AGENT LICENSE ID
M09002027
BROKERAGE LICENSE ID
12060
Victor Catalan
Mortgage Broker
Office:
Phone:
Email:
Address:
95 Queen St S Unit B, MISSISSAUGA, Ontario
BROWSE
PARTNERSI specialize in helping people with bad credit get a mortgage or help consolidate your debt into your mortgage.
As an experienced mortgage professional, it is my job to get you the mortgage you need at the price that you deserve. I work on your behalf and have access to over 25 different lenders. Let’s work together to get you the right mortgage! Even if you have credit challenges, call me and let's look at your numbers.
BLOG / NEWS Updates
Foreign entities investing in the housing market.
An intersting article came about regarding the influx of foreign money into the housing market by CBC.http://www.cbc.ca/news/business/housing-market-regulations-1.3479818.
I am for regulating the market to foreign money for the following points:
The demand for housing is not related to dweling requirement but on investment requirement forcing the prices to go up; common Canadians would not be able to afford these prices resorting to renting and other non-permanent means of dwelling
Income from investment properties held by foreign entities are very unlikely invested back into Canada. There is a potential that the revenues generated leave the country - we have no laws to prevent this
As more foreign funds come into the housing market, sustainability of the whole market is now in the hands of entities who may chose to abandon or sell their investments. This will affect the whole market as people who opted to buy the property at a higher cost after saving their hard earned money would suffer from a devaluated house price.
Banks would be unclear as to the direction of these investment properties - they would not have any solid indicator if a default is emminent.
The idea of building house for local consumption or local use should be the priority and should be the focus of the housing market. If there is a large portion of houses owned by foreign entities being used to leverage on a quick and short term profit, it is then no different from the stock market where the later would have regulations on how a sale was done - on properties , you can dispose an asset when you want to. This is not sustainable in the long run.
Mortgage Deferral Agreements and Their Impact
CMHCs Fall 2020 Residential Mortgage Industry Dashboard discusses mortgage deferral agreements and their impact.
At the end of the second quarter, credit unions, mortgage finance companies (MFCs) and mortgage investment entities (MIEs) have allowed mortgage deferral agreements for about 6%, 7% and 7% of their respective residential mortgage portfolios.
Chartered banks have allowed 16% of mortgages to go into deferral since the beginning of the pandemic. Of these, close to 2 out of 3 borrowers had resumed payments on their mortgages at the end of the third quarter of 2020. In the coming months, we could see higher delinquency rates if some borrowers are unable to resume their payments; these mortgages will have to be booked as arrears.
These deferral agreements have affected financial institutions cash flows, with reductions of:
4% in scheduled mortgage payments
3% in non-scheduled payments (accelerated monthly payments and lump-sum payments)
While remaining at low levels, mortgages in arrears (90 or more days delinquent) have increased slightly between the first and second quarters of 2020 from:
0.24% to 0.26%, on average, for chartered banks
0.23% to 0.25%, on average, for non-bank mortgage lenders
We also observe an increase in early-stage delinquencies (31 to 59 days and 60 to 89 days), which suggests that arrears could continue on an upward trend.
Source: CMHC
Bank of Canada will maintain current level of policy rate until inflation objective is achieved, continues its quantitative easing program
The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of percent, with the Bank Rate at percent and the deposit rate at percent. The Bank is maintaining its extraordinary forward guidance, reinforced and supplemented by its quantitative easing (QE) program, which continues at its current pace of at least $4 billion per week.
The rebound in the global and Canadian economies has unfolded largely as the Bank had anticipated in its October Monetary Policy Report (MPR). More recently, news on the development of effective vaccines is providing reassurance that the pandemic will end and more normal activities will resume, although the pace and breadth of the global rollout of vaccinations remain uncertain. Near term, new waves of infections are expected to set back recoveries in many parts of the world. Accommodative policy and financial conditions are continuing to provide support across most regions. Stronger demand is pushing up prices for most commodities, including oil. A broad-based decline in the US exchange rate has contributed to a further appreciation of the Canadian dollar.
