It PAYS to shop around.
Many Canadian homeowners pay too much for their homes because they are not getting the best mortgage financing available in the market.
The mortgage process can be intimidating for homeowners, and some financial institutions don't make the process any easier. We work with people that have credit challenges and bruised credit to get them the mortgage financing they deserve.
But we're here to help!
We are VERICO Mortgage Advisors and we are independent, unbiased, experts, here to help you move into a home you love.
We have access to mortgage products from over eighty lenders at our fingertips and we work with you to determine the best product that will fit your immediate financial needs and future goals.
VERICO mortgage specialists are Canada’s Trusted Experts who will be with you through the life of your mortgage.
We save you money by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal. So whether you're buying a home, renewing your mortgage, refinancing, renovating, investing, or consolidating your debts — We are the VERICO Mortgage Advisors who can help you get the right financing, from the right lender, at the right rate.
NEW MORTGAGE RULE CHANGES
On October 3 the federal government made significant changes to the way Canadians can finance their homes.
Starting Oct. 17, all insured mortgages will have to undergo a stress test with a qualifying rate of 4.64% to determine whether a borrower could still make mortgage payments if faced with higher interest rates or less income. Previously, such stress tests werent required for fixed-rate mortgages longer than five years only on variable rate mortgages.
On Nov. 30, several eligibility rules will tighten on mortgages where borrowers made down payments of at least 20% of the purchase price.
In a move to reduce the flow of foreign cash into markets like Toronto and Vancouver, the government said it will tighten a loophole on an exemption that allows homeowners to avoid paying capital gains tax on the sale of a principal residence.
Going forward, that exemption will only be available to Canadian residents, Morneau said, and families will only be allowed to designate one home as their primary residence.
A maximum amortization of 25 years will apply to all insured mortgages.
More significantly the government is talking about stress testing on the renewal of existing mortgages which if the clients dont qualify the banks can charge them higher interest rates knowing that they cant transfer their mortgage somewhere else.
The lenders have already started to adopt these new policies and anybody that currently has a pre-approval and is shopping for a home will need to re-qualify under the new rules in effect reducing the size of the mortgage they can afford.
Self employed small business owners who do not show much income will have a much more difficult time getting financing as many lenders have suspended their stated income programs.
Finally the properties most affected by these changes is rental properties with most of the lenders canceling or at least suspending their rental programs.
I would be more than happy to sit down and discuss these changes in detail so please do not hesitate to contact me.
PROMISES, PROMISES AND MORE PROMISES
Canadas Parliament re-convened today with a ceremonial Speech from the Throne delivered by the Governor General.
Canadas continued response to the COVID-19 pandemic took centre-stage, while providing a lens for a plethora of broader promises: an extension of the wage subsidy, expanded employment insurance, investments in childcare, reaffirmed commitments to universal pharmacare, and green infrastructure investments among many others.
Given the exhaustive list of priorities, this Speech is unlikely to bring the minority government down as it provides plenty of hooks for negotiations in the lead-up to a Fall update where details will be laid out.
It clearly signals more fiscal spending ahead for Canada leaving the question not if but how much. But this was largely channeled ahead, so the market reaction has been mutedor more likely, it is eclipsed by broader US and global developments.
There is little beyond lip service by way of fiscal restraint. This will be left to the Finance Minister to make inevitable trade-offs in her first budget this Fall, particularly as she may need to reserve some firepower for second waves.
Source: Scotiabank https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.fiscal-policy.fiscal-pulse.federal.federal-budget-analysis.federal-throne-speech--september-23--2020-.html
Home affordability improved in Q2 2020
Housing affordability in Canadas large urban centres improved in the second quarter of 2020 after having deteriorated in the two prior quarters. Higher incomes helped in Q2 but the largest portion of the improvement came in the form of lower interest rates. Indeed, the latter declined 19 basis points in the quarter, reflecting the easing from the central bank. Combined, income and mortgage rates were more than enough to offset the increase in home prices. Still, the decline in interest rates on a quarterly average basis does not completely reflect the change in 5-year mortgage rates since the beginning of the COVID-19 pandemic. The February to June decline in mortgage interest rates was a much more significant 41 basis points. Looking ahead, the preliminary data for rates shows additional improvements in the third quarter of the year (cumulatively they are down over 70 bps). While we expect this to help affordability, home prices should remain resilient based on the latest resale market data showing record sales volumes. Homebuyers have rushed back to the market after having delayed purchases and are now being offered record-low interest rates. Once pent-up demand is exhausted, the Canadian housing market will still have to face high levels of unemployment and reduced household formation due to lower immigration.