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 twenty five different lenders at my fingertips and I 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.
I 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 — I’m the VERICO Mortgage Advisor who can help you get the right financing, from the right lender, at the right rate.
6 MONTHS TO A BETTER BUDGET
One of the challenges with proper budgeting is that ithas to become habitual in order to be effective. You can survive withoutknowing how to budget if you manage to keep more money coming in rather than goingout or have credit cards to cover the gap, but this won't last forever. EmergencyFund The crux of this six-month plan is the emergency fund.Ideally, everyone should have at least one or two months' wages sitting in a moneymarket account for any unpleasant surprises. This emergency fund acts as abuffer as the rest of the budget is put in place, and should replace the use ofcredit cards for emergency situations. You will want to build your emergencyfund as quickly as possible. The key is to build the fund at regular intervals,consistently devoting a certain percentage of each paycheck toward it and, ifpossible, putting in whatever you can spare on top. What'san Emergency? You should only use the emergency money for trueemergencies: like when you drive to work but your muffler stays at home.Covering regular purchases like clothes and food do not count, even if you usedyour credit card to buy them. Downsizeand Substitute Now that you have a buffer between you and morehigh-interest debt, it is time to start the process of downsizing. It’s odd that the naturalsolution to not enough money seems to be increasing income ratherthan decreasing spending, but this backwards approach is very familiar to debtcounselors. The more space you can create between your expenses and yourincome, the more income you will have to pay down debt and invest. This can bea process of substitution as much as elimination. For example, if you buycoffee from a fancy coffee shop every morning, you could just as easilypurchase a coffee maker with a grinder and make your own, saving more moneyover the long term. Focuson Rewards Another trick that will help your budget come togetherfaster is to focus on the rewards. A mixture of long- and short-term goals willhelp keep you motivated. This can be as simple as saving for a small luxury, oreven something bigger like buying a car with cash. Watching these goals slowlybut surely become a reality can be very satisfying and provide further motivationto work harder at your budget. FindNew Sources of Income Why isn't this the first step? If you simply increaseyour income without a budget to handle the extra cash properly, the gains tendto slip through the cracks and vanish. Once you have your budget in place andhave more money coming in than going out, you can start investing to createmore income. Now, it is possible that it will take you more than sixmonths to get your budget balanced out as it all depends on your situation,including how much or what kind of debt you have. But, even if it does take youlonger than six months to get your budget turned around, it is time well spent.
Minister Morneau announces new benchmark rate for qualifying insured mortgages
For many Canadians, their home is the most important investment they will make in their lifetime. That is why the Government of Canada has introduced measures to help more Canadians achieve their housing needs while also taking measured actions to contain risks in the housing market. A stable and healthy housing market is part of a strong economy, which is vital to building and supporting a strong middle class.
Today, Minister of Finance, Bill Morneau, announced changes to the benchmark rate used to determine the minimum qualifying rate for insured mortgages, also known as the stress test. These changes will come into effect on April 6, 2020. The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2%.
This follows a recent review by federal financial agencies which concluded that the minimum qualifying rate should be more dynamic to better reflect the evolution of market conditions. Overall, the review concluded that mortgage standards are working to ensure that home buyers are able to afford their homes even if interest rates rise, incomes change, or families are faced with unforeseen expenses. This adjustment to the stress test will allow it to be more representative of the mortgage rates offered by lenders and more responsive to market conditions.
The Office of the Superintendent of Financial Institutions (OSFI) also announced today that it is considering the same new benchmark rate to determine the minimum qualifying rate for uninsured mortgages. OSFI is seeking input from interested stakeholders on this proposal before March 17, 2020.
The Contagion of Fear
Fears of a possible coronavirus pandemic are sweeping the world. Markets are jittery with little hard data to go on.
With the first case now reported in Canada, many are recalling the 2003 SARS where Canada was one of the epicenters. Arguably the biggest (economic) lesson from that experience is that fear is the biggest risk to the outlook.
The impact of the SARS pandemic on the Canadian economy is difficult to estimate, confounded as it was by the slowing US economy, the invasion of Iraq and other events, but the Bank of Canada estimated -0.6ppt hit to annualized growth in Q2-2003, or just over 0.1% on the level of GDP.
While it is premature to predict the path of todays coronavirus outbreak, we estimate that a SARS-equivalent pandemic today could have a similar impact on the Canadian economy with an estimated hit of just over 0.1% on the level of GDP by mid-2020, at which point a pandemic should be contained. This estimate is subject to a significant degree of uncertainty with risks skewed to a potentially larger impact.
The effect should not be significant enough to trigger a broader economic malaise, but could this finally push Governor Poloz over the line to proactively stimulate the economy in his next rate call?