Knowing how much you can reasonably, comfortably and responsibly contribute to home ownership is paramount in your making a wise and sound investment on your Canadian property. The big four factors that generally contribute to this mortgage amount are:

Monthly income generated
The amount you can contribute to your down payment
The mortgage interest rates and term you qualify for
Other financial commitments or debts you are obliged to pay

Lenders basically use two rules to determine the mortgage you are eligible to be funded to receive, in addition to examining your credit history and FICO score:

Gross Debt Service Ratio (GDS)
Total Debt Service Ratio (TDS)

The Gross Debt Service Ratio (GDS) includes mortgage payment (principal and interest), heating expenses and property tax (referred to in the mortgage industry as PITH), as well as 50 per cent of any applicable condominium fees. GDS should equate to 32 per cent* or less of your gross qualifying income.
The Total Debt Service Ratio (TDS) includes your total monthly debt obligations (vehicle payments, student loans, credit card payments, child or spousal support payments, etc…

OTTAWA — Statistics Canada says the ratio of household credit market debt to disposable income edged down in the first quarter.
The agency says the ratio was 165.3 per cent for the first three months of 2016, down from 165.4 per cent in the fourth quarter of last year.
That means households held $1.65 in credit market debt for every dollar of disposable income.

Canadians’ household debt, as a percentage of income (dark blue line), has stabilized at very high levels. The ratio of debt to assets (light blue line) has been falling, because house prices are growing faster than total debt. (Chart: Statistics Canada)
Statistics Canada says disposable income and household credit market debt increased at nearly the same rate in the quarter.
The report also says household sector net worth rose 1.2 per cent in the first quarter to $9.633 trillion, driven by gains in the value of real estate.
Total household credit market debt, which includes consumer credit, and mortgage and non-mortgage loans, totalled $1…

If you’ve been saving for a home, you might be thinking now is the time to buy. Whether you’re a first time buyer or a current homeowner, buying a new home means making tough decisions. We’re here to make sure that you have a good enough understanding of mortgages before you jump right in. Here we outline the steps you need to take to make sure you get the perfect mortgage for you.
Before You Buy:
Determine the amount that you can invest in a home before you begin house hunting.
Step 1. Figure out how much to borrow:
How much you need to borrow will be determined by how much you have for your down payment and the purchase costs, such as legal fees. Ideally, try to come up with 20% of the home purchase price; otherwise, you’ll also need to factor in the cost of mortgage default insurance. You will also want to consider that your monthly mortgage payment, debt and other expenses should not exceed 40% of your income.
Need help figuring out how much you can afford? Use this mortgage calculator to get started…

Q: A few years ago my wife hurt herself very badly, forcing her to take long-term disability from work. At that time, we were denied her disability payments and spent the next two years fighting for that money. But, losing her income meant we struggled to pay our bills.
Eventually, we got so behind on our mortgage payments that we put our house up for sale and I filed for a consumer proposal. We were told not to bother adding my wife. The justification is that she had no income and no other assets, so no creditors would be able to get anything from her and that meant she didn’t need creditor protection.
My consumer proposal estimated our debt at around $33,000, which included an estimate of what we’d end up owing once our house sold. The proposal was accepted by our mortgage lender and a few months later the house finally sold.
Finally, late last year, my wife won her court case and started to receive disability payments. We thought the whole ordeal was over, but then we got a letter from CMHC stating that we still owed a debt on our now-sold home and that they’d be withholding her tax refunds until she paid the debt in full…

Many entrepreneurs rely on credit cards to keep their small businesses running. Check out these statistics on their charging and payment habits

Sammu (left) and Mandy Dhaliwall (far right) (Photo by Jennifer Roberts)
In our April 2016 issue of MoneySense, we introduced you to Sammu and Mandy Dhaliwall, a young married couple with three kids from Brampton, Ont. They are trying to juggle RRSPs, TFSAs, paying down their $350,000 mortgage as well as their $90,000 home equity line of credit.  Throughout the year we’ll be giving them a financial challenge every four weeks to help them get their finances in tip top shape. Make sure to follow along! 
Will shopping for mortgage rates hurt our credit score? »
How to juggle RRSPs, TFSAs, RESPs and a mortgage »
Challenge No. 2

