Big bank report points to importance of service brokers provide
Brokers have for years boasted about their ability to find the best mortgage for clients -- by considering more than just the best rate rate -- and a new study suggests young homebuyers need that service now more than ever.
When it comes to buying a home, its in a purchasers best interest to consider all aspects of a mortgage and not just the rate. But it seems many arent considering their mortgage from all angles, with a new study finding many regret taking on a mortgage that has left them house poor.
Its important to choose the house and mortgage that you can afford so that you can manage your cashflow and wont end up with buyers remorse, David Nicholson, Vice-President, CIBC Imperial Service, said. A house can represent so much a new start, independence, putting down roots, starting a family or building wealth. But, its important to evaluate the pros and cons and crunch the numbers so its the right decision for today and tomorrow.
Many Millenials regret purchasing their homes, according to a recent CIBC report. A poll found 39% of Millenials have become homeowners; of those purchasers, 81% plan to sell in near future.
Of those, 63% cited housing costs making them cash poor; 57% are afraid interest rate increases will make it more difficult to meet payment requirements; and 36% believe renting is the better option.
The results speak to the growing need for the services brokers provide which include in-depth advice about long- and short-term mortgage options that best suit individual financial goals.
One of the problems you have with Millenials is they figure they can get all the information they need online as opposed to the information from people like brokers. The internet is no different from a dictionary or encyclopaedia, Bill Macklem, a BC-based broker withDominion Lending Centres, told MortgageBrokerNews.ca. You can research how to build a car or a plane but building it is another matter. You need to have someone that is going to be your advocate, who is going to see what youre doing and help you plan it out. We dont have enough financial education and I think brokers provide that.
Employment increased by 35,000 in October
In October, employment rose for youth aged 15 to 24, while it was little changed for the core-aged population of 25- to- 54 year-olds, and for people 55 and older. The largest employment increase was in Quebec, followed by Alberta, Manitoba, Newfoundland and Labrador, and New Brunswick. At the same time, there was a decline in Saskatchewan.
Employment rose in several industries, led by other services; construction; information, culture and recreation; and agriculture. Employment declined in wholesale and retail trade.
The number of private sector employees increased in October, while public sector employment and self-employment were little changed.
Canadian home sales edge up again in October
According to statistics released by The Canadian Real Estate Association (CREA), national home sales posted a modest monthly increase in October but remain below levels recorded one year ago.
Newly introduced mortgage regulations mean that starting January 1st, all home buyers applying for a new mortgage will need to pass a stress test to qualify for mortgage financing, said CREA President Andrew Peck. This will likely influence some home buyers to purchase before the stress test comes into effect, especially in Canadas pricier housing markets. A professional REALTOR is your best source for information and guidance in negotiations to purchase or sell a home during these changing times.
Home sales via Canadian MLS Systems edged up 0.9% in October 2017 on the heels of monthly increases in August and September, but remained almost 11% below the record set in March.
National sales momentum is positive heading toward year-end, said Gregory Klump, CREAs Chief Economist. It remains to be seen whether that momentum can continue once the recently announced stress test takes effect beginning on New Years day. The stress test is designed to curtail growth in mortgage debt. If it works as intended, Canadian economic growth may slow by more than currently expected.