Welcome to a new way of getting a mortgage! My job is to work with your realtor and lawyer to make the mortgage process as straightfoward and stress-free as possible.
I bring over 10 years of experience in finance to the job, having started my career in Europe and Asia as an Investment Banker before returning to Canada in 2011 to become a Mortgage Agent.
I was raised in Kingston and attended Queen's University, graduating with a Bachelor of Commerce Honours degree in 2003. Both my father and brother work as Mortgage Agents and together we form the Matthey Mortgage Team, with a combined 60+ years of mortgage and finance experience.
5 Things You Need to Know about Investors Group’s 1.99% Mortgage
Investors Groups 3 year variable mortage at Prime 1.01% captured a great deal of attention this week. The fact is, this mortgage could be right for some borrowers, as long as they fully understand the terms and conditions. For a $250,000 mortgage, the interest savings versus a 5-year variable rate are approximately $3,000 over 3 years, which is pretty compelling.
Here are 5 things you should consider about IGs 1.99% Mortgage Deal:
Be very certain that you will not need to refinance within the term. You cannot refinance or add to this mortgage unless you sell your home and pay a penalty. So if there is a risk that your financial circumstances could change (loss of income, retirement, financial assistance for a child in post-secondary education, etc.) this may not be the right product for you.
Ensure that the 3.75% monthly payment is affordable payments are based on this much higher rate although your mortgage interest is 1.99%. This is a higher monthly payment than almost any other 3 or 5-year mortgage out there.
Understand what the penalty could be if you do sell your home. The penalty for this mortgage is not clearly stated on the website, which could mean it is pricier than the market average. Most likely it is 3 months interest based on the 3.75% interest rate, which is more expensive than the majority of variable rate mortgage penalties out there.
Check that you qualify at the qualifying rate of 4.79%. Yes thats right. The interest rate is 1.99%, the payments are based on 3.75% but you must qualify for this mortgage at the Bank of Canada qualifying rate of 4.79%. Talk about confusing!
Understand the fees you could be charged at renewal if you do not renew with Investors Group. They are likely to offer to renew you at their rates, but currently their 5 year fixed rate special offer is 3.35% and 5-year variable is 2.75% or Prime 0.25%. These rates are above market, and if you choose to leave Investors Group it is likely you will have to pay upwards of $1,300 in legal and appraisal fees to switch to another Lender. This is due to the way that Investors Group will register this mortgage, making it harder for you to switch without paying fees.
In summary, weigh the interest savings versus the potential fees and costs before you make your decision. Dont be afraid to ask questions to your banker or mortgage broker asking them to clearly define the penalties, fees and special conditions of any mortgage that you enter into. The rate can be a great deal paying thousands more in penalty or fees may wipe out that gain.
Feel free to give me a call or send an email with any questions.
Mortgage Agent, Lic: #M12001008
613 893 4139
Ontario just introduced a 16-point plan to control real estate, including a Foreign Home Buyer Tax
On April 20, 2017, the Ontario government introduced the Ontarios Fair Housing Plan, a 16-point plan to control real estate, address thedemand for housing, increase supply, and protect buyers and renters.
The 16 measures in the plan include a legislation that would implement a new 15 % Non-Resident Speculation Tax (NRST), similar to the 15 % tax on foreign buyers already introduced in Vancouver last May.
Once legislation passes, the tax would be effective retroactively to April 21.
The measures are aimed at cooling down the hot housing market in the Greater Toronto Area, where prices were up 33 % from a year ago while condominium rents rose 8.3 % in the first quarter from a year ago.
Now that two major cities have been impacted by a Foreign Buyer Tax, only time will tell if investors will look to other Canadian cities to invest their funds.
Canadian home sales up on a month-over-month basis in March
According to statistics released today by The Canadian Real Estate Association (CREA), national home sales were up on a month-over-month basis in March 2017.
- National home sales rose 1.1% from February to March.