Sammu and Mandy were asked to get all the details of their life insurance and disability insurance coverage. With a young family that includes three kids under the age of five, it’s important to keep these policies up to date with changing circumstances. Here’s what they found.
Sammu and Mandy’s experience
We each checked with our individual employers and found that we had the following coverage…

Is premium travel to Europe really suffering that much? It sure seems so, there have been so many great business class offers from the U.S. and Canada to Europe over the past week and half and now AC is bonusing business class to four of their European destinations for pretty much the rest of the year not just the slower summer season.Offer details:Double Aeroplan Miles when you fly Air Canada in Business Class between Canada and London, Paris, Amsterdam or Lyon. Register Online (Registration is required) Register and book by Jul 31 for travel until Dec 17, 16

Knowing how much you can reasonably, comfortably and responsibly contribute to home ownership is paramount in your making a wise and sound investment on your Canadian property. The big four factors that generally contribute to this mortgage amount are:

Monthly income generated
The amount you can contribute to your down payment
The mortgage interest rates and term you qualify for
Other financial commitments or debts you are obliged to pay

Lenders basically use two rules to determine the mortgage you are eligible to be funded to receive, in addition to examining your credit history and FICO score:

Gross Debt Service Ratio (GDS)
Total Debt Service Ratio (TDS)

The Gross Debt Service Ratio (GDS) includes mortgage payment (principal and interest), heating expenses and property tax (referred to in the mortgage industry as PITH), as well as 50 per cent of any applicable condominium fees. GDS should equate to 32 per cent* or less of your gross qualifying income.
The Total Debt Service Ratio (TDS) includes your total monthly debt obligations (vehicle payments, student loans, credit card payments, child or spousal support payments, etc…

For those who think blowing off their credit card debt is better than paying it. Here are the caveats and what experts have to say

Company: Westboro Management Ltd. Position: Business Development Manager Location: Ottawa/Gatineau, ON Apply to: monique@westboromic.com Business Development Manager Status:  Permanent, Full-Time Salary:  TBN Hours:  Standard (Flexible Hours may be required) Contact:  Monique Terriah Contact Email:  monique@westboromic.com   Description: The primary purpose of this position is to generate and maintain relationships with mortgage brokers and agents and provide strong support by communicating product information. The successful candidate will bring experience related to the mortgage brokerage community. Reporting to the V.P. of Operations the Business Development Manager’s primary responsibility is to retain and grow business with current registered brokers and develop and acquire READ MORE

Finding the right home for you and your loved ones really comes down to three chief factors:

Affordability: Does the home fit into your budget? Have you determined the financing you can qualify for through a mortgage pre-approval? Have you factored in mortgage insurance, utilities and heating expenses, association fees and taxes?
Lifestyle: Is the home located in an area within the proximity of the amenities you and your family require? Is the lot large enough for your pet(s)? Will owning this home impede you from doing the things you love doing? Are you close enough to work, family and friends?
Future Needs: Are kids a possibility in the future? Is the home large enough for a family? Is the basement developed? Are there schools nearby? Or, if you are close to retirement, is the home too large? Are there too many stairs and floors in the home to negotiate?

These three weighty considerations will vastly help you to narrow down the home buying search. A home purchase should not leave you house poor…

A recent Scotiabank survey reinforced what most of us already know: the Internet is radically changing banking. The bank found that: 96% of Canadians rely on the Internet for information. 89% of Canadians say it’s easier to get info online than through other sources. In turn, by 2020 less than 1 in 10 financial transactions will occur in branches, predicts Scotiabank CEO Brian Porter. “At the same time, we expect sales through digital channels to increase materially – likely in excess of 50% of total products sold,” he told the Financial Post. That’s exactly why the company has invested billions in READ MORE

