $479,000 with the new rate of 5.25%. The people who will be impacted the most by these changes will be the first-time home buyers. For first time homebuyers it is already difficult to buy a house in this current real estate market. This is now another layer to make it harder on those first-time home buyers to qualify for a mortgage. When these new rules originally came out it was intended for those who were going to put a down payment of 20% or more and was quickly changed to impacting all of those applying for a mortgage. For more information on the new mortgage stress test rules, watch Frank Napolitano on CTV News Ottawa here. Reach out to a Mortgage Broker today! June 3, 2021 New Rules Around Uninsured Mortgages The Office of Superintendent of Financial Institutions (OSFI) have changed the qualifying rules for uninsured mortgages (i.e. residential mortgages with a down payment of 20%). Effective June 1st, the minimum qualifying rate for a mortgage will be greater of the mortgage contract rate plus 2% or 5.25%. The reason for this is to attempt to make it more difficult for home buyers to qualify for a mortgage and reduce the mortgage amount a household can qualify for by around 5% in an attempt to slow the market. It is also to protect the current loan quality metrics and to ensure they remain strong. For the full CTV Article, click here. For more information regarding this, reach out to a Mortgage Broker today! June 1, 2021 Open House - The Real Estate & Mortgage Show: May 31st, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  The market is changing day by day, what was reported one day could be completely different the next. The current market is showing a slow down, seeing listings outweighing sales. Yes, there are still multiple offers and crazy bids, but we are now seeing more offers including conditions. There are currently 1838 active listings on the market. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice May 31, 2021 Mortgage Minute: Your Questions Answered Q: If there is a change to the qualifying rate, who will be impacted? A: Right now, it is intended for people who intend to buy with 20% down or more but, that being said they are also looking at potentially installing for people who buy with less than 20% as well. If they were to also apply it to those buying with less than 20% down that would be more impactful, especially to the first time home buyers. I believe they are doing this in an attempt to cool the market. Q: We are considering buying a property in the outskirts with about 20 acres, I have heard to be careful as the bank may not lend on the purchase price due to the house being on property with acreage, is this true? Should we put a finance clause on our offer? A: The finance clause should be on every offer. When you are buying a large parcel of land the banks and lenders with generally land on either the primary house and five acres or the primary house and ten acres. So if you are going in with 5% down and you are buying a 9-8 parcel of land with no financing clause, the risk is that the lender may come back and say, I know you paid 600K for it but really the house and the five acres or ten acres is 530K therefore you have got to come up with the other 70K. That being said, when you do get to rural areas generally, the land does not add that much value and the lenders and appraisers have appraising it, I just caution people to be careful. For the full segment with Frank Napolitano on CTV Morning Live; click here. May 25, 2021 OSFI Announces Plans to Increase the Stress Test Qualifying Rate, Effective June 1, 2021. Canadian officials escalated efforts to cool the nation's booming housing market, moving ahead with tighter mortgage qualification rules after the central bank issued a fresh warning against buyers taking on too much debt.   In a release Thursday, the Office of the Superintendent of Financial Institutions said the new qualifying rate for an uninsured mortgage – where borrowers have at least a 20% down payment – will rise to either the mortgage contract rate plus 200 basis points or 5.25%, whichever is higher. After OSFI's announcement, Deputy Prime Minister and Finance Minister Chrystia Freeland said in a statement the new rules will also apply to insured mortgages - mortgages with a down payment of less than 20 per cent.    Currently, the stress test is set at the mortgage rate plus 200 basis points (or two percentage points) or the Bank of Canada’s five-year rate, which currently sits at 4.79%. In a release, OSFI Assistant Superintendent of Regulation Ben Gully said the decision to impose the more stringent conditions would help tamp down any financial risk stemming from the housing sector.  “In a complicated and sometimes volatile housing market, the need for sound mortgage underwriting cannot be underestimated,” he said. “The rate in place as of June 01, 2021 will help support financial resilience should economic circumstances change, while our commitment to review the qualifying rate at least annually will contribute to continued confidence in the Canadian financial system.”  As part of the new framework, OSFI announced it will launch a process to review the qualifying rate at least once a year, in December. OSFI said that timing would allow it to adjust regulatory conditions well ahead of the busy spring selling season.   An early version of the stress test was first put in place in 2016 as regulators looked to gird against potential hits to financial stability due to the housing market. OSFI then announced plans to review the conditions of the stress test in January 2020 before shelving its consultations in March of last year due to the uncertainty over how the pandemic would impact the Canadian housing market. Are you worried about how this new qualifying rate increase can affect you? Contact one of our mortgage brokers today!  Click here to read the full article on BNN Bloomberg Canada. May 21, 2021 Open House - The Real Estate & Mortgage Show: May 15th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  The market is changing day by day, what was reported one day could be completely different the next. Market is still extremely active. Based on the five year average the residential April is up 400 units. Currently on the market there is 1666 Residential properties and 348 condos. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice May 19, 2021 5 Tips to Increase Your Chances of Getting Your Mortgage Approval If you hare planning on buying a home, you will likely require a mortgage. With the right preparation, getting a mortgage approval can be a relatively easy process. 1. Check and work to improve your credit score Your credit score will be between 300 and 900. According to their latest report, the average credit score of Canadians in 2019 was 648, up 4 points from the previous year. However, 648 falls into the category of a ‘low’ credit score. A large part of increasing your credit score is understanding how to maintain it. If you make a late payment, apply for credit or default on a loan, credit agencies will report on this and lower your credit score. To learn more about maintaining your credit score; click here. 2. Pay down any existing debts Lenders will review your debt-to-income ratio when making the decision on whether to lend to you. They want to ensure that your income can cover your mortgage payments along with any existing debt you may have. Debts that would affect your mortgage but are not limited to include car loans, student loans, credit cards, and any other line of credit with monthly payments. By paying off or down any of these debts, you can increase your income-to-debt ration when applying for a mortgage. 3. Save money for a larger down payment Having a larger down payment means that you need to borrow less and take out a smaller mortgage. A smaller attracts less interest over time, saving you money. With a larger down payment, your monthly mortgage payments would be less, allowing for a bit more ease in monthly budgeting. 4. Know what you can afford Before even beginning to look for a home, it is important to have a set, realistic budget to save time and avoid any disappointments. After saving for your down payment and minimizing your debts, you must calculate how much you can afford. While doing this you must also include any additional fees that with be included in your closing costs. This includes: - Legal fees - Home inspection and appraisal costs - Land transfer taxes - Title insurance - Provincial sales tax on mortgage insurance (if your down payment is less than twenty percent) 5. Get a mortgage approval Once you have everything financially in order, you are ready to begin looking for you home. The first thing you should be doing is getting a mortgage pre-approval. A mortgage pre-approval will show the mortgage amount a lender is willing to loan you and the mortgage rate they are willing to hold for you. This allows for certainty on what you can afford, allowing you to make an offer on the house you would like quickly. Contact one of our Mortgage Brokers today to ensure you are provided with a solid strategy. For the full Huff Post article, click here. May 18, 2021 Open House - The Real Estate & Mortgage Show: May 1st, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  The market is changing day by day, what was reported one day could be completely different the next. We are seeing a slight increase in average sale price once again. Currently, there are around 1500 listings on the market. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice May 5, 2021 More Ottawa Residents Buying Over the Provincial Border The decision for many Ottawa households to jump the provincial border to purchase homes in the Gatineau just about doubled in 2020. The increase is seen by the Canada Mortgage and Housing Corporation as Gatineau is a more affordable market as apposed to Ottawa. A report from the federal Crown Corporation states that over the past five years, Ottawans accounted for approximately 6% of single-family homes purchased in Gatineau annually. In 2020, it climbed to 11%; 680 single-family homes in Gatineau and the surrounding area were purchased by Ottawans. The move to Gatineau has been surrounded by the affordability of Gatineau when the Ottawa market has become pricey and potentially unobtainable to many buyers.  Contact one of our Mortgage Brokers today if you are potentially looking into becoming a buyer in Quebec.  To read the full Ottawa Citizen article; click here.   May 4, 2021 Mortgage Minute: Your Questions Answered Q: I have heard that it will become more difficult to qualify for a mortgage come June 1st. What if we buy a house now but the closing date is beyond June 1st, will our mortgage application be impacted? A: What happens as of June 1st, is if you are buying a house with 20% down or more, your qualifying rate will go from 4.79 to 5.25. This is currently still in a proposal status, that will likely be passed by June 1st. So, as long as you buy a house by June 1st you will be able to qualify under the old rules. If your purchase agreement is signed June 1st or later, and this proposal is passed, you will then have to qualify under the higher interest rate. The higher interest rate does make very little difference. It most likely won’t slow down the extremely hot housing market. For the full segment with Frank Napolitano on CTV Morning Live; click here. April 29, 2021 Open House - The Real Estate & Mortgage Show: April 24th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  Listings are climbing higher than they have in the past year. There are currently 1838 listings, 1100 being residential and 338 being condos. There are less listings in the main areas such as Orleans, Kanata, etc. and more in the outskirts of the city. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice April 24, 2021 The Bank of Canada To Keep Its Key Interest Rate Target On Hold Amid the third wave of Covid-19, The Bank of Canada key rate remains at 0.25 per cent, where it has been for over a year now. The decision came as the Bank of Canada predicted the economic growth this year to 6.5 per cent, up from the earlier forecast of 4.0 per cent. Economic growth is expected to moderate after that, as predicted by the Bank of Canada report. The Bank of Canada plans to keep up their efforts to help the economy improve, which is predicted to be seen next year. To read more from The Bank of Canada, click here. Reach out to a Mortgage Broker today. April 21, 2021 Open House - The Real Estate & Mortgage Show: April 17th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  Listings are climbing once again, sitting at almost 1500 active listings in the city. It is hard to predict what will happen during the current state of shutdown/lockdown. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice April 17, 2021 Mortgage Minute: Your Questions Answered Q: We are looking at buying a cottage, are the rules any different on qualifying for a mortgage? A: It is no different from buying a home. Cottages do though have to meet certain criteria. Most lenders are okay with a three-season cottage where some require a four seasons cottage. Most lenders do want the cottage to be on land. For example, if you are buying an island cottage that you must get to by boat that may be challenging to finance. Q: With house values going crazy in Ontario, as first-time home buyers we are thinking about buying our first home on the Gatineau side as homes seem to be more affordable there, are there any pitfalls to buying there vs buying in Ottawa? A: The only real difference is that you would become a Quebec resident so you would have to abide by their health system and their taxes system. For first time home buyers right now, Ottawa seems to be out of touch right now. Looking over on the Quebec side to buy as first-time home buyers right now, is not a bad idea. For the full segment with Frank Napolitano on CTV Morning Live; click here. April 7, 2021 Open House - The Real Estate & Mortgage Show: April 3rd, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  Listings are once again growing more scarce and sales are once again out-pacing the listings with 1177 active listings currently. The market is currently unpredictable as last week listings were up. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice April 6, 2021 Securing the Lowest Rate Throughout the past year with the Coronavirus pandemic, mortgage rates have dropped to some of the lowest they have ever been. With an unexpected record high demand for housing during this pandemic, 551,000 homes have changed hands, according to the Canadian Real Estate Association. If you are in the market of purchasing a new home, now is the time to lock in a pre-approval and speak to a Mortgage Broker. With rates beginning to rise for the first time during this Coronavirus pandemic, a Mortgage Broker can secure you a rate for 120 days. Homeowners looking to refinance to consolidate debt could be looking at saving thousands of dollars by taking advantage of today’s rates, as could homeowners whose mortgage is coming up for renewal. It is important that you maintain your credit score to qualify for today’s lowest rates. Ensure that you do not take on any large debts prior to renewing, refinancing or purchasing a new home. These large debts can significantly reduce your qualifying power. Contact one of our Mortgage Brokers today to ensure you are provided with a solid strategy. For the full Financial Post article, click here. April 5, 2021 Mortgage Minute: Your Questions Answered The real estate market is remaining hot with little evidence to show it would be slowing down anytime soon. Frank Napolitano answers your questions this week on CTV Morning Live. Q: There have been many articles on this being a housing bubble, similar to what the US went through in 2007-2008. Is it possible that our housing market has a similar fate? A: Totally opposite, what was happening in the US was that people were getting mortgages without even having jobs. It is totally different in Canada; people are actually properly qualifying for a mortgage. Of course, it is possible that bubble may burst but, it is not because of the same circumstances as the US. Though, with all demand is unlikely that the bubble will burst anytime soon. Q: With the real estate market still heated up, is there expected to be any changes in the default insure mortgage rules when a home is purchased for over $1M? A: A lot of people are unaware that across Canada you must have at least a 20% down payment on a house of $1M. As of right now this has not changed, and you must at least have that 20% down payment. To learn more about investing in mortgages watch the full CTV interview with Frank Napolitano; click here. Contact your Mortgage Broker today for trusted advice March 31, 2021 Open House - The Real Estate & Mortgage Show: March 20th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are finally a lot more houses on the market. There are currently around 1200 active listings which is way higher than expect. 35% of the homes on the market being condos. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice March 20, 2021 Open House - The Real Estate & Mortgage Show: March 13th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. The average sale price is continually on the rise, leaving inventory deprived. The bond market has reacted from this. It went from 0.40 to 1.02 in the last 3 weeks, being the reason for mortgage rates rising. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice March 13, 2021 The Bank Of Canada To Keep Its Key Interest Rate Target On Hold The Bank of Canada announced today that its key interest rate target is on hold at 0.25%. The reason for this decision is due to the economic conditions and the continuing uncertainty of the Coronavirus pandemic. The bank did state that it expects economic growth in the first quarter of 2021 to be positive, as opposed to its previous forecast in January of a contraction to the start of the year. The bank says its key policy rate will stay at 0.25% until the economy recovers, which the Bank of Canada does not see happening until 2023. To read more from The Bank of Canada, click here. Reach out to a Mortgage Broker today. March 10, 2021 Open House - The Real Estate & Mortgage Show: March 6th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In the month of February the number of sales are up 22.6% and the average sale price was up 27.5%. In the month of December the 2020 the average sale price wasn $531,000 whereas the February average sale price was $637,000 meaning that the average sale price went up around $100,000. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice March 6, 2021 Understanding How to Maintain Your Credit Score According to Borrowell, a popular credit-monitoring service, the average credit score in Canada is continuously on the rise. According to their latest report, the average credit score of Canadians in 2019 was 648, up 4 points from the previous year. However, 648 falls into the category of a ‘low’ credit score. A large part of increasing your credit score is understanding how to maintain it. There are two major credit reporting agencies in Canada; Equifax and TransUnion. Credit scores are used by lenders to establish the level of risk they would be taking in lending you money. The reporting agencies use a statistical formula that translates into a three-digit score between 300 and 900 – the higher the score, the more ‘trust-worthy’ you are seen from the lender’s point-of-view. Lenders have different criteria in determining whether they will lend to you, aside from your score. Income type, assets and liabilities also play a significant factor in their decision. The length of time you have had active credit, payment history, current debts and amount of recent inquiries all play into your credit score. Increasing your score is a slow and steady process, and a financial mistake – such as missing a payment, could quickly drop the score. Here are some quick tips on how to maintain and increase your score: Always try to pay your bills in full and on time. You are expected to make the minimum payment every month, however this usually will not reduce your overall balance and carrying it over time without reducing it can cause a drop in score. Avoid going over the limit on any available credit such as credit cards, lines of credit, etc. Reduce the number of loan applications you make as frequent credit history searches can also lower your score. For more information on controlling your credit, visit our ‘Questions About Credit’ article by clicking here. To view the average credit score for each major Canadian city, click here to read the article on the Financial Post website. March 4, 2021 Open House - The Real Estate & Mortgage Show: February 27th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. At the end of January 2021, the average sale price was around $587,000 and now it is sitting around $600,000. In the past three years the average sale price has gone up almost $200,000. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice February 27, 2021 What Did the Average Household Spend on Mortgage Payments? In the year of 2020, the average Ottawa household spent 16% of their income on mortgage payments in 2020. This was up from 10 years ago but is still below the ‘affordability threshold’ of 30%. In 2010, the housing cost of 14% of the average household’s income in Ottawa. As the home prices jumped almost 60% from 2010-2020, household incomes failed to keep up, rising almost 37%. Ottawa Real Estate Board reported that the average resale price of a residential-class home in Ottawa was almost $680,000, up from $516,000 in January 2019. To read the full Ottawa Business Journal article; click here. Contact your Mortgage Broker for trusted advice February 18, 2021 Open House - The Real Estate & Mortgage Show: February 13th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. Currently, Ottawa is up 24% in number of units being sold. In January 2020 16 houses were sold over the price of 1 Million dollars but in 2021 there were at 63 which has been driving up the average sale price.   The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice February 13, 2021 Mortgage Minute: Mortgage As An Investment When considering using a mortgage as an investment, you must consider, is the risk tolerance suitable for you? Is it something that you are comfortable with and is it something that you understand? When looking at mortgage investments there are a few ways you can start. You can find mutual funds that would be some type of mortgage investment within in, but that is not a direct mortgage investment. What is a direct mortgage investment is looking on a one-to-one basis or looking at a professionally managed pool of mortgages. The best way to look at it is that it is a professionally pooled portfolio of mortgages and investors invest within that pool in order to diversify risk.   Whenever looking at any investment, there is risk associated with it. Though, when looking at risk it does not necessarily mean that risk is a bad thing. You have to determine the amount of risk you can take for the amount of reward you are looking to gain. In terms of Ottawa real estate, we know that the supply is very low, and the demand is sitting very high. This would be the underlying asset into this investment. Due to this, this Ottawa market is showing a lot of growth potential and is currently very secure. To learn more about investing in mortgages watch the full CTV interview with Michael Hapke; click here. Contact your Mortgage Broker today for trusted advice February 9, 2021 Open House - The Real Estate & Mortgage Show: February 6th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In the month of January, there were 964 sales. Residential home average sale prices were up 31% from last year with the average sale price being $677,000. The average sale price overall was up 26.4%. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice February 6, 2021 Million Dollar Sale Surge Pushes Average Home Value With a spike in luxury homes in Ottawa, the average sale price of residential home in Ottawa jumped more than 30% compared to 2020 according to the Ottawa Real Estate Board. In January 2019 the residential home in Ottawa was sitting at an average sale price of $516,000 compared to January of 2021 where it is $680,000. This raise in sale price is a continuation of a steady raise in prices over the past 12 months as properties for sale become more and more scarce. The Ottawa Real Estate Board reported that in January 2021, 63 properties sold for at least $1 million, compared to in 2020 where there were only 16 properties sold above $1 million. This has led to the increase of the average sale prices in Ottawa. To read the full Ottawa Business Journal article; click here. Contact your Mortgage Broker for trusted advice February 5, 2021 Open House - The Real Estate & Mortgage Show: January 30th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa.   The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In the month of January, we are beginning to see a slowdown in sales due to the fact that there is such high demand with such low supply. This January has begun to seem to be close to the numbers in January 2020. Due to this, we are seeing the average sale price continue to rise as the demand stays so high.   The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here:   Contact your Mortgage Broker today for trusted advice January 30, 2021 Open House - The Real Estate & Mortgage Show: January 23rd, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In the month of January, we are beginning to see a slow down in sales due to the fact that there is such high demand with such low supply. Due to this, we are seeing the average sale price continue to rise. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice January 23, 2021 The Bank of Canada to Keep its Key Interest Rate Target on Hold The Bank of Canada announced today that its key interest rate target on hold at 0.25%. The reason for this is decision is due to the economic conditions and the continuing uncertainty of the Coronavirus pandemic as. The bank did state that it expects the Canadian economy to contract in the first quarter of 2021. It is expected that real gross domestic product will decline by 2.9% within the first quarter of the year compared the same period of 2020 before improving thereafter if severe restrictions start easing in February. The Bank of Canada is expecting the growth of 4% in 2021, then 4.8% next year and then finally 2.5% in 2023. To read more from The Bank of Canada, click here. Reach out to a Mortgage Broker Today. January 20, 2021 Canadians Moving Out of the Big Cities Many Canadians had made the decision to move out of the major urban centres during the 2020 Coronavirus pandemic. This was led by the youth and young families. Within the countries three largest cities, Toronto, Montreal and Vancouver, there was a jump seen with the number of people living in major urban areas moving to the suburbs, small towns, and rural areas according to Statistics Canada. Between July 2019 and July 2020, a total of 87,444 people left the same three major cities for the less busy side of life. This has been happening more and more over the years but due to the pandemic, this process has increased the trend as more people began working from home. 82% of people making this change were below the age of 45. Due to this changes, there was a clear impact on the housing markets with suburban homes having seen the biggest increase in average sale price year over year. To read the full BNN Bloomberg article; click here. Contact your Mortgage Broker for trusted advice January 15, 2021 Open House - The Real Estate & Mortgage Show: January 9th, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In the month of December the number of sales went up 32.4%. In the year of 2020, almost 19,000 homes were sold. The average sale price was up 19.9% from 2019 with the average sale price at the end of 2020 being $529,675. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice January 9, 2021 2020 - A Year in Review 2020 was a crazy year for the Mortgage and Real Estate market. Amid the Corona virus pandemic many decided that it was time to either sell and/or buy a new home. Beginning in March inventory quickly became scarce and with such a high demand for homes, bidding wars had begun for many properties. Also, in this time, it allowed for historically low rates for mortgage furthering the demand. During this time, the demand had evolved from many wanting to buy within the city to now wanting to buy in the outskirts of their big cities as many had begun working remotely. An example of the great changes of the 2020 market, in Kawartha Lakes, the price for a single-family home jumped 29.2% above the price of the year previous. The year of 2020 presented many changes including bidding wars, low Mortgage rates and much higher prices of homes. If you are interested in speaking to a Broker today, do not hesitate! For the full Ottawa Citizen article; click here. Contact your Mortgage Broker today for trusted advice January 7, 2021 Open House - The Real Estate & Mortgage Show: January 2nd, 2021 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In 2019, the average sale price at the end of the year was $440,000. Currently in 2020, the average sale price is sitting around $530,000 meaning it is almost an $100,000 increase. In the end of the month of November, the average sale price went up 19.9% from the previous year. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice January 2, 2021 Open House - The Real Estate & Mortgage Show: December 19th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In 2019, the average sale price at the end of the year was $440,000. Currently in 2020, the average sale price is sitting around $530,000 meaning it is almost an $100,000 increase. Royal LePage is predicting that in 2021 that the average sale price will increase by 11.5%. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice December 19, 2020 The Bank of Canada to Keep its Key Interest Rate Target on Hold The Bank of Canada is keeping its key interest rate target on hold at 0.25 per cent. They will be holding the policy interest rate at the effective lower bound until economic slack is absorber so that the 2 per cent inflation target is sustainably achieved. The Bank of Canada says they do not expect inflation to get back on target until some time in 2023. They also say that it will maintain its quantitative easing program by continuing to buy around $4 billion in bonds per week in order to try and further reduce interest rates. After a year impacted by Covid-19, this will be the last Bank of Canada announcement of 2020. To read the full announcement from The Bank of Canada, click here. Contact your Mortgage Broker today. December 9, 2020 Open House - The Real Estate & Mortgage Show: December 5th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. November sales were up 25.5% and the average sale price was up 19.8%. The November average sale price was approximately $542,000. Year to date the average sale price for 2020 is sitting at around $529,000.   The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice December 5, 2020 Property Assessment Notice Postponed Every four years MPAC (Municipal Property Assessment Corporation) conducts a province wide assessment update to update the assessed value of every property in Ontario. Being a property owner in Ontario, you will receive a ‘Property Assessment Notice’ in the mail in order to update you on the value of your property. Due to the Covid-19 pandemic, the Government of Ontario has made the decision to postpone the 2020 Assessment update. They have indicated that property assessments for the 2021 property tax year will continue to be based on the fully phased assessment done on January 1st, 2016 current values unless there have been changes to your property. The Municipal Property Assessment Corporation will continue to review properties during non-Assessment update years for; new builds, owners who have renovated, properties that have been demolished and properties that have changed use. You may receive a notice from MPAC if there has been a change to your property including: Change to property ownership, legal description, or school support. Change to the property’s value resulting from a Request for Reconsideration, or an Assessment Review Board decision. Property value increase/decrease reflecting a change to the property; for example, a new structure, addition, or removal of an old structure. Change in the classification or tax liability of the property. To read the full article, click here.  