- Actual (not seasonally adjusted) activity in March was up 6.6% from a year earlier.
- The number of newly listed homes climbed 2.5% from February to March.
- The MLS Home Price Index (HPI) was up 18.6% year-over-year (y-o-y) in March 2017.
- The national average sale price increased by 8.2% y-o-y in March.
Home sales over Canadian MLS Systems edged up 1.1% in March 2017, surpassing the previous monthly record set in April 2016 by one-quarter of a percent.
March sales were up from the previous month in more than half of all local markets, led by the Lower Mainland of British Columbia, London St. Thomas and Montreal.
Actual (not seasonally adjusted) activity in March was up 6.6% year-over-year, with gains in close to 75% of all local markets. Sales in the Greater Toronto Area (GTA) posted the biggest increase, which offset a decline in the number of homes changing hands in Greater Vancouver.
The number of newly listed homes rose 2.5% in March 2017, led by gains in the GTA, Calgary, Edmonton and the Lower Mainland of British Columbia.
With new listings having climbed by more than sales, the national sales-to-new listings ratio eased to 67.4% in March compared to 68.3% in February.
A sales-to-new listings ratio between 40 and 60 is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers and sellers markets respectively.
The ratio was above the sellers market threshold in about 60% of all local housing markets in March, the majority of which are located in British Columbia, in and around the GTA and across southwestern Ontario.
There were 4.1 months of inventory on a national basis at the end of March 2017, down from 4.2 months in February and the lowest level for this measure in almost a decade. The number of months of inventory in March 2017 stood at or below one month in the GTA, Hamilton-Burlington, Oakville-Milton, Kitchener-Waterloo, Cambridge, Brantford, Guelph, Barrie District, parts of the Niagara Region and parts of cottage country.
The Aggregate Composite MLS HPI rose by 18.6% y-o-y in March 2017. Price gains accelerated for all benchmark housing categories tracked by the index.
Prices for two-storey single family homes posted the strongest year-over-year gains (+21%), followed closely by townhouse/row units (+17.9%), one-storey single family homes (16.6%) and apartment units (16.3%).
While benchmark home prices were up from year-ago levels in 11 of 13 housing markets tracked by the MLS HPI, price trends continued to vary widely by location.
In the Fraser Valley and Greater Vancouver, prices have been recovering in recent months after having dipped in the second half of last year. On a year-over-year basis, home prices in the Fraser Valley and Greater Vancouver remain well above year-ago levels (+19.4% y-o-y and +12.7% y-o-y respectively).
Meanwhile, y-o-y benchmark price increases were in the 20% range in Victoria and elsewhere on Vancouver Island. Guelph recorded a similar price gain, while Greater Toronto and Oakville-Milton saw prices rise in the 30% range in March.
By comparison, home prices eased by 1.2% y-o-y in Calgary and by 1.5% y-o-y in Saskatoon. Prices in these two markets now stand 5.4% and 5.1% below their respective peaks reached in 2015.
Home prices were up modestly from year-ago levels in Regina (+1.7%), Ottawa (+4%), Greater Montreal (+3.3% y-o-y) and Greater Moncton (+4.7%).
Year-over-year price gains were led by different benchmark housing categories in each of these markets. In Regina, apartments posted the biggest price increase, which snapped a long series of price declines for apartments that began in early 2015. In Ottawa, prices rose most for one-storey single family homes. In Montreal, two-storey single family home prices posted the biggest gain; meanwhile in Moncton, it was townhouse/row unit prices that climbed the most.
HPI) provides the best way of gauging price trends because average price trends are prone to Home Price Index (MLSThe MLSbeing strongly distorted by changes in the mix of sales activity from one month to the next.
The actual (not seasonally adjusted) national average price for homes sold in March 2017 was $548,517, up 8.2% from where it stood one year earlier.
The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canadas tightest, most active and expensive housing markets.