Marcin (left) and Shannon (Photograph by Cole Burston)
In our April 2016 issue of MoneySense, we introduced you to Shannon Jarrett, 37, and her partner Marcin Duran, 34. They’re trying to track their money, come up with shared goals and cash in bad habits.  Throughout the year we’ll be giving them a financial challenge every month to help them get her finances in tip top shape. Make sure to follow along! Their last challenge had them hunkering down for a money date and things got real.
Challenge No. 2

Shannon and Marcin’s second challenge was to do some research to figure out if rolling their $26,000 in personal debt into their mortgage was a good option for them. If so, could Shannon and Marcin agree on making personal debt repayment a priority? And could they agree on an amount that both Marcin and Shannon would contribute to this? We asked MoneySense Approved financial advisor Rona Birenbaum to have a half-hour phone conversation with the two to see if they could reach an agreement…

Q: I’ve seen a lot of press lately on crowdfunded real estate investments. I’m wondering if this is a good way to invest in real estate if I don’t want to be a hands-on landlord?
— Curious about crowdfunding, Winnipeg, MB

Answer from Romana King, senior editor and real estate specialist at MoneySense: Want to invest in brick and mortar properties but don’t like the idea of being a hands-on landlord? Want investment returns on your real estate investment, but don’t like the almost-like-equities style of Real Estate Investment Trusts (REITS) and Mortgage Investment Corporations (MICs)? Consider real estate crowdfunding.
Over the last couple of years, real estate based crowdfunding sites—like RealtyMogul.com, Plentyofmoose.com, NexusCrowd.com, PatchofLand.com, DwellXchange.com and most recently Sharestates.com—have sprung up. All operate under the same basic premise: use technology to help individual and institutional investors to buy equity in various types of real estate holdings…

The federal Department of Finance is seriously considering weighing in on Canada’s housing market by raising the minimum down payment on a home purchase from 5% to up to 10%. The announcement could come as early as January 2016.
According to RateSpy.com founder and independent mortgage broker Robert McLister, government policy-makers are considering a graduated minimum down payment threshold based on either the home value or the mortgage amount. Homes/mortgages under $500,000 would only require a 5% down payment, while those between $500,000 and $700,000 would require 7% down and anything over $700,000 would require 10% down.
Apparently, the rationale for this new graduated scale is two-fold:
→ Tougher lending requirements should help cool the housing market, particularly in red-hot Toronto and Vancouver.
→ It would also help minimize the exposure taxpayers have to insured mortgage default losses.
Currently, if a person buys a home with less than 20% down the lender is legally required to take out mortgage default loan insurance…

Company: Street Capital Financial Position: Senior Credit Analyst Location: Vancouver, BC Senior Credit Analyst Street Capital Financial is a Canadian-owned and operated residential mortgage lender. Street Capital lends through a mortgage broker specific origination channel. Street Capital is dedicated to growing loan origination through this channel and is committed to innovative product development. Our employees are focused on providing world class service to clients, business partners and referral sources. Purpose of Position: Primarily responsible for review and assessment of completed mortgage applications PRIOR TO FUNDING. Reviews require thorough evaluation of documentation, compliance to company policy guidelines, and assessing the quality READ MORE

Your mortgage is one of the largest purchase items you will probably take on in your life. In making that commitment, you will most likely seek advice from several people: your family, your partner, your real estate agent, your financial planner and your mortgage broker.
Ensuring that you employ the best real estate professionals that you have access to – home buying professionals with your best interest in mind – will save you exponentially down the line. It takes a solid team to secure an optimal home.