December 3, 2020 Tips for Millennials Looking to Buy Millennials are currently making up just about 30% of Ottawa, this includes those born in 1981 to 1999. In the time of baby boomers buying their first homes, there were a higher percent of people buying their first homes who were married. Meaning, that first time home buyers used to go into buying their first homes with two incomes where as today, there are more single income people purchasing their first homes. Millennials are one of the most educated generation with almost 80% of millennials with university or college diplomas/degrees which averages out to a lot more debt than first time home buyers in the past. If you were not looking to have to move back into a house with your parents, if possible, see if there is someone like your parents that may be willing to help you build your equity by helping out with your down payment. An option once your first home is purchased is to live with roommates if possible. Though it may be more difficult having to live with people, it is a way to quickly pay off your mortgage by receiving rent and being able to split the cost of utilities If you are a millennial looking for more information on buying your first home, reach out to one of our Mortgage Brokers today! For the full CTV article, click here.  December 3, 2020 Open House - The Real Estate & Mortgage Show: November 28th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. The housing market has started to see less and less listings on the market. Currently there are less than 1500 listings on the market and only 276 listings in the past seven days. The residential average sale price is staying steady and the condo market beginning to see a slight drop. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice November 28, 2020 Mortgage Minute: How will COVID-19 affect your mortgage? In the past few months, we have been in a battle with Covid-19. In these times how could Covid affect your mortgage? If you are currently reaching that time that you are to be renewing your mortgage but have been having issues with income and such you will be okay to renew. As the Covid-19 vaccine comes out, it is expected that the bond market will begin to normalize again meaning that fixed interest rates are expected to go up. Currently, rates are as low as they are going to get and the only way they are predicted to go are up. If your mortgage is coming to it is a best to reach out to a mortgage broker to secure the best rate within the next six months. To get the best possible rate, reach out to a Mortgage Broker today! To view the Mortgage Minute with Frank Napolitano; click here Contact your Mortgage Broker today for trusted advice November 24, 2020 Open House - The Real Estate & Mortgage Show: November 21th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. The demand continues to persist for the Ottawa housing market. We are currently seeing an increase of listings in condos and a decrease in the number of listings in residential properties. Currently, we have 316 residential properties on the market and 448 condos. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice November 21, 2020 Open House - The Real Estate & Mortgage Show: November 14th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. Sales and sale prices are still on the rise. Somewhere new to look out for is the outskirts of the city. The outskirts of Ottawa have begun to show a rise in sales and average sales price as more people continue to work from home. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice November 14, 2020 Mortgage Minute: The Best Way to get a Down Payment With the thought of real estate booming, you may be considering the purchase of a new home; but don't necessarily have the money for the down payment. Do not worry as there are many different ways to get a hold of that down payment you are needing. For first time home buyers, they have the opportunity to borrow from your RRSP. First time home buyers can withdraw up to $35,000 from their RRSP with out having to pay taxes on the amount. Another option would be to take money out of your TFSA. This is a great opportunity to save money and not pay interest on the income taxes that occur. For different options to get a hold of a down payment, reach out to a Mortgage Broker today! To view the Mortgage Minute with Frank Napolitano; click here Contact your Mortgage Broker today for trusted advice November 10, 2020 Open House - The Real Estate & Mortgage Show: November 7th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In the month of October continued to show great improvement over the previous year. The number of sales were up 33.8% in the month of October. For residential homes, the number of sales were up 37.7%, and up 21.8% for condos. Average sale price for the month of October was up 24.3%, with the average sale price of a single-family residential home being 603,000. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice November 7, 2020 Open House - The Real Estate & Mortgage Show: October 31st, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. The market is continuing to show a slight slow down. There are currently 1810 listings on the market with 531 being condos. There were 296 conditionally sold as we start to see this trend return. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice October 31, 2020 Bank of Canada Continues to Keep Rates Low Bank of Canada has announced that they have no plan to change their target overnight benchmark rate until the inflation rates go back down to 2%, which they do not believe is likely until 2023. They have made the decision for it to remain at 0.25%. Though, the economy is showing some signs of recovery from the Covid-19 impact things are still a long way from normalcy. With interest rates being so low, now may be the time to consider buying a home or refinancing your mortgage. If you are a first-time home buyer there is no better time to obtain a mortgage pre-approval. If your mortgage is coming up for maturity, talk to your Mortgage Broker today. To read the full CBC News article, click here Contact your Mortgage Broker today October 28, 2020 Mortgage Minute: Financing Options for Home Renovations With the recent pandemic, people have found some extra time on their hands. Have you been considering doing renovations to your home in this time? From a financing standpoint, your housing value has gone up tremendously due to what has been going on in the real estate market. Due to this, it has probably opened up some equity available in order to be able to do some renovations. A way to look into the equity you have gained is to look into similar homes in your neighbourhood and see what those homes sold for. Alternatively, if that information is not readily available you could reach out to a realtor for that same information. In order to be able to actually access the equity, you could reach out to a broker to discuss any refinancing options you may have, to be able to receive a lower rate on your mortgage. For more information on possible renovations, reach out to a Mortgage Broker today! To view the Mortgage Minute with Frank Napolitano; click here Contact your Mortgage Broker today for trusted advice October 27, 2020 Open House - The Real Estate & Mortgage Show: October 24th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. In October, more homes are being conditionally sold rather than being sold firm. Showings have gone up 62% from the previous year. In Ottawa, the part of the city with the largest average sale price increase is the east end with a 22% increase. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice October 24, 2020 Open House - The Real Estate & Mortgage Show: October 17th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales. This week, Ottawa housing sales are starting to see a slight drop in housing prices. The market does continue to be a robust market but for the first time in a few months, prices are slowly dropping. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice October 17, 2020 Mortgage Minute: The Second Wave Going into the second wave of the Corona Virus Pandemic, and businesses once again shutting down, what may be the best options for your mortgage at this time? Within the month of September, housing sales had never been better and housing prices went up tremendously. Going into October it is likely that housing prices and sales may remain on a similar path. With businesses once again shutting down people are beginning to lose jobs or have hours cut once again which has led to many people having to put their housing search on hold. If you are coming up for renewal and renew your mortgage as is, then you should be okay as long as you have kept up with your payments. A tip may be, do not take a 5-year fixed mortgage right now as 5-year rates will be remaining low in the foreseeable future. An option rather than the 5-year fixed rate mortgage may be to sign for a 1-year fixed or a 5-year variable rate mortgage. For more information on what you should be doing in this time, reach out to a Mortgage Broker today! To view the Mortgage Minute with Frank Napolitano; click here Contact your Mortgage Broker today for trusted advice October 15, 2020 Open House - The Real Estate & Mortgage Show: October 10th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales.  In September, numbered sales were up by 50.5% Average residential numbered sales went up by 58.3%. Residential properties average sale price went up 27.9% with the average sales price of September 2020 being $622,000. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice October 10, 2020 Why it is NOT a good idea to pay off your mortgage right now? I am sure that it can be very tempting to want to pay off your mortgage right now, but it might not be you best option. There are though, benefits to paying off your mortgage. Sure, paying it off gives you the feeling of extensive financial security. The feeling of having the ability to pay off your mortgage in full feels amazing. This provides the ability to focus on other financial endeavours or live with less monthly finances. Paying off your mortgage may feel like a safe move but there are some positives to paying off your mortgage over time.   To start, interest rates are at an all-time low when renewing or refinancing your mortgage. By paying for your mortgage over time you have the opportunity to place your finances into other priorities. With rates being so low you would earn more on your investments if you are using cash to paydown your mortgage. Especially in current times, if you do have extra cash it may be better to keep it aside for now until things settle down and you are in a better place financially.   It is a great time to refinance as rates are so low, and you do not have to liquidate investments that are either down OR earing you more than 1.89% like a 5-year fixed rate. To read more visit the full article from financial post here. Contact your Mortgage Broker today for more information  October 7, 2020 Mortgage Minute: Breaking your Mortgage Have you considered breaking your mortgage for a better rate? There are some things to consider before moving forward with breaking your mortgage. If you are in a variable rate mortgage you do not necessarily need to break your mortgage. If you do though, decide to break your mortgage to refinance, your penalty would only be 3- months of interest. If you took a 7- or 10-year mortgage and you are past the 5-year period of your term you can also break your mortgage with just a 3- month interest penalty. Penalty does also depend on your mortgage. It does depend on different factors such as how much of your term you have left as well as if you have your mortgage with a private lender where penalties are generally smaller or a bigger financial institution such as a Bank. If you were looking for more information regarding breaking your mortgage or refinancing, reach out to a Mortgage Broker today!   To view the Mortgage Minute with Frank Napolitano; click here Contact your Mortgage Broker today for trusted advice September 29, 2020 Open House - The Real Estate & Mortgage Show: September 26th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales.  The current average amount of days on the market in Ottawa is 23 days. With the current average sale price in Ottawa being 517,000. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice September 26, 2020 CMHC Considers Changing Name The Canada Mortgage and Housing Corporation (CMHC) is looking to change their name within the next couple of months. The Canada Mortgage and Housing Corporation believe that their current name is not well representing the image they would like to portray. CMCH (The Canada Mortgage Corporation) would like their image to more represent the affordability of housing whereas they currently see their name as being too tied to looking as if they are a financial institution, which they partly are. Within the coming months we may be seeing some changes to portray the future of CMCH (The Canada Mortgage Corporation). Read the Full Article on CTV News, here. Contact your Mortgage Broker for trusted advice September 25, 2020 Open House - The Real Estate & Mortgage Show: September 19th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales.  In the past seven days 720 homes hit the market making 1902 active listings on the market. Of the active listings on the market, 492 of those listings are condos. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice September 19, 2020 Mortgage Deferral Payments to End Soon During the Corona Virus Pandemic, Canadian homeowners deferred approximately $1B in mortgage payments. Now that we are nearing the six-month mark of the pandemic, the deferral programs introduced by financial institutions are coming to an end. What that means for the average Canadian is that their regular mortgage payment is about to start. So, what are your options if you are not yet back to work? The best suggestion at this time is to contact your financial institution that you have your mortgage with to see what additional options may be available. Have some more questions? Reach out to your Mortgage Broker today! To view the Mortgage Minute with Frank Napolitano; click here Contact your Mortgage Broker today for trusted advice September 15, 2020 Bank of Canada continues to keep interest rates low The Bank of Canada’s recent announcement to continue their pledge to keep interest rates low is a win for many Canadians. The impact of Covid-19 is still being felt throughout the Canadian and global economies and as such the Bank of Canada is looking to continue the positive economic rebound we have seen through each stage of re-opening. With interest rates being so low, now may be the time to consider buying a home or refinancing your mortgage. If you are a first-time home buyer there is no better time to obtain a mortgage pre-approval. If your mortgage is coming up for maturity, talk to your Mortgage Broker today. To read the full Financial Post article, click here Contact your Mortgage Broker today September 14, 2020 Open House - The Real Estate & Mortgage Show: September 12th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales.  In the past seven days 715 homes hit the market making 1845 active listings on the market. Of the active listings on the market, 449 of those listings are condos with the average sale price being $357,000. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice September 12, 2020 Low Interest Rates - time to Refinance? Interest rates continue to be at historic lows and many Canadians are taking advantage of these low interest rates; either buying a home or refinancing their existing property. What are your options when it comes to refinancing your home? Many mortgage lenders offer their customers refinancing options. This allows homeowners to access the equity in their home that they have built up over time, by paying down their mortgage principal. Refinancing may involve changing the terms of your original mortgage agreement, and the refinanced portion may have a different interest rate than the original mortgage. You may have to pay fees to do this.  You can borrow up to 80 percent of the appraised value of your home, minus the amount left to pay on your first mortgage.   Example: Louise is planning a home renovation project and is looking at refinancing her home to fund the renovation. Her house is currently worth $200,000 on the real estate market, and she still has $100,000 left to pay on her mortgage. Her mortgage lender calculates her credit limit for refinancing as follows: $200,000 appraised value of the home x 80% maximum loan allowed = $160,000 loan amount based on appraised value - $100,000 less balance owed on current mortgage = $60,000 refinancing credit limit. If the lender and Louise agree to refinance her home to the $60,000 limit, she would owe a total of $160,000 on her mortgage.  To understand more about the Refinancing process; click here: Contact your Mortgage Broker for trusted advice September 8, 2020 Open House - The Real Estate & Mortgage Show: September 5th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales.  Home sales were up 17% year over year as of the end of August.  There were 2000 home sales in Ottawa area in August compared to the 5-year average of 1700 home sales in the Ottawa area. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice September 5, 2020 Canadian Housing Showing Strength As many Canadians start to think about Fall and how Covid-19 may continue to impact they day-to-day activities the real estate market continues to fire on all cylinders. Recently released date by the Canadian Real Estate Association (CREA) confirms that real estate sales continue to outpace listings and are driving multiple bidding wars across the country.  As a result, housing prices are up significantly in most markets across Canada. Residential sales in Canada increased by 26 per cent in July over June and were 30.5% percent higher than in July 2019.  The three markets leading this charge were Toronto with a 49.5% increase, Vancouver with 43.9% and Montreal with 39.1%. With property sales on the rise we are also seeing increased property values across the country.  Toronto property values have increased 55% over the last 5 years; Vancouver property values have increased 46% over the same period and Ottawa has seen an increase of 44%. Heading into September it is still a sellers’ market with glimmers of the imbalance slowly correcting itself. To read the full Financial Post article; click here: Contact your Mortgage Broker for trusted advice       August 31, 2020 Open House - The Real Estate & Mortgage Show: August 29th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we start to move into the fall many lenders are still offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  For the first time in many months there are more listings than sales.  Last week there were 668 new listings in Ottawa and 620 home sales so it appears the trend is starting to shift and that may reduce the number of bidding wars that have occurred over the past few months. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice August 29, 2020 Mortgage Minute: The Costs of Buying a Home One of the considerations you need to take into account when buying a home are the additional costs associated with acquiring the property, which you need to pay at the time of closing. These fees can include lawyers fees and disbursments, title insurance, land transfer fees, PST and a property tax adjustment. If you are indeed contemplating purchasing a home, budgeting for all the costs involved is an important part of the planning. Talk to your Mortgage Broker today and begin the process of aquiring a mortgage in order to purchase that new house. To view Mortgage Minute with Frank Napolitano, Click here: Contact your Mortgage Broker today for trusted advice. August 26, 2020 Housing Crunch expected to ease in Second Half of 2020 in Ottawa It appears any long-term effects of Covid-19 on the real estate market in Ottawa are little to none.  Ottawa’s blistering real estate market has seen a steady increase in the number of bidding wars as supply outstrips demand. Housing prices in Ottawa surged in the late Spring as a crush of buyers entered the market with historically low interest rates.  As a result, home prices were driven up as demand increased. The average sale price of a two-story home in Ottawa increased to $552,429 year-over-year, while the price of a bungalow price jumped 14.4 per cent to $538,409. During the same period, the average price of a condominium rose 14.5 per cent to $370,425. Now we are seeing sellers return to the market and creating more of a balance of supply versus demand.  It is for this reason many believe the latter half of 2020 will see the housing crunch ease up. To read the full OBJ article; click here: Contact your Mortgage Broker for trusted advice August 24, 2020 Stress Test Rate Falls to 4.79% The stress test rate has fallen for the second time in three months following cuts by Canada’s Big Six banks to their 5-year fixed posted rates.  The Bank of Canada has reduced their benchmark qualifying rate - a.k.a., "stress test rate" from 4.94% to 4.79%. With many of the Big Banks cutting their posted 5-year rates in recent days the Bank of Canada is following suit by lowering their qualifying rate.  Back in May of this year, similar Big Bank rate reductions caused the qualifying rate to fall from its then-current level of 5.04% to just below 5%.  This marked the first time since January 2018, when OSFI's stress test was introduced, that the benchmark qualifying rate fell below 5% The lowering of the qualifying rate will make it a little easier for prospective home buyers as they are able to qualify at a lower rate. If you have any questions on how the mortgage qualifying rate (stress-test) can impact your ability to purchase a home – talk to a mortgage professional today. To read the full Canadian Mortgage Trend article; click here: Contact your Mortgage Broker today for more trusted advice August 17, 2020 Mortgage Minute: How Important is your Credit One of the key aspects to securing financing to purchase a home is your credit score.  Your credit score can determine if you will be approved for credit, secure premium interest rates, or be declined for credit. Some important Tips to keep in mind when it comes to establishing your credit, building your credit, and keeping your credit score in the range Lenders like to see include: Spread out your balances among several credit facilities so you do not go over your credit limit on any one credit card Accept all offers for increase limits as it demonstrates your credit worthiness to future creditors and creditors weigh your credit card balances to credit limits Keep your credit facilities open. Even if you are not using the credit facility by leaving it open you create a history and potentially met minimum credit requirements Pay disputed items on your credit bureau and then dispute them to avoid any derogatory information being registered by a credit company Whether you are contemplating purchasing a home, looking to refinance your existing mortgage to consolidate debt, or simply switch your mortgage between lenders, your credit score is important for any credit requests.  Have questions - talk to your mortgage broker today! To view the Mortgage Minute with Frank Napolitano; click here: Contact your Mortgage Broker today for trusted advice August 11, 2020 Mortgage Rates have never been cheaper Now that Canada is 6 months into Covid-19 there have been several factors that have contributed to this historically low interest rate environment.  The question now becomes – does one wait and see if rates will go lower? If you are in the market for a home, your timing could not be better. Mortgage rates are at record lows, and experts say this is the perfect opportunity to lock in a loan at a great price. And if you are already a homeowner, refinancing your mortgage at one of today’s bargain rates could save you thousands of dollars a year. But these ultra-low mortgage rates may not last forever, so if you have been thinking about buying or refinancing you should talk to your mortgage broker today – before it is too late. To read the full Financial Post article; click here: Contact your Mortgage Broker today for more trusted advice August 10, 2020 Open House - The Real Estate & Mortgage Show: August 8th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we move into the summer months a handful of lenders are offering historically low interest rates at Mortgage Brokers Ottawa. The tight housing supply and historically low interest rates continue to drive bidding wars for properties in Ottawa.  As of the end of July 57% of home sales were a result of bidding wars.  The average home sale price in Ottawa is now $511,723 and property sales are up 20.1%.  Currently the number of listed properties is unable to keep up with the demand for home sales and therefore we are seeing fewer overall home listings week over week and increased bidding wars. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice August 8, 2020 First Time Home Buyers Incentive Program The housing market is rebounding now that many Covid-19 restrictions are being lifted across country.  As a result, consumers who were sitting on the sidelines before Covid-19 have now entered a housing market with historically low interest rates, mortgage stress-test requirements, and a default insurer (CMHC) tightening their underwriting criteria. However, there are still options available to help first time home buyers and one such option is the First Time Home Buyers Incentive Program. The FTHBIP was launched in the Fall of 2019, but quickly fell of the radar for many people.  The program can help first time home buyers enter the housing market sooner than anticipated and also help lower their monthly costs. The First Time Home Buyer Incentive Program is a shared-equity mortgage with the Government of Canada and offers: 5% or 10% for a first-time buyer purchase of a newly constructed home 5% for a first-time buyer purchase of a resale (existing home) 5% for a first-time buyer purchase of a new or resale mobile/manufactured home This is a great program for the right consumer. To see if you qualify, click here: Contact your Mortgage Broker today for more trusted advice       August 4, 2020 Mortgage Minute: How Much Can You Afford The effects of Covid-19 are still being felt all across Canada and one area in particular that this is quite evident is the housing market.  The combination of record low interest rates and a limited supply of homes has created many instances where home buyers engage in bidding wars for a property. To best position yourself to purchase a home or, in a bidding war scenario, it is important that you speak with a mortgage professional.  A mortgage professional will work with you to review your credit history and employment history; both of which play critial parts in the mortgage approval process.  By having a Pre-Approval in place you are in a much better position of knowing what you can afford for a mortgage and that your information has been viewed by a Lender. Whether you are contemplating purchasing a home, looking to refinance your existing mortgage to consolidate debt, or simply switch your mortgage between lenders, now is the time to consider your options and talk to your mortgage broker today! To view Mortgage Minute with Frank Napolitano, click here: Contact your Mortgage Broker today for trusted advice July 28, 2020 Bank of Governors' Promise of Low Rates While many Canadian are enjoying a return to near normal in various cities across the country they are also enjoying the effects of a thriving housing market with historically low interest rates. Fixed interest rates dipped below 2% earlier this month for the first time and with the recent pronouncement from Bank of Canada Governor Tiff Macklem -  ‘if you’ve got a mortgage, or you’re considering to make a major purchase … you can be confident that interest rates will be low for a long time’, many feel the timing is right to enter the housing market. As a result of these two factors Canadian home sales rebounded sharply in May and June according to the Canadian Real Estate Association.  And it appears this trend will continue througout the summer months. To read the full article; click here Contact your Mortgage Broker today for more trusted advice July 27, 2020 Open House - The Real Estate & Mortgage Show: July 25th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we move into the summer months a handful of lenders are offering historically low interest rates at Mortgage Brokers Ottawa. There has been a settling in the number of active home listing in the previous week.  There were just under 1800 homes for sale in Ottawa of which 417 were condominium listings: an unusually high number of units for this time of year.  Of the 1800 homes for sale there were 624 sold properties.  The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice July 25, 2020 Bank of Canada Hints at no Interest Rates Hikes until 2023 The recent Bank of Canada announcement that their overnight lending rate was remaining unchanged at 0.25% was less of an announcement than the Bank of Canada Governor Tiff Macklem stating that ‘interest rates are very low and they are going to be there for a long time’. This announcement was met with excitement as many observers believe that interest rates will remain near their historic lows until at least 2023, as a result of Covid-19 and its impact on world markets. Prospective homebuyers can rest a little easier knowing that interest rates will likely remain low for quite some time and that will make their mortgage decisions a little easier today. To read the full article; click here: Contact your Mortgage Broker today for more trusted advice July 20, 2020 Open House - The Real Estate & Mortgage Show: July 18th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we move into the summer months a handful of lenders are offering historically low interest rates at Mortgage Brokers Ottawa. There has been a settling in the number of active home listing in the previous week.  There were 1810 homes for sale in Ottawa of which 405 were condominium listings: an unusually high number of units for this time of year.  Of the 1810 home for sale there were 579 new listings.   Of those new listings 236 were listed for sale in the last 24hours.  The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice July 18, 2020 Mortgage Minute: Taking Advantage of Mortgage Rates The pandemic that ravaged Canada’s economy and caused widespread unemployment has also caused interest rates to fall to near historic lows.  Those historic lows are still available among many lenders. Currently, there are a few lenders who have a five-year fixed rate at 1.99 percent, which is the lowest it has been in Canadian history.  Variable interest rates are comparable as well.  And depending on your situation these low interest rates could mean huge savings. Whether you are contemplating purchasing a home, looking to refinance your mortgage to consolidate debt, or simply switch your mortgage between lenders, now is the time to consider your options and talk to your mortgage broker today! Talk to your Mortgage Broker today and see how this program can help you buy your home. To view Mortgage Minute with Frank Napolitano, click here: Contact your Mortgage Broker today for trusted advice July 14, 2020 Refinancing and Mortgage Renewal Requests Soar Even though real estate markets experienced a slow down in April and May because of the effects of Covid-19 on world markets many mortgage brokers reported a surge in the number of inquiries regarding mortgage renewals, as well as mortgage refinances. The perfect storm of Covid-19, the Bank of Canada reducing rates to historic lows, and clients with interest rates on the higher end all contributed to the rush of customers looking to early renew or refinance their mortgages. Many clients that had a mortgage coming up for renewal or a client looking to refinance their existing mortgage they likely had an interest rate well above 3 percent.  With interest rates at historic lows it made sense to break the terms of ones existing mortgage and pay a penalty to secure a lower rate and save money. As a result, mortgage renewals increased by 78 percent and mortgage refinances rose by 182 percent since interest rates dropped in March 2020. To read the full Financial Post article; click here: Contact your Mortgage Broker today for more trusted advice July 13, 2020 Open House - The Real Estate & Mortgage Show: July 11th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we move into the summer months a handful of lenders are offering historically low interest rates at Mortgage Brokers Ottawa. There has been an increase in active home listing in the previous week.  There were 1813 homes for sale in Ottawa.  