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What is your Best Rate?
Recently I had some good friends of mine ask what the going interest rates are and more importantly what is the best rate could I get them. Obviously not an uncommon question in my line of work but this is no longer a quick and easy question. Last year if I wanted to be a little cheeky (depending on who was asking) Id respond with a question of my own, like whats your credit score? 9 times out of 10 there would be an awkward pause and blank stare followed by a does it matter? Yes, yes it does. Once we got through that portion of the conversation Id then begin talking about the rates. But that was 2016, and now that it is 2017 the rate game has become a little like the did you see what Trump just tweeted conversation that is making people yearn for the days of old. Last October Finance Minister Bill Morneau announced significant changes* to our industry which included new securitization rules and qualification requirements. These changes forced lenders to adjust their pricing models to account for the increased costs of doing business and those costs have been handed down to you the borrower. Prior to that announcement I had a nice simple rate sheet that told me what every lender was offering. Now my rate sheet could easily be 5 pages long and it would still be incomplete. Credit scores were once the driving factor in your interest rate, now Mortgage Brokers should be asking you a laundry list of questions to determine what mortgage is best suited for you long before they tell you the best rates. Here are some questions you need to be prepared to answer before you can start asking about the interest rate. Is this a purchase or refinance? What is the loan to value percentage? What term and amortization would you like? What type of property are you wanting to mortgage? Can you prove your income? Can you stomach the idea of a very large penalty if you need to break the term? These are just a few of the questions your Mortgage Broker needs to ask when you to properly evaluate what the best rate for you is. Do you want to know where you fit into the new world of mortgage rates? Please give me a call or send me an email and I would be happy to help. *Industry Changes: Department of Finance and Article from the Globe and Mail Mortgage Tip: Do you know what is on your credit report? Check your report for free.
Canadian home sales fall further in July
According to statistics released today by The Canadian Real Estate Association (CREA), national home sales declined further in July 2017. Highlights: National home sales fell 2.1% from June to July. Actual (not seasonally adjusted) activity in July stood 11.9% below last Julys level. The number of newly listed homes edged back by 1.8% from June to July. The MLS Home Price Index (HPI) was up 12.9% year-over-year (y-o-y) in July 2017. The national average sale price edged down by 0.3% y-o-y in July. Julys interest rate hike may have motivated some homebuyers with pre-approved mortgages to make an offer, said CREA President Andrew Peck. Even so, sales activity continued to soften in the Greater Golden Horseshoe region. Meanwhile, sales and prices in Montreal continue to strengthen. All real estate is local, and REALTORS remain your best source for information about sales and listings where you live or might like to. July marked the smallest monthly decline in Greater Golden Horseshoe home sales since Ontarios Fair Housing Plan was announced in April, said Gregory Klump, CREAs Chief Economist. This suggests sales may be starting to bottom out amid stabilizing housing market sentiment. Time will tell whether thats indeed the case once the transitory boost by buyers with pre-approved mortgages fades. Click here to continue reading
Decline in single-family component moderated by gain in multi-family dwellings
Canadian municipalities issued $8.1 billion worth of building permits in June, up 2.5% from May and the second highest value on record. Higher construction intentions for multi-family dwellings and commercial buildings were mainly responsible for the national increase. All building components reported gains in June, except for single-family dwellings. The value of residential building permits fell 0.9% in June to $5.0 billion, the fourth decrease in five months. The decline was mainly the result of lower construction intentions in four provinces, notably Ontario. In June, the value of permits for single-family dwellings decreased 12.5% to $2.4 billion. Seven provinces registered declines, with Ontario being the main contributor to the decrease. Conversely, construction intentions for multi-family dwellings rose 12.5% in June to $2.7 billion, marking a third consecutive monthly increase. Seven provinces registered gains, led by Ontario and British Columbia. Click here for more information