Finding a well-connected Canadian mortgage broker is your first step. A mortgage broker will help you ascertain the true amount you can afford to spend on your new home, before you start shopping. A mortgage pre-approval will give you powerful buying power with home sellers, and will hold for you the best mortgage rates available, usually within 90 days. With one mortgage application, a mortgage broker will scout the Canadian mortgage market for you, and find the mortgage product that best suits your needs, be it through a bank, trust company, credit union, insurance company or private lender…

What’s the financial state of Canadian women in their 40s?
Chatelaine asked 1,000 Canadian women between the ages of 35 and 45 to share how secure they feel about themselves as part of their This is 40(ish) project. They asked them if they’re satisfied with where they are in their careers, how prepared they are for retirement and what they would do with a windfall of cash (among many, many other things).
The results? It turns out that more than half (52%) of women consider themselves “in a fairly good position” to retire, while only 9% feel that they are well-prepared for their golden years. Another 34% say that they plan to work forever. Retirement may not feel imminent to most women in their 40s, but by the end of this pivotal decade, it certainly will.
For most people, the 40s is when pay checks climb and debt tumbles, creating some welcome financial breathing room. However, there are plenty of big ticket savings items that women in their 40s must deal with: saving for their kids’ education and paying down their mortgage…

RateSupermarket.ca’s Mortgage Rate Outlook Panel Forecasts Rising Fixed Rates
Sorry, mortgage shoppers – you won’t find many Black Friday or Boxing Day deals on your home financing this month; the fixed cost of borrowing is inching higher along with bond yields, prompting lenders to cut their once-sizzling discounts.
While jolly economic conditions south of the border will likely prompt a U.S. rate rise, the cheer won’t extend to Canada’s central bank; slow economic recovery will hold the Bank of Canada at status quo until well into 2017.
Fixed Mortgage Rates: Up
Mortgage shoppers and renewals will encounter slightly higher fixed mortgage rates this month as lenders face rising costs and lower demand. The impending U.S. Federal Reserve rate rise has thrown fixed rate pricing into flux as investors dump their bonds, driving funding costs higher. And, as the winter market approaches, lenders are less competitive with their off-peak season pricing.
Also read: 5 Reasons to Buy a Home in the Off Season>
Variable Mortgage Rates: Unchanged
The latest GDP numbers may reflect a 2…

Like paper maps and clamshell phones, the magnetic stripes on the back of credit cards have started sliding into obsolescence. How soon will they disappear?

Dec. 2, 2015: Average rates on new credit card offers remained flat this week, according to the CreditCards.com Weekly Credit Card Rate Report

The U.S. Credit CARD Act has cleaned up the worst practices in the business since it was signed in 2009, but tricks and traps remain, consumer bureau report says

OTTAWA – Canadians in oil-producing provinces are having a harder time paying their bills, even as the national delinquency rate improves to its lowest level in more than six years.
A report by consumer credit monitoring firm Equifax says the national 90-day delinquency rate, excluding mortgages, slipped to 1.05 per cent, down from 1.10 per cent a year ago and the lowest since Equifax began reporting the figures.
Regina Malina, senior director of decision insights at Equifax Canada, says the average delinquency rate for Western Canada is below the national average, but it is rising.
Equifax says the rates in Alberta, Saskatchewan, Manitoba rose 13.4 per cent, 8.5 per cent and 3.7 per cent respectively.
How to get out of debt »
The delinquency rate in Newfoundland and Labrador was up 5.8 per cent from a year ago.
“Delinquency rates are an indicator that we follow closely and we are now seeing a negative effect in Western Canada,” Malina said.
“The same holds true in Newfoundland — essentially anywhere in the country where the economy is impacted by oil…

Protecting Your Identity
Your DNA solely codes you. Your fingerprints will never match someone else’s. There is no reason why your identity should be any different.
The vast majority of people rarely think about the possible ramifications for using their identity improperly, or how devastating an identity theft can be to their personal lives. We come across emails every day wherein people include all of their personal information.