Of those home for sale there were 546 new listings.   Of those new listed approximately 153 homes were listed for sale in the last 24hours.  And approximately 256 were listed in the past 48 hours.   The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice July 11, 2020 CMHC Rule Tightening Comes into Effect Effective July 1st, 2020 CMHC's proposed changes to their underwriting practices have come into effect, which now will make it more challenging for Canadians looking to borrow money for a home purchase. The changes that were implement over the weekend included: 1)  Reducing the maximum gross debt service ratio (GDS) from 39 to 35. 2)  Reducing the maximum total debt service ratio (TDS) from 44 to 42. 3)  The minimum credit score increases from 600 to 680 for at least one borrower on the mortgage. 4)  Non-traditional sources of down payment (i.e. borrowed from a line of credit or credit card) will not be treated as equity for insurance purposes. These changes apply to home buyers that are purchasing a home with less than 20% down payment where the default insurance is provided by CMHC. However, both Genworth Canada and Canada Guaranty have confirmed they are not making the same changes to their underwriting practices as CMHC, thereby still providing Canadians with options when it comes to purchasing a home with less than 20% down payment.   To read the full CTV New article; click here: Contact your Mortgage Broker today for trusted advice   July 6, 2020 Open House - The Real Estate & Mortgage Show: July 4th, 2020 The housing market in Ottawa is now stronger year-over-year than in 2019, as we enter the latest phase of reopening during Covid-19.  As we move into the summer months a handful of lenders are offering historically low interest rates at Mortgage Brokers Ottawa. There has been an increase in active home listing in the past week.  There are currently 1813 homes for sale in Ottawa.  In the past week there were 546 new listings.   From that number there were 153 homes listed for sale in the last 24hours.  And in the past 48 hours there were 256 homes listed for sale.   The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice July 4, 2020 Pandemic pushes interest rates to historic lows The pandemic that ravaged Canada’s economy and caused widespread unemployment has also caused interest rates to fall to near historic lows.  Those historic lows are still available among many lenders. Currently, there are a few lenders who have a five-year fixed rate at 1.99 percent, which is the lowest it has been in Canadian history.  Variable interest rates are comparable as well.  And depending on your situation these low interest rates could mean huge savings. Whether you are contemplating purchasing a home, looking to refinance your mortgage to consolidate debt, or simply switch your mortgage between lenders, now is the time to consider your options and talk to your mortgage broker today! According to Frank Napolitano at Mortgage Brokers Ottawa “It’s a great opportunity for anyone who has a mortgage coming up for maturity or is looking to buy a house." To read the full CTV news article; click here: Contact your Mortgage Broker today for more trusted advice June 29, 2020 Open House - The Real Estate & Mortgage Show: June 27th, 2020 The housing market in Ottawa is almost business as usual, as we enter the latest phase of reopening during Covid-19.  As we move into the summer months a handful of lenders are offering historically low interest rates at Mortgage Brokers Ottawa. There has been an increase in active home listing in the past week.  There are currently 1900 homes for sale in Ottawa.  In the past week there were 664 new listings.   From that number there were 153 homes listed for sale in the last 24hours.  And in the past 48 hours there were 256 homes listed for sale.   The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice     June 27, 2020 Mortgage Minute - What is PPI? Realtors and Mortgage Brokers alike are seeing an increase in the number of active home listings now that Canadians from various cities and provinces begin their staged re-openings.  As a result, certain housing markets are seeing multiple offer situations more and more often.  A solution for many purchases is the Purchase Plus Improvement Program that allows you to obtain up to 20% of the purchase price of a home for renovations. The Purchase Plus Improvement program allows homebuyers to purchase a property and include the cost of the improvements in their financing.  Popular improvements such as kitchen and bathroom renovations, hardwood flooring, and windows qualify. Talk to your Mortgage Broker today and see how this program can help you buy your home. To view Mortgage Minute with Frank Napolitano, click here: Contact your Mortgage Broker today for trusted advice June 23, 2020 Open House - The Real Estate & Mortgage Show: June 20th, 2020 Realtors and Mortgage Brokers are continuing to adjust their practices to meet the needs of clients during Covid-19, but it is now business as usual.  The housing market is doing very well in the Ottawa area as we move into the summer months. There has been an increase in active home listing in the past week.  There are currently 1938 homes for sale in Ottawa.  In the past week there were 586 new listings.   From that number there were 246 homes listed for sale in the last 24hours.  And in the past 48 hours there were 378 homes listed for sale.  First time homebuyers entering the housing market will have some competition at the moment with limited property listings driving more multiple offers, as demand currently outstrips supply. The fixed interest rate market continues to be at all-time lows, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for trusted advice June 20, 2020 Welcome Relief for 1st Time Home Buyers Now that both Genworth Canada and Canada Guaranty have confirmed they are not following the lead of CMHC by updating their underwriting policies, this is welcome news for many Canadians. When CMHC introduces their underwriting changes July 1st, first time homebuyers will still have options when it comes to securing financing for their home.  CMHC has competition in Canada, as there are currently 3 companies that provide Insurance when your down payment to purchase a home is less than 20%.  Many Canadians may not be aware of which company is providing the insurance to secure their mortgage, as that choice is left to the individual Lender, but there is little to no difference between the three companies.  Having three companies providing insurance will create opportunity for prospective homeowners. As many Canadians aspire to own their own home knowing that there will be choice after July 1st will be critical to 1st time homebuyers.  To read more of the Calgary Sun article; click here: Contact your Mortgage Broker today for more trusted advice June 15, 2020 Open House - The Real Estate & Mortgage Show: June 13th, 2020 Realtors and Mortgage Brokers are continuing to adjust their practices to meet the needs of clients during Covid-19, but it is now business as usual.  With the soft opening of businesses that is happening in Ottawa, and across Canada, we are seeing a continued uptick in the number of home listings.  There has been an increase in active home listing in the past week.  There are currently 1847 homes for sale in Ottawa.  In the past week there were 536 new listings.   From that number there were 209 homes listed for sale in the last 24hours.  And in the past 48 hours there were 323 homes listed for sale.  This influx of new property listings is driving more multiple offers, as demand currently outstrips supply. The fixed interest rate market continues to be very attractive, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To hear the full podcast; click here: Contact your Mortgage Broker today for more trusted advice June 13, 2020 CMHC Rule Changes UPDATE Great News today for home buyers with dual announcements from Genworth and Canada Guaranty! Contrary to the recent changes CMHC announced on Friday June 5th, 2020 regarding the tightening of their underwriting criteria, both Genworth and Canada Guaranty have confirmed they will not be making the same changes to their underwriting processes.  This is great news for Canadians looking to purchase a home, as now they know they have options when it comes to buying a home.   To read the Canada Guaranty News Release, click here: To read the full Genworth News Release, click here: Contact your Mortgage Broker today for more trusted advice June 9, 2020 CMHC Rule Changes June 2020 In a move hailed by CMHC as a method to “protect future home buyers and reduce risk”, they have announced the following changes to their underwriting criteria effective July 1, 2020.   There are four main changes to CMHC’s lending policies with this announcement: 1)  Reducing the maximum gross debt service ratio (GDS) from 39 to 35. 2)  Reducing the maximum total debt service ratio (TDS) from 44 to 42. 3)  The minimum credit score increases from 600 to 680 for at least one borrower on the mortgage. 4)  Non-traditional sources of down payment (i.e. borrowed from a line of credit or credit card) will not be treated as equity for insurance purposes. The changes above apply to home buyers that are purchasing a home with less than 20% down payment where the default insurance is provided by CMHC. Based on recent previous mortgage changes, we expect that the July 1st deadline will mean that home buyers must have a firm purchase and sale agreement on a specific property and a fully committed mortgage approval by that date to be eligible under the “old” rules.  This is unconfirmed at this time. The combined increase of the GDS and TDS ratios represent a 9%-13% decrease in purchasing power for those with less than 20% down payment. While the list is long of the information that we do not yet know, below are some important points that will require clarification: 1 )  CMHC is one of 3 major default insurers in Canada; Genworth and Canada Guaranty being the other two.  The announced changes are not driven by the Ministry of Finance, so this could be the first time where a major underwriting change does not impact all insurers identically.  It is possible in this instance that Genworth and Canada Guaranty may not adopt this new underwriting criteria, we are awaiting their response. 2 )  Homebuyers and borrowers with more than 20% down payment may also be indirectly impacted by this rule change.  Will lenders adopt this new set of criteria for their own standards with all mortgage approvals, regardless of the amount of down payment? Non bank lenders rely heavily on what is referred to as portfolio or bulk insurance to provide mortgages to the market.  This portfolio insurance currently requires the same criteria for mortgage underwriting that mortgages with less than 20% down payment require.  As balance sheet lenders, banks are not bound by the same set of requirements.  Like other recent mortgage rule changes, will this one disproportionately favour the banks and squeeze out some of the much needed competition in the industry?  Will interest rates need to rise as a result?   If you are currently looking for a home, or considering looking for a home, we recommend the following: 1 )  July 1st may be a critical date for you to find a property. 2 )  If you already have a pre-approval, you should update it to consider how these changes may impact your borrowing power.  Contact your Mortgage Broker now.   June 5, 2020 Mortgage Minute with Frank Napolitano The easing of restrictions for many Canadians is continuing and contributing to a real sense of optimism.  Along with that sense of optimism is the increased focus on the housing market and when is a good time to get into the market. Though you may have heard that many parts of Canada are experiencing decreases in the number of home sales – the average price of single-family homes, in several markets, remain strong if not increasing.  As a result of these promising stats prospective homebuyers in some of Canada’s priciest markets are wondering if the economic crisis triggered by Covid-19 has come with a silver lining for them.  Frank Napolitano, of the Mortgage Minute, discusses the impact of Covid-19 on the real estate market and how the current housing market is just as good a time to get into the real estate market. Whether or not this is the time for some homebuyers to finally step on to the property ladder will depend on location and timing. To view the Mortgage Minute with Frank Napolitano, click here: Contact your Mortgage Broker today for more trusted advice June 1, 2020 Open House - The Real Estate & Mortgage Show: May 30th, 2020 Realtors and Mortgage Brokers have been adjusting their practices to meet the needs of clients during Covid-19 and it is still business as usual.  With the soft opening of businesses that is happening in Ottawa, and across Canada, we are seeing a continued uptick in the number of home listings.  There was an increase in active home listing in the past week.  There are currently 1858 homes for sales in Ottawa.  In the past 24 hours there were 143 home sales.  And in the past 48 hours there were 215 home sales.  In addition, multiple offers on key properties appear to be on the rise contributing to an increase in home prices. The fixed interest rate market continues to be attractive, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice May 30, 2020 Open House - The Real Estate & Mortgage Show: May 23rd, 2020 Congratulations to ‘Open House - The Real Estate & Mortgage Show’ for celebrating 650 shows this past weekend … Realtors and Mortgage Brokers have been adjusting their practices to meet the needs of clients during Covid-19 and it is still business as usual.  With the soft opening of businesses that is happening in Ottawa, and across Canada, we are seeing a continued uptick in the number of home listings.  There was an increase in active home listing in the past week.  There are currently 1846 homes for sales in Ottawa.  In the past 24 hours there were 60 home sales.  And in the past 48 hours there were 130 home sales.  In addition, multiple offers on key properties appear to be on the rise, contributing to a 5.9% increase to the average sale price of homes in Ottawa in April There is a real sense of optimism in the Ottawa area and across Canada. The fixed interest rate market continues to be attractive, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice May 26, 2020 Coronavirus and the housing market: Is this a good time to buy? With the easing of restrictions for many Canadians starting to be felt across Canada some prospective homebuyers in Canada’s priciest markets are wondering if the economic crisis triggered by Covid-19 has come with a silver lining for them. According to the Canadian Real Estate Association (CREA) the national average home price edged down just 1.3% in April compared to the same month last year. Coupled with Canada-wide sales of existing homes falling approximately 58% in April year-over-year there appears to be more sellers than buyers now, giving an advantage to some prospective homebuyers. Whether or not that will allow some homebuyers to finally step on to the property ladder depends on location and timing. To view the Global News article, click here: Contact your Mortgage Broker today for more trusted advice May 19, 2020 First-time home buyers with job security should get preapproved for a mortgage Many Canadians are now entering their second month of living with the impact of Covid-19 on their day-to-day life.  For many Canadians that impact includes how they currently work, how their income has been impacted, and what has happened to their daily routines.  There are many Canadians who are still in the housing market; buying or selling, as they need to do so.  No more group seems to have more flexibility that first-time home buyers with job security.  First-time home buyers with job security, this is your time. Taking the time to get a preapproval for a mortgage, while we wait for our communities to ease restrictions, affords you opportunities as real estate market conditions improve, which they are doing daily. Preapprovals let you lock in an interest rate for up to 120 days​, which means buyers can take their time to see where home prices land as the real estate market continues to improve. Knowing that you have already met with a trusted mortgage broker to secure a preapproval can well prepare you for when the ideal time comes to put an offer on a home. To view the full Globe and Mail article, click here: Contact your Mortgage Broker today for more trusted advice May 11, 2020 Open House - The Real Estate & Mortgage Show: May 9th, 2020 Realtors and Mortgage Brokers have been adjusting their practices to meet the needs of clients during Covid-19 and it is still business as usual.  With the soft opening of businesses that is happening in Ottawa, and across Canada, we are seeing an uptick in the number of home listings.  Canadians are feeling more optimistic about the housing market and our future in general. There were some good numbers that came out in the month of April with respect to home sales.  The average home sales price is up 15% year-to-date with the month of April seeing an increase of 5.9% increase over last month.  Though the number of home sales is down the houses on the market are garnering an increase price. The fixed interest rate market continues to be attractive, as well as variable interest rates.  Variable interest rates are low and likely to remain low for quite some time.  As such, it is a great time to reach out to your Mortgage Broker and secure a mortgage Pre-Approval.  By locking in an interest rate for 120 days you are securing a rate in this low rate environment. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice May 9, 2020 Which Benefits am I eligible for during the Covid-19 pandemic? If you are one of the millions of Canadians currently out of work due to the COVID-19 pandemic and facing reduced income and unable to pay your bills there are a myriad of programs now available to provide assistance. Governments across the country have responded with an unprecedented suite of measures aimed at helping those most affected by the crisis meet their day-to-day essential needs. There are several different programs available now; financial aid, tax credits, payment deferrals and other efforts – enough that it can be hard for anyone to understand exactly what they are and are not eligible for.   To see the full CTV News article, click here: Contact your Mortgage Broker today for more trusted advice April 28, 2020 Open House - The Real Estate & Mortgage Show: April 24th, 2020 COVID-19 continues to have an impact on the real estate market, but realtors and mortgage brokers are adjusting to the new normal and are coming up with creative ways to assist their clients who still need to buy or sell a home and secure financing to do so. As the Federal Government starts to work on plans to gradually reopening businesses many believe this will spur the real estate market in the coming weeks.  Currently there are 1946 home listings in Ottawa, which represents a seller’s market.  With the lifting of many of our daily restrictions and the creative ways realtors are showing / listing homes right now, we will see a very active late Spring/Summer real estate market. Fixed interest rates are moving downwards, and Variable interest rates are very attractive now.  With the Bank of Canada having lowered their overnight lending rate 50 basis points three times in March the Prime rate of various financial institutions should remain low for some time and the Variable interest rate mortgage an attractive option. Having a trusted Realtor and Mortgage Broker during these fast-changing times is essential in making informed decisions. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice April 25, 2020 Home sales up compared to same period last year With Covid-19 in full swing across Canada the real estate market was predictably down in March as buyers remained on the sidelines and social distancing led to fewer showings. National home sales fell 14.3 per cent in March, compared to February, but were up 7.8 per cent compared to the same period last year, according to the Canadian Real Estate Association. Canada’s largest markets saw sales plunge as the coronavirus lockdown took hold, with transactions in the Greater Toronto Area down 28 per cent, Montreal contracting 13.3 per cent and Greater Vancouver edging 2.9 per cent lower. Calgary (-26.3 per cent), Edmonton (-13.2 per cent), Winnipeg (-7.3 per cent), Hamilton-Burlington (-24.9 per cent) and Ottawa (-7.9 per cent) also saw some considerable declines. However, federal government wage subsidies provided much needed relief for many Canadians, who felt more comfortable knowing they would not need to sell their home. To view the Financial Post article, click here: Contact your Mortgage Broker today for more trusted advice April 19, 2020 Open House - The Real Estate & Mortgage Show: April 18th, 2020 COVID-19 continues to have an impact on the real estate market, but realtors and mortgage brokers are adjusting to the new normal and are coming up with creative ways to assist their clients who still need to buy or sell a home and secure financing to do so. Federal government wage subsidy programs have provided much needed relief for many Canadians, who now feel they will not need to sell their homes.  As a result, many clients are looking to provide for their immediate financial health.  If you have equity in your home this may be an ideal time to contact your Mortgage Broker and talk about your options. Fixed interest rates are starting to decrease with many lenders and Variable mortgage interest rates are very attractive at the moment.  With the Bank of Canada lowering their overnight lending rate 50 basis points three times in March the Prime rate of various financial institutions should remain low for some time. Having a trusted Realtor and Mortgage Broker during these chaotic and confusing times is essential in making informed decisions. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice April 18, 2020 Unusual mortgage rate landscape created by COVID-19 As the effects of Covid-19 continue to rile financial markets across the globe it is causing big swings in mortgage rates and creating challenges for consumers  on how to navigate borrowing for a home. With the lack of economic clarity, mortgage brokers are advising clients to keep an eye on interest rates if they are in the housing market, since interest rates may continue to fluctuate widely and lenders take different approaches to fixed and variable mortgage rates. Fixed rates started to fall in late February as the bond market reacted to the economic threat of Covid-19. Then in early March, the Bank of Canada slashed their overnight lending rate by 50 basis points, then again mid-March, and another time at the end of March.  These rate reductions did not translate into lower interest rates for consumers. To read more of the CTV News article, click here: Contact your Mortgage Broker today for more trusted advice April 13, 2020 Open House - The Real Estate & Mortgage Show: April 11th, 2020 COVID-19 continues to have an impact on the real estate market, but realtors are adjusting to the new normal and are coming up with creative ways to assist their clients who still need to buy or sell a home.  In the past week there were 2020 listings in the Ottawa area that resulted in 359 home sales.  For comparison purposes, as of March 14th, 2020 there were 1327 home sales whereas the same period in 2019 saw 1694 home sales.  Admittedly, more activity in March 2019, but the drop year-over-year was not as substantial as one would have thought especially during this trying time of Covid-19. Realtors are using creative means to highlight their properties including; facetiming and Zoom.  Zoom has become a more popular medium for realtors at the moment as it allows you to use the platform for open houses, initiate listings, and do virtual viewings. A consistent message from many realtors at the moment is that if you do not need to sell your home do not list it – wait! To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice April 11, 2020 Open House - The Real Estate & Mortgage Show: April 4th, 2020 COVID-19 continues to have an impact on the real estate market, but realtors have adjusted to the new normal and come up with creative ways to assist their clients who still need to buy or sell a home.  Though the number of Open Houses are declining some creative means being used by realtors include; facetiming and Zoom.  Zoom has become a more popular medium for realtors at the moment as it allows you to use the platform for open houses, initiate listings, and do virtual viewings. In the past week there were 1997 listings in the Ottawa area that resulted in 346 home sales.  For the same period in 2019 there were 522 home sales.  There is a gap emerging year-over-year and one can tie that directly to the effects of Covid-19 and its impact on the spring market. A consistent message from many realtors at the moment is that if you do not need to sell your home do not list it – wait! To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice April 6, 2020 Interest rates are plunging - so why aren't mortgage rates? As a result of the effects of Covid-19 on world markets central banks around the world have slashed their benchmark interest rates to pretty much zero in an attempt to stimulate the economy by making it as easy as possible to borrow, spend, and invest. However, in Canada mortgage interest rates are not going down as much as the Bank of Canada and in some instances mortgage interest rates are going up. There are a number of reason why this is happening, but primarily banks typically borrow the money they are lending out and make money on the spread between how much they are changed and how much they turn around and charge the borrower.  Though the overnight lending rate with the Bank of Canada is at historic lows we are seeing rates moving in the opposite direction with lenders across Canada. Other factors driving this movement in interest rates are include the Banks building risk into their portfolios, as well as the belief of a looming recession on the horizon as a result of Covid-19. To see the full CBC article, click here: Contact your Mortgage Broker today for more trusted information. April 6, 2020 Open House - The Real Estate & Mortgage Show: March 28th, 2020 In the past few weeks COVID-19 has reverberated across all segments of Canadian society and has impacted how we do business today. In the past few weeks we have seen many instances of ‘multiple offers’ for home purchases in major cities across Canada.  However, in the last few days we have seen the number of Open Houses decline, but Realtors have become creative to assist their clients in the home buying process i.e.)facetiming viewings and clients accessing a home one-at-a-time. In the past week there were 432 home sales in Ottawa, though realtors are now seeing a slowdown in the housing market.  The common theme with realtors at the moment is that if you do not need to sell your home do not list – wait! This past week has seen the Bank of Canada cut their overnight lending rate for the third time in two week to 0.25% and the government has postponed changes to the Mortgage Qualifying Rate (Mortgage Stress Test) until further notice. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice March 28, 2020 Bank of Canada Cuts Key Interest Rate to 0.25% The Bank of Canada has lowered interest rates for a third time in a matter of weeks, and announced what appears to be a large scale asset purchase program to help shield the nation’s economy from coronavirus fallout. The Ottawa-based central bank lowered its policy rate Friday by another half a percentage point to 0.25 per cent, adding in a statement that the unscheduled rate decision brings the rate down to its effective lower bound. The Bank of Canada also announced plans a new commercial paper purchase program as well as a minimum of $5 billion a week in government securities. How this will impact interest rates with Lenders will play out in the coming days. To see the full BNN Bloomberg article, click here: Contact your Mortgage Broker today for more trusted information. March 27, 2020 What the Government is offering you in Covid-19 benefits In this unprecedented time, more and more information is being released by lenders, mortgage insurers, and all levels of Government in terms of relief measures for Canadians who are facing financial difficulty as a result of the effects of the Covid-19 virus. As a result of these difficulties the federal government this past week announced a variety of tax measures to help Canadians who are facing hardship as a result of the COVID-19 outbreak. Here’s a quick summary of the major tax changes affecting individuals. To see the full Financial Post article, click here: Contact your Mortgage Broker today for more trusted information. March 24, 2020 Covid-19 has reverberated across all segments of Canadian society In recent days and weeks COVID-19 has reverberated across all segments of Canadian society and has become particularly acute in the housing sector. Though the Bank of Canada has twice dropped their overnight lending rate to 0.75% to stimulate markets the impact to the housing industry is being felt across Canada. In the past few weeks we have seen many instances of ‘multiple offers’ for home purchases in major cities across Canada.  However, in the last week to 10 days interest in buying homes across Canada has dropped, if new data from residential information portal Point2 Homes is any indication. The decline in home searches made through the portal reached as much as 32% by March 16. The downward trend has been clear, with an 8% drop registered on March 11, a 20% decrease on March 12, and a 24% plunge on March 13. Historically, the spring market sees a surge in demand, both from sellers and buyers, but it appears Covid-19 has many sitting on the sideline to see what happens over the coming weeks. To read more of the article, click here: Contact your Mortgage Broker today for more trusted information. March 23, 2020 Canadians have become much less interested in buying homes In recent days and weeks COVID-19 has reverberated across all segments of Canadian society and has become particularly acute in the housing sector. Though the Bank of Canada has twice dropped their overnight lending rate, which currently sits at 0.75%, to stimulate markets the impact to the housing industry is being felt across Canada. In the past few weeks we have seen many instances of ‘multiple offers’ for home purchases in major cities across Canada.  However, in the last week to 10 days interest in buying homes across Canada has dropped, if new data from residential information portal Point2 Homes is any indication. The decline in home searches made through the portal reached as much as 32% by March 16. The downward trend has been clear, with an 8% drop registered on March 11, a 20% decrease on March 12, and a 24% plunge on March 13. Historically, the spring market sees a surge in demand, both from sellers and buyers, but it appears Covid-19 has many sitting on the sideline to see what happens over the coming weeks. To read more of this article, click here: Contact your Mortgage Broker today for more trusted information.   March 23, 2020 Open House - The Real Estate & Mortgage Show: March 22nd, 2020 In recent days COVID-19 has reverberated across all segments of Canadian society and has impacted how we do business today. In the past few weeks we have seen many instances of ‘multiple offers’ for home purchases in major cities across Canada.  However, in the last few days we have seen the number of Open Houses decline, but Realtors have become creative to assist their clients in the home buying process i.e.)facetiming viewings and clients accessing a home one-at-a-time. The housing market in Ottawa is still strong with 1915 listings currently.  Of that number 613 are residential homes and 302 are condominiums.  There are 342 conditional sales in Ottawa at the moment and there were 368 sales week over week. The recent interest rate cuts by the Bank of Canada, the suspension of the launch of changes to the Mortgage Qualifying Rate (Mortgage Stress Test), and the spring market continue to be factors driving home sales and fueling the housing market. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice March 21, 2020 COVID-19: Lender and Default Insurance Mortgage Payment Relief In this unprecedented time, more and more information is now being released by the lenders as well the three mortgage default insurers in terms of relief measures for Canadians who are facing financial difficulty as a result of the effects of the COVID-19 virus. The big six banks, including TD, Scotiabank, RBC, CIBC, National Bank of Canada, and Royal Bank, have all made commitments to work with personal and small business clients on an individual basis to provide up to six months of mortgage payment deferral along with other credit products. Customers will need to contact their financial institution to discuss their options. Mortgage lenders have also begun contacting their clients to bring awareness to options that may be available such as Hold-a-Payment and Skip-a-Payment programs that would provide temporary relief to those who have this option as a part of their mortgage product. For insured mortgages, CMHC, Genworth, and Canada Guaranty have announced additional deferred payment flexibility for those who have been affected by the virus. To read the full release from Canadian Bankers Association or CBC News. Wondering what your options may be? Contact your Mortgage Lender directly: Mortgage Info Centre/COVID-19 March 18, 2020 Covid-19: Mortgage Payment Difficulties Nobody should have to worry about their mortgage because of the financial impacts of COVID-19. Please contact your Mortgage Agent/Broker or your lender about programs being introduced to help Canadians through this time of uncertainty. Find out moreðŸ'‰:  Covid-19: Mortgage Payment Difficulties & CMHC Contact your Mortgage Broker today for more trusted advice March 16, 2020 Breaking: Bank of Canada surprises with another interest rate cut to counter COVID-19 In a surprise move, the Bank of Canada cut the overnight lending rate by 0.50% to 0.75% today. This comes on the heels of the latest rate cut on March 4th which saw the central bank cut rates by 0.50% bringing the rate to 1.25%, the lowest since 2015. “This unscheduled rate decision is a proactive measure taken in light of the negative shocks to Canada's economy arising from the COVID-19 pandemic and the recent sharp drop in oil prices," the bank said. The latest cut falls outside of the normal schedule for the bank which announces any changes on a 6-week cycle. This is showing Canadians how seriously the bank is taking the coronavirus outbreak and the impact on the Canadian economy. “The bank's rate impacts the rates that Canadian savers and borrowers get for things like savings accounts and mortgages. All things being equal, the bank raises its rate when it wants to cool down an economy that is overheating with high inflation. It cuts when it wants to encourage people to borrow, spend and invest. The global coronavirus pandemic has many worrying about what will happen to Canada's economy as workers are quarantined and trade routes grind to a halt.” To read more the CBC news, click here.  Contact your Mortgage Broker today for more trusted information.  March 13, 2020 Falling interest rates could add fuel to spring home buying season With the recent announcement by the Bank of Canada to cut their key overnight lending rate to 1.25% the typically busy spring home buying season could see a marked ramp up thanks to falling interest rate. Both fixed and variable mortgage rates have been impacted by the recent announcement by the Bank of Canada.  Canada’s Big Five banks all announced Wednesday they were cutting their prime rates by 50 basis points, to 3.45% from 3.95%.  As a result we can expect to see increased activity in the historically busy spring home buying season. Also adding fuel to the spring home buying market is the fact that Ottawa is preparing to tweak the stress test for both insurance and uninsured mortgages starting wtih insured mortgage April 6th, 2020. To read the full Financial Post article click here Contact your Mortgage Broker today for more trusted advise March 10, 2020 Open House - The Real Estate & Mortgage Show: March 9th, 2020 The Bank of Canada just dropped their overnight lending rate to 1.25% from 1.75%.  As a result most financial institutions have now lowered their fixed and variable interest rates.   The question now for many consumers is whether or not to choose a fixed rate term or variable rate mortgage this upcoming spring home buying season. The spring market continues to be on fire and we are seeing many instances of ‘multiple offer’ situations for Buyers and this is why working with a trusted Realtor and Mortgage Broker will help you navigate this process.  Taking the time to work with a Mortgage Broker to ensure you are well positioned with any offers you may make on a prospective home will better assist you in this ‘multiple offer’ season the Ottawa market is experiencing.  in addition, a Mortgage Broker will also highlight the pros and cons of choosing a fixed rate mortgage or a variable rate mortgage. By knowing your market and working with a Mortgage Broker you can well position your home / purchase in todays every changing real estate market. To listen to the full podcast - click here Contact your Mortgage Broker today for more trusted advice March 9, 2020 Bank of Canada cuts rate by half a point to 1.25% In a highly anticipated move the Bank of Canada lowered their overnight lending interest rate to 1.25% this morning, in the first interest rate cut since 2015. With the spread of the coronavirus (Covid-19) to more than 50 countries many companies are realigning their operations in anticipation of impacts to the bottom line.  Prior to the outbreak, the global economy was showing signs of stabilization. Similarly, the U.S. Federal Reserve made its first emergency rate cut since the financial crisis on Tuesday, March 3rd, 2020 to help the world’s largest economy cope with mounting risks posed by the coronavirus. To read the full release from the Bank of Canada, click here. Contact your Mortgage Broker today for more trusted advice. March 4, 2020 Open House - The Real Estate & Mortgage Show: February 29, 2020 Home sales continue to be strong in the Ottawa Market. Currently there only 1817 listings in the Ottawa area with the average sales prices in February of $494,000, residential home prices was $581,000 on average and condo prices are averaging $347,000. In this spring market we are seeing many instances of ‘multiple offer’ situations for Buyers and this is why working with a trusted Realtor and Mortgage Broker will help you navigate this process.  By knowing your market and working with a Mortgage Broker you can well position your home / purchase todays every changing real estate market. If you are in the process of a buying a home, it is best to not add any additional debts to your scenario. This means, new car loans, additional credit card or line of credit debt. Lenders can pull a new credit bureau up until the day of closing. This is especially important when purchasing a new-build home when the closing date is a year or more in the future. To listen to the full Podcast - click here: Contact your Mortgage Broker today March 2, 2020 Open House - The Real Estate & Mortgage Show: February 22, 2020   Home sales continue to be strong in the Ottawa Market.  In this spring market we are seeing many instances of ‘multiple offer’ situations for Buyers and this is why working with a trusted Realtor and Mortgage Broker will help you navigate this process. Average sales prices in February was $494,000, residential home prices was $581,000 on average and condo prices are averaging $347,000. If you are in the process of a buying a home, it is best to not add any additional debts to your scenario. This means, new car loans, additional credit card or line of credit debt. Lenders can pull a new credit bureau up until the day of closing. This is especially important when purchasing a new-build home when the closing date is a year or more in the future. To listen to the full podcast from CFRA, click here. Contact your Mortgage Broker today.       February 24, 2020 Canadian Home Sales Down in January - CREA Canadian home sales down in January Recently released statistics by the Canadian Real Estate Association (CREA) show national home sales declined between December 2019 and January 2020.   HIGHLIGHTS: National home sales fell by 2.9% on a month-over-month (m-o-m) basis in January. Actual (not seasonally adjusted) activity was up 11.5% year-over-year (y-o-y). The number of newly listed properties was little changed (+0.2%) m-o-m. The MLS® Home Price Index (HPI) advanced by 0.8% m-o-m and 4.7% y-o-y. The actual (not seasonally adjusted) national average sale price climbed 11.2% y-o-y.   According to CREA’s Senior Economist Shawn Cathcart there has been a larger than normal drop in new lists at this time of year. Mr. Cathcart was quoted as saying “The logic being that if you are a seller, you’re not just choosing when to list but effectively when to sell, so why not hold off until the spring when the weather is better, and more buyers are looking” The question going forward is how many sellers are out there waiting to list their property, how much demand will respond, and how that will impact prices later this year. The following chart, though shows an upward trend year-over-year, demonstrates where the Ottawa housing market (sales to new listings) fall in comparison to the rest of the country.   Home price trends have generally been stabilizing in most Prairie markets in recent months following lengthy declines. Meanwhile, prices are clearly on the rise again in British Columbia and in Ontario’s Greater Golden Horseshoe (GGH). Further east, price growth in Ottawa, Montreal and Moncton continues as it has for some time now, with Montreal and particularly Ottawa having strengthened noticeably in recent months. To read the full release from the Canadian Real Estate Association (CREA), click here Looking to get into the housing market? Contact your Mortgage Broker today for more information. February 20, 2020 Changes to Stress Test Rate for Insured Mortgages Bill Morneau, Minister of Finance, has announced that the qualifying rate for the mortgage stress test will change effective April 6, 2020. Mr. Morneau said the aim is to make the stress test, which has drawn criticism for being onerous and inflexible, “more dynamic to market conditions,” while still keeping it intact. The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate plus a 2% buffer which will be announced each Wednesday by the Bank of Canada for the following Monday. “Federal officials had become concerned that the Bank of Canada rate, which stands at 5.19 per cent, was no longer tracking the market as well as it had. At that level, it sets the floor for the stress test at roughly 2.3 percentage points higher than the average five-year mortgage rate borrowers are actually paying. By contrast, the new median-based benchmark is currently lower at 4.89 per cent as of Tuesday, according to OSFI, although it could change weekly. And mortgages will still be stress tested at a minimum of two percentage points above the client’s contract rate, according to OSFI.” (The Globe and Mail) Following reviews by federal financial agencies, results indicated that a more dynamic qualifying rate would better adjust to the changes in the market. The Office of the Superintendent of Financial Institutions (OSFI) is also considering adopting this same measure for insurable and uninsured mortgages but has yet to announce any firm changes in the current policies. “Sound mortgage underwriting and B-20 contribute to financial stability throughout the economic cycle. Continually reviewing our prudential measures is part of an effective regulatory framework. This proposal aims to address the limitations of the current benchmark rate while preserving the integrity of the overall qualifying rate,” said Ben Gully, assistant superintendent, regulation (Mortgage Broker News). More from the Government of Canada news release can be found here. Read more from the OFSI announcement as well as their FAQ page. Contact your Mortgage Broker today for more information.   February 19, 2020 Open House- The Real Estate And Mortgage Show: February 8, 2020 Home sales are still strong in the Ottawa market. The number of sales were down for the month of the January, but this is due to low inventory level on the residential side. Low inventory levels mean we continue to see multiple offers on properties. Working with a trusted team of Realtors and Mortgage Brokers will help navigate this process. Average sale price in January was $465,000, residential home price was $516,000 on average while condo prices are averaging $338,000. If you are in the process of a buying a home, it is best to not add any additional debts to your scenario. This means, new car loans, additional credit card or line of credit debt. Lenders can pull a new credit bureau up until the day of closing. This is especially important when purchasing a new-build home when the closing date is a year or more in the future. To listen to the full podcast from CFRA, click here. Contact your Mortgage Broker today. February 10, 2020 January Resales Lose Momentum- OREB According to the latest data released by the Ottawa Real Estate Board (OREB), residential property sales decreased 4.5% from 817 in January 2019 to 780 last month. Residential sales decreases by 8.4% from the same time last year with 558 properties sold, whereas condo sales remained positive with 222 properties sold, an increase of 6.7%. “2020 is off to a slower start as the shortage of inventory is now impacting market momentum,” states Ottawa Real Estate Board’s President Deborah Burgoyne. “Although we have higher sales than the five-year average, due to increased condo sales, the persistent supply challenges seem to have finally caught up with us. Furthermore, the number of new listings that came on the market in January (1,082) is well below the average (1,651).” “We don’t expect this trajectory to change anytime in the foreseeable future,” Burgoyne acknowledges. “The supply chain needs to be buffered at all points along the continuum from first-time and move-up buyers, to downsizing boomers as well as renters. They are all interconnected links in the housing chain.” Sale prices have shown an increase in both property classes. Residential sale prices saw an increase of 19.3% from January 2019 to $516,229 while the condo market saw the average sale price increase by 19.1% to $337,077. Month over month increases from December 2019 to January 2020 were significantly smaller in both the residential class and the condo markets with increases of 3.2% and 8.8% respectively. “The fact is Ottawa’s market has always been steadily increasing at a reasonable pace and is sustainable. If buyers are waiting for prices to decline, based on historical trends, it’s not likely,” Burgoyne cautions. “Although supply may pick up eventually—if you need to get into the market, don’t wait. It’s a challenging market for everyone. Hire a trusted professional to ensure you are protected and well informed in your home buying or selling transaction.” To read the full release from the Ottawa Real Estate Board, click here. Looking to get into the housing market? Contact your Mortgage Broker today for more information. February 6, 2020 First-Time Home Buyer Incentive Off to a Slow Start Since the official launch of the federal program in September 2019, a mere 4% of the 3-year goal has been funded according to new data. Between September 2nd and December 2nd, of the 3,252 application for down payment assistance submitted across Canada, 2,730 application were approved for a total of $51.3 million dollars funded.   Interest has been highest in the province of Quebec, where more than 1,300 applications were received, as opposed to Ontario where only 436 applications were submitted. Across other major housing markets, there is no surprise the GTA and GVA markets ranked lower than cities such as Edmonton or Calgary where home prices are significantly lower, given that one of the major restrictions of the program is a maximum purchase price of $565,000. Greater Toronto Area: 148 Vancouver: 45 Edmonton: 447 Calgary: 260 Winnipeg: 144 Montreal 654 Halifax: 64 New Brunswick: 60 PEI: 12 The program has been criticized within the industry as being overly complicated and many buyers have expressed uneasiness with the thought of losing potential equity down the line. To read the full article from Canadian Mortgage Trends, click here. More information about the FTHBI can be found on their website here. Looking at your home buying options? Contact your Mortgage Broker today. February 4, 2020 Open House- The Real Estate And Mortgage Show: February 1, 2020 Steve, Frank and Dora discuss the state of the market, and the large amount of first-time home buyers they have seen recently. Ottawa remains real estate listing starved with only 2,773 home for sale including all surrounding area. With the aging population in Ottawa the small single homes and townhomes have become more popular and therefore prices have increased, especially over the last 2 years. The struggle to qualify for a mortgage is still hampering the home ownership dream of some first-time buyer. The qualifying rate remains at 5.14% which can be over 2% of purchasing mortgage rates. This means more and more buyers are using the guarantor programs to help achieve home ownership dreams. A guarantor program allows a parent to guarantee the mortgage without going on title. However, many banks require this setup to be a co-signer scenario where the co-signer is just a responsible for the mortgage as the purchasers. Check out the full podcast from CFRA here. Contact your Mortgage Broker today for more trusted information. February 3, 2020 Open House- The Real Estate And Mortgage Show: January 25, 2020 Barb Kramer and Anisa Lancione join host Steve Gregory and Paul Rushforth this week to discuss the latest in Mortgage and Real Estate news. Despite the new year for real estate, new listings have declined since last week with 1707 current homes on the market including 221 condos. As the sellers’ market continues in Ottawa, working with a trusted and experienced realtor is your best bet to get the most for your money and to handle the potential offers with care. If you have an upcoming renewal, keep an eye on your actual renewal date. Not all lenders offer an open repayment option which could mean paying a penalty to break a mortgage you didn’t want. If you have a second mortgage in place, renewal time is the perfect time to try to refinance these two mortgages into one single mortgage at the best rate. Always consult with your Mortgage Broker well in advance of your renewal date for the best advice. It’s RRSP season which is great time to look at diversifying your portfolio. Advanced Mortgage Investment Corp. supports investing in Ottawa real estate. Investors purchases shares within the corporation which then, in turn, lends the money backed against local Ottawa mortgages so that each investor invests proportionately in each mortgage. Visit www.advancedmic.com for more info. Capital gains can end up costing you a pretty penny. When looking at turning your primary residence into a rental property, it is best practice to get an appraisal of the property prior to doing so. The reason for this is to show the amount of capital gains you are required to pay when you sell the property which means you pay the capital gains on the amount the property has increased between the appraisal and the date of sale. Check out the full podcast from CFRA here. Contact your trusted Mortgage Broker today for great advice.   January 29, 2020 Bank of Canada Once Again Maintains Rate At 1.75% The central bank has opted once again to maintain the overnight lending interest rate at 1.75% this morning, a level it has maintained for over a year. This means stable lending rates for prime rate borrowing including mortgages and lines of credit. The decision comes after months of economic stability, but the Canadian economy remains on slightly shakier ground. “Some of the slowdown in growth in late 2019 was related to special factors that include strikes, poor weather, and inventory adjustments. The weaker data could also signal that global economic conditions have been affecting Canada’s economy to a greater extent than was predicted. Moreover, during the past year Canadians have been saving a larger share of their incomes, which could signal increased consumer caution. This could dampen consumer spending but help to alleviate financial vulnerabilities at the same time. Looking ahead, Canadian business investment and exports are expected to contribute modestly to growth, supported by stronger global activity and demand. The Bank is also projecting a pickup in household spending, supported by population and income growth, as well as by the recent federal income tax cut. In its January MPR, the Bank projects the global economy will grow by just over 3 percent in 2020 and 3 ¼ percent in 2021. For Canada, the Bank now forecasts real GDP will grow by 1.6 percent this year and 2 percent in 2021, following 1.6 percent growth in 2019.” To read the full release from the Bank of Canada, click here. Contact your Mortgage Broker today for more trusted advice.   January 22, 2020 Open House- The Real Estate And Mortgage Show: January 18, 2020 Tax Free Savings Account limits are up over $63,000 which is a great investment account. Advanced Mortgage Investment Corp. allows these types of registered accounts within the program. The next investment information dinner is being held on February 11th at Giovanni’s on Preston St.  Visit www.advancedmic.com for more information or call 613-656-0866. Ottawa real estate inventory is still low with 1500 residential homes on the market and only 220 condos. The result of this is pushing people towards the rental market which is gaining in inventory and settling the prices. This may be an effect of the new potential Airbnb rental rules. When selling during this market, can a seller request proof of financing prior to showing the home? It is much more common for the buyers to request this letter and provide it to their realtor. This information should not be shared in its entirety to the sellers for various privacy issues unless requested with an offer. Keep in mind a pre-approval is based on a proposed scenario. All documents, conditions, AND the property will need approved by the lender as well as the default insurer in applicable. To listen to the full podcast from CFRA, click here. For more trusted information, contact your Mortgage Broker today. January 20, 2020 CTV Morning Live: Mortgage Minute- January 15, 2020 What can we expect in the 2020 mortgage market? Many experts are predicting at least one decrease to the Bank of Canada rate, possibly early in the year. However, fixed rates are still outperforming variable rates at this time. The Ottawa sellers’ real estate market has continued into the new year. Competitive offers are still among the challenges buyers are facing. To see the full segment from CTV, click here. Contact your Mortgage Broker for more trusted information. January 15, 2020 Open House- The Real Estate And Mortgage Show: January 11, 2020 When starting a new broker relationship, the initial conversation will become a fact-finding mission for the broker to learn more about the client. Details such as down payment amount and source, income, credit, ideal purchase price are some of the topics to be discussed during the initial meeting. Credit and finance are extremely important topic to discuss with your children. These are lifelong lessons that can really impact the lives and goals of the younger generation. Rates are low, property value are up which means now is a great time to review refinance options if you are carrying credit card and line of credit debt. When you refinance, you can extend your amortization back up to 30 years which lowers the monthly payment. You can always take advantage of the pre-payment privileges to help pay down your mortgage faster. The legal fees and appraisal costs for a refinance is around $1000-$1200. The 2019 real estate numbers have been released, number of sales up 15.3% led by the condo market at 18.8% in December. The average sale price was up in December to $443,000 up 10.1%. The average sale price for year-to-date 2019 was up 8.1% which is great for the Ottawa market. Now that the holiday season is behind us, the number of listings hitting the market should increase as people get a jump start on the spring market. Looking for an easy strategy to pay off your mortgage sooner? Consider rounding your payments up to the nearest hundred dollars or keeping your payment the same if you are renewing at a lower rate and payment amount. Anisa Lancione from Advanced Capital Corp. calls in to let the listeners know about an information dinner they are hosting on February 11 at Giovanni’s on Preston Street. Registration is required at www.advancedmic.com or by calling 613-656-0869. This is a great environment to gather more information about investing in Ottawa real estate in a social, low-key setting. To listen to the full podcast from CFRA click here. For more information, contact your Mortgage Broker today. January 13, 2020 Record-Breaking 2019 Closes Out Decade- OREB With another year coming to an end, Ottawa real estate continued it’s upward trend with 761 residential sales in December- up 15.3% from December 2018. Broken down, of the 761 properties sold, 534 properties fell into the residential sales category, up 13.9%, and 277 condos, up 18.8%. “December’s statistics reflect the same story we’ve seen all year – historically low supply yet higher unit sales than in previous years. Days on market continued to decline, especially in certain pockets of the city, as properties that came on the market were snapped up by prepared buyers,” states Dwight Delahunt, Ottawa Real Estate Board’s 2019 President. “Unit sales in the condominium class consistently led the way, offering lower price point options for homebuyers that simply weren’t available in the residential category,” he adds. The total number of sales throughout the year was up 6.6% with 18,622 homes sold. Residential properties were up 4.7% with 14,038 sales and condos were up 13% with 4.584 sales. 2019 also saw significant price increases across both classes of properties. In the condo market, December saw an increase of 11.5% to $310,675 while the residential market saw an increase of 10.3% from last December for an average price of $500,306. Year-end sales figures saw an average sale price of $486,590 in the residential market and $304,203 for condo properties, increases of 8.9% and 9.3% respectively. “2019 was a record-breaker in both the number of sales as well as average prices, with the residential property class reaching $500K in several months during the year. This price growth is warranted due to the fundamental economic principle of supply and demand playing out, with limited supply putting upward pressure on prices. However, even with these increases, Ottawa’s real estate market continues to remain one of the most affordable and sustainable in the country,” Delahunt stresses. To read the full release from the Ottawa Real Estate Board (OREB), click here. Looking for sound mortgage advice? Contact your Mortgage Broker today. January 10, 2020 Open House- The Real Estate And Mortgage Show: January 4, 2020   With Ottawa’s sellers’ real estate market continuing into 2020, it would be best to find a home to buy before selling your home. When bridge financing is required, you will need to have a firm sale on your existing home with all conditions waived or satisfied. Avoiding bridge financing by closing your old and new homes on the same day can be extremely stressful and potential issues may crop up preventing a closing for taking place.  Anisa Lancione, Dealing Representative and Chief Compliance Office from Advanced Capital Corp (www.advancedmic.com) joins the conversation to discuss investing registered funds, including locked-in plans, RESPs, and RDSPs, in local Ottawa real estate. The 2020 limits have been released for RRSP and TFSA contributions. The maximum for RRSPs is now $27, 230 and TFSA limit is $6,000 for a lifetime maximum of $69,500. These funds are eligible for investment with Advanced Mortgage Investment Corp. Visit their website here: https://advancedmortgageinvestmentcorp.ca/ Real estate listings in Ottawa continue to drop with only 1,656 with 200 of those condos so it’s a great time to get your home listed for sale and on the market. Expectations for the spring market is another sellers’ market with low inventory levels. Catch the full episode from CFRA here. For more information and trusted mortgage advice, contact your Mortgage Broker today. Looking for more information on investing with Advanced Mortgage Investment Corp., click here.   January 6, 2020 Open House- The Real Estate And Mortgage Show: December 14, 2019 Mortgages and real estate in the Ottawa market show no signs of slowing as we head into the last few weeks of 2019. Mortgage Brokers Ottawa hit $1 BILLION dollars in mortgage originations this year which put the brokerage at second in the country within their network behind another brokerage in the high home price market of Toronto. Interest rates are trending upwards currently with an increase in the bond market. Economists are talking less about recessions in the US and neither the Canadian nor American central banks dropping rates. With the minority government in place, a review of the stress test is being considered. Some of the issues that have become apparent are not allowing refinances to be back end insured resulting in higher interest rates and renewals are subject to stress test qualifications which limits potential options to shop around for the best mortgage and rate. A caller discusses the Constance Bay area real estate with Paul and Frank to tap into their expertise. Another caller discusses timing listing a rental home in the Orleans area. Ottawa real estate currently has 2,032 homes available for sale with 270 condos and 1,762 residential homes. Contact your Mortgage Broker today to discuss your mortgage options. Listen to the full CFRA podcast here. December 16, 2019 Millennials' shift to the suburbs will drive up Canadian home prices next year, Royal LePage says Home prices across the country are slated to rise 3.2% in 2020 with Ottawa, Montreal, and Toronto taking the lead. The increase is due in part to the shift of millennials moving up from condominiums, immigration, as well as the lessening effects of the mortgage stress test say Royal LePage. Ottawa home prices may spike as much as 5% with the average home price increasing to $547,600 in a market sheltered by government stability and growth in the high-tech sector. “The oldest peak millennials are now in their 30s,” Phil Soper, Royal LePage president and CEO, said in a statement. “With kids in hand and dog on leash, these parents are now eyeing the suburbs that their baby boomer parents so coveted. We predict that the period of disproportionately higher price appreciation in the condo segment is drawing to a close as interest in detached homes is reborn.” To read more from the Financial Post article, click here. Looking at your mortgage and housing options? Contact your Mortgage Broker today. December 13, 2019 Open House- The Real Estate And Mortgage Show: December 7, 2019 The Ottawa market continues to grow with home prices of residential properties exceeding $500,000, sales year-over-year are up over 10% as low inventory levels continue. The unbeatable condo market continues its trends as well with increased sale prices and fast flying properties. You still should be doing your homework before buying a condo and an analysis of condo fees and reserve funds should be a part of this research. Did you know that if you are in a variable rate mortgages you have a penalty of 3 months interest? If you hold a fixed rate mortgage, you are charged the greater of 3 months interest or an interest rate differential which can make a substantial difference. This would be something to consider when securing your mortgage and something to discuss with your Mortgage Broker. Have a portfolio with rental properties? This is usually a long-term investment and the quality of tenant can make all the difference. Make sure you are doing your due diligence when screening potential rental applicants. Having to remove bad tenants can be a costly and timely process with most landlord tenant laws siding in favour of the tenant.   Anisa Lancione from the Advanced Capital Corporation joins the group to discuss the quality of applications funded by the Advanced Mortgage Investment Corporation (AMIC). The average borrower with AMIC have mainly gone to alternative lending out of circumstance.  AMIC is made up of private investors who own shares in the corporation. Looking for ways to invest? AMIC can hold registered funds and locked-in registered accounts as an investment. Contact Anisa today to get more information. To get more information on AMIC, click here. Contact your Mortgage Broker today to continue the conversation.   