It PAYS to shop around.
Many Canadian homeowners end up house rich and cash poor, by paying too much for their homes because they are not getting the best mortgage financing product available in the market, and are not being 'debt effective'.
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 Mortgage Advisor with VERICO Custom Mortgages, a local boutique office of independent mortgage experts that is also part of the national VERICO broker network. We show you how your bank compares to the wide range of mortgage lenders out there, at no cost to you, and offer advice based on your individual cash flow and greater financial goals as to the best mortgage product to help you reach your realestate ownership goals while being 'debt effective'.
As your mortgage advisor, I look to save you money throughout the life of your mortgage, by sourcing the best products at the best rates – not only on your first mortgage but through every subsequent renewal, equity take-out, or future purchase.
So whether you're buying a home, renewing your mortgage, refinancing, renovating, investing, or consolidating your debts — I’m the Mortgage Advisor who can help you get the right financing, from the right lender, at the right rate.
All you need to know about the new mortgage insurance premiums effective May1st, 2014
Questions and Answers
1. What if a purchase and sale agreement is signed prior to May 1st, 2014 and the mortgage insurance application is submitted on or after May 1st, 2014?
In this scenario, the new premium rates would apply. Even though the purchase and sale agreement was signed before May 1st, 2014, the mortgage insurance application was received by Genworth after the effective date of the new premium rate price change, and therefore the new rates apply.
2. What if I have signed a purchase and sale agreement and I require mortgage insurance, however, the closing date is after May 1st, 2014, will the current premiums still apply?
As long as the application was submitted to Genworth prior to May 1st 2014, the current premiums will still apply.
3. I have a mortgage pre-approval from a lender from before May 1st, 2014, will I still be eligible for the current premium rates if I dont have a signed agreement of purchase until on or after May 1st, 2014?
All applications for mortgage insurance must be submitted prior to May 1st, 2014 with a binding purchase and sale agreement in place to be eligible for current premium rates.
4. If I bought a new construction property (i.e. condo) that is not expected to be built for another two years, will the new premium rates apply?
As long as the application for mortgage insurance was submitted to Genworth prior to May 1st, 2014 and the closing date is prior to the expiry of the Genworth commitment, then current premiums will apply.
5. If I have a Progress Draw mortgage that has been submitted to Genworth prior to May 1st 2014 and the draws are occurring on or after the May 1st, 2014, will the new premium rates be charged?
As long as the application for mortgage insurance was submitted to Genworth prior to the May 1st, 2014, the current premium rates will be charged.
6. What if I am thinking about refinancing my home on or after May 1st, 2014, will I be eligible for the current premium rates?
To be eligible for the current premiums, applications must be submitted to Genworth prior to May 1st, 2014. If the refinance application is submitted on or after May 1st, 2014, the new premium rates will apply.Genworth Financial Mortgage Insurance Company Canada
7. How will the new premiums apply to an existing Genworth insured loan if the mortgage is ported to a new property?
For applications submitted on or after May 1st 2014, the new premium rates plus any applicable surcharges will apply when there is a port and increase to the current mortgage amount.
Changes On Or After May 1st, 2014
8. If I submit an application for mortgage insurance to Genworth prior to May 1st, 2014, and the application then gets resubmitted with changes or updates on or after May 1st, 2014, will the application continue to be eligible for the current premiums.
As long as the original application was submitted to Genworth prior to May 1st 2014, and there are no changes to the property, then the current premiums will still apply.
9. If a lender has cancelled (in error / technology issues/ making changes) a file that Genworth received prior to May 1st, 2014 and then needs to re-open or resubmit the application on or after the May 1st, 2014, can they resubmit and still be charged the current premium rates?
Where the submitting lender does not change, and there are no changes to the property, the mortgage insurance application will still be eligible for the current premium rates.
10. What would happen if there was a previous approval with Lender A under the current premium rates and the same application is then submitted by Lender B on or after May 1st, 2014?
New premium rates would apply to Lender Bs application as it was submitted to Genworth after the May 1st, 2014 deadline.
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.
Click here for more.
Source: Scotiabank Economics
Story in 2018 and early 2019 was weak sales; story in 2020 will be lack of supply
The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service (MLS) Systems of Canadian real estate boards and associations this year and for 2020.
Evidence suggests housing activity will continue to improve into 2020, with prices either continuing to rise or accelerating in many parts of Canada. Indeed, many housing market indicators continue to support this outlook.
Economic fundamentals underpinning housing activity remain strong outside of the Prairies together with Newfoundland and Labrador. The national resale housing market outlook continues to be supported by population and employment growth while consumer confidence is benefiting from low unemployment rates outside oil-producing provinces. Additionally, the Bank of Canada is widely expected to not raise interest rates in 2020.
Mortgage interest rates have declined, including the Bank of Canadas benchmark five-year rate used by Canadas largest banks to qualify applicants under the B-20 mortgage stress-test. Though the decline in the benchmark rate has been modest, it is helping to improve homebuyer access to home purchase financing.