The Latest in Mortgage News: RBC downgrades its housing market forecast + MORE Jul 28th

Obtaining a mortgage or secured line of credit in Canada at the best rates is often a daunting task. We can help! Read the articles below for more info.
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The big question on mortgage borrowers’ minds: fixed or variable? Feb 15th

With variable mortgage rates potentially at a peak and fixed rates having recently retreated, borrowers are asking themselves the age old mortgage question: should you go fixed or variable?.... More »
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How To Navigate Three Common Mortgage Scenarios + MORE Aug 15th

It’s a confusing time to be a homeowner. Rates are up, and everyone has an opinion on what will happen next. It’s easy to get sucked into social media rabbit holes and make decisions motivated by fear. But at times like these, it’s crucial to block out the noise and do what’s right for you. .... More »

Brokers react to the government’s “nonsense” mortgage charter + MORE Dec 1st

The Liberal government last week unveiled a "new" Canadian Mortgage Charter aimed at ensuring lenders offer relief to mortgage borrowers who are struggling to make their payments..... More »

How much you need to earn to afford a home in Toronto and the GTA + MORE Oct 8th

Looking at the Toronto housing market through a lens of percentages, shifting sales numbers and interest rates may be the go-to method for industry insiders, but for many run-of-the-mill buyers, there’s really one thing that matters: “What kind of home can I afford?” To help answer that que.... More »
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Toronto housing bubble: Is it ready to pop? + MORE Nov 25th

The Toronto real estate market has experienced remarkable growth over the past two decades. The average home price in Toronto surged by a staggering 489% from 2000 to 2022, according to the Toronto Real Estate Board (TRREB). This rapid price growth has raised concerns about the future of affordable .... More »
I would like to know if transferring our home into our daughter’s name—can we stay and pay rent and get a rental home credit? Is it valid?—Satyesh

Tax credits when renting property from a family member

There is a lot to unpack with your question, Satyesh, but I will address your direct question right off the bat. 

If you rent real estate from a family member, if you both treat it as a legitimate landlord-tenant relationship, you may be able to claim a tax credit just as if you were renting from a third party.

Ontario has an energy and property tax credit, Quebec has a solidarity tax credit, and Manitoba has a residential renters tax credit. Each of these has a rent component and may result in tax savings for lower income taxpayers. 

Your daughter would report the rental income and deduct applicable expenses like property taxes, insurance, utilities (if she pays them) and mortgage interest (if applicable). It bears mentioning that she may end up paying more tax on the net rental income than you would save on the tax credit…

Continue Reading On moneysense.ca »

RBC says it expects the country’s housing correction to “deepen” in the coming months with resale activity and prices falling more than expected.

Continue Reading On canadianmortgagetrends.com »

Thanks to the mortgage stress test, many now have to qualify at 7% — but is there a way around that?One option to help you pass the mortgage stress test, experts say, is to opt for a variable rate loan which favours borrowers. But there are downsides to that strategy.

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Earlier this month, Rocket Mortgage U.S. announced its plans to enter the Canadian market. What does this mean for mortgage brokers and mortgage consumers?

Continue Reading On canadianmortgagetrends.com »

Variable Rates Go Up, Fixed Rates Come DownIf you’re reading this, you probably know by now: the Bank of Canada has been raising their benchmark rate aggressively to battle inflation. And I mean aggressively. Their rate has gone up by 2.25% in 6 months which is absolutely – wait for it – unprecedented.

As a result, variable rates have shot up. Everyone expected fixed rates to follow suit – but interestingly enough, the opposite has happened. They’ve actually gone down. Yup, you read that right: while variable rates are going up, fixed rates are going down.

How Is That Possible?

Fixed rate mortgages are priced against 5-year bond yields. The yield rate reached a high of 3.59% on June 14th. Only a month and a half later, that rate is now hovering around 2.82%. What does this tell us? Fixed rates are based on speculative factors. Investors anticipated rate hikes 6 months ago and priced them in early. Now, we’re on the other side.

Not long ago, most 5-year fixed rate mortgages were hovering at around 5…

Continue Reading On canadamortgagenews.ca »

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