December 9, 2019 Weather isn’t Cooling the Resale Market- OREB According to the new data released from the Ottawa Real Estate Board (OREB), the Ottawa real estate market saw another stellar month of sales with a 10.9% increase over November 2018 with a total of 1,288 properties sold. This figure includes 958 residential properties, an increase of 10.5% from November 2018, and 330 condominiums, up 12.2%. “Even with the typical winter slowdown, Ottawa’s home resale market still experienced a relatively brisk pace in November. Our inventory is not having a chance to build as it is being absorbed as quickly as it comes on the market. That’s why there are so many sales every month even though the supply stock is low,” explains Dwight Delahunt, President of the Ottawa Real Estate Board. Home sale prices across both the residential market as well as the condo markets saw increases of 16.9% and 9.8% respectively from last November. The average sale price for a residential home was $501,201 which is an increase of 9.1% year to date while the average sale price for a condo was $313,734, up 8.9%. “Prices have increased, and therefore there is shortage of units available in the lower end price range of both condos and residential properties,” reports Delahunt. “That being said, the Ottawa market still remains strong and sustainable with reasonable increases in year to date average prices of 9% in both the residential and condominium property classes.” To read the full release from OREB, visit their website here. Looking to get into the real estate market? Contact your Mortgage Broker today.   December 6, 2019 Bank of Canada Maintains Overnight Rate Bank of Canada once again holds rates steady in announcement made Wednesday morning. The central bank noted the continued threat of trade wars among its factors in maintaining the overnight rate at 1.75%. To read more from the Bank of Canada release click here.    December 4, 2019 CTV Morning Live: Mortgage Minute- December 3, 2019 Variable rate mortgages have grown in popularity over the last few years with 44% of Canadians holding this type of mortgage term. Fixed rates, as of today, are lower than a variable rate which may change this statistic. A variable rate mortgage is based o the prime lending rate less whatever discount you negotiate at the time of signing your mortgage and is considered a 5-year closed mortgage. You can lock in a variable rate mortgage at any time with no penalty. Watch the full segment from CTV Morning Live here. Visit our info centre for even more info on the differences between mortgage rates. Contact your Mortgage Broker today to continue the mortgage rate conversation. December 4, 2019 Open House- The Real Estate And Mortgage Show: November 30, 2019 The team discusses the case of a Toronto individual who placed and unconditional offer on a home. The market then took a drop and the individual was not able to sell their current home and therefore could not purchase the new home. With a large deposit, the individual assumed they would just loose their deposit. The seller was able to re-list and sell the home but for $600,000 less than the original purchase. The seller took the original purchaser to court for the loss they incurred by having to re-list and sell after the market dropped. The court ruled in favour of the seller and the original purchaser now owes the seller the difference of the purchase price. Individuals may be misled in the fact that if they don’t close on the firm sale, the seller does not have to accept the deposit as concession to not close. It is at the discretion of the seller on how they would like to proceed. You may be better off closing and then re-selling the property to try and avoid potential additional costs, including loss of deposit, but also the difference between selling prices as well as court and legal fees. When it comes to a longer closing period with a builder, a Mortgage Broker, or a bank, cannot guarantee an approval for 12-18 months away. There are so many scenarios that may change the original application, including job loss, issues with credit bureaus and missed payments, or needing to get a new car as examples. When you are a landlord to rental properties, it is important to factor in the quality of your tenant when making decisions about rental increases and upgrades to the property. An additional $150 in rent does not make up for a quality, long-term tenant who takes care of the property and makes rental payments on time. If you get the wrong tenant, it is difficult to get them out of property as many of the rental laws work in favour of tenants as opposed to landlords. It’s equally as important to be a fair and honest landlord to retain great tenants long term. Too-good-to-be-true Investor seminars have become increasingly popular here in Canada. Although it seems like little upfront costs, the continuing costs can be substantial. Many of these programs have come up from the US and were created during the recession when properties were cheap. These models do not necessarily work in the Canadian market and especially within the Ottawa. In order to purchase an investment property, you need to have a minimum of 20% down payment of your own resources, borrowing from a home equity line of credit is also allowable if this additional debt works with your application. New to Canada and looking to purchase your first home? The first step is to contact a trusted Mortgage Broker to review your application. There are some great programs out there to assist new to Canada individuals get a foot into the real estate market. Once you discuss your mortgage application with a Mortgage Broker, the next call is to a Real Estate Agent to help with your home search and work on your behalf at no cost to the buyer. The Ottawa real estate market continues the low inventory trend of 2019 with 2800 homes for sale. Suburban townhomes are still the fastest moving market. Multiple offers, especially in the townhome bracket, are still occurring which is when a buyer needs to be working with an experienced team including a Mortgage Broker and Real Estate Agent. This type of market is never fun, especially for the first-time home buyers who may have a different expectation of the process based on other years. When making an offer over list price, the lender still must accept the value of the home and the difference, if the value comes in lower than the purchase price, is the responsibility of the buyer to make up with cash. Great info on this edition of Open House: The Real Estate and Mortgage Show on CFRA. Contact your Mortgage Broker today for more trusted advice. December 2, 2019 Open House- The Real Estate And Mortgage Show: November 23, 2019 Appraisals during day light savings time can be challenging as appraisers need to have daylight access to the outside of the property in order to asses and photographer the building. If an appraisal comes in below the purchase price, the buyer is responsible to come up with the difference between the lower or the purchase price or appraised value. If you are purchasing a property and waive your conditions before a required appraisal is completed keep that risk in mind A good Mortgage Broker and Real Estate Agent can help explain and try to mitigate this risk while in negotiations. There are just a little over 3,000 listings in Ottawa’s real estate market while sales are up 15%. After a great session with the default insurer this past week some inspiring homeownership stats were revealed about Canadians. In Canada, over 70% of the eligible population are homeowners which highlights the importance we put on the value of real estate. The Ottawa market has been dubbed the “sweetheart” of Canadian real estate markets based on job stability and manageable home prices. Breaking your mortgage mid-term can be an expensive endeavor especially big bank mortgages. It is important to understand when signing for a new mortgage how much you can repay without penalty to help bring down the balance of your mortgage but also how they calculate a mortgage penalties. To listen to the full podcast from CFRA click here. For more trusted information contact your Mortgage Broker today. November 25, 2019 Canadian home sales hold steady in October- CREA According to new data released by the Canadian Real Estate Association (CREA), following over 6 months of steady increases, October home sales continued to remain steady. Actual activity rose 12.9% year-over-year. The number of transactions also increased in nearly 80% of all local markets including the largest urban markets. “Steady national activity in October hides how the mortgage stress-test remains a drag on many local housing markets where the balance between supply and demand favours homebuyers in purchase negotiations,” said Jason Stephen, president of CREA. “That said, all real estate is local, so market balance varies depending on location, housing type, and price segment. Nobody knows that better than a professional REALTOR®, your best source for information and guidance when negotiating the sale or purchase of a home,” said Stephen. “It’s a full-blown buyer’s market or on the cusp of one in a number of housing markets across the Prairies and in Newfoundland,” said Gregory Klump, CREA’s Chief Economist. “Homebuyers there have the upper hand in purchase negotiations and the mortgage stress-test has contributed to that by reducing the number of competing buyers who can qualify for mortgage financing while market conditions are in their favour.” Home prices compared to a year ago shows increases in the eastern provinces and decreases westward. Not seasonally adjusted housing price index was up 1.8% year-over-year which represents the biggest year-over-year gain since November 2018. Price growth remains uninterrupted in Ottawa with a benchmark house price of $436,300. The average home price for October 2019 across Canada was around $525,000 which is skewed by the GTA and GVA. Removing those markets lowers the national average home price to $400,000. To read the full report from the CREA, visit their website here. Contact your Mortgage Broker today for more information. November 20, 2019 Open House- The Real Estate And Mortgage Show: November 16, 2019 Dora and Barb join host Steve Gregory discussing the highs and lows of the Ottawa market and everything in between on this edition of Open House: The Real Estate and Mortgage Show Historically weather and snow tend to slow the housing market down but not this year. Buyers are still looking although inventory levels remain very low. This can be a very tough scenario for some people who are maybe afraid they won’t find something after they sell their own home and can’t carry both properties financially if they wait to sell until they buy. On the mortgage side, this type of market can be especially frustrating for first-time homebuyers give the nature of some of the offers such as multiple offer scenarios and needing to go into an offer with no financing conditions. Ensure you are working with a trusted team including a Real Estate Agent and Mortgage Broker to ensure you are getting the best advice and to give yourself the best shot at a successful offer. Did you know: When buying a home there is down payment costs at a minimum of 5% but there is also closing costs we need to account for on a high-ratio mortgage, which is 1.5% of the purchase price. Closing costs pay for things such as land transfer tax, as well as lawyer fees. Wondering what’s with all the paperwork when applying for a mortgage? Consider it from the lender’s perspective that they are lending out hundreds of thousands of dollars and they want to ensure the borrower has the ability and capacity to repay this loan. Listen to the full podcast from CFRA here. Contact your Mortgage Broker today for more trusted advice. November 18, 2019 October’s Whirlwind Resale Market-OREB According to the newest stats released from the Ottawa Real Estate Board (OREB), October saw 1,607 properties sold compared to 1,375 in October 2018 which is an increase of over 16%. Residential sales were up 15.5% with 1,211 while condo sales helped boost the increase with a 23% increase in sales and 396 units sold. “New listings are down, inventory remains scarce, and yet more homes changed hands this October than in the past decade and a half,” reports Dwight Delahunt, President of the Ottawa Real Estate Board. “It’s perplexing at first; however, when you consider the current breakneck transaction pace in the Ottawa resale market, often requiring homebuyers and sellers to make swift decisions, it makes sense.” “October’s average Days on Market (DOM) for residential properties decreased by 10 days to 33 days, and the DOM for condominiums decreased to 28 days from the average 47 days experienced this time last year. Year to date figures show 31 DOM (down 8 days) for residential properties and 35 DOM (16 fewer days) for condominiums. Products are flying off the shelves, so to speak.” The upward trends of 2019 continued into home sale prices with condominium prices up 18.3% from the same month in 2018 for an average sale price of $319, 208. The average price for a residential home increased to $483,405 which is a 7.6% increase from October 2018. Year to date, residential sale prices have risen 8.3% while condominium prices have increase 9.1% so far in 2019. Increases to home prices is great news for Ottawa-area homeowners and growth in the area is still considered reasonably for the type of market. Ottawa remains one of the most affordable areas in the country in terms of homeownership. “Even though there are incidences of multiple offers and homes sold for over market value, the reality is that approximately 36% of homes are selling over asking, compared to 21% at this time last year. It is a phenomenon that is affecting specific pockets of the city, but certainly not every neighbourhood or property type.” “Sellers should use the knowledge of a REALTOR® to understand the complexities of their home’s positioning. Buyers require timely guidance on how to put in an attractive offer in this fast-paced market — and both parties must understand the intricacies of the contracts they are signing,” Delahunt advises. To read the full news release from OREB, click here. Looking to get into the market? Contact your Mortgage Broker today for trusted financial advice. November 13, 2019 Open House- The Real Estate And Mortgage Show: November 9, 2019 A decent home inspection should take around 2 ½- 3 hours and with the time change, should start earlier to ensure the outside inspection can be done with some day light. October real estate numbers were once again looking great for the Ottawa market. The number of sales were up 16.9%, led by the condo market at 23%. The average sale price was up 8.7% to $443,000. Year to date, the average sale price is 7.8% at $440,000 with the number of sales year-to-date increased by 6%. Bond markets increased last week; however, mortgage rates remain stable. Although the Bank of Canada dictates the variable rates, it is the bond market that dictates the fixed rates. With the central bank remaining stable, variable rates maintain their levels and likely will until sometime next year. As Ottawa’s real estate market continues its positive selling trend, do not hesitate to get your home on the market if you are looking to sell. Working solely with a bank for your mortgage needs? Strongly consider speaking to a Mortgage Broker. Not only do they have your best interest in mind, they have more information when it comes to prepayment and penalty charges and can explain how a mortgage is much more than just an interest rate. To listen to the full podcast from CFRA, click here. Looking for more trusted mortgage advice? Contact your Mortgage Broker today. November 12, 2019 CTV Morning Live: Mortgage Minute- November 5, 2019 Mortgage rates, housing markets, and more on this edition of Mortgage Minute on CTV. Watch the full clip from CTV Morning Live  here. Contact your Mortgage Broker for more trusted information.  November 7, 2019 Open House- The Real Estate And Mortgage Show: November 2, 2019 The time change brings on challenges for home showings and inspections. It would be best to try and schedule both during day light hours to be able to see all aspects of the home. With bond market rates as low as they, it seems unlikely that there is room for additional decreases. When prime rates increase, the banks seem to be very quick to add the extra 25 points to their prime rates but when rates decrease, it seems they are only willing to reduce price by 15 points which says something about the big bank systems. When it comes to purchasing an investment property in this market, rents are still making this venture an affordable one making the investment cashflow positive. The condo market has really made a rebound this year and is a great investment for downsizers and those looking to transition from condo to a large family home, potentially keeping the property as a rental. To listen to the full podcast, click here. For more information, contact your Mortgage Broker today. November 5, 2019 No Change for Bank of Canada Overnight Rate The Bank of Canada has just announced that it will once again maintain the overnight interest rate at 1.75% which was set back in October 2018. "Ongoing trade conflicts and uncertainty are restraining business investment, trade, and global growth. A growing number of countries have responded with monetary and other policy measures to support their economies. Still, global growth is expected to slow to around 3 percent this year before edging up over the next two years. Canada has not been immune to these developments," the central bank reports. "Commodity prices have fallen amid concerns about global demand. Despite this, the Canada-US exchange rate is still near its July level, and the Canadian dollar has strengthened against other currencies." To read the full release from the Bank of Canada, click here. Contact your Mortgage Broker today if you have questions about interest rates. October 30, 2019 Open House- The Real Estate And Mortgage Show: October 26, 2019 With the election over and the Liberals in a minority government position, only time will tell how many of the election promises are kept. All parties have been very open to meeting and discussing the mortgage and housing industry with industry professionals that can give a front-line perspective to policy makers. Currently, Ottawa is still low in real estate inventory with less than 3,000 listing on the market. Only 407 condos on the market. Row units are the hottest properties right now with only 133 units on the market. Do your homework- In the hot market such as Ottawa, ensure you are interviewing potential relators to see how each sale tactic differs and choose one that you are comfortable with. Similarly, when shopping for a mortgage, Mortgage Brokers have the advantage of working for the best interest of the client and not the lender. To listen to the full podcast from CFRA, click here. Looking for more trusted mortgage advice? Contact your Mortgage Broker today.   October 28, 2019 CTV Morning Live: Mortgage Minute- October 22, 2019 What can we expect now that the federal election results are in?  Check out the clip from CTV Morgage Live: Mortgage Minute.  October 23, 2019 Canadian home sales rise again in September- CREA According to the latest report from the Canadian Real Estate Association (CREA), September home sales rose once again by 0.6% month-over-month while year-over-year, sales we up 15.5%. "National sales activity has begun to rebound in recent months," said Jason Stephen, president of CREA. "That said, all real estate is local, so there's a lot of variation in the strength of the rebound depending on the housing type, location and price segment.” “"Home sales activity and prices are improving after having weakened significantly in a number of housing markets," said Gregory Klump, CREA's Chief Economist. "How long the current rebound continues depends on economic growth, which is being subdued by trade and business investment uncertainties." The national average price for September home sales increased by 5.3% from September of 2018 for a price of $515,000. Excluding the GTA and GVA markets, the average home price was just under $397,000 which represents a 3.3% increase from last September. To read the full report from CREA, visit their website here. For more information, contact your Mortgage Broker today. October 18, 2019 Open House- The Real Estate And Mortgage Show: October 12, 2019 The gang are joined by some of the team of Barwood Flooring to discuss some flooring options for your home, the outlook of the mortgage rate market, as well as housing market updates. The job report just came out and 54,000 new jobs were created with 80% created in Ontario. There are many platforms and promises during election season. Only time will tell what is put into policy and practice. In September the number of sales in the Ottawa market was 11.8% with the average sale price increasing to 7%. Year-to-date, the number of sales are up 5% and the average sale price is up 7.7% to $440,000 which is great for the Ottawa market. The bond market spiked last week which leads the mortgage industry to think mortgage rates will be heading in an upward trend, likely early this week. Stable is good in the marketplace, however, the uncertainty of the global economy will affect the trends as we await the election and potential recession in the US. Ottawa inventory continues the low inventory trend with only 3090 homes on the market with around 400 condos. To listen to the full podcast click here. For more information contact your Mortgage Broker today.   October 15, 2019 Where the parties currently stand on Housing Affordability- Federal Election 2019 As we approach the half-way mark of campaign season for the upcoming federal election this month, Mortgage Professionals Canada has gathered the latest campaign pledges from the major political parties. A quick summary of the party platforms can be found below, in order of caucus size in the last parliament:   Liberal: Increase maximum household income for the FristTime Home Buyer Incentive in Greater Vancouver, Victoria, and Toronto to $150,000 while also increasing the maximum household income qualifier from 4x to 5x in those same regions. Introduce a 1% annual vacancy and speculation tax on applicable residential properties owned by nonresidents and non-Canadians.   Conservatives: Adjust the mortgage stress test to ensure firsttime buyers aren’t unnecessarily prevents from accessing mortgage and work with regulators to remove stress tests from mortgage renewals. Increase amortizations for insured mortgages to 30 years for firsttime buyers   NDP: Undertake study of mortgage stress test qualifying rate. Look to create an exemption process for borrower looking to change lenders at renewal. Reintroduce 30-year amortization for insured mortgages for first time home buyers.   Bloc Quebecois: Introduce green energy renovation program. Allow access to RRSP funds for victims of natural disasters for repairs and rebuilding homes.   Green Party: End firsttime home buyer programs and focus on affordable housing. Create a Coop Housing Strategy to update how co-op housing is financed. Appoint a Minister of Housing.   To read more from the highlights and further detailed party statements, check out the article from Mortgage Professionals Canada here. October 8, 2019 Open House- The Real Estate And Mortgage Show: October 5, 2019   The Ottawa market continues it growth with an increase of 11.8% over 2018 in the number of sales. Despite historically low inventory, which is a challenge for buyers, this has been the strongest September in 15 years. In this type of accelerated market, buyers need to ensure they are prepared financially and working with a trusted realtor to help them through the process. In this type of market, time is not on the side of the buyers and quick decisions may be required to get into a home. Make sure you set a list of needs and wants and know where you’re willing to settle. In order to ensure financial stability, work closely with your Mortgage Broker to ensure you are working with figures you are comfortable affording. The average sale price is $487,000, $309,000 for condos, which are significant increases especially for those entering the market for the first time. First time buyers have evolved from generations past in that they are trending towards staying longer in their first home. Smaller, more manageable homes are in higher demand for both first time buyers as well as those who are down-sizing.   Mortgage rates are remaining steady and the bond market has dropped slightly which is positive. While the global market awaiting the US-China trade decisions, the markets seem to be on hold for the time being. Looking to get into owning a rental property? Ensure you work with a trusted realtor to assist you with purchasing the right house in the right neighborhood. Concerned about your credit bureau? Take the bull by the horns and get a copy of your credit report to see where you stand and make the necessary changes to improve your score and rating. To listen to the full podcast, click here. For more trusted information, contact your Mortgage Broker today.   October 7, 2019 Fall Market Springs Forward- OREB According to the newly released data from the Ottawa Real Estate Board (OREB), 1,549 properties were sold on September, up 11.8% from the same month in 2018. Of the 1,549 properties, 1,113 residential properties sold, up 6.9% and 436 condominiums, up 26.4%. “Despite a challenging year of historically low inventory, September’s sales continue to be extremely strong, the likes of which we haven’t seen in the past 15 years,” acknowledges Dwight Delahunt, President of the Ottawa Real Estate Board. “It’s quite amazing, with the limited supply, that the market is still moving well with purchasers finding properties that meet their requirements,” he adds. When it comes to average sale prices, the condo market saw a 9% increase from last year at $309,373. Meanwhile on the residential side saw an average sale price of $487,438, up 8%. “September to November typically tend to be busy listing and sales months; however, there is a federal election coming up, which normally brings a slowdown in the market. We haven’t seen that transpire this year, which suggests that consumers are highly confident in our local economy and the Ottawa real estate market.” He continues, “Although Canada needs a broad-based national housing strategy which tackles the full range of housing issues, platforms that are getting it right understand that real estate is local, and policies must factor in regional differences.” To read more from the Ottawa Real Estate Board news release, click here. Contact your Mortgage Broker today for more information. October 4, 2019 Canadians Not Deterred By Homeownership Obstacles- CMT According to a new survey by Mortgage Professionals Canada, Canadians are still eager to gain foothold in the housing market despite looming obstacles. With some markets boasting high prices and limited supply, changing mortgage rules and qualification requirements have become hurdles for some looking to enter the market, however, 90% of those surveyed who currently own a home do not regret their decision to do so. 76% of surveyed Canadians also still maintain the belief that they would be better off owning a home as opposed to the 8% who still feel renting is the right decision for them. “Buying a home is complicated and challenging and stressful. Yet we still buy homes. We do it because we believe that it will make us better off than if we rent,” says the report’s author, Mortgage Professionals Canada Chief Economist Will Dunning. “In most situations, owning a home provides a positive (and tax-free) ‘rate of return’ on the owner’s investment of equity, and that rate of return rises over time.” Paul Taylor, President and CEO of MPC, says the association has learned much about the resilience of the Canadian homebuyer through its past surveys. “We’ve learned that Canadians are generally very prudent and considerate with their financial decisions.” To read more from the Canadian Mortgage Trends article, including consumer sentiments on the B-20 stress-test, First-Time Home Buyer Incentive and 30-year amortizations, click here. Looking for more trusted mortgage advice? Contact your Mortgage Broker today. October 2, 2019 Open House- The Real Estate And Mortgage Show: September 21, 2019 Hopefully the last of the summer weather will bring out the buyers and sellers in the current Ottawa real estate market as listings remain under 4,000 with 3,985 current listings on the market including 498 condos. This has been a tough year for first time home buyers with such a competitive market and very, very low inventory levels. Thinking of keeping your current home as rental and purchasing a new home? Get an appraisal completed on the soon-to-be rental property to establish a value as of the date you start renting it out. When you go to sell that home down the line, you will need to pay capital gains on the difference. Anisa Lancione from Advanced Capital Corp. joins the group this week discussing the Advanced Mortgage Investment Corp. and Advanced Group of Companies and the local investing opportunities that these companies present. As an investor, you are mitigating some of the risks by investing in a pool of mortgages with the other investors. For more information on investing with AMIC, visit the website here. To listen to the full podcast, click here. Remember to contact your Mortgage Broker for trusted mortgage advice. September 23, 2019 Canadian home sales edge higher in August- CREA According to the newly released monthly statistical report from the Canadian Real Estate Association, for a sixth consecutive month Canadian home sales increased according to the MLS system. Sales activity was up 5% from August 2018 with sales up in most of the larger urban markets including Ottawa.   "The mortgage stress-test has eased marginally and that's helped some potential homebuyers," said Jason Stephen, CREA's President, "but the extent to which they're adjusting to it continues to vary by community and price segment.” "The recent marginal decline in the benchmark five-year interest rate used to assess homebuyers' mortgage eligibility, together with lower home prices in some markets, means that some previously sidelined homebuyers have returned," said Gregory Klump, CREA's Chief Economist. "Even so, the mortgage stress-test will continue to limit homebuyers' access to mortgage financing, with the degree to which it further weighs on home sales activity continuing to vary by region." The average sale price increased nearly 4% from August last year to $493,500. Excluding the GVA and GTA, the average national sale price lowers nearly $100,000 to $393,000 which represents an adjusted gain of 2.7%. To read the full statistical report from CREA click here. Contact your Mortgage Broker for more trusted information. September 19, 2019 Open House- The Real Estate And Mortgage Show: September 14, 2019 LRT has opened in Ottawa! If you are looking into the phase 2 developments towards the east, now is the time to start looking at properties before drastic price increases. On the mortgage side, bond markets spiked this week which generally means mortgage rates will increase. If you have a mortgage maturity date is coming up or are looking to get into the housing market now is the time to lock in a rate with you Mortgage Broker. In Ottawa real estate, listing remain at lower levels with 3,965 listings and 497 of those are condos. This low level of inventory is driving people toward the new construction developers. With the introduction of the First Time Home Buyers Incentive (FTHI), there is already discussion on potential changes to suit the Toronto and Vancouver markets which would increase allowable income to $150,000 and therefore increase the maximum mortgage amount as well. If you have questions about the FTHI program, contact your Mortgage Broker for more information and how this program may assist you. Listen to the full podcast here. Contact your Mortgage Broker today for more trusted advice. September 16, 2019 CTV Morning Live: Mortgage Minute- Sept 10, 2019 Next to married couples, single women are leading the charge in home buying statistics. Two major factors to consider when purchasing a home, especially as an individual, credit and income. Check out this segment of Mortgage Minute on CTV’s Morning Live. Looking to purchase a home? Contact your Mortgage Broker today. September 11, 2019 Open House- The Real Estate And Mortgage Show: September 7, 2019 The new First Time Home Buyers Incentive may be key for some new home buyers to qualify for a home. Markets such as Toronto and Vancouver will likely not be able to use this program given the home prices, however, for many other Canadian markets this program should help get more first-time buyers get into the real estate market. When it to comes to qualifying for the program, keep in mind that the total income allowed on the mortgage, which includes all purchases, guarantors, and co-signers, cannot exceed $120,000. Talk to your Mortgage Broker for assistance working with the program. The Ottawa real estate market had another great month in July with an average sale price just under $441,000.  