Most mortgage fraud doesn’t make headlines. Here’s a monster fraud against BMO that did: http://t.co/WnhC1DQX1d More: http://t.co/nYYWCOdoYc + MORE Jun 7th

Most mortgage fraud doesn't make headlines. Here's a monster fraud against BMO that did: http://t.co/WnhC1DQX1d More: http://t.co/nYYWCOdoYc

— CMT (@CdnMortgageNews) June 5, 2013

Filed under: Family Finances, Retirement and RRSPs, Real Estate, Mortgages
By Dan Caplinger
The Motley Fool

Many Americans struggle to make ends meet during their retirement. A third of all retirees now get 90 percent or more of their income from Social Security, according to figures from Boston College’s Center for Retirement Research. For those who are fortunate enough to own their homes, a reverse mortgage can be an option that can supplement Social Security and other income sources.

Reverse mortgages get their name from the fact that the stream of payments goes the opposite direction from what homeowners are used to. Rather than you making monthly payments to your bank, the lender sends the money back to you.

It’s a simple way for retirees to tap their home equity without the risk of a conventional mortgage or having to sell their homes and move to less expensive housing. But before you decide it’s right for you, you need to understand exactly what you’re getting into.

Here are five facts that are essential to know for anyone considering a reverse mortgage…

The bond markets have been particularly volatile for the past few weeks on fears that the credit situations in places such as Cyprus could spiral out of control and bring the global markets down with it. The loss of confidence in some of these European Union nations is spiking up yields on bonds in countries with strong ties to the continent. Canada is no exception we have recently seen a spike in rates up to 1.10 as of June 6. Not a huge number, but it does indicate that fixed mortgage rates are poised to rise. Here’s how it works
Bonds and Fixed Mortgage Rates
When a bank offers you an interest rate on a loan (mortgage) they are being guided by the rate they are getting themselves. This market rate is what they are paying to borrow the money for you from either their customers or other institutions. They pay those people a smaller amount of interest on the loan that they can lend to you for a higher rate to make a profit, also referred to as a spread. If it’s costing the bank more money to borrow, that cost will be downloaded on to the lender…

It’s been a dark and dreary start to spring, dampening traditionally robust warm weather sales in some of Canada’s largest markets. However, lower open house foot traffic has not deterred sellers from listing at steeper prices, as demand remains strong enough to prevent buyers from having the upper hand in the GTA.
According to the May numbers released this week by the Toronto Real Estate Board, housing prices have increased by 5.4 per cent year over year, with the average price in the GTA ballooning to $542,174 – a new record high. This is compared to last May’s average of $514,657, and despite a sluggish 10,182 units sold – 3.4 per less than 10,544 in May 2012.
Keep in mind, as last year’s spring buying season was just shy of CMHC’s sweeping amortization changes for high ratio buyers, the decrease is indicative of fewer qualified buyers on the market, though this decline is starting to ease. According to a statement released by TREB President Ann Hannah, “A growing number of households who put their decision to purchase on hold as a result of stricter lending guidelines are starting to become active again in the ownership market…

June 7, 2013
Saving for retirement, paying down your mortgage, preparing for your child’s education; it’s easy to be overwhelmed by life’s financial goals. When it comes to your hard earned money, sometimes it’s in your best interest to ask for a helping hand.
A financial advisor can set your savings on the right track, introduce you to investment opportunities, and help you identify the best strategy for your money. Check out our guide to picking the right pro.
Do You Need a Financial Advisor?
It’s time to come clean: are you in need of some professional help? Even if your savings or investments are small, working with a financial advisor can effectively grow your money.
Read on to learn more about the benefits of seeking financial advice, and understanding your financial advisor’s fee structure.
Read Allan’s Blog | Do You Need a Financial Advisor?
6 Goals To Discuss With Your Financial Advisor
Planning for the future isn’t just about saving for retirement – and not every investment is designed to help you “get rich, quick”…