Mortgage Rule Changes... Again January 1st, 2018 The next new mortgage rule changes comes into effect January 1, 2018. It will require borrowers to qualify based on a rate that is 2 percentage points above the contract rate OR the Bank of Canada posted 5 year rate (currently 4.89%), whichever is higher. This “stress test” criteria used to be for CMHC insured mortgages where home buyers were … [Read more...]
Should you Lock in your Interest Rates?
Time to lock in your Interest Rates? We've all heard the rumblings... Canada may raise Interest Rates next week. In reality, what the Bank of Canada is talking about is the Prime lending rate. So what does that mean to you and your mortgage? Well, if you have a fixed rate, this does not effect you immediately. (but of course it will down the road when you renew) If you have a variable rate, it … [Read more...]
What’s My Credit Score?
What’s My Credit Score? If you are shopping for a house, you are also shopping for a mortgage, unless you’re wealthy and have a few hundred thousand dollars sitting in the bank. One of the first things that will come up when applying for a mortgage is your credit score. Your credit score is the measure that lenders use to assess your financial health and decide whether or not to … [Read more...]
Getting Pre Approved – 101
Getting Pre Approved 101 As we in Saskatchewan get closer to finally being able to put away the snow brush in our vehicle for the season, we inevitably start thinking about improving our homes. For a few, that could be finally moving out of Mom and Dad’s basement, others may have the desire to own a home and to stop renting, while for some it might just be time to move into a bigger / newer home … [Read more...]
New Housing Rules and the First Time Buyer
2017 - The Year First Time Home Buyers Hold Off From Buying? The mortgage world has definitely changed over the last year with what seemed like new mortgage rules coming out monthly. As an experienced Mortgage Broker, even I have been overwhelmed with the constant changes. I can only imagine how a First Time Buyer would feel! Last week, Canadian Mortgage and Housing Corporation (CMHC) … [Read more...]
Equipment Leasing – Flexible Financing for Business Owners
Equipment Leasing - Flexible Financing for Business Owners As a Mortgage Broker, it is my job to look in every nook and cranny to find the best Lenders and financing solutions for my clients. More and more these days, Canadians are working for themselves. Obtaining financing now for their homes or businesses are becoming increasingly difficult. Because of this, I am seeing a shift in my … [Read more...]
Mortgage Qualifying Requirements
Qualifying Requirements It’s been a week since the new rule changes have taken effect and it seems the biggest concern for Canadians revolves around the new qualifying requirements for new insured mortgages (less than 20% down payment). Borrowers will have to qualify based on the Bank of Canada posted 5 year rate which is currently 4.64%. This means that most borrowers will have approximately 20% … [Read more...]
New Mortgage Rules
New Mortgage Rules Anticipated changes have been announced and released by the Finance Minister, Bill Morneau, regarding new Mortgage rules... Starting October 17th, 2016 Borrowers who take out a mortgage with a fixed-rate of five years or longer will be subject to a more stringent “stress test”. Currently, borrowers who take a five year insured mortgage (less than 20 percent down payment) … [Read more...]
Down Payment Options – What You Need to Know
When purchasing a home, one of the most frequent questions I get is, “What are my down payment options?” Especially true for first time buyers. Knowing how much you will need to have, and where it can come from is the first step. How much do I need for a down payment? Canada's new down payment rules require a minimum 5% down payment on all mortgages of $500,000 or less. For mortgages over … [Read more...]
Managing Debt the Smart Way
TransUnion, a credit-monitoring firm, reported that 26 million Canadians have some form of debt, including mortgages, lines of credit, and credit card debt. As per their analysis, roughly 718,000 of those people wouldn’t be able to keep their heads above water financially if their interest rate went up by as little as 0.25 percentage points. Overall, most Canadians are good at managing debt like … [Read more...]
Graduate Retention Program – What You Need to Know!
How Does it Work These days, it’s not often the Government lends you a helping hand. But in this case, the Graduate Retention Program is a winner when it comes to giving these new home buyers the chance to set roots here in Saskatchewan instead of somewhere else. It is a Provincial Government initiative brought in to help new graduates by providing an interest free, repayable loan of up to … [Read more...]
40 Second Read : Using your RRSP for Down Payment
Undoubtedly, the questions I have heard the most this Spring have surrounded using your RRSP for Down Payment and who qualifies as a First Time Home Buyer. Here are a few points regarding Canada’s Home Buyer’s Plan (HBP) that should help clear things up. RRSP for Down Payment - Who Qualifies? According to CRA, you are considered a First Time Buyer if, in the four year period, you did not … [Read more...]
Improvements that Add Value – The 5 Best Home Reno’s
We all want our Homes to look great You know about regular maintenance but does it really help when it comes time to sell? Should you renovate that tired bathroom or that dated kitchen? What about creating more living space or just adding a new coat of paint? Worry no more, here are the consensus home improvements that add value. Five Home Reno Improvements that Add Value: Revamp the … [Read more...]
Down Payment Rules when Buying a Home
The topic that I field the most questions from clients these days surrounds Down Payment Rules. Questions like, “What is the minimum amount I need to have to buy a house?” “Can I still use gifted money from my parents?” Another is, “Do I need to account for the Legal fees in addition to the Down Payment amount?”, and, “What other costs am I likely to incur to buy a home?” To answer these … [Read more...]
Self-Employed and Need a Mortgage? Sure!
Things have change from the old days of looking for a salaried job with benefits and a pension straight out of school. It is even less common to have the same employer for an entire career. These days more and more Canadians are taking it upon themselves to be their own boss, make their own hours, work from home and have a direct impact on their earning potential. Typically, most BFS (Business … [Read more...]
Benefits of a Variable Rate Mortgage
Variable Rate Mortgages Have Many Benefits I often hear the question, "What is the better way to go with my mortgage rate Andy, fixed or variable?" To this, the usual reply is, "Well, it depends on your financial situation as well as your risk tolerance. But if it's a fit for you, there sure are some benefits of a variable rate mortgage!" You see, over the course of a 25 year amortization, the … [Read more...]
The Advantage of Renewing Your Mortgage Early
A recent survey by the Canadian Mortgage and Housing Corporation (CMHC) found that 60% of Canadian mortgages were renewed before their scheduled maturity date. Here are three good reasons why you should consider renewing your mortgage early and/or be open to it being with a different bank or lender: Lower your mortgage rate – realize those savings now. Get ahead of any rate increases. … [Read more...]
