Rates are starting to respond to the downward pressure...
One Big 5 Bank did in fact drop their 5 year fixed rates late last week 0.15%. PM me to find out which one.
Will other banksfollow suit? Yes. If you have an approval in place today...will your bank aoutomatically drop the rate on your approval? No!
Does my firm have access to lenders that ALREADY were BEATING the big banks (some by 0.50%) - 100% yes. In most cases we can at least match if not significantly beat bank rates. The last calculation I ran for a client last week on his $465,000 RBC Renewal, we would save him $8600 in interest versus the RBC offer. It pays (BIG) to talk to a mortgage broker outside your bank at renewal time! 60-90 days before renewal is the time to reach out to us.
A Little on Regulations (Behind the Curtain)...
As of Jan 1, 2019 Capital Requirements for the Banks, imposed by Government Regulators, has increased. This cuts into their profits (which they dont like) and so they have been slow to drop rates following the bond market, which they always do.
Prepayment Penalties on Variable Rate Mortgages are precisely regulated to a maximum of 3 months interest. Fixed Fate Mortgages are regulated too, however are based on Interest Rate Differential (IRD), which can cost borrowers the equivalent of 10 months - 20 months - or even 30 months interest!
Its not all about Rate. Equally as important is early term break penalties (AKA Prepayment Penalties). The Big 6 have the HIGHEST breakage penalties of any other Canadian lenders. IRD Penalties (Interest Rate Differential) should be a clear and concise, easy to understand calculation, just like Rates are easy to understand. They are not as the government allows the banks to keep them hidden and difficult to calculate for the lay person, and even for many bankers.
MOST IMPORTANT: In Decreasing Interest Rate Environments - These penalties can be TENS of THOUSANDS of dollars on mortgages $300k-$600k (Fairly common mortgage amounts for most Canadians). Protect yourself and ask the question What if I need to break this 5 year mortgage early - How is my penalty calculated?. Most lenders will shy away from answering this as it can be so convoluted and they really dont know as its based on posted rates at time of payout.
Did you know approx 60% of Canadians break their 5 year term mortgages (sell/move to another property, refinance, marital breakdown, traumatic life event, etc). Truly, when you are trying to negotiate with your bank over 0.05 or 0.10 less on a rate - they often will come down, knowing 6 of 10 will break and the thousand or two they concess on up front interest they will make up by the FIFTEEN to THIRTY THOUSAND prepayment penalty they charge many of their clients (in decreasing rate environments due to their IRD clause).
Working with an independent Licensed Mortgage Broker ensures you get a great Rate and also your other interests are protected. My business is built on Client Relationships NOT Client transactions.
Call, Text orEmail at any time - I am happy to discuss your individual needs andprovide custom mortgage advise.
Ownership of Residential Property by Non-individuals
New data released today from the Canadian Housing Statistics Program provide information on ownership of residential properties by non-individuals in Nova Scotia, Ontario and British Columbia. The Canada Mortgage and Housing Corporation published a report using these new data,Residential Property in British Columbia, Ontario and Nova Scotia: An Overview of Non-individual Ownership, which also includes analysis of the ownership structure of vacant land across the three provinces.
The data tables include information on non-individual entities, referring to firms and governments. For the purpose of this release, they are classified into the following categories: corporations, governments, and sole proprietorships and partnerships. Information on selected sectors in which those entities operate, following sector groupings from the North American Industry Classification System (NAICS), is also included in this release.
Among firms and governments, corporations own the majority of residential properties
Across the three provinces, corporations are the most common legal type of non-individual owners of residential properties, followed by governments. Corporations include businesses and non-profit organizations, while governments include federal, provincial, territorial and municipal governments. In terms ofNAICSsectors, entities belonging to the real estate and rental and leasing sector, the public administration sector and the construction sector are the most common non-individual owners of residential properties.
In Ontario, three-quarters of non-individual owned properties are held by corporations, compared with68.9% in Nova Scotia and57.3% in British Columbia. The share of non-individual owned properties held by governments is highest in British Columbia (39.0%), followed by Nova Scotia (22.9%) and Ontario (20.1%).
In Nova Scotia,28.8% of residential properties held by corporations are owned by the construction sector, compared with22.5% in Ontario and21.4% in British Columbia. Among the residential properties owned by corporations, the real estate and rental and leasing sector accounts for the largest share in Ontario (31.1%) and in British Columbia (23.4%), while in Nova Scotia it represents about one-quarter of the properties held by corporations.
The average assessment value of a residential property owned by corporations is highest in British Columbia at $1.3million, compared with $630,000in Ontario and $330,000in Nova Scotia. In British Columbia, corporations account for84.7% of the total assessment value of non-individual owned properties, while in Ontario and Nova Scotia this share is closer to80%. Residential properties owned by governments represent around10% of the total assessment value of properties owned by non-individuals in each province.
Resolution broken already? Try a wellness goal instead
Many of us make New Years resolutions every January. But statistics show that nearly 80 per cent of people who make them will have broken them by February.
If you feel like this is you, dont fret. Most of us can agree, especially with recent holiday indulgences, that improving personal fitness and nutrition is an intimidating idea. But the secret to getting motivated and keeping the momentum going into the spring is to follow these three simple guidelines:
Dont try too much at once. When we first set fitness and wellness resolutions, were often inclined to make a goal to spend every day at the gym and eat clean 100 per cent of the time. There is a reason these are too often broken they are hard to accomplish. Listen to your body and do what feels good for you. Modify your lifestyle to a healthy one that fits your needs and is one youll be able to sustain throughout the year.
Stick to it. Experts say that it only takes 21 days to create a lasting habit. While that may seem like a lot, three weeks will come quickly and there are many resources out there to help you through it, from fitness plans to eating guides. AdvoCare, a nutrition and wellness company new to Canada, carries several products to help enhance your results.
Keep a positive mindset. If you miss a day, dont stress about it, you can get back on track tomorrow. Staying positive about your wellness journey will keep you on track to reach your goals and maintain a healthy lifestyle well into the future.
If you are able to make it to day 21, youll set the stage for the rest of the year and will be on the right track to meeting your fitness and nutrition goals.
Find more information at advocare.com/en-ca.