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Many Canadian homeowners pay too much for their homes because they are not getting the best mortgage financing available to them. Long gone are the days of dealing with "my bank". Your bank has their bottom line as their number one priority, which is why many Canadians never see the best rate they could, and they never see the most flexible mortgage they could, and they pay WAY TOO MUCH on any payout penalties they may incur.
I know the mortgage process can be intimidating, and some financial institutions don't make the process easy at all. In fact many institutions are down right cumbersome, so let me navigate that process for you and allow you to live a stress free process.
I’m a Professional Mortgage Planner and an independent, unbiased, expert, here to help you move into a mortgage you love.
I have access to mortgage products from multiple lenders, and I work with you to determine the best product that will fit your immediate financial needs and future goals.
I am a member of the VERICO MORTGAGE BROKER NETWORK, 3 time winner of Canada's Mortgage Company of the year. I have been in the mortgage industry for nearly 15 years, and never before has experience mattered so much.
I save you money by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal or additional purchase. So whether you're buying a home, renewing your mortgage, refinancing, renovating, investing, or consolidating your debts — I’m the Mortgage Planner who can help you get the right financing, from the right lender, at the right rate.
Know Your Market, not The Market
Random Musings As I sit here ready to write this article I am strugglingwith what topic to discuss, what topic is going to mean more to you, theconsumer. Should I talk about interestrates or the potential changes to mortgage rules, or the fact that a couple oflenders have exited the Mortgage Broker world? Maybe I should talk about the difference from one mortgageto the next, all valid topics for-sure, but today I am not going to be thatspecific, no this is going to be quite random. My randomness started by doing some research over my pastfew lunch breaks and coffee shop visits, well o.k., not really research, morelike eaves-dropping. I have beenhearing a lot of real estate and mortgage related conversations, interestingconversations, by people who obviously have very little experience, whom arespeaking with a great level of confidence, like they have done it a hundredtimes. Are these people like manyothers? Are they bombarded withmedia reports about what is right and wrong and what is real or not real? I have to admit, I am an active tweeter and face-booker, Ilove the articles and the “knowledge” I gain, but like any media outlet it canbe very confusing and overwhelming.On any given day I can read three articles that may start like this: #1 CMHC reports a decline in housing starts compared to thistime last year. #2 The CalgaryReal Estate Board predicts year over year growth and property valueincreases. #3 Is there a Canadian Real EstateBubble? Are you confused yet? I am and this brings me to my first musing. Understand “your”market, not “the” market In my opinion there is no market when it comes to realestate, there is only your market.National averages, CMHC reports, lender forecasts are all interestingarticles but if you are making the significant decision to purchase a home,sell a home or take a particular type of mortgage after only consulting with a Nationalentity then you are likely missing the boat. A large change of home price in Toronto or Vancouver candramatically change that national average you are so intently following. When I hear people say they are notgoing to buy now because we are in a bubble and prices are definitely comingdown I can’t help but want to tell them to stop and get knowledgeable of themarket they want to buy in. Thatmarket could be as precise and limited to a two bedroom apartment in WestLethbridge. Yes “your market” canbe that small, and to make your decision on a CMHC report based on overallNational housing information could lead to the wrong decision. Walk a Mile Just recently I participated in the YWCA Walk a mile in hershoes event to raise money for the local YWCA. I dressed in a skirt (and yes the wind was blowing it up), Ihad on a string top (that was cutting into my ribs) and wore a long wig (I hadto hold the hair out of my face all day) and of coarse I was in bright pinkhigh heels (and yes they hurt my feet and my legs). I walked the full mile and at the end I knew for that shortmoment what it was like to be a “lady”.What did I take from it?Well first I took great honor in being able to raise funds for a veryworthy cause, but I also took from it an understanding. The next time I am walking with a womenwho needs to stop due to sore feet, I will gladly stop because I now know whatthey are experiencing. Is this lesson I learned applicable to real estate? Absolutely 100% it is. If your real estate agent, homeinspector or mortgage planner do not own a home how can they possibly know whatyou are about to go through. Ifyour Mortgage planner is not experienced with owning revenue property how canthey possibly point out things you should be thinking of regarding tax issues,vacancies, cash flows or cap. rates?Taking the advice of someone who read a book or two, or who has friendsthat have done it is not likely the basis for your sound decision! Taking advice from those who understandwhat you are going to experience is absolutely essential. The Apex of thespread curve is way tighter than it was a month ago! What? What on earth are you talking about? I am talking about the differencebetween variable rates and fixed rates, which one is better for you and whatthis means to your future mortgage product. If you were to have looked at a line graph a month ago youwould have seen a big curve representing a fixed rate and a big curverepresenting a variable rate.These curves would have mirrored each other (representing a wide spread)and clearly shown the benefit of a variable rate mortgage. A month ago many lenders were offeringfive year variable rate mortgages at prime minus .80% (equal to 2.2% at thattime) and offering 5 year fixed rates at 3.79%. This was a spread of over 1.5% and meant the variable ratewas a safe option for many who understand that the Bank of Canada prime rate isnot likely to increase for many months to come. Today is a different story with most lenders now offeringvariable rate mortgages at prime minus .20% (equal to 2.80%) and fixed rates at3.39%, this is a spread of only ½% meaning variable rate mortgages are not nearas attractive as they were. Thespread, or the graph curve is much tighter. My final musing: Crazy rules I hear so many “rules” when talking to my clients. You now the one like this: You should purchase rental propertiesthat yield monthly rent equal to 1% of the purchase price. Well, to put itbluntly if that was the rule there would never be a rental property sold inSouthern Alberta. This would meanyou would need to earn $3000 per month on your $300 000 home. Good luck with that! Keep those conversations going, stay excited about realestate and do yourself a big favor.Seek the help of those who are experts in your market and in yourcommunity.
