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.
But I’m here to help!
I’m a VERICO Mortgage Advisor and I’m an independent, unbiased, expert, here to help you move into a home you love.
I have access to mortgage products from over forty lenders at my fingertips and I work with you to determine the best product that will fit your immediate financial needs and future goals.
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Have You Heard Yet? It's Becoming a Little Tougher to Get a Mortgage!
As if it wasnt becoming hard enough to qualify!
Another change in the industry which is making it harder for people to qualify for a mortgage. TD Canada Trust was among the first to announce that they would be making changes to the way they qualify some for mortgages. More specifically it was decided they would use the full credit limit on a secured line of credit instead of the balance owing. So, if you have a secured line of credit with a limit of $100,000 and a balance $25,000, they would use a payment assuming a balance of $100,000.
This change will most certainly impact those looking to buy another house. Another potential impact would be when your mortgage is up for renewal you may not qualify to move your mortgage to another lender. Also, it may affect your ability to co-sign for a mortgage.
What can you do?
Dont apply for the biggest line of credit you can get
Only apply for what you need
Reduce your limit as the need decreases
Contact a mortgage broker so we can discuss your needs and come up a plan to ensure you have as many options as possible.
My two cents
This new policy is in my opinion paving the way for what is coming next. I feel like it is only a matter of time before the policy makers are looking at unsecured debt the same way. Looking at your qualifying power based on how much available credit you have. You may in the future have to really pick and choose what cards you carry in your wallet and more importantly how many with what credit limits!
At the end of the day it is always best you speak to your Mortgage Broker about your options. I specialize in mortgages so therefore offer the best unbiased opinion about what is best for you.
I have a plan, contact me if you find yourself in this predicament. There are things we can look at.
Shawn Mooney | Bayfield Mortgage Professionals Ltd.
Broker of Record
Your Mortgage Broker for Life
Bus. # 403-945-8769 | Mobile # 403-828-1838
Bank of Canada maintains overnight rate target at 1 ¾ per cent
The Bank of Canada today maintained its target for the overnight rate at 1 per cent.
The Bank Rate is correspondingly 2 per cent and the deposit rate is 1 per cent. The global economic expansion continues to moderate, with growth forecast to slow to 3.4 per cent in 2019 from 3.7 per cent in 2018. In particular, growth in the United States remains solid but is expected to slow to a more sustainable pace through 2019. However, there are increasing signs that the US-China trade conflict is weighing on global demand and commodity prices.
Global benchmark prices for oil have been about 25 per cent lower than assumed in the October Monetary Policy Report (MPR). The lower prices primarily reflect sustained increases in US oil supply and, more recently, increased worries about global demand. These worries among market participants have also been reflected in bond and equity markets.
The drop in global oil prices has a material impact on the Canadian outlook, resulting in lower terms of trade and national income. As well, transportation constraints and rising production have combined to push up oil inventories in the west and exert even more downward pressure on Canadian benchmark prices. While price differentials have narrowed in recent weeks following announced mandatory production cuts in Alberta, investment in Canadas oil sector is projected to weaken further.
Largest portions of household budgets go to shelter and transportation
Shelter remained the largest budget item for households in 2017, at 29.2% of their total consumption of goods and services. Spending on transportation, the second-largest expenditure category, accounted for 19.9% of total consumption, followed by food expenditures at 13.4%.
Households spent an average of $18,637 on shelter, up 3.4% from 2016. Included in this total was an average of $16,846 paid for principal residence (which includes rent, mortgage payments, repairs and maintenance costs, property taxes and utilities) and an average of $1,791 for other accommodation, such as hotels and owned secondary residences.
In 2017, two out of every three Canadian households owned their home, and more than half of homeowners had a mortgage. Homeowners with a mortgage spent an average of $25,904 on their principal residence, compared with $9,642 for homeowners without a mortgage and $13,499 for renters.
Canadian households paid $12,707 for transportation in 2017, up 6.7% from 2016. They spent an average of $11,433 on private transportation, which includes the purchase of cars, trucks and vans, as well as their operating costs. Households, on average, spent $2,142 on gasoline and other fuels in 2017, up 9.8% from 2016, reflecting the 11.8% annual average increase in gasoline prices. Spending on public transportation, which covers public transit, taxis, intercity buses, trains and air fares, remained relatively unchanged at $1,274.
In 2017, 84.0% of households owned or leased a vehicle. Vehicle ownership was highest in rural areas (94.9%) and lowest in cities with a population of at least one million residents (79.0%).