Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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Should you loan money to someone who is house rich and cash poor? May 19th
My daughter is 60, divorced, owns a house, perhaps $800,000 house value. She has a small mortgage and no savings of any kind. She lives on a line of credit and a credit card. Her only income is about $300 to $400 monthly CPP.
She is wondering how best to manage. Should she sell now and rent for a.... More »
Tips for investing in syndicated mortgages + MORE Feb 27th
(John Lund/Getty Images)
Q: I’m concerned about the stock market these days, and I am looking to diversify my investments outside the stock market. I’ve recently seen a lot of advertisements for syndicated mortgage products. The ads promise returns of 8% or more with the principal in.... More »
How your rent payments can help build your credit history + MORE Oct 4th
Paying rent, much like a mortgage, can often be a person’s biggest monthly expense. Yet, there hasn’t historically been a way for renters to get credit for making these large payments on-time like homeowners. New rent-reporting platforms are aiming to change that. These platforms act as.... More »
Tools to calculate your mortgage payments and costs in Canada Nov 1st
Owning real estate is a goal for many Canadians, and while it can be a rewarding investment, it comes with financial responsibilities that you must carefully manage. First and foremost, you need to be able to calculate your mortgage payments, down payment, penalty fees and other costs. Onli.... More »
New Rule Targets HELOC Holders Seeking a Second Mortgage + MORE Nov 9th
The word is out on a little-known policy used to qualify anyone with a HELOC who is applying for additional financing. Several of the Big Six banks have already adopted the policy, which requires applicants to prove they can afford the theoretical monthly HELOC payment based on the limit of that HEL.... More »
What Could Have Been
– canadianmortgagetrends.com
If there were ever a time that the mortgage broker industry needed to come together, this is it. Our game is changing. Brokers have decent market share, but agent revenues per deal are dropping, and they may not stop dropping for the foreseeable future. On top of that, regulatory tightening is making it harder to do our jobs, lenders are looking for ways to cut origination costs and the Internet has started to disintermediate slow-to-adapt brokers. It’s not unreasonable to think these trends could conspire against broker networks and cut funding for industry initiatives going forward. So it was with a degree of READ MORE
Home equity line of credit popular for renos
– moneysense.ca
(iStock)OTTAWA – You’ve spent hours picking the perfect tile, countertops and cabinets.
You researched the best stoves, dishwashers and refrigerators.
Your budget is set and your favourite contractor is available.
Now you just need to figure out how to pay for it all.
Tony Tintinalli of the Bank of Montreal says it starts with examining the scope of your home renovation project, the budget and the required contingency fund.
“The most cost-effective way, if you’re going to borrow, is to use equity in your house,” said Tintinalli, BMO’s regional vice-president of personal banking.
Home equity lines of credit are generally the most popular way to finance renovations, with rates generally ranging from prime to prime plus 0.5 per cent. That’s compared to a regular line of credit, which could be prime plus three to four per cent.
“When we look at the home equity line of credit option, normally we can do larger amounts because we are taking the security, so not only are you able to get it at a cheaper cost, there’s more room,” said Tintinalli…
How European Bonds Impact Canadian Mortgage Rates
– ratesupermarket.ca
Canadians have enjoyed ultra-low mortgage rates for several years now, but this spring marks a truly competitive season; even big banks have discounted their fixed rates to record lows, while a January Bank of Canada rate cut has led to the lowest Prime rate since 2010. Spring is traditionally the busiest time for mortgage providers, but demand and competition aren’t the only factors behind today’s low rates; global influences, especially in Europe, are also responsible for lender discounting.
The European Impact
Approximately $8.8 billion of Canadian mortgage bonds are denominated in euros and francs, the yields of which are being pushed below zero. This is because the European Central Bank has started buying euro government bonds in an effort to push its quantitative easy agenda. This is similar to the tactic used by the U.S. Federal Reserve; quantitative easing helps stimulate the post-recession economy, and maintains a liquid cost of borrowing. In the ECB’s case, such measures are to counter the fallout from economic turmoil in Greece, and oil’s downturn…
