I have decided to create a Youtube Channel Dedicated to Mortgage information. This Channel will be for those seeking more information to learn about mortgages before signing one of the biggest commitments of their lives. Some of the topics that I will cover are:
1.Introduction to Channel
2.What is a Mortgage?
Term loan vs. open loan
Financing for property
Term Vs Amortization
3.Broker vs. Banker vs. Mortgage Specialist vs. Online discount broker
Pro and con
Education and training
Relationship model with customers
What is the Daily life of each of the above
Interest Only Payment
Match a Payment or Double up
Miss a payment
What is a penalty?
Why is it charged?
3 months interest Penalty
Interest Rate Differential Penalty
How to avoid Penalty (port + Blend Extend)
7.Type of Mortgages
Fixed and variable
Open and Closed
1 5 year + 7 and 10 year
What is a preapproval
Why is one needed
Difference between preapproval and real approval
Is the rate on my preapproval guaranteed till closing?
What is a rate?
What is interest?
How is interest calculated?
What is interest compounding?
Why does it matter?
How do I get the best rate?
What is an application and how to apply
What is needed to apply for a mortgage (credit, income, downpayment)
Importance of accurate information
Record December caps record year for Canadian home sales
Statistics released today by the Canadian Real Estate Association (CREA) show national home sales set another all-time record in December 2020.
Home sales recorded over Canadian MLS Systems jumped by 7.2% between November and December to set another new all-time record.
Seasonally adjusted activity was running at an annualized pace of 714,516 units in December 2020 the first time on record that monthly sales at seasonally adjusted annual rates have ever topped the 700,000 mark.
The month-over-month increase in national sales activity from November to December was driven by gains of more than 20% in the Greater Toronto Area (GTA) and Greater Vancouver.
Actual (not seasonally adjusted) sales activity posted a 47.2% y-o-y gain in December the largest year-over-year increase in monthly sales in 11 years. It was a new record for the month of December by a margin of more than 12,000 transactions. For the sixth straight month, sales activity was up in almost all Canadian housing markets compared to the same month in 2019.
For 2020 as a whole, some 551,392 homes traded hands over Canadian MLS Systems a new annual record. This is an increase of 12.6% from 2019 and stood 2.3% above the previous record set back in 2016.
Mortgage Deferral Agreements and Their Impact
CMHCs Fall 2020 Residential Mortgage Industry Dashboard discusses mortgage deferral agreements and their impact.
At the end of the second quarter, credit unions, mortgage finance companies (MFCs) and mortgage investment entities (MIEs) have allowed mortgage deferral agreements for about 6%, 7% and 7% of their respective residential mortgage portfolios.
Chartered banks have allowed 16% of mortgages to go into deferral since the beginning of the pandemic. Of these, close to 2 out of 3 borrowers had resumed payments on their mortgages at the end of the third quarter of 2020. In the coming months, we could see higher delinquency rates if some borrowers are unable to resume their payments; these mortgages will have to be booked as arrears.
These deferral agreements have affected financial institutions cash flows, with reductions of:
4% in scheduled mortgage payments
3% in non-scheduled payments (accelerated monthly payments and lump-sum payments)
While remaining at low levels, mortgages in arrears (90 or more days delinquent) have increased slightly between the first and second quarters of 2020 from:
0.24% to 0.26%, on average, for chartered banks
0.23% to 0.25%, on average, for non-bank mortgage lenders
We also observe an increase in early-stage delinquencies (31 to 59 days and 60 to 89 days), which suggests that arrears could continue on an upward trend.