I am proud to have been a nationally and locally award-winning Mortgage Broker for over 28 years in the Kingston area.I have been one of the broker/owners of our company over the same time period. I have been ranked in the Top 3 as a Mortgage Broker in the Kingston This Week's Reader's Choice Awards for the past several years, and in the fall of 2013, I was proud to be inducted into the Canadian Mortgage Hall of Fame.
My son, Chris, my daughter, Karen and Karen Schmidt ,comprise the Matthey Mortgage Team.Chris has been a mortgage agent for 8+plus.Karen's background is in International Finance and has been a agent for 4 years. Karin Schmidt has a 20+ year banking background and is our client services manager
Our speciality is First Time Buyers, but we cover a wide range of financing options for all types of situations.
If you are military, you may have seen news stories on huge mortgage penalties paid by members to their Bank, when posted. You may qualify for our "Freedom Mortgage" for military that offers no penalty when you produce a posting notice inside or outside of Canada.
If you are a First Time Buyer , we have the most comprehensive guide available for you that you can order on line.Just send an email to email@example.com under the heading "First Time Buyers Guide Please"
There are many ways to contact us if you have a question.You can text us direct at 613-561-2719.You can email us at firstname.lastname@example.org You can use the live chat button on our web page or you can also access us Face2Face(F2F) through Apple Facetime by dialing 613-561-2719.The last option works well with our clients for any questions, they have on their mortgage, before, during or after closing.
It is our belief that our job does not end with your mortgage approval.We support you through changes in your life and lifestyle and we are there to guide you into the nest mortgage products that benefit you, not the lender.
We would love to hear from you.
The majority of our business comes from referrals, which is a great reinforcement that people appreciate the job that we do. Our job is not just to get you a great rate (although we do that too!) - it is to explain the home buying and mortgage process to you, clearly explain the terms and conditions of your mortgage to you (so unlike with the bank you're not suddenly hit with a shocking penalty you had no idea could happen) and keep you informed about where rates and the economy are going.
You can find Open Houses and New Listings in the Kingston area here:https://www.facebook.com/buysellshowkingstonrealestate/
You can find Waterfront Open Houses and Listings here:https://www.facebook.com/YGKWaterfrontproperty/
Is Buying a Home with a "Friend" or "Friends" a Good idea? Family? Widowed? Divorced? BFF?
The substantial increase in property values, together with increased government regulation has eliminated many first time buyers from the market or substantially reduced their buying power. The burden of saving for a down payment and the cost of ownership aretwo factors that are also preventing buyers from entering the market.
There have been instances, in the past, where buying with a partner has made sense for young people to get into the housingmarket. Those partners could be your brother, yoursister, yourcousin, yourBFF or you and your partner and another couple. It has also been popular amongst older divorced or widowed men and women who want the freedom of a home, the economy of shared expenses and the safety and companionship of a partner. Millennials, however, have dominated the first time buyer category with a median age of 28-31, when entering the market.
There are obviously a lot of reasons to own instead of buying.
The obvious ones include:
1)Creating equity, insteadof throwing away money on rent. For those current homeowners in the market today, ithas been a win-winfor past buyers based on property appreciation. (see below)
2)Ownership carrying costs are often less than current rates as rental accommodation shortages have pushed rents up significantly.
3)You may be able to purchase better accommodation than you would in a rental situation as you will qualifybased on two incomes. In the examples below, the monthly cost of shared accommodation would be below most rents for anapartment in todays market and with rent, you have no opportunity to accumulate equity.
4)You need only to come up with 2 1/2% for the down payment, plus another 1 1/2% of closing costs
The best type of property to buy in a scenario, such as this, is a duplex or a triplex with one other unit as a rental component. There are also a lot of properties that now have legal in-law suites that could fit the bill, perfectly. In the case of a single family unit a down payment of 5% is required. In a duplex it is 7.5% and a triplex a down payment of 10% is required. The down payment requirement changes with property values over $500K.Most popular have been up and down two-unit properties with separateentrances and separate accommodations.