BOC maintains overnight rate target at 1/2 per cent; projects moderate growth in Q2
The Bank of Canada is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.
Inflation is broadly in line with the Banks projection in its April Monetary Policy Report (MPR). Food prices continue to decline, mainly because of intense retail competition, pushing inflation temporarily lower. The Banks three measures of core inflation remain below two per cent and wage growth is still subdued, consistent with ongoing excess capacity in the economy. The global economy continues to gain traction and recent developments reinforce the Banks view that growth will gradually strengthen and broaden over the projection horizon. As anticipated, growth in the United States during the first quarter was weak, reflecting mostly temporary factors. Recent data point to a rebound in the second quarter. The uncertainties outlined in the April MPR continue to cloud the global and Canadian outlooks.
The Canadian economys adjustment to lower oil prices is largely complete and recent economic data have been encouraging, including indicators of business investment. Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions. Macroprudential and other policy measures, while contributing to more sustainable debt profiles, have yet to have a substantial cooling effect on housing markets. Meanwhile, export growth remains subdued, as anticipated in the April MPR, in the face of ongoing competitiveness challenges. The Banks monitoring of the economic data suggests that very strong growth in the first quarter will be followed by some moderation in the second quarter.
All things considered, Governing Council judges that the current degree of monetary stimulus is appropriate at present, and maintains the target for the overnight rate at 1/2 per cent.
Canadian home sales drop in April
According to statistics released today by The Canadian Real Estate Association (CREA), national home sales declined in April 2017.
National home sales fell 1.7% from March to April.
Actual (not seasonally adjusted) activity in April was down 7.5% from a year earlier.
The number of newly listed homes jumped 10% from March to April.
The MLS Home Price Index (HPI) was up 19.8% year-over-year (y-o-y) in April 2017.
The national average sale price rose 10.4% y-o-y in April.
Home sales over Canadian MLS Systems fell by 1.7% in April 2017 from the all-time record set in March. April sales were down from the previous month in close to two-thirds of all local markets, led by the Greater Toronto Area (GTA) and offset by gains in Greater Vancouver and the Fraser Valley.
Actual (not seasonally adjusted) activity was down 7.5% year-over-year, with declines in close to 70% of all local markets. Sales were down most in the Lower Mainland of British Columbia, where activity continues to run well below last years record-levels. The GTA also factored in the decline, with faded activity compared to record levels set in April last year.
Sales in Vancouver are down from record levels in the first half of last year but the gap has started to close, CREA President Andrew Peck. Meanwhile, sales are up in Calgary and Edmonton from last years lows and trending higher in Ottawa and Montreal. All real estate is local, and REALTORS remain your best source for information about sales and listings where you live or might like to.
Homebuyers and sellers both reacted to the recent Ontario government policy announcement aimed at cooling housing markets in and around Toronto, said Gregory Klump, CREAs Chief Economist. The number of new listings in April spiked to record levels in the GTA, Oakville-Milton, Hamilton-Burlington and Kitchener-Waterloo, where there had been a severe supply shortage. And with only ten days to go between the announcement and the end of the month, sales in each of these markets were down from the previous month. It suggests these housing markets have started to cool. Policy makers will no doubt continue to keep a close eye on the combined effect of federal and provincial measures aimed at cooling housing markets of particular concern, while avoiding further regulatory changes that risk producing collateral damage in communities where the housing market is well balanced or already favours buyers.