The number of sales were up 9.1% and the average price up 11% in just one month. Year-to-date, the number of sales were up 4.3% given the lack of inventory. The average sale price is up 7.8% year-to-date. There are currently 3959 homes on the market with only 476 condos on the market. The Bank of Canada’s announcement last week held rates at 1.75%. The commentary was focused more on the Canadian economy and less emphasis on the global economy. Remember, this rate affects the prime lending rates on which variable rates mortgages and loans are calculated. To listen to the full podcast, click here. For more trusted mortgage advice, contact your Mortgage Broker today. September 9, 2019 Bank of Canada maintains overnight rate target at 1 ¾ percent Despite trade conflicts, the central bank has once again decided to hold firm on the overnight rate for the time being stating the economy is still growing at desired levels despite the conflicts. "Canada's economy is operating close to potential and inflation is on target," the bank said. "However, escalating trade conflicts and related uncertainty are taking a toll on the global and Canadian economies." "In this context, the current degree of monetary policy stimulus remains appropriate." The next trade announcement it set for October 39, 2019. To read the full release from the Ban of Canada, click here. September 4, 2019 Here's what you need to know about the First-time Home Buyer Incentive- CTV News Launching earlier this week, the federal government’s new home buyers program aims to help nearly 100,000 Canadians achieve their home ownership dreams while helping with the monthly payments. The programs offer a 5% down payment amount for default insured mortgages, 10% for new construction, as a no interest second mortgage. There are some prominent conditions that programs applicants should be made aware of, and Frank Napolitano of Mortgage Brokers Ottawa helps to explain. “First off, to be considered eligible, applicants must not have owned a house in the last four years – exceptions will be made for those in a "breakdown of marriage or common-law partnership." Secondly, a homebuyers' combined annual household income must be lower than $120,000 before taxes and deductions. As Napolitano says, that qualifier strikes out most residents from Vancouver and the Greater Toronto Area. "The max income is $120,000 that can be used for this program, therefore to qualify for a mortgage – if you have no debt – it’s typically four, maybe four and a quarter times your annual gross income so there’s not a lot of properties in the $500,000 range or less. Maximum property value under this program would be $560,000." To that end, the FTHBI is more likely to benefit residents in less crowded markets, like smaller urban centres in Ontario, Quebec, the Prairies, or out east where you can still find a home below the price cap. Additionally, as Napolitano points out, first-time buyers will still have to cough up default insurance under the plan. "We've had customers call us and say, 'we'll put the 10 per cent down and then we’ll buy a new build and the government will give us 10 per cent so we don't have to pay default insurance.' False. Regardless of the down payment, this program only works if you have default insurance." Default insurance protects financial institutions from default – the premium gets tacked on to your mortgage payments.” While the government is willing to offer the funds to help ease the monthly costs of home ownership, there is a repayment required which is triggered by one of 2 events, whichever comes first: The sale of the home 25 year from the date of purchase To read more from the CTV News article, click here. Looking for program information? Visit the National House Strategy Website for more information and application forms. Contact your Mortgage Broker today to find out how this may help with you home ownership dream.   September 3, 2019 Open House- The Real Estate And Mortgage Show: August 17, 2019 Another great week full of the top mortgage and real estate advice with host Steve Gregory, Frank of Mortgage Brokers Ottawa, and Josh of Paul Rushforth Real Estate.  Check out this week's edition of Open House- The Real Estate and Mortgage Show here.  For more mortgage advice that you can count on, contact your Mortgage Broker today August 19, 2019 Canadian home sales rise in July- CREA For a fifth consecutive month, home sales across Canada rose once again in July according to the newly released report from the Canadian Real Estate Association (CREA). Sales increased year-over-year in in most of Canada’s largest markets, including Ottawa. "The extent to which recent declines in mortgage interest rates have helped lift sales activity varies by community and price segment," said Jason Stephen, CREA's President. "Sales are starting to rebound in places where they dropped when the mortgage stress test took effect at the beginning of 2018, but activity there remains well below levels recorded prior to its introduction," said Gregory Klump, CREA's Chief Economist "By the same token, sales continue to rise in housing markets where the mortgage stress test had little impact due to upbeat local economic conditions and a supply of affordably priced homes. Meanwhile, the mortgage stress test is doing no favours for homebuyers and sellers alike in places facing challenging local economic prospects and subdued consumer sentiment." In the Ottawa market, home prices rose by 8.9% y-o-y, significantly increased by the townhouse/ row unit prices at an increase of 13.7%. The average sale price in Ottawa for the month of July came to $423,900. Nationally, the average price for a home sold was $499,000 which represents a 3.9% increase over July 2018. This average price figure, however, is greatly skewed by the GTA and GVA markets thus by excluding these markets, the national average price is slightly less that $393,000. To read the full Statistical Report from the Canadian Real Estate Association, click here. Thinking of getting into the real estate market or expanding your portfolio? Contact your Mortgage Broker today for all the information. August 16, 2019 Open House- The Real Estate And Mortgage Show: August 10, 2019 The real estate inventory continues the level trend with 4243 active listings in the Ottawa market. The condo market is really thriving this year with only 543 condos currently listed. Last month was the best July on the books for the last 15 years. Residential sales were up from 2018 by 12.3% while condo sales were up 23% for a total of 14.8%. Year-to-date, the number of sales in Ottawa market is up 3.6%, given a push from the condo market. In July, the average sales price was up 9% for an average residential sale price of $487,000. Year-to-date, residential sale prices are up 7.2% which is substantial for Ottawa but modest for other capital cities. Mortgages for self-employed business owners differs greatly from salaried employees. Self-employed business owners can use tax writes off to mitigate the revue they bring in with business expenses. This lowers their overall income amount which can hurt qualifying requirements. There are self-employed programs to help those individuals qualify. Home inspection completed your property that you are not happy with? Ensure the home inspector was licensed and investigate getting your own home inspection completed. If you are looking to sell your home, it may be worthwhile to have an inspection completed prior to mitigate any issues that may arise. As a buyer, you want the inspector to be diligent to help with negotiations. According to one of the top CIBC economists, Bank of Canada rates have the potential to decrease over the next few announcements. With talks a global recession in 2020, the bond markets seem like they are active pricing for this. Real estate wise, listings tend to stay longer on the market, we may be looking at more of a balanced market. Mortgage Brokers get paid a fee by the lenders. If you get an insitutional mortgage, your Mortgage Broker should not charge a broker fee. If you are questioning any fees charged, ask for a break down of the fees and who is charging what or get a second opinion. Listen to the full podcast from CFRA here. For more information, contact your Mortgage Broker today.       August 12, 2019 Hot Market in a Scorching July- OREB In new figures released by the Ottawa Real Estate Board (OREB), 1,842 residential properties were sold in July, compared the 1,605 in the same month in 2018 which represents a 14.8% increase. The 1,800 properties were broken down into 1,382 residential homes, up 12.3%, and 460 condos, up 23%. “Typically, after the busy spring, July tends to be a slower month as people take vacations and spend more time with their families, but there was no slow down this past month,” observes Dwight Delahunt, President of the Ottawa Real Estate Board. “In fact, we recorded the highest number of July sales in 15 years.” “Also, for the first time in 2019, there was an upsurge in new listings which has slightly improved housing inventory. Although this is encouraging news, it is not enough to keep up with demand. In order to bring about a more balanced market, there needs to be at least a three-month supply of listings. Currently, Ottawa is closer to a one-month supply,” he adds. “In this type of market, it is vital that Sellers utilize the experience and advice of a REALTOR® to maximize your property’s potential — and if you are a Buyer, to guide you through the complexities this intricate market presents,” Delahunt recommends.   Average sale prices also saw increases in both property classes. Condo sale prices rose 6.8% from last year to $299,665. Similarly, residential sale prices increased to $487,308, up 10.4% from July 2018. Dwight Delahunt also noted negative impacts from the mortgage stress-test on the housing market, indicating the board will “look forward to hearing about how the various parties intend on addressing this contentious issue as the election approaches.” To read the full release from OREB, click here. To get trusted mortgage advice, contact your Mortgage Broker today. August 7, 2019 Open House- The Real Estate And Mortgage Show: August 3, 2019 Buyers frustrated with loosing out on homes in the west/south neighbourhoods are now expanding their search areas to just outside of the city where you can get a single home for the price of a townhouse in those hot markets. Homes that are within that 5-10 minute walk to the new light rail transit will really be benefitting from the price increases that comes along with the ease of access to that option for commuting. Intimidated by the debt reports coming out? Keep in mind, the amount of home equity is rarely reported on so the picture may look bleaker than it appears. After one of the hottest Julys on records, Ottawa’s real estate listings remain conflictingly cool. There are currently 4,236 total listings, down even from last week. When a buyer makes an offer and goes in for the home inspection, this takes the home off the market for a time period and if the home fails the inspection, the home will likely return to the market with a reduced price which is a flag for the next buyer. Given the new mortgage rules and tightening restrictions around mortgage documentation, lenders are asking more detailed questions regarding where savings are accumulated from and may ask for further history. Big bank representatives have sales goals to achieve for both mortgages and mortgage life and disability insurance. Working with a Mortgage Broker gives you an unbiased opinion and are not obligated to push any one product or lender. The options are there for not only additional savings with interest rates but getting a mortgage with features that suit your needs. Although the qualifying interest rate has decreased, it is not really any easier for Canadians to qualify for a home- especially if they are looking to purchase as an individual. It also does not change the big bank posted rates which are used to calculate penalties. Discuss this with your Mortgage Broker to find out how it would impact your personal situation. To listen to the full CFRA podcast, click here. Looking for more sound advice from a trusted Mortgage Broker? Contact us today.   August 6, 2019 What you need to know if you're making the leap from land owner to landlord- FP Recent figures released from Stats Canada has found that for certain Canadian cities and types of properties, a growing number of owners are making the leap to become landlords themselves. Considering a rental property, or properties, for your own financial portfolio? There are some major factors to consider when looking at the tax implications. A common misunderstanding is that all rental property debt interest is tax deductible. The use of the borrowed funds will dictate if this is the case. If you refinance a rental property and use the funds for personal use, the interest on the additional debt is no longer tax deductible. Similarly, if you refinance your principal residence to use towards the purchase of a rental property, that portion of debt is now tax deductible against the rental property even if the loan is not secured to the property. “Commonly missed deductions for rental property investors include accounting fees, which are not generally tax deductible on most personal tax returns. Travel expenses can also be deducted. According to the Canada Revenue Agency (CRA), “You can deduct travel expenses you incur to collect rents, supervise repairs, and manage your properties. Travelling expenses include the cost of getting to your rental property, but do not include board and lodging.” Often, owners blur the lines between capital and current expenses when looking for additional tax deductions. “The CRA distinguishes between current and capital expenses. A current expense is a tax deductible expense that is generally a modest cost that reoccurs frequently, restores a property to its original condition, or is a replacement that is part of the ordinary maintenance of a property. Capital expenses tend to have a more lasting nature and improve a property beyond its original condition. Generally, if the expense is considerable relative to the value of the property or might otherwise be considered a “renovation,” the expense may not be tax deductible. Replacing a separate asset within a property — like an appliance — is considered a capital expense.” Working with a professional team of Mortgage Brokers, Real Estate Agents, Financial Planners, and Tax Professionals can help ensure you’re investing your time wisely and your investments are working to your advantage.   More from the Financial Post article here. August 1, 2019 Open House- The Real Estate And Mortgage Show: July 20, 2019 This week’s listings are still in the mid-4000 range at 4483 which is pushing people to new home builders- remember, it is still important to bring a real estate agent to act on your behalf and keep your best interest in mind. It is still a great time to sell your home though the appetite is less so for the fixer-upper properties. On the mortgage side, brokers encourage listing real estate agents to watch the wording for those types of properties. Bank of Canada has lowered the qualifying rate for mortgages from 5.34% to 5.19%, however, bank posted rates have remained the same. Actual mortgage rates are nearly back to where they were in 2016. With a federal election around the corner, historically, the housing market does slow especially given Ottawa as a central government hub as the capital city. A change in leadership may mean an influx of homes on the market. Wondering what a “bully offer” is? This occurs when a listing states that they will not be showing or looking at offers until a certain date and time. A pre-emptive or bully offer is made before this date and the real estate agents are required to disclose this offer to the buyer and then in turn notify all the potential buyers. Is your Mortgage Broker charging a broker fee on a traditional mortgage deal? Ensure you are reading your mortgage documents presented by the broker carefully. If you have doubt and are concerned, it may be time to get a second opinion. Contact your Mortgage Broker today for trusted advice. To listen to the full pod-cast, click here. July 22, 2019 Canadian home sales hold steady in June- CREA The Canadian Real Estate Association (CREA) has released their national home sale report for June 2019. Following three months of increased home sales, June data suggests that the housing market has stabilized resulting from nearly even local markets where sales we up, such as Quebec and Southern Ontario, and markets where sales were down, namely the GVA, Calgary, Halifax, and Newfoundland and Labrador.   "There's a growing divergence in Canadian housing market trends between eastern and western Canada," said Gregory Klump, CREA's Chief Economist. "While sales activity in Canada's three westernmost provinces appears to have stopped deteriorating, it will be some time before supply and demand there becomes better balanced and the outlook for home prices improves." Sales activity edged up 0.3% compared to June 2018 while the number of newly-listed homes increase 0.8%. Home prices in the Ottawa market rose 8.3% to $420,200 year-over-year led by a 13.2% increase in the townhouse/row unit prices. Across Canada, the average home price in June 2019 was $505,000m up 17% from June 2018. To read more from the CREA Monthly National Statistics, click here. Thinking of buying a home? Start with your Mortgage Broker today. July 18, 2019 Open House- The Real Estate And Mortgage Show: July 13, 2019 The Bank of Canada rates remained unchanged yet again last week. Given the uncertainty of the global trade environment. Economists are even suggesting there may even be a decreased to the rate later this year. When it comes to mortgages, not all products are created equal. The penalty calculations vary from lender to lender and especially a monoline lender to a big bank. If you take a mortgage over 5 years, the bank cannot charge the interest-rate differential after the 5-year mark. Even though rates have gone down, the posted rates remain the same which means that penalty calculations are higher. When it comes to life and disability insurance that is offered with mortgages, it is not mandatory to take, and consumers should be researching all options available to them. Any institution that states it is mandatory is used an illegal tactic of tied-selling. Certain areas of Ottawa remain a buyer’s market which can be frustrating with all the news of bidding wars in other pockets of the city. Realistically over 50% of the homes being sold are being sold under asking price. Work with your Real Estate Agent to price your home accordingly. If you over bid on a home, it is likely that you will not be able to recoup that cost of you need to sell shortly down the road. Listing remain consistent with 4521 homes on the market, 3910 residential homes and 611 condos. Now that we are in mid-July the market is experiencing a minor slow down. When you complete paying off your mortgage, you own the home out-right. Some banks offer a collateral mortgage which would allow you to re-borrow against the home at any time without having to do the legal work over again. Once your home is paid off, it wold be worthwhile to look into a way to put that equity to use such as purchasing an investment property or using it to invest. To listen to the full podcast click here. Contact your Mortgage Broker today for more trusted advice.   July 15, 2019 Bank of Canada Maintains Interest Rates Once Again The Bank of Canada has announced that it will maintain they key interested rate at 1.75%. The announcement, focused on balancing domestic economic improvements and the expanding global slowdown, was made this morning which means the central bank is holding steady for the sixth straight time. “Governor Stephen Poloz and the governing council appeared to be in no rush to change the rate, even as they noted policy-makers in the U.S. and Europe have signalled they may introduce cuts to respond to weakened global economic activity. "Recent data show the Canadian economy is returning to potential growth," the Bank of Canada said in a statement. "However, the outlook is clouded by persistent trade tensions. Taken together, the degree of accommodation being provided by the current policy interest rate remains appropriate." Escalating trade conflicts, notably the US-China relationship, geopolitical tensions and related uncertainty were reflected in the bank’s report and noted as contributing to the slowdown of economic activity. To read more from the Bank of Canada, visit their website for the full report. More from the CTV article here. July 10, 2019 Open House- The Real Estate And Mortgage Show: July 6, 2019 June real estate data has been released for the Ottawa market. There has been a big increase in sale prices and less so in the number of sales. The number of sales increased 2%, whereas the average sale price rose a staggering 9% at $455,000. The average sale price for the residential market was up 11% at $500,000 in June. Year-to-date, the number sales have increased 1.8% and the average sale price increased 7.0% for an average sale price of $441,000 including residential and condo markets. Looking back to 10 years ago, residential home prices have increased 52% and condos have increased by 34%. There are currently 4541 listings on the Ottawa market which includes 3900 residential and 619 condos. The eight top areas in Ottawa real estate are west of Bank Street with the biggest increase coming from the Britannia area up 23%. When purchasing a home, it is important to factor in all the costs, from monthly bills to maintenance and property taxes. It is important to ensure you are comfortable making all payments associated with the home. The Bank of Canada will have another interest rate announcement this Wednesday and many economists are predicting that the central bank will follow suite if the US drops their rates. When it comes to the payment you make on your mortgage, consider your principal payment as a type of tax-free savings account and your interest payments as “rent”. Check out more from this week’s edition of Open House: The Real Estate and Mortgage Show For more trusted mortgage advice contact your Mortgage Broker today. July 8, 2019 Could it take millennials 29 years to save for a home? A new report released by Generation Squeeze, a not-for-profit group that advocates for young Canadians, suggests that the affordability gap between millennials and baby-boomers is larger than people realize. The report indicated that millennials will need to work an additional 8 years longer than the 1976 baby boomers to come up with a 20% down payment. “It’s an emergency… these are critical levels,” Paul Kershaw, Ph.D, the founder of Generation Squeeze told the Financial Post. “We’ve been sounding alarm bells in B.C. and across country. Affordability is a way bigger problem than we’ve been talking about.” On an averaged price home in Canada, it takes 25-34 year-olds an average of 13 years working full-time to save for a 20% down payment. The Ottawa and Quebec areas demand 10-11 years to achieve that goal. In the greater Toronto area, it takes 21 years to save that amount. Most shockingly, in the greater Vancouver area it takes almost 30 years to save for a 20% down payment. “With interest rates being low and staying low, housing prices will stay high,” John Skenderis, a Toronto-based realtor at Century 21 Leading Edge Realty Inc., told the Financial Post. “For every per cent interest goes up, there’s roughly a $100,000 pullback on prices… but I don’t see interest rates creeping up.” “Kershaw says the report was published now in hopes of having candidates for the fall Federal election take the housing crisis seriously. He and his team list a number of recommendations including reducing other millennial expenses such as tuition, childcare and transit, helping renters make more money and a national housing strategy it says is long overdue with a focus on homes as a place to live rather than a “stock market.”  “Millennials need to be realistic about what they can afford and should try to save as much money before going in and purchasing a home,” according to Skenderis. To read more from the Financial Post article, click here. Looking to put as little as 5% down payment on your home? Visit our mortgage info centre for facts and figures on mortgage default insurance. Turn to your Mortgage Broker for sound advice on purchasing, financing and affording a home. July 4, 2019 Open House- The Real Estate And Mortgage Show: June 29, 2019 When working with a listing agent to sell your home, ensure the photos are representative of your home and professional looking without being deceiving on size and condition. Like appraisals, good photos will help the lender reviews the report and assess the value of the home as well. Appraisals will be required on country homes (often driven by postal codes), private sales, but many have an auto appraisal program which is cheaper for the clients. A big risk of going into a multiple offer scenario is if the home will auto appraise if needed, if not a full report will be required, and the lender will finance the lower of the purchase price or the appraised value. The risk lies in that if the appraised value is the lower of the two, the buyers will need to come up with the additional funds to cover the difference between the appraised value ad the purchase price. Two of the sister companies under the Advanced Group of Companies, which also holds Mortgage Brokers Ottawa, is the Advanced Mortgage Investment Corporation (AMIC) and Advanced Capital Corporation. A mortgage investment corporation (MIC) is a private lender that accepts investment dollars and invests in a pool of mortgages so that each investor’s dollars are invested in a proportionate way to all of the mortgage held in the pool; as opposed to one individual investing in one individual mortgage which shares the risk amongst all the investors equally. Since inception nearly 5 years ago, the annual rate of return for investors is 7.837% when dividends are re-invested monthly. The goal of AMIC is to create a short-term “band-aid” lending solution and every mortgage has an exit strategy likely in 12-15 months from the time of funding. On the investing side, the average investor is someone looking to diversify their portfolio and perhaps looking to get some yield in their registered accounts including RRSP, TFSA, RESP, RRIF accounts. These investments are not exchange traded and all mortgages are based in the Ottawa market. In terms of the Ottawa real estate market, there 4535 total listings. Of those listing, there are only 611 condos leaving the residential market to make up the additional 3924 homes. The condo market has really changed and rebounded over the last few years in that there are only 611 listings currently as opposed to 2300 listing 3 years ago. The average sale price has increased 6.1% overall and condos have helped increase that figure with an increase of around 8%. To listen to the full podcast from CFRA click here. For more information on Advanced Mortgage Investment Corporation, visit their website. To get sound advice on your home financing, contact your Mortgage Broker today. July 2, 2019 CTV Morning Live: Mortgage Minute- June 25, 2019 Starting labour day, the Trudeau government has announced the First Time Home Buyers Incentive plan to help ease the cost of home ownership. To be eligible for the program the purchasers need to be first-time home buyers and have a maximum household income of $120,000. The maximum mortgage amount cannot exceed $480,000. The government will then be willing to continue 5% of the purchase price (10% on new constructions) for those who apply to the program. This program does require that all mortgages under the program pay the mortgage default insurance regardless of the loan-to-value. The shared-equity portion of the program remains a gray area. If you sell the home, or 25 years after the original purchase date whichever is sooner, program participants will be required to pay back the interest free loan which is calculated based on the value of the home at that time. There are still gray areas surrounding the program. There are still details that are set to be released. To watch the full clip from CTV Morning Live, click here. For more information, trust your Mortgage Broker for sound advice. June 25, 2019 Open House- The Real Estate And Mortgage Show: June 22, 2019 Week after week, Ottawa real estate continues to maintain low levels of inventory with around 4600 homes on the market. Buyer frustrations are high with the lack of inventory and the emotional roller coaster of not being successful in a bid on a home they liked. Buyers are voicing concerns about increasing house prices which is a natural part of the real estate market. Year-to-date to the end of May, home values have increased 1.9%. The average sale prices, on the other hand, have increased over 6%. When a mortgage is in default, the lender and bank have the right to retain power of sale and provide a notice to vacate to the current owners. This is written in the mortgage documentation on every mortgage. A vendor take-back mortgage occurs when the seller extends a mortgage to the buyers for a portion of the sales price for a share of the equity in the home as long as the loan is in place. This presents a risk if the borrower defaults on payments. If you are looking to personally invest on the mortgage side, investigate investing in a mortgage investment corporation which can help mitigate some of the risk given the guiding principles of the corporation both by shareholders and government requirements. Banks will reach out to existing borrowers early in the maturity process to present a renewal offer. In a decreasing rate environment, it is worth discussing the offer with your Mortgage Broker for sound advice, especially if the offer is higher than your existing rate. In the current real estate inventory Ottawa market, it is likely better to buy before you sell. If you have the right Real Estate Agent and your home is priced right and shows well, it will likely sell. To listen to the full CFRA podcast, click here. For more trusted information, contact your Mortgage Broker today. June 24, 2019 New Info On The First-Time Home Buyer Incentive In the Budget Plan 2019 announcement made by the Liberal government earlier this spring, an announcement was made in regard to a new first time home buyers assistance program. Though at the time, few details were made available more information has now been released regarding the proposed $1.25 billion dollar equity sharing program. The program, which gives the government stake in thousand of homes to ease the cost of home ownership, allow previous homeowners to qualify under certain conditions, permit purchases of a building of up to four units, and have a maximum purchase price of $565,000 based on government calculations among other parameters. The program is slated to begin September 2, 2019 with first payments beginning November 1st, which means it would start just days before the potential start of the federal election campaigns where cost of living will likely be a central issue. The program will be structured as a first come, first-served model which will have federal funds pick-up 5% of the mortgage for existing homes (10% for new construction) for households earning less than $120,000 per year on a mortgage no larger than $480,000. The component of the first-time home buyers incentive that has been missing has been the issue of repayment terms for the interest free loan. The Liberals have now stated that no repayment of the loan is required until the homeowners sell OR 25 year of living in the home- which ever some first. Early repayment of the loan will carry no penalties. The central piece that has also been in question is “how much” do homeowners have to repay? According the program, if the value of the home increases so does the amount of money owed. If the value decreases, the opposite will apply. More from the CTV news article here. To read the Federal Government’s First-Time Home Buyer Incentive, click here. As always, contact your Mortgage Broker anytime. June 19, 2019 Open House- The Real Estate And Mortgage Show: June 15, 2019 Homes in the Ottawa market are starting to sit a little longer which gives buyers more chances to view properties before they are off the market as quickly as they went on. Inventory levels have decreased slightly from last week with 4399 with 3781 in residential space and 618 condos. The trends in home ownership goals are changing with this new generation of home buyers. The millennial generation are more drawn to the more compact, row-type housing with less upkeep and cost less to maintain.  