Lets consider a couple of examples where we will look at the monthlycarrying costs on a mortgage, thevalue appreciationin a property over 5 years at a 2% annual compound rate and the assumption of the sale of the property at the end of a 5-year term
Example #1-Purchase price $300,000 -Total Down payment with closing costs each $11-12,000, Taxes estimated at $3200 per year-5 year term using 3.14% and bi-weeklypayments
Payment each $978-balance at the end of 5 years $246K
Assuming a 2% annual compound appreciationrate over 5 years=$331K
Net equity assuming a sale with a 4% real estatecost,plusHST,pluslegals=$314,500-$246,000=$68K or 34K each
Example #2-Purchase Price of $400,000 Total down payment $15-16K each, Taxes estimated at $4200
Payment $1282 each-Mortgage balanceafter 5 years
Value after 5 years as above $441K
Value after sale and costs-$419500
Net equity-$91,500 or $45750 each
In a scenario such as this, it is assuming the partners go into this for a 5 year period to maximize equity, but a lot can happen in 5 years.While partnered ownership can set the stage for a build-up of equity towards future individual purchases, thearrangement has to be approached in a business manner with a defined written agreement that sets out the What Ifs for the future.
There are too many to list here but here are a few must haves in an agreement:
1)What happens if one partner wants out before the 5 years?
2)Clauses pertaining to shared cost, how they are handled and by whom.
3)Parking and shared facilities.
4)Guests or live-ins.
5)Life insurance and disability coverage if one partner should die or get ill.
6)Agreements as to shared maintenanceor property improvement costs and workload on property upkeep.
7)What happens in the case of one party not being able to meet their monthly obligations.
Being in the business for over 29 years, I have had a lot of experience in accommodating this type of purchase. Divorced parents, widowed seniors, friends, couples, partners have all found this to be a good option for homeownership and in the case of widowed seniors a source of companionship.
The key to a successful purchase starts with absolute honesty and disclosure of each parties finances.You may know the other party but that relationship can be strained unless your define it carefully.
Together with a lawyer, we can advise you on the full overview of what you need to consider in your agreement.
The government has also changed the parameters under which borrowers can qualify for mortgages.You must have good credit and we have to examine your outside debt picture to ensure you meet the qualifying guidelines. There is an advantage in having a possible larger income pool for qualification.
Applications can be done online or in person in my office. Call 613-384-4000 ext 222 to set up an appointment. For any questions, please feel free to email me at email@example.com
With housing prices increasing substantially over the past few years, joint ownership will become a more common solution for people wanting a better long-term alternative than costly rental accommodation.
CREA Updates Resale Housing Market Forecast
The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service (MLS) Systems of Canadian real estate Boards and Associations in 2018 and 2019. Housing market fundamentals remain strong in many parts of the country. Nonetheless, many housing markets continue to struggle in the face of policy headwinds.
The new mortgage stress test announced last October had been expected to cause homebuyers to rush purchases in advance of the new rules coming into effect in January and for the pull-forward of sales activity to result in fewer transactions in the first half of 2018.
Evidence suggests the policy response was stronger than expected, with seasonally adjusted national home sales last December having surged to the highest level ever recorded before dropping sharply in early 2018.
Actual (not seasonally adjusted) national sales figures for March, April and May are typically among the most active months in any given year. Combined sales fell to a nine-year low for the three-month period. The seasonally adjusted trend suggests sales momentum has not yet begun to rally.
Interest rates are widely expected to rise further this year and next. Home sales activity is nonetheless still expected to strengthen modestly in the second half of 2018 as housing market uncertainty diminishes.
Taking these factors into account, the national sales forecast has been revised downward and is now projected to decline by 11% to 459,900 units this year. The decrease almost entirely reflects weaker sales in B.C. and Ontario amid heightened housing market uncertainty, provincial policy measures, high home prices, ongoing supply shortages and this years new mortgage stress test.
Bank of Canada maintains overnight rate target at 1¼ per cent
The Bank of Canada today maintained its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1 per cent.
Global economic activity remains broadly on track with the Banks April Monetary Policy Report (MPR) forecast. Recent data point to some upside to the outlook for the US economy. At the same time, ongoing uncertainty about trade policies is dampening global business investment and stresses are developing in some emerging market economies. Global oil prices have been higher than assumed in April, in part reflecting geopolitical developments.
Inflation in Canada has been close to the 2 per cent target and will likely be a bit higher in the near term than forecast in April, largely because of recent increases in gasoline prices. Core measures of inflation remain near 2 per cent, consistent with an economy operating close to potential. As usual, the Bank will look through the transitory impact of fluctuations in gasoline prices.
In Canada, economic data since the April MPR have, on balance, supported the Banks outlook for growth around 2 per cent in the first half of 2018. Activity in the first quarter appears to have been a little stronger than projected. Exports of goods were more robust than forecast, and data on imports of machinery and equipment suggest continued recovery in investment. Housing resale activity has remained soft into the second quarter, as the housing market continues to adjust to new mortgage guidelines and higher borrowing rates. Going forward, solid labour income growth supports the expectation that housing activity will pick up and consumption will continue to contribute importantly to growth in 2018.