Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Latest in Mortgage News: Fixed Mortgage Rates Could Fall Over Coronavirus Fears + MORE Jan 29th
As fear grows over the deadly Wuhan coronavirus that has killed more than 100 people, it is now becoming the world’s—and Canada’s—latest economic headwind. That fear spread to financial markets on Monday, with the TSX falling 142 points and New York’s Dow Jones ending the.... More »
What is a mortgage broker? Oct 17th
Mortgage brokers are a highly regulated specialized alternative to Canada’s big banks. But what is a mortgage broker exactly? And, When it comes to the purchase of your home, why would you choose a broker over a mortgage specialist at your bank?
Get the mortgage rate that works for you.Fin.... More »
Bank CEOs weigh in on “vulnerable” mortgage clients + MORE Jan 12th
Canada's Big-Bank CEOs weighed this week in on the current state of their mortgage clients, including those they consider "vulnerable" in the event of a recession..... More »
How condo insurance works Jul 25th
Condo insurance is a smart decision. Regardless of whether you just purchased a brand new loft or a cozy older suite, you’ll need to make sure your asset is protected.
While condominium insurance is not required by law like car insurance, often mortgage lenders or your building will require you .... More »
Canada’s best credit cards for people with bad credit 2021 + MORE Jun 4th
Conventional wisdom may lead you to believe that if you have bad credit, you should swear off credit cards. But if you want to improve your credit score, you’ll have to show you can handle credit responsibly—and the only way to do that is (you guessed it) to have a credit card. When used properl.... More »
CMHC’s Siddall Warns Homeownership “Party” Coming to an End
– canadianmortgagetrends.com
The head of the Canada Mortgage and Housing Corporation (CMHC) gave a candid assessment of the country’s housing market, saying the “party” of homeownership as a sole savings vehicle will come to an end. Evan Siddall made the comments during an interview with BNN Bloomberg’s Amanda Lang on Thursday. He said that in many of […]
Finance Your New Construction Home at Prime Minus 0.80%!
– canadamortgagenews.ca
Before I get into the topic of new home financing, I want to share some positive news! The Ontario housing market is definitely alive and well! I’m seeing new properties come to market and disappear within weeks or even days. Multiple offers are also a reality, once again. Watch for encouraging sales stats to be reported next month.
Buying a resale home
Buying resale is great because you can see what you’re getting and you can have it now (average closing is 45 to 90 days). You can also set and hold your mortgage rate now.
But, there are also some negatives to buying a resale. For one, you’ll never get 100% of what you want. Maybe the kitchen, master bedroom or backyard could be bigger or perhaps you’d prefer a different floorplan. The truth is, you’re buying someone else’s home that wasn’t designed for you.
But, hey, that’s life and you can’t have everything you want. At least, not yet… or maybe you can?
Construction financing as low as prime minus 0…
How Much Are Real Estate Commission Rates in Canada?
– ratesupermarket.ca
When it comes to selling your home, you have to spend money to make money. Land transfer taxes. Lawyer fees. Mortgage discharge costs. But your biggest cost? Likely your real estate agent’s commission.
It’s been said that Canadian sellers typically pay between three and seven percent of their home’s selling price to their real estate agent, which is then split with the buyer’s agent – sometimes evenly, sometimes not. And commission adds up, especially in the nation’s hottest markets. Though analysts are seeing some slowing in housing markets across the country (especially since 2017), the average selling price of a home in Toronto came in at $820,148 last month. That can add up to a lot in commission.
Commission rates in Canada
There is no set rate of commission for real estate agents in Canada or in the individual provinces and territories.
In fact, according to Canada’s Competition Act, to promote free and open competition, commission rates are based on whatever that specific agent wants to charge, and realtors cannot claim that there is a standard rate across the board…
It’s war. Mortgage Rate Wars. You could win with Big Rate Cuts!
– canadamortgagenews.ca
We’ve seen mortgage rates drop steadily over the past three months. At the beginning of this year, we saw fixed rates approaching 4%. And, today, we’re seeing them sit around 3%.
WARNING: These rate wars could come to an end as recent employment figures skyrocketed all estimates… stay tuned!
This is like the perfect storm. Fewer mortgage transactions across Canada + Declining investor confidence + Inverted bond yield curve. Put it all together and you get a rate war. And for a refreshing change, consumers aren’t the victims. The banks are settling for a smaller profit margin.
Now, don’t get me wrong, it’s not like the banks are your friends and just decided to cut their rates as a good deed. They really don’t want to give you lower rates. Not a chance. It’s about market share. They must lend money out in order to offset their deposit costs that they pay to customers with savings accounts.
Close mortgage rate spreads
Earlier this year, both Canada and the US experienced an inverted yield curve…
