Since 1998, I have been providing expert mortgage advice to clients looking to purchase real estate, or for the renewal or refinance an an existing mortgage.
Are you looking for the best rate? I am confident that I can secure a great interest rate for you, but, when shopping for a mortgage, the biggest mistake that a consumer can make is to base the decision solely on the interest rate. Yes, the rate is important, but it should not be the only point you base your decision on!
Ask yourself the following questions before you commit to a "great rate" mortgage:
My interest rates may not be that different from other providers; However, I am the difference that makes the difference here!
Talk to me... You'll be impressed.
Critical Dates to keep in mind for the upcoming Downpayment changes that take effect on February 15th, 2016
The Federal Government recently changed the minimum downpayment requirements for high-ratio insured mortgages (Purchases up to 1M). The minimum downpayment requirement will be increased from 5% to 10% on a portion of the purchase price for a property that is above 500K, but less than 1 Million dollars.
This change takes effect on February 15th, 2016.
Here are some critical dates to be aware of - especially if you are actively looking to purchase a property this month: Mortgage applications received by CMHC prior to February 14th, with a closing date on or before July 1st, 2016 will only require a 5% minimum downpayment.
If your home purchase closing date is after July 1st, 2016, then you will be required to have a minimum 5% downpayment on the first 500K, and 10% downpayment on any amounts above that, up to 1 Million.
So, to summarize: If you are making an offer to purchase this week and you only want to put 5% down, then you need to make your closing date on or before July 1st, 2016. For further details, please contact me.
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.