Commuting convenience is also important, especially if you work in a specific end of the city. The mortgage space has changed so much over the last few years it is hard for people to stay current on requirements and the challenges of obtaining financing. Working with a Mortgage Agent allows you the peace of mind knowing that this is their primary business and they are working diligently on your behalf to find the right product and the best solutions. If you are house hunting, ensure you have a solid pre-approval with your Mortgage Agent. They should be requesting your income and down-payment documentation. Always keep in mind that the lender needs to approve both the applicants AND the property meaning that an appraisal is required. Check out the full podcast from CFRA here. For more trusted information, contact your Mortgage Agent today. June 17, 2019 Canadians spending more on debt payments Canadian households are spending record amounts of their disposable income to service their debt payments according to a new report released by Statistics Canada. Canadians spent $202-billion on debt payments in the first quarter of 2019 with $91-billion of that spent on mortgage debt. Households spent more on interest than principal for the first time since 2013. According to National Bank senior economist Krishen Rangasamy, “Of course, this is not good news for consumption growth because there’s now a reduced share of disposable income left for spending on things other than debt servicing. On a positive note, however, [principal] repayments as a percentage of disposable income remain near all-time highs for both non-mortgage and mortgage debt. The latter is particularly encouraging with regards to stability of the housing market and hence financial system as a whole.” The Bank of Canada began to increase interest rates in 2017, however, they have since remained stagnant for the last few announcements. Given the current global economic climate, markets are expecting the Central Bank to start decreasing again, potentially in 2019. More from the Financial Post article here. Concerned about your debt payments? Talk to your Mortgage Broker today for possible solutions.   June 14, 2019 Open House- The Real Estate And Mortgage Show: June 8, 2019 Listings in Ottawa real estate remain stagnant with only 4442 currently on the market with residential making up 3836 properties followed by 628 condos. The number of sales in May increased to 6.7% and the average sale price was up 5.6%. Year to date, we are at 1.9% for the number of sales while home prices are at 6.1%. The average sale price is now at $480,000 for residential properties. If we factor in the condo market as well, we are sitting at $437,000 compared to $400,000 at the end of 2018. Mortgage rates are trending down wards and with the current bond market, they may go even lower in the next few weeks. If you are up for renewal soon, it would be wise to contact your Mortgage Broker to get a rate locked in. If your bank is presenting you with a “discounted” rate, that discount will be the key factor of a high penalty calculation. When it comes to qualifying for a mortgage, the rate is still at 5.34% compared to mortgage rates that are in the 2.99% range. The last federal budget in March, a few notable changes were announced. One of the immediate changes was an increase to the RSP First Time Homebuyers program increased from $25,000 to $35,000. Another proposed change that is slated to being in 2020 was the ability for those separating you can withdraw again from your RSP. The most notable proposed program was the first time home buyers incentive which will likely be introduced in September just before the election. The shared-equity offer is they will offer a 5% interest free loan to match the 5% down-payment, 10% in the case of a new build. However, one of the restrictions of the program is the home price cannot exceed $420,000. To listen to the full podcast, click here. For more information contact your Mortgage Broker today.  June 10, 2019 Open House- The Real Estate And Mortgage Show: June 1, 2019 Prime rates remain the same on the heels of the last announcement from the Bank of Canada that maintain the overnight interest rate. Some reports even stating that rates may not change for the remainder of 2019. The Ottawa real estate market remains low on inventory with only 4471 active listings. This includes 656 condos and 3815 residential. The townhouse market remains the most active area for buyers. If you’re a seller on the market right now and is not selling, consider price or condition problems. Working with an experienced real estate agent can help navigate those areas to get your home sold. The demand for larger lots and homes has dropped considerably from years past. Millennials and retirees are a large segment of buyers and are generally interested in low-maintenance properties. If you are receiving gifted down payment funds, the giver will be required to sign a gift letter stating the exact amount. The giver will also need to be a parent or grandparent to the applicant. If the funds are not from immediate family, they will need to be in the account for at least 90 days. When purchasing a home, ensure your real estate agent is working with your best interest in mind. When looking to purchase a country property, ensure you get reputable companies to do the inspections of the home, well, and especially septic system. To listen to the full podcast, click here. Contact your Mortgage Broker today for trusted advice. June 3, 2019 Bank of Canada Continues To Maintain Rate At 1.75% Bank of Canada maintains overnight rate at 1.75%, marking the 5th consecutive announcement that has left the rate unchanged. In the announcement made today, the central bank noted that the economic slowdown experienced at the end of 2018 and into the beginning of 2019 may already be easing. Although the economy is starting to see a positive shift within Canada, global trade tensions continue to be of concern moving forward. “Once again, the bank made no mention of trying to get its key rate back to “neutral” – the point where interest rates neither spur economic growth, nor slow it down. Many economists now expect the central bank to hold off on raising rates for the rest of the year, barring a dramatic improvement in economic conditions. The tone of the latest statement was mostly upbeat, with the exception of its note of caution about how rising protectionism is weighing on Canadian and global growth. The bank said there is “accumulating evidence” of an economic pick-up in the second quarter. It cited a long list of positive signs, including the “beginning” of a recovery in the oil sector, a “more stable” national housing market, continued strong job growth, a pick-up in consumer spending, higher exports and a firming in business investment.” More from the Globe and Mail article here. To read the full announcements from the Bank of Canada, click here. Looking for more information on how this may impact you? Contact your Mortgage Broker today. May 29, 2019 CTV Morning Live: Mortgage Minute- May 28, 2019 Paul Taylor, President and CEO of Mortgage Professionals Canada, joins Frank Napolitano of Mortgage Brokers Ottawa and host Annette Goerner to discuss the recent parliamentary meetings that took place discussing the B-20 stress test rules and guidelines and recommendations for an affordable mortgage environment. To watch the full clip from CTV Morning Live, click here. Looking for more information? Contact your Mortgage Broker today. May 28, 2019 Open House- The Real Estate and Mortgage Show: May 25, 2019 Canadians have more equity in their homes than ever before. Often, real estate is rarely involved in bankruptcy or consumer proposals which is often linked to credit card debts and marital breakdowns. Delinquency rates remain very low across the country. Affordability remains a noticeable factor in Ottawa real estate, especially compared to the high-priced Toronto and Vancouver markets. Given the size of our country, it is not out of character to have a few high-priced cities. May 27 marks another parliamentary meeting with mortgage industry professionals to discuss the state of the market and advocate for the mortgage industry. Stress test will continue to be a speaking point regarding the way it is managed, especially now in a decreasing rate environment. Changes can be made to make the stress test more effective. When looking to sell you home that needs major renovations, it may be worthwhile to sell it as is and reflect that within the price. Bring is your realtor to evaluate the situation. Listings in the Ottawa area remain low with only 96 new homes on the market for a total of 4454 residential and condos. The assessed value, the MPAC statement, of a home is what the city uses to calculate taxes. This is not the true value of your home. The only time this amount would be considered is if the assessment is too high. To listen to the full podcast, click here. For more info, contact your Mortgage Broker today. May 27, 2019 New mortgage loans slowed in Canada but overall value is still rising, says CMHC (CBC) The average mortgage amount increased to $209,570, up by more than 3% from a year ago. Although the value of the average mortgage has increased, the number of loans grew at a slower pace in the fourth quarter of 2018 as housing activity cooled according to a new report from CMHC (Canadian Mortgage and Housing Corporation). "While indebtedness of Canadian households remains elevated, growth in the volume of mortgage activity slowed in the last quarter of 2018, partly reflecting lower housing market activity," said Geneviève Lapointe, senior market analyst at CHMC in the report. "Despite high debt levels, delinquency rates remain low and the number of highly indebted and more vulnerable consumers has decreased." The increase to the mortgage value, in part, can be attributed to the elevated housing prices across most of the country. "Their average outstanding balance in credit cards and lines of credit grew at a faster pace than in 2017, except for HELOCs (home equity line of credit) and auto loans, which increased at a slightly slower pace," the report said. "These trends were also observed among consumers without a mortgage." Average additional debt for Canadians who hold a mortgage was just over $9,000, up 3.6% from the same time last year. Canadians without a mortgage hold an average balance of about $7,500 which is an increase of 5%. To read more from the CBC News article, click here. Contact your Mortgage Broker today for valuable advice. May 23, 2019 Open House- The Real Estate and Mortgage Show: May 18, 2019 There are 4360 listings on the Ottawa market which has picked up a little but still low for the time of year. The average sale price has increased to around 6%. About 44% of sales have occurred in the $300,000-$500,000 price range. The townhome class has seen a drastic increase in prices over the last few years. Currently, it is one of the most active areas in Ottawa’s real estate with only 241 units for sale. With affordability issues in areas such as Toronto, buyers are still looking at the Ottawa area. There are 3251 single family homes on the market with condo at 683. If you are selling your home and purchasing a new one, try and avoid closing both properties on the same day. Bridge financing is a great option to give you a few days or weeks to get organized. You need to have a firm sale on your home in order to qualify for it. If you run into a scenario that your home has not sold, you will need to refinance your existing home to get the funds for the down payment and then qualify to carry both homes. Fridays during the summer are also challenging for lawyers given the volume of requests. Aim for a mid-week closing to ensure a smooth process. In this seller’s market, ensure you are working with your Mortgage Broker to get pre-approved to help in the offer stages and ensure you can afford and qualify for the property. The “60-second” pre-approval sites will not provide a comprehensive look at your application. A Mortgage Broker will analyse your income, debts, down payment sources and amount, and your credit bureau. Make sure your Real Estate Agent and your Mortgage Broker are working together because you can be approved as an applicant but there may be an issue with the property. To listen to the full podcast from CFRA click here. Contact your Mortgage Broker today for more trusted information. May 21, 2019 Open House- The Real Estate and Mortgage Show: May 11, 2019 Recent articles state that 99% of mortgage consumers are going with the fixed rates. In the past, the main reason to choose the variable option was the large spread from fixed rates. Now the two have come more into line with each other. The bond markets went up slightly last week, however, some mortgage lender decreased their rates which are as low as the 2.99% mark. Inventory for Ottawa real estate is still at very low levels with a total of 4360 homes listed. Some real estate agents are still using the tactic of holding off offers for a certain time period which can be stressful for those bidding on the home. Having a real estate agent represent you will help alleviate some of that stress to know if you are paying too much for the home and to handle the negotiations. Townhomes remain a popular home, especially for the millennials that are less interested in property maintenance. The condo market has rebounded with first time home buyers and down-sizers. When it comes to selling your home, in this seller’s market you may want to consider purchasing first to ensure you can find something to suit you. Bridge loans come into effect when you close on your new home before your closing date on your current home. Bridge loans can be used if you have a firm sale on both properties and close within a certain time frame. Carrying both properties will be very costly compared to the costs of a bridge loan. Cash back promotions offered by institutions have strings attached such as potentially higher interest rates and the requirement to repay the cashback amount if you break the mortgage early. Mortgage Brokers are able to decipher this type of fine print. Some mortgage can only be broken by selling the property. Not all mortgages are created equal so using a Mortgage Broker will help navigate the process and help find the best fit for you. To listen to the full podcast, click here. For more information, contact your Mortgage Broker today.   May 16, 2019 April Ottawa Real Estate Review- OREB Real estate sales increased 0.4% year over year in the Ottawa market according to the Ottawa Real Estate Board (OREB). Residential sales account for 1594 sales of the 2032 unit sales across the city with condos accounting for 438 sales. Residential sales are comparable to April 2018 while the condo sales increased by 5.3%. “The story hasn’t changed throughout this spring – our market is clearly suffering from low inventory, and we predict these conditions will persist until supply is restored,” states Dwight Delahunt, President of the Ottawa Real Estate Board. “Several factors continue to have an impact in this regard including the lag in new construction coming to market and the reluctance of potential sellers who are facing limited options when they are buying within the same market. Add to this a stress test for buyers, that can limit purchasing capacity in a market where prices are accelerating, and it becomes a “Catch 22” situation for the foreseeable future.” “Residential supply is down 18%, and condo inventory is down almost 40% from last April. Despite this tight supply, the residential market is holding its own and the increase in unit sales is effectively coming from the condo market which until recently, was in a surplus,” he notes. Overall, the average sale price increased by 7.4% over April 2018 with the average home price in Ottawa at $488,729 for residential homes. The condo market saw an increase of 14.3% for an average price of $307,659. Year to date, residential prices have increased by 6.6% and condo prices have increased by 8.7%. Taking into account the effects of the lack of supply on home prices, Ottawa remains a stable market.  To read more from the Ottawa Real Estate Board, see the full news release here. Thinking of purchasing a new home soon? Contact your Mortgage Broker today. May 10, 2019 Open House- The Real Estate and Mortgage Show: May 4, 2019 With the recent devastating floods in the Ottawa area, questions have been posed regarding the impact on home values. For homes in a flood-prone area, there will likely be a decrease in value and the impacts on the areas will be ongoing. Insurance may also be an issue for those homes. Some homes may struggle to get flood insurance if they had been flooded previous years which means that the cost of repairs would come out of pocket. April Ottawa real estate sales numbers have been released. Year over year, the number of residential home sales was up 0.4% while condos were up 5.3%. Residential supply is down by 18% and condo inventory is down 40% from last April. Average sale price for residential homes was around $488,000, up 7.4%, while condos were up 14.3% for an average price of $307,000. Year to date residential prices are up 6.6% and condos are up 8.7%. Only 1/3 of properties are selling over asking price which may seem low given the coverage of the seller’s market in Ottawa. There are currently 3581 residential home available on the market and 680 condo properties. Selling and purchasing properties can be emotional, therefore, the transaction with your professionals should be relationship based. Your team should be working together to ensure things go smoothly for you. If your Mortgage Broker is requesting documents or require an appraisal, they require it and will need to get the documents or access to the property as soon as possible. To listen to the full podcast, click here. For more trusted advice, contact your Mortgage Broker today. May 6, 2019 CTV Morning Live: Mortgage Minute- April 30, 2019 If you are affected by the recent devastating floods in the Ottawa area, or another natural disaster, do not hesitate to contact your Mortgage Broker or bank to discuss some options. Some offer skip-a-payment programs but it will be assessed in a case by case scenario. If you purchased your home with less than 20% down you can also contact the default insurer (CMHC/Genworth/ Canada Guaranty) to discuss options. Please ensure you keep making your mortgage payments to avoid penalties or additional charges.  Watch the full clip from CTV Morning Live here. May 1, 2019 Stress Test and Home Ownership Challenges With the federal election only 6 months away no party has presented a clear plan to turn the home ownership trend around. “In his recent budget speech, federal Finance Minister Morneau said “…finding an affordable place to call home is not just a challenge. For too many hard-working Canadians, especially for young people, it feels like an impossibility.” In the recently released 2019 Federal Budget Plan, the government did suggest they are looking at the home ownership rates and proposed the first-time home buyers incentive which would see the government loan 5% (or 10% on new constructions) towards the purchase of a home with repayment required when the home is sold. The plan has yet to receive approval and there are stipulations attached such as buyers are still required to come up with 5% down payment, household income cannot exceed $120,000, and mortgages are capped at 4 times the applicant’s income for a maximum of $480,000.  What has not been addressed is the impact the stress-test has had on Canadian by reducing purchasing power by 20% by using a qualifying rate that is either the benchmark rate or 2% above the contract rate- whichever is higher. “With the rate of home ownership falling for the first time, Canada needs a big, bold, comprehensive plan to turn that trend around. Six months before a federal election, all of the parties have some good ideas. But Canadians are looking for policy platforms that do all they’ve suggested, and much more. Polls confirm what every young family knows — housing is a big, and growing issue, and no party has done enough yet to win the housing vote. Whichever party steps up on home ownership, will be well on its way to forming the next government.” To read the full article from Tim Hudak, CEO of the Ontario Real Estate Association, you can find it here at the Financial Post. For more information, contact your Mortgage Broker today. April 30, 2019 Bank of Canada Maintains Interest Rates Bank of Canada Governor Stephen Poloz kept the benchmark rate stable at 1.75% in the most recent announcement made this morning marking a fourth straight hold by the bank. In a widely expected move, the case for keeping the interest rate stable has grown since the last increase in October 2018. The economic downturn at the end of 2018 caused by a drop in oil prices and reined in spending by households seems to have continued into 2019. Recent data showed a slow start in the early months of 2019. “..Governing Council judges that an accommodative policy interest rate continues to be warranted. We will continue to evaluate the appropriate degree of monetary policy accommodation as new data arrive. In particular, we are monitoring developments in household spending, oil markets, and global trade policy to gauge the extent to which the factors weighing on growth and the inflation outlook are dissipating.” To read the full release from the Bank of Canada, click here. For more information, contact your Mortgage Broker today. April 24, 2019 Open House- The Real Estate and Mortgage Show: April 20, 2019 The spring market is here, but supply is still barely keeping up with the demand in Ottawa! Inventory levels remain low in the Ottawa market. Currently there are 4,031 homes on the market compared to 6,000 last year. Of those, 3,418 are residential and 613 are condos. Active row-unit condos account for 65 listings, while apartment condos make up the bulk with 473. The active price point of $350,000-$500,000 for residential detached home have only 479 listings, compared to 719 at the end of March. Thinking of buying a new-build home? Remember to have your Real Estate Agent represent your interests in the process. That nice big open field may soon be another neighbourhood or a shopping centre. If you are approved for your mortgage at the time you purchase your new build and mortgage rules change, you will be grandfathered in to the old rules if you use that original approval. Buyer frustration is very high in Ottawa’s sellers’ market. Home are being sold over asking price and very quickly. Ensure you are working with a trusted team of professionals including your Mortgage Broker and Real Estate Agent. Home inspections are still very important for buyers to verify things you may not be able to see. Despite the claims of some apps and companies, 60 second pre-approvals are very limited. Your Mortgage Broker is the one who will review your credit report, down-payment and income documents. To listen to the full podcast click here. For more trusted information, contact your Mortgage Broker today. April 22, 2019 Canadian Home Sales edge higher in March- CREA Following a sharp decline in February, Canadian home sales edged up 0.9% month-over-month in March according the monthly report from The Canadian Real Estate Association (CREA). Sales activity rose in Canada’s larger cities, including Ottawa, whereas it declined in areas such as Vancouver and Quebec City. "It will be some time before policy measures announced in the recent Federal Budget designed to help first-time homebuyers take effect," said Jason Stephen, CREA's President. "In the meantime, many prospective homebuyers remain sidelined by the mortgage stress-test to varying degrees depending on where they are looking to buy. All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to in the future," added Stephen. Although the number of newly listed home increased across Canada by 2.1%, there was a decline in new listing in the Ottawa market. Home prices did see an increase of 7.6% year-over-year in Ottawa, primarily led by a 10.4% increase in the townhouse/row house segment. The national average price, excluding the greater Vancouver and GTA markets, is just under $383,000 which is lower than the average Ottawa home price of $405,500. To read the full National Statistics report from CREA click here. Contact your Mortgage Broker today for trusted advice.  April 15, 2019 CTV Morning Live: Mortgage Minute- April 10, 2019 Frank Napolitano of Mortgage Brokers Ottawa joined industry professionals at Queens Park this week to discuss changes and the proposed changes in the 2019 federal budget. Thee discussions centred around the impacts of the stress tests and affordability concerns for younger or first-time home buyers. Another point was made regarding mortgage renewals and qualifying with the stress test. The land transfer tax was rumored to increase which, again, the mortgage industry has recommended against. When it comes to new and expanded infrastructure, the mortgage industry is recommending adding areas of affordable housing surrounding the stations to allow individuals to commute without the need of a car. Another suggestion was to allow for secondary suits to allow for accommodation for family or potential rental income. Watch the clip from CTV Morning Live here. Contact your Mortgage Broker today to find out more. April 12, 2019 Canadians agree, owning beats renting Despite stress tests and house prices, most Canadians still aim to own rather than rent. According to RBC’s annual Home Ownership poll, 66% of those surveyed believe it still makes more sense to buy vs. rent. Despite prices falling in some major market across Canada, affordability is still an issue and a top factor when choosing a home and a neighbourhood. “While nearly all Canadians (92%) admit that mental stress is a potential impact of being house poor, almost half (47%) say it’s worth the sacrifice,” reads the report. Given the shifting conditions in the real estate market, 56% of respondents said it would be better to hold off on a house purchase until next year. Of those, 45% said they would be willing up to wait two years to make their purchase—or 55% of 18- to 34-year-olds—since a majority (54%) believe house prices will continue to fall.” The survey touched on the change of home buying dynamics with more purchasers relying on help from family. Some other key points found that down payment amounts are trending upwards, 80% of those polled believe purchasing real estate is a good investment, and once of the largest concerns for first-time homebuyers is future interest rate increases. More from the Canadian Mortgage Trends article here. Wondering about your mortgage budget? Contact your Mortgage Broker today to find out more about the importance of affordability. April 10, 2019 Open House- The Real Estate and Mortgage Show: April 6, 2019 Steve Gregory is once again joined by Frank and Paul discussing real estate in the Ottawa market and mortgages. When looking for a new mortgage, make sure you are working with a professional who knows the in-and-outs of the products they are selling for you and not just the lowest rate. In terms of real estate numbers, there are under 4000 active listings. On the residential side, there are just over 3300 and condos account for 625. The number of sales in March is down 8.6%, the residential sales were down 12.4% and condos were up 5%. The average sales price was up 5.4%, the residential prices were up 7.2% and condos were up by 5.2%. The average sale price for March was $432,000. If we look at the year to date figures, number of sales on the residential side was down 2.3% condos are up 6.8%. The average sale price is up 5.2% with an YTD average sale of $420,000 compared to last year at $399,000. Given the inventory levels, people are hesitant to list their homes for fear of not being able to purchase another one. The difficulty in this type of market is the financing. The lender has to acknowledge that a house price is fair market value. If it comes up short, the clients need to come up with the difference. This is becoming more common with the multiple offers and homes selling for over asking price. To listen to the full podcast, click here. Contact your Mortgage Broker today for advice you can count on. April 8, 2019 A Slow March into Spring Market for Ottawa Real Estate- OREB According the Ottawa Real Estate Board (OREB), spring sales have seen a decrease year over year while prices are on the rise. Just over 1,500 properties were sold in March, compared to 1,650 in 2018 which is an 8.6% drop. Of those sales, 1,136 were residential sales, down 12.4%, and condos accounted for 375 sales which is an increase of 5% from last year. “Lack of inventory is responsible for March’s deficiency in residential unit sales,” states Ottawa Real Estate Board’s President, Dwight Delahunt. “This tightness of supply is manifesting in significant reductions in DOMs (days on market) and properties selling very quickly. Residential DOMs are down 14%, and condo DOMs are down 36% from last year.” “In some pockets of the city, buyers are facing multiple offer situations, and properties are often selling over list price. These dynamics of low inventory, reduced days on market, and multiple offers are signs of a seller’s market in these areas. While a benefit to those sellers, it’s stressful and time consuming for buyers. The experience and guidance of a REALTOR® is essential in these types of market conditions,” he adds. Ottawa has seen a growth rate of 8.8% year-over-year which, coupled with higher employment levels and immigration, brings residents to the affordable city. The average price of a residential property sold in March was $480,143 which represents a 7.2% increase over March 2018. In the condo market, the average price was $290,181 which is an increase of 5.2%. To read the full release from OREB click here. Thinking of buying or selling? Contact your team of professionals today! April 4, 2019 Open House- The Real Estate And Mortgage Show: March 30, 2019 The time to break into the market is now! Steve, Frank and Paul break down some of the latest numbers. With the Federal Budget Plan 2019 announced a few weeks ago, only the increase to the Home Buyers RRSP Plan to $35,000 is firm. No further details have been released on any of the other points. With the potential CMHC first-time homebuyer’s incentive coming into action in fall, some buyers may wait to get into the market until the program is in place. With the markets as active as they have been, it may be more worthwhile to jump in now as opposed to waiting. Each situation will be different, speak to your Mortgage Broker for help analyzing your options. We are currently in a decreasing mortgage rate environment. Qualifying rates have not decreased. With the spring market emerging, we are still less than 4000 listings on the market with 3177 residential home and 654 condominiums. The condo market is really low compared to 4 years ago where we had 2300 condos available. We usually average around 6000 during this point of the spring market. Click here to listen to the full podcast. For more information, contact your Mortgage Broker today.     April 2, 2019 CTV Morning Live: Mortgage Minute- March 26, 2019 Annette Goerner is joined by Frank Napolitano to disuss the recently announced industry changes from the Federal Budget Plan 2019. Watch here Contact your Mortgage Broker for more information.  