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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.
Bank of Canada maintains overnight rate target at 1/2 per cent
The Bank of Canada today announced that it 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.
Uncertainty about the global outlook is undiminished, particularly with respect to policies in the United States. The Bank has made initial assumptions about prospective tax policies only, resulting in a modest upward revision to its US growth outlook. Overall, the global economy is strengthening largely as expected and prices of some commodities, including oil, have risen. The rapid back-up in global bond yields, partly reflecting market anticipation of US fiscal expansion, has pulled up Canadian yields relative to the OctoberMonetary Policy Report(MPR).
Bearing in mind the important assumptions embedded in its forecast, the Bank projects that Canadas real GDP will grow by 2.1 per cent in both 2017 and 2018. This implies a return to full capacity around mid-2018, in line with Octobers projection.
In the context of a projection that is largely unchanged, the Banks Governing Council judges that the current stance of monetary policy is still appropriate and maintains the target for the overnight rate at 1/2 per cent. Governing Council will continue to assess the impact of ongoing developments, mindful of the significant uncertainties weighing on the outlook.
Source: Bank of Canada
Canadian Housing Starts Trend Declined in December
The trend measure of housing starts in Canada was 198,053 units in December compared to 200,105 in November, according to Canada Mortgage and Housing Corporation (CMHC).
The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of Canadas housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next.
The standalone monthly SAAR for all areas in Canada was 207,041 units in December, up from 187,273 units in November. The SAAR of urban starts increased by 11.8per cent in December to 187,621 units. Multiple urban starts increased by 13.9per cent to 120,750 units in December and single-detached urban starts increased by 8.1per cent, to 66,871 units.
In December, the seasonally adjusted annual rate of urban starts increased in Ontario, Quebec and the Prairies, but decreased in British Columbia and in Atlantic Canada.