What's In A Name
Whats in a name you say, oh you may be surprised. Technology has made our lives much more convenient however there is also a dark side to technology, it has made it very easy for the criminal element to do their dirty work. The mortgage industry is a breeding ground for fraud and lenders are required to do their due diligence when I submit yourapplicationto make sure that all is legit. Now I will say that I seldom see fraud in my office however there has been the rare occasion where incoming clients have presented documents that have been altered which is a hard stop to the application going any further.
Have you ever Googled your name to see what the big wide web has to say about you? It is a good practice because lenders and default insurers Google your name when they get your mortgage application and if they dont like what they see it could either put a stop to the application or cause us some issues to sort out that could delay the process. Lenders and default insurers will also Google the address of the property that you are buying. Keep in mind that they are lending hundreds of thousands of dollars to someone that they have never heard of before, put yourself in their shoes, if it was your money I am sure you would want to do your homework.
They typically are looking for things such as criminal activity, discrepancies in the application, property negatives. Some examples may be that your Facebook page states that you just started working for company ABC 2 weeks ago while youpresented an application that stated you have worked for company XYZ for the past 5 years. The home you are looking to buy was previously a grow op or involved in some other serious criminal activity. The home you are looking to buy was previously an auto shop or other environmental negative. You may have been recently charged with a serious crime, you get my drift.
So do your homework, Google your own name and see what the lenders will see, also Google the property address to see if any negatives come up as you may not want to buy a certain property if you know about its past.
Bank of Canada maintains overnight rate target at 1 ¾ percent
The Bank of Canada today maintained its target for the overnight rate at 1 percent. The Bank Rate is correspondingly 2 percent and the deposit rate is 1 percent.
The global economy is showing signs of stabilization, and some recent trade developments have been positive. However, there remains a high degree of uncertainty and geopolitical tensions have re-emerged, with tragic consequences. The Canadian economy has been resilient but indicators since the October Monetary Policy Report(MPR) have been mixed.
Data for Canada indicate that growth in the near term will be weaker, and the output gap wider, than the Bank projected in October. The Bank now estimates growth of 0.3 percent in the fourth quarter of 2019 and 1.3 percent in the first quarter of 2020. Exports fell in late 2019, and business investment appears to have weakened after a strong third quarter. Job creation has slowed and indicators of consumer confidence and spending have been unexpectedly soft. In contrast, residential investment was robust through most of 2019, moderating to a still-solid pace in the fourth quarter.
LISTINGS FALL AGAIN TO END 2019, PUSHING PRICES HIGHER
Canadian Real Estate Association data show that national-level home sales fell 0.9% (sa m/m) in December 2019 after rising in the previous nine months. Limited availability looks to be increasingly weighing on sales activity. The month saw another broad-based decline in new listings18 of the 31 centres for which we have data witnessed fallsthat lifted the national sales-to-new listings ratio to 66.9%. It was the highest ratio since 2004 and a third straight month of supply- demand conditions tilted in favour of sellers (after data revisions). Fourteen cities reported sellers market conditions; the rest were balanced. The aggregate MLS Home Price Index (HPI) rose 3.4% (nsa y/y), its best gain since March 2018.
Montreal remained Canadas tightest local market, with rising sales and falling listings leading to yet another record-high sales-to-new listings ratio and the citys steepest y/y MLS HPI gains since 2005. Ottawas ratio also reached a new high as new listings plunged by more than 20% (sa m/m), driving a record 12.5% (nsa y/y) MLS HPI increase. Toronto also crept into sellers market territory for the first time since March 2017as in Montreal, home purchases rose and new listings felland its 7.3% (nsa y/y) HPI rise was the sharpest since 2017.
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Source: Scotiabank Economics