March 27, 2019 Open House- The Real Estate And Mortgage Show: March 23, 2019 With the recent Budget Plan announcements, there were a few more incentives that the mortgage industry would have liked to see such as re-implementing the 30-year amortization for high-ratio insured mortgages. With the new RRSP Home Buyers Plan withdrawal increase to $35,000, though not many first-time home buyers may have this much in their RRSPs, it can still be withdrawn under the plan if it has been in the account for 90 days. A piece to note with this program is that not all funds need to be sued for down payment and closing costs if buyers want to use the remaining for furnishings or improvements. The third piece that came out of the 2019 Budget Plan, came with limited details and is still in the approval process, is the CMHC program First-Time Home Buyers Initiative. This essentially gives first-time homebuyers who purchase a resale home a 5% match to their 5% down payment amount with a loan which would lower the monthly payment. That amount is interest free and is repaid upon sale of the home. For new construction, this amount goes up to 10%. No other details have been made available yet. Another program, penned for release in 2020, that didn’t get much attention but is very helpful is the martial breakdown RRSP withdrawal. It allows those with a marital or common-law relationship breakdown to use the same parameters for an RRSP withdrawal as first-time home buyers. The Ottawa real-estate market continues to be a seller’s market with only 3753 listing which is low compared to the normal level for this time of year which is around 6-7000. There are 3131 residential homes and only 633 condos. Year-to-date, since January 2019, sales on residentials is about 2700 and condos make up 763. There are currently 503 conditional offers which seems to be on the high end. For more great tips and information, click here for the full CFRA podcast. Contact your Mortgage Broker here. March 25, 2019 Federal Budget 2019: Relief for First-Time Home Buyers? The Federal Government has announced the new budget which contains measures to address affordable housing across Canada. The finance department anticipates legislation for the new program will pass in time for a September launch.   Highlights: CMHC FirstTime Home Buyers Initiative   Increase to the RRSP Home Buyers Plan withdrawal limit   The announcement of a new CMHC First-Time Home Buyers Incentive Plan represents a shared equity mortgage program that would give eligible first-time homebuyers the ability to lower their borrowing costs by sharing the cost of buying a home with CMHC. The incentive would provide funding (equity sharing) of up to five percent of the purchase price of an existing home, or 10 percent of a newly constructed home. No ongoing monthly payments are required. The buyer would repay the incentive, for example at resale. The government has budgeted up to $1.25 billion over the next three years to support this program. For example, if a borrower purchases a $400,000 home with five per cent down and a five per cent CMHC shared equity mortgage ($20,000), the size of the borrower’s insured mortgage would be reduced from $380,000 to $360,000, helping to lower the borrower’s monthly mortgage bill. This would make it easier for Canadians to buy homes they can afford. The program limits eligibility to households earning a maximum of $120,000 annually, and lets them borrow no more than four times their annual household income. This limits a home purchase to roughly $505,000. This Incentive Plan will be discussed more fully in the coming days, but it is not expected to begin until fall, 2019. In principle, the increased equity share eligibility for newly constructed homes will help incent new construction and supply across Canada. Further analysis is needed, however, some aspiring homebuyers, especially at the lower end of the economic ladder, will have greater opportunities to purchase a home with the assistance of this new program. Also of note is an increase in the eligible RRSP withdrawal amount through the Home Buyers’ Plan (HBP). Previously $25,000, this has been increased to a maximum to $35,000. The budget included a lengthy defense of the current stress tests but does suggest that adjustments may be made in future. The national association representing mortgage brokers will continue to discuss this issue with policymakers. While there was no immediate movement on the stress tests, and the new Home Buyers Incentive Plan can be seen as an alternate and more targeted response than an insurable 30 year amortization, the mortgage industry is encouraged by the announcements made today. The forthcoming federal election will provide opportunities to continue the conversations with policymakers and candidates in the coming months. The national association representing mortgage brokers will continue an ongoing market analysis and maintain support for a stable housing market for members and their customers. Contact your Mortgage Broker today for more information. More information from Mortgage Professional Canada can be found on their website.  March 20, 2019 Open House- The Real Estate And Mortgage Show: March 16, 2019 Frank and Paul break down the realtor advantage and what you gain when you list with professionals rather than by yourself. Home on a flood plane? This can create challenges for obtaining insurance, which in turn can create challenges tom obtain financing. Number of sales in the Ottawa market are up 8.2% year-to-date which contrasts the Canadian housing market which was down 5.2%. Inventory levels are still very low for this time of year given that the turn over of houses is very quick. If you are going into an offer unconditionally you can add a 24hr clause for Tom Mortgage Broker, throughout the process to ensure your current home will sell and you can afford it if you go over asking price and your documents are ready to go. Listing your house with a qualified Real Estate Agent is important given it is most likely your biggest asset. Find out their track record and marketing strategies and advertising to get people in the door and sell your home fast. A Real Estate Agent should know the neighbourhood and the market in order to help asses the value of your home. To listen to the full podcast, click here. For more information, contact your Mortgage Broker for trusted advice. March 19, 2019 Bank of Canada maintains key interest rate Announced this morning, the Bank of Canada has opted to maintain the overnight interest rate at 1.75%. Read the official statement from the Bank of Canada here. “Recent data suggest that the slowdown in the global economy has been more pronounced and widespread than the Bank had forecast in its January Monetary Policy Report (MPR). While the sources of moderation appear to be multiple, trade tensions and uncertainty are weighing heavily on confidence and economic activity. It is difficult to disentangle these confidence effects from other adverse factors, but it is clear that global economic prospects would be buoyed by the resolution of trade conflicts.” Given the drop in oil prices last year, the Bank anticipated a slowdown in late 2018 and into 2019. With uncertainty in regard to household spending, oil markets and trade policies, the Governing Council warrants an interest rate below it’s neutral range. To read more from the Financial Post article click here.   March 6, 2019 Home Ownership Rates in Canada Still Among Highest Globally- CMT Canadian home ownership rates have continued to be among the highest in the world, despite affordability and stress test concerns. The most recent available data of 2016 cites a Canadian home ownership rate of 67.8% according to RBC Economic Research reports. For those 35 and under, more than 40% of own their own homes. “We take issue with the notion that Canada has a home ownership problem,” reads the RBC report. “…the proportion of all Canadian households who own a home is one of the highest among advanced economies.” The report does caution the government when considering affordability issues. Re-evaluating the stress test, extending amortization on default insured mortgages or increasing RRSP withdrawals for first-time home buyers are short sighted relief measures which does not address the issue of high levels of household debt outside of mortgages. “[Those measures alone] do nothing to address what we believe is the root of Canada’s housing woes: gaps in the mix of housing options in some of Canada’s larger markets,” reads the report. “In our view, the longer-lasting remedy to Canada’s affordability crisis lies first and foremost on the supply side of the equation.” In the Ottawa market, 66.6% of residents are household owners and supply has remained an issue for those looking to purchase. More from the Canadian Mortgage Trends article here. Contact your Mortgage Broker today to discuss your home ownership plans. March 5, 2019 Open House- The Real Estate And Mortgage Show: March 2, 2019 TD economists are forecasting a slower increase to Bank of Canada interest rates over the next two years. Buyers in the Ottawa area are feeling the frustrations of purchasing in this market with the limited inventory and multiple offer scenarios. Working with a Real Estate Agent can help mitigate some of these concerns. The number of homes on the market is still very low with only 3475 available. Broken down to 620 on the condo side and 2835 residential homes. Time on market is less than 30 days. Thinking of selling, now is the time to get your home ready and listed. If purchasing a condo, your Mortgage Broker will need to factor in the condo fees on your application. This will factor in to how much you are able to afford given the additional expense. It is always best to have your lawyer look at the status certificate and reserve fund for that condo to ensure they are financially fit. Purchasing in Quebec is a little different from the Ontario side. In Quebec, you will need to have an approval from a lender with no conditions. Going into a bidding war with an unconditional offer? Ensure you are working with a Real Estate Agent and Mortgage Broker to help navigate the process. Collateral mortgage is one way that a mortgage charge is registered. If there is a revolving portion to your mortgage, such as a line of credit, it will be registered as a collateral charge. They can be more costly if you decide to move your mortgage because a lawyer needs to discharge this charge as opposed to a title company. Check out this week’s podcast here. Contact your Mortgage Broker today for more information. March 4, 2019 Morneau faces pressure to help first-time homebuyers in March budget Representatives from the real estate, mortgage, and home builder industries have recently met separately with government representatives and politicians to discuss the impacts the mortgage lending guidelines are having on buyers. “While there is no broad industry consensus about what changes are needed, the main proposals on the table include modifying new mortgage stress-test qualifying rules, expanding the 25-year amortization period for insured mortgages, increasing the amount first-time buyers can take from their registered retirement savings plan for down payments, and raising the first-time homebuyer tax credit.” This comes in the wake of home sales slowing 11% in 2018 over 2017 in most Canadian markets. “Paul Taylor, chief executive officer of Mortgage Professionals Canada, said interest rates have risen five times since mid-2016, which has helped cool down overheated housing markets, and it is not necessary to ensure borrowers can withstand such a large increase in rates. He is urging the federal government to require borrowers to qualify at a rate 0.75 per cent above the negotiated rate. “I think given the slowdown that we’re seeing in housing activity, it’s pretty easy to suggest that maybe they overshot with a 200-basis-point stress test,” he said. His association has also asked the government to extend the 25-year maximum amortization period for insured mortgages to 30 years for first-time buyers, reducing their monthly mortgage costs. “It’s very targeted specifically at the people at the bottom end of the ladder,” he said. Although Federal Finance Minister Bill Morneau has not detailed any specific changes he may be considering, he has noted that the budget will have some measures to help the younger generation of homebuyers. To read the full article from the Globe and Mail, click here. For more information, contact your Mortgage Broker today. February 25, 2019 CTV Morning Live: Mortgage Minute- February 19, 2019 Over the past year, qualifying for a mortgage has become more challenging. The millennial generation and single individuals particularly are finding it the toughest. The stress test coupled with higher interest rates are where many potential buyers tend to hinder purchasing power. This may be where a parent is willing to co-sign for the mortgage. Eliminating outside debt will help getting ratios inline to qualify. Wondering where you may stand in terms of purchasing a home? Contact your Mortgage Broker today to get all the information. Catch this week's segment of Mortgage Minute for more information.  February 22, 2019 Open House- The Real Estate and Mortgage Show: February 16, 2019 Thinking of listing your home in the spring market? With the low inventory levels, now is a great time to contact your team of trusted professionals including your Mortgage Broker: Ensure if your home is being shown you keep it clean, warm, and bright. Inventory levels were down 20% on the residential side, 30% for condos, but a healthy 27% increase in farm inventory. This means that is you are thinking of selling your home, do not hesitate to contact your team of professionals such as your Mortgage Broker and Real Estate Agent to start getting trusted advice. With an election coming up, the political parties may look to adjust the stress test rules to garner support with millennial voters. One potential change they may look at would be to extend the amortization on high-ratio purchases to 30 years up from the current 25 years. When looking at qualifying for a home, rent collected from renting individual rooms cannot be used as income. If you are thinking of buying a home with friends, ensure all parties are invested for 3-5 years to ensure it is a suitable investment. If a party wants out of the investment, the other(s) will need to qualify for the new mortgage in order to remove them from title. If you qualified for your home prior to October 2016, if you do not increase your mortgage, you will continue to qualify at contract rates. When starting to look for a home, a Real Estate Agent can help guide in making a list of must-haves and location within your price range. A Mortgage Broker will help secure your financing but also discuss monthly payment levels at different price ranges given your down payment. Winter snow tip: Ensure you regularly check your outside exhaust pipes to ensure they are not covered by snow To listen to the full podcast, click here. For more information, contact your Mortgage Broker today. February 19, 2019 Open House- The Real Estate and Mortgage Show: February 9, 2019 Barb Kramer from Mortgage Brokers Ottawa and Dora Bejaoui of Paul Rushforth Real Estate join Steve Gregory on this week’s edition of Open House: The Real Estate and Mortgage show. Recording breaking home sales welcomed in the new year with sales up over 15% from last year. Inventory levels are down 23% which means the days on market are decreasing. If you are thinking of selling your home, this is a very strong market to list in. Looking to sell and buy? Given the market you may have more room to set your closing date when selling which gives you more time to buy. It’s RRSP season which could help a first-time buyer with costs associated with buying a home. Not only is it a tax deduction, there are no taxes required to be paid if it’s a qualified purchase and withdrawal. This amount then needs to be repaid starting 2 years after the purchase and require 1/15th of the amount to be repaid each year for 15 years. Any amount not repaid in a tax year is counted as income for that year. Thinking of going with a variable rate? Try and set your payments for the fixed rate amount. It will help pay down your mortgage fasted by applying the additional payments to your principal and if variable rates increase you won’t have the same payment shock. If you are a buyer in the Ottawa-area market, it is best to work with professionals, especially in a multiple offer scenario. A Mortgage Broker will help you to understand the financing and lender/insurer requirements and a Real Estate Agent will help navigate the process, the offers, and help you with home values. Found a home but need some updates? Ask your Mortgage Broker about the Plus Improvements Program to help build some of the renovations into your mortgage. Listen to the full podcast here. For more information, contact your Mortgage Broker today! February 11, 2019 January Record Breaking Home Sales- OREB A total of 820 residential properties were sold in January according to the Ottawa Real Estate Board (OREB). This represents a 15.8% increase over January 2018 which had 708 sales. The sales included 611 residential homes, up 14.2% from 2018, and 209 condos units sold, up 20.8%. The number of January 2019 sales were also over the 5-year average sale number of 683. “January is typically one of the slowest months of the year for local real estate. Yet, in spite of the record cold and snowfall, unit sales are up almost 16%. This is the highest number of January transactions we have experienced in decades,” states Ottawa Real Estate Board’s 2019 President, Dwight Delahunt. “Even though inventory is at its lowest level in years, Ottawa’s home prices reflect reasonable appreciation. New builds are helping prices remain stable with homebuilders adding enough supply to keep the market equitable. We don’t have the supply constraints of Toronto and Vancouver because we have serviceable lots within a 20-minute drive,” Delahunt points out. Average sale prices also saw an increase in both residential and condominium markets. The residential side saw a 1.5% increase over last January with an average price of $432,829. In the condo market, an increase of 7.7% resulted in an average price of $283,990 from January 2018. To read the full press release from the Ottawa Real Estate Board click here. Thinking of buying a home in 2019? Contact your Mortgage Broker today! February 7, 2019 CTV Morning Live: Mortgage Minute- February 5, 2019 There are certain qualifying criteria a pruchaser needs to meet in order to withraw from their RRSP under the home buyers plan. Visit our Mortgage Info Centre here to find out if you meet that criteria: RRSP Home Buyers Plan Once the money is withdrawn from your RRSP, it will need to remain in your account for 90 days prior to using it as a down payment. Funds do need to be repaid as 1/15 of the amount over a 15 year period. For example, if you withdraw $15,000, each year you will need to repay $1,000. Any year the repayment is not made, it will count as income on your taxes. Looking to learn more? Contact your Mortgage Broker today.  Watch the full segment from CTV Morning Live here.  February 6, 2019 The State of the Mortgage Market- MPC Mortgage Professionals Canada (MPC) released their State of the Mortgage Market Report. Although the report itself did address the stress test and subsequent implications, it also shed light on the current Canadian mortgage market moving into 2019. “Housing markets across Canada were due to slow to some extent as a result of higher interest rates, but the reductions in activity that have occurred have been much larger than should have been expected, due to the mortgage stress tests, on top of prior policy changes that have constrained home buying,” wrote Will Dunning, Chief Economist of MPC. Some interesting facts emerged from the report from those surveyed: 68% of Canadians chose fixed interest rates 89% have amortizations of 25 years or less 15% of mortgage holders made lumpsump payments to accelerate repayment (Average was $22,100) 16% increased the payment amount by an average of $450 per month 28% of mortgage originations occurred through a Mortgage Broker 0.24% is the current rate of mortgage arrears, which is historically low According to the report, it would take the average wage earner 98 weeks to save 20% for a down-payment on an average home price, which is down from 105 weeks in 2017. Consumer sentiment remains positive with 90% of purchasers happy with their decision to buy a home. As for the outlook for the 2019 market, “The data on housing starts tells us that housing completions in 2019 will be slightly lower than in 2018 but will still be at a level that results in a significant requirement for new financing,” Dunning writes.   For the report highlights, check out Canadian Mortgage Trends article here. For the full report from Mortgage Professionals Canada, visit their website here. Wondering about your mortgage and financing needs? Contact your Mortgage Broker today. February 5, 2019 Open House- The Real Estate and Mortgage Show: February 2, 2019 Thinking of selling in this year’s spring market? Get your home ready and listed sooner rather than later. Speaking with your real estate agent will help identify any areas that could use some improvements as people are less inclined to do work when purchasing a home. If you are showing your home during the heavy snow days, ensure that pathways and driveways are clear and the home is kept warm and inviting. When pricing your home, the market and demand will dictate the price that people will pay for your home. Looking for more information on Advanced Mortgage Investment Corporation? Join the information session happening this Tuesday, visit their website for full details. With the tight qualifying rules some may consider submitting falsified documents or misrepresenting themselves to obtain loans. Lenders and banks are very stringent in the documentation they require. Stats Canada has released a report of what income is required to purchase in different neighbourhoods around Ottawa though it seems like the stress test wasn’t factored in. Always consult with your Mortgage Broker to verify what you can qualify for.   In the mortgage rate market, the bond markets remains stable and there have been no additional decreases over the last week. To listen to the full podcast, click here. Looking for more information about your mortgage or qualifying? Contact your Mortgage Broker today. You can find out more about Advanced Mortgage Investment Corporation (AMIC) by visiting their website. February 4, 2019 Open House- The Real Estate and Mortgage Show: January 26, 2019 The Steve, Frank and Paul are joined by Paul Taylor, president of Mortgage Professionals Canada to talk about how government stress tests are hurting the Canadian market. To listen to the full podcast click here. For more information, contact your Mortgage Broker.  February 1, 2019 Liberals have options to help more millennials buy homes, experts say- NP Recent housing data for 2018 showed indications that the stress test and other federal measures have impacted the ability for some millennials to get into the housing market. Though it seems like the federal government has some options to help this generation enter a market that is showing rising borrowing costs and home prices. Although no distinct measures have been released, with the election this year many of the parties have started to express positions on housing affordability. Stricter housing market rules have become a hot topic with the most recent stress test of 2018 in the forefront. “There’s a lot of folks that just don’t qualify to purchase anymore at the bottom end of that ladder,” said Paul Taylor, president and CEO of Mortgage Professionals Canada. Taylor said the stress tests have succeeded in taking some of the froth out of the market and he believes the time has come for Ottawa to loosen them. In recent meetings with federal officials, he said he has recommended the reintroduction of insurance on 30-year amortization mortgages as a targeted way to help people at the lower end.” To read the full article from the National Post click here. Wondering if you qualify? Contact your Mortgage Broker today. January 29, 2019 CTV Morning Live: Mortgage Minute- January 22, 2019 With the stress test introduced last year it has become increasingly difficult for some individuals to be approved under the new guidelines. Some scenarios where exploring a private mortgage may be a marital breakdown, credit issues, or a newly self-employed individual that does not meet the bank criteria. Private mortgages are not for individuals with 5% or 10% down and usually start at 15% down payment requirements. These are meant to be short term solutions, especially since the rates are pointedly higher than that of a traditional mortgage. Having an exit strategy is extremely important as the idea is to get into the market, or access the equity needed, and then move back into the traditional financing market. From an investor standpoint, Advanced Capital Corporation is an exempt market dealer that is an agent for Advanced Mortgage Investment Corporation (AMIC), which is a private lender in Ottawa that lends private funds on Ottawa real estate. Advanced Capital Corporation sell preferred shares to raise the capital to lend through AMIC. Advanced Capital Corporation is hosting an information session on February 5th, 2019, please visit their website for more information by clicking here.    For more information on private mortgages, contact your Mortgage Broker for information and sound advice. January 23, 2019 Open House- The Real Estate and Mortgage Show: January 19, 2019 Outside of the Ottawa market, especially in Toronto, the land transfer tax is significantly higher for those purchasing home. Insurable rates are also capped at $1 million-dollar home which has more of an impact on the Toronto or Vancouver markets. This impacted buyers and sellers, as well as business for Real Estate Agents and Mortgage Brokers in those markets over the last year. Colder weather creates a chilly, drafty house. When selling, ensure your temperature is set to a warm and comfortable level during showings. When buying a new build, ensure you have Real Estate Agent representation. Paul had clients in the past that bought a new build that weren’t aware of what was being built behind them in the future. Now, with a strip mall in place, the value of that home was impacted. When buying a new build home, buyers have a 30 day and 1 year follow-up coverage. Immediately after closing, have a reputable home inspector come through and make thorough notes on any issues. This way you have it documented by a professional to give the report to the builder to rectify. Thinking of selling your home? Getting a home inspection before listing in order to rectify any faults that may halt a sale with prospective buyers. Low inventory levels continue through the Ottawa market which means it’s a great time to get your home listed before spring. Using a mortgage investment corporation can be very helpful for certain clients, especially when your bank is not willing to work with you. Speaking with your Mortgage Broker to understand all your options can help someone understand the benefits. To listen to the full podcast, click here. For more information, contact your Mortgage Broker for great advice. January 21, 2019 Canadian Home Sales Dip in December- CREA Home sales fell 2.5% across Canada from November to December. “This decline, in part, is due to elevated activity posted in December 2017 as home buyers rushed to purchase in advance of the new federal mortgage stress test that came into effect on January 1, 2018.”, according the Canadian Real Estate Association. "What a difference a year makes," said CREA President Barb Sukkau. "Sales trends were pushed higher in December 2017 by home buyers rushing to purchase before the new federal mortgage stress-test took effect at the beginning of 2018. Since then, the stress-test has weighed on sales to varying degrees in all Canadian housing markets and it will continue to do so this year.” Home prices saw an increase year-over-year in the Ottawa market of 6.9%, bolstered by an 8.3% increase in the townhouse/ row unit markets). The greater Montreal area saw a 6% increase, with a 9.1% increase in the townhouse/ row unit market). “The actual (not seasonally adjusted) national average price for homes sold in December 2018 was just over $472,000, down 4.9% from the same month in 2017. The y-o-y decline reflects how the jump in sales in December 2017 in advance of the stress test was more pronounced in more expensive markets. The national average price is heavily skewed by sales in Greater Vancouver and the GTA, two of Canada's most active and expensive markets. Excluding these two markets from calculations cuts almost $100,000 from the national average price, trimming it to just under $375,000.” To read the full National Statistics report from the Canadian Real Estate Association, click here. For more information about mortgages and financing, contact your local Mortgage Broker.    January 15, 2019 Open House- The Real Estate and Mortgage Show: January 12, 2019 Michael Hapke from Advanced Mortgage Investment Corporation joins to group discussing the benefits and advantages of this arm of the Advanced Group of Companies, which also houses Mortgage Brokers Ottawa. You can find more information on their website: http://www.advancedmortgageinvestmentcorp.ca/ Did you know mortgage are more than just an interest rate? Speaking to your Mortgage Broker gives you not only the best advice but the best mortgage product to suit your needs. Banks will make more profit from offering higher rates, Mortgage Brokers do not get paid anything until the mortgage closes. Now is a great time to list your home- just make sure the pictures convey the highlights of the property. Pictures are the first and potentially only impression for people who are more than likely viewing your home online before they commit to seeing it in person.  Home not selling? It could be a condition or a price property. Recently to Bank of Canada made an announcement to maintain the interest rates, which is a slow down given the 5 increases since July 2017. In the past, moving up in home size was a traditional move. Moving into a mid-size home and intending it to be a forever home is now a new market for this generation of home buyers. People are not as focused on the size of home or lot and more focused on maintenance and costs. As the baby boomer generation starts to down size, those larger home and with larger lots does not necessarily have the same market appeal and they did previously. To listen to the full podcast, click here. January 14, 2019 Bank of Canada holds interest rate at 1.75% In an announcement made today, the Bank of Canada has maintained its key interest rate at 1.75%. This rate impacts the bank prime lending rates on which variable rate loans are calculated. The 25% decline in oil prices has had a significant impact on the economy and the Bank has downgraded its forecast for economic growth to 1.7%, as opposed to 2.4% three months ago. Despite the slowdown in economic growth, the Bank has stated that further increases to the target rate can be expected. "The policy interest rate will need to rise over time into a neutral range to achieve the inflation target," the bank said. “Meanwhile, consumption spending and housing investment have been weaker than expected as housing markets adjust to municipal and provincial measures, changes to mortgage guidelines, and higher interest rates. Household spending will be dampened further by slow growth in oil-producing provinces. The Bank will continue to monitor these adjustments.”, according to the release. The next scheduled announcement for the overnight rate will take place on March 6th, 2019 with a full update from the Bank of Canada set to be released on April 24, 2019. To read the full statement, click here. For trusted advice, contact your Mortgage Broker. January 9, 2019 Open House- The Real Estate and Mortgage Show: January 5, 2019 Rates may be headed down given trends in the bond markets. If a bank is calling to lock in a rate, it is best to consult with your Mortgage Broker for sound advice- especially if your rate is lower than what it being offered. On the real estate side, December saw a drop in the market for sales. Residential sales were down 15.7% and condo sales were down 6.8% from last December. Weather and inventory may have played a role in this decrease. In terms of home prices, residential was up 4.7% and condos were up by 9%. In terms of year-to-date, sales were up 2.4% and average sale price was up by 3.9%. The average sale price was $407,000. Given the inventory levels we saw through 2018, in December there were only 2691 homes on the market- 2075 residential homes and 616 condos. Even with the low inventory levels, your home still needs to be priced properly. Consulting with a trusted Real Estate Agent can help ensure this is accomplished. Credit card debt can be the worst debt to carry in terms of ability to pay off. Best practice is to pay off the credit card every month. To listen to the full podcast, click here. Looking for more information on financing? Contact your Mortgage Broker for the best advice. January 7, 2019