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All you need to know about the new mortgage insurance premiums effective May1st, 2014
Questions and Answers
1. What if a purchase and sale agreement is signed prior to May 1st, 2014 and the mortgage insurance application is submitted on or after May 1st, 2014?
In this scenario, the new premium rates would apply. Even though the purchase and sale agreement was signed before May 1st, 2014, the mortgage insurance application was received by Genworth after the effective date of the new premium rate price change, and therefore the new rates apply.
2. What if I have signed a purchase and sale agreement and I require mortgage insurance, however, the closing date is after May 1st, 2014, will the current premiums still apply?
As long as the application was submitted to Genworth prior to May 1st 2014, the current premiums will still apply.
3. I have a mortgage pre-approval from a lender from before May 1st, 2014, will I still be eligible for the current premium rates if I dont have a signed agreement of purchase until on or after May 1st, 2014?
All applications for mortgage insurance must be submitted prior to May 1st, 2014 with a binding purchase and sale agreement in place to be eligible for current premium rates.
4. If I bought a new construction property (i.e. condo) that is not expected to be built for another two years, will the new premium rates apply?
As long as the application for mortgage insurance was submitted to Genworth prior to May 1st, 2014 and the closing date is prior to the expiry of the Genworth commitment, then current premiums will apply.
5. If I have a Progress Draw mortgage that has been submitted to Genworth prior to May 1st 2014 and the draws are occurring on or after the May 1st, 2014, will the new premium rates be charged?
As long as the application for mortgage insurance was submitted to Genworth prior to the May 1st, 2014, the current premium rates will be charged.
6. What if I am thinking about refinancing my home on or after May 1st, 2014, will I be eligible for the current premium rates?
To be eligible for the current premiums, applications must be submitted to Genworth prior to May 1st, 2014. If the refinance application is submitted on or after May 1st, 2014, the new premium rates will apply.Genworth Financial Mortgage Insurance Company Canada
7. How will the new premiums apply to an existing Genworth insured loan if the mortgage is ported to a new property?
For applications submitted on or after May 1st 2014, the new premium rates plus any applicable surcharges will apply when there is a port and increase to the current mortgage amount.
Changes On Or After May 1st, 2014
8. If I submit an application for mortgage insurance to Genworth prior to May 1st, 2014, and the application then gets resubmitted with changes or updates on or after May 1st, 2014, will the application continue to be eligible for the current premiums.
As long as the original application was submitted to Genworth prior to May 1st 2014, and there are no changes to the property, then the current premiums will still apply.
9. If a lender has cancelled (in error / technology issues/ making changes) a file that Genworth received prior to May 1st, 2014 and then needs to re-open or resubmit the application on or after the May 1st, 2014, can they resubmit and still be charged the current premium rates?
Where the submitting lender does not change, and there are no changes to the property, the mortgage insurance application will still be eligible for the current premium rates.
10. What would happen if there was a previous approval with Lender A under the current premium rates and the same application is then submitted by Lender B on or after May 1st, 2014?
New premium rates would apply to Lender Bs application as it was submitted to Genworth after the May 1st, 2014 deadline.
The Teranet-National Bank House Price Index ticked down 0.1% in February
In February the TeranetNational Bank National Composite House Price Index(tm) retreated 0.1% from the previous month, following December and January rises that had interrupted a downtrend. It was the first February decline since 2013. The index was up in only three of the 11 metropolitan markets surveyed, the fewest since October 2014: Vancouver (+0.4%), Hamilton (+0.2%) and Halifax (+0.8%). The index for Victoria was flat on the month and the other seven component indexes were down: Toronto 0.1%, Montreal 0.3%, Ottawa-Gatineau 0.7%, Edmonton 0.8%, Calgary 0.8%, Winnipeg 1.0%, Quebec City 1.5%.
For Vancouver it was the 12th rise in 14 months, taking its index to a new record. However, this markets raw (unsmoothed) index* was down 1.3% on the month, a retreat coinciding with a cooling of home sales as reported by the Real Estate Board of Greater Vancouver. The raw index for Toronto declined after three consecutive rises. In previous months observers had noted a certain haste on the part of buyers to beat the entry into effect of tougher conditions for obtaining an uninsured mortgage. The advance of the Hamilton index interrupted a run of five declines. The retreat of the Montreal index was the first in 14 months. This is not a concern, since the Greater Montral Real Estate Board reported the strongest sales in six years for the first two months of a year.
Canadian Income Survey, 2016
Canadian families and unattached individuals had a median after-tax income of $57,000 in 2016. Median after-tax income increased from 2011 to 2014, but held steady in 2015 and 2016. The slower growth in 2015 and 2016 was associated with the resource price slowdown, which began in the second half of 2014.
After-tax income is comprised of income from market sources and government transfers. Market income includes employment income, retirement income and income from investments, while government transfers include benefits to seniors, child benefits,
Employment Insurance benefits, social assistance and other benefits. While growth in overall median after-tax income slowed in 2015 and 2016, there was also a significant increase in government transfer income. Median income from government transfers rose from $5,800 in 2014 to $7,400 in 2016. About half of this rise was due to increased child benefits, which became a larger source of income for families with children.
In 2014, the median child benefit received by couple families with children were $2,500. This rose to $3,400 in 2015, and to $4,000 in 2016. For a lone-parent family, the median benefits rose from $5,100 in 2014 to $5,800 in 2015, and then to $6,400 in 2016.