Our online mortgage application is secure, firewalled and password protected, but email is not. Email transmissions are not protected from hackers, phishers, thieves, and con artists.
Take these measures to keep your identity protected:

When using an Internet service use a secure application, no matter how small the transaction is. Sending credit card numbers through an email could be dangerous.
Never share your passwords with anyone. You’ve heard it before and it seems elementary, but people still don’t follow this rule. They then wonder why they see unauthorized debits withdrawn from their debit accounts…

How would you like to know what your mortgage broker is earning on your mortgage? In B.C., you may soon find out. The mortgage broker regulator there plans on doing what no other major province has done: force mortgage brokers to disclose how much they’re earning from lenders on your mortgage. We’re talking exact dollars and cents. As a borrower, many will love this concept, if for no other reason than satisfying their curiosity. Many others will use compensation information against brokers to negotiate, by asking their broker to give up some commission to “buy down” their interest rate. It’s READ MORE

Earlier this year, Fixed rates hit new all-time lows.  This must sounds like a broken record, or for those in the modern error, sounds like a glitch or a skip (somehow, ‘broken record’ sounds better). 5 year fixed rates hit 2.59%.  This is the lowest we have ever seen. (before you start emailing me that you’ve […]

“My fellow Canadians,  Canada has spoken…”  you’ve heard the speech before.  Okay, now that the party is over, what’s the hangover gonna look like?    It’s hard to say for sure.   Politicians are infamous for making promises they can’t keep. One thing that we (I’m talking about anyone with a mortgage or invested in […]

Halloween aside, this October has plenty of reasons to get you spooked, what with a recession, a long and tiring election campaign, and recent world events. Plenty of reasons, but your mortgage need not be one of them.
We’re here to help in this frightful time, no matter if you’re buying a home, renewing your mortgage, or looking to refinance.
Mortgage brokers have access to a wide range of lenders and products, and we can find a mortgage that’s right for you. After all everyone’s mortgage needs are different. You may require the certainty that your mortgage payment will stay the same from the first day of your term to your last. You may want flexibility, to be able to pull equity out of your home to finance a renovation or a new car. Regardless, you should be able to do so with the lowest mortgage rate available in Canada.
Mortgage rates are incredibly low right now, but you likely wouldn’t know it if you looked at your local bank’s rates. Go with your bank’s mortgage rates, you’ll probably end up paying a ghastly premium.

Literally hundreds and hundreds of people have contributed to positively shaping our mortgage industry. Yet, only 38 have been installed in the Mortgage Hall of Fame to date. This exclusive group will soon be joined by two more industry pioneers. At CAAMP’s 2015 Mortgage Forum Awards Ceremony, Boris Bozic, founder and president of Merix Financial, and Alan Jette, Executive Vice President, Treasury and Balance Sheet Management, TD Bank Group, will both be inducted. These men have built storied careers spanning more than two-and-a-half decades each. Below you’ll find the story of their contributions to our mortgage market, and their respective roads to success. ******* Boris Bozic, AMP Boris’s READ MORE

Q: We’re buying a home valued at $275,000 and 100% of our down payment is coming from our RRSPs. We do not have enough to come up with a 20% down payment so now we’re trying to decide: (a) is it better to put down only 5% and pay more on mortgage insurance premiums, but have more cash in hand; or (b) put down 15% on the home, pay less in insurance premiums but have less cash in hand. —Glen Slim, Ottawa
A: Owing a home is a good idea for many, but despite your best laid plans, you could be faced with unexpected expenses. If you can’t quite hit the 20% threshold to avoid mortgage loan insurance, I think you’re right to hold some money back. Joe Jacobs is a broker with Mortgage Connections and based on his calculations you should consider a third option, let’s call it option (c). “The sweet spot is likely 10% down,” he says, because of how the premiums are calculated. For the house you’re buying, the insurance premium with 5% down would be 3.6% of the total or $9,400. With 10% down you’d pay 2…

Having great credit is the base for financial security – and your key to qualifying for mortgages, auto and other loans at the best rates. But building a solid score often means using a credit card, and that can lead to a debt spiral rather than stellar consumer standing. And Canadians are charging it more than ever – the latest numbers show our nation’s debt-to-income ratio has hit a new record of 164.4%.
How can we keep debt under control and create great credit? Read on for the full story.
What Are Credit Card Grey Charges?
Are you unwittingly paying pesky hidden credit card grey charges? If you’re like most Canadians, chances are there’s a couple on your statement. Here’s how to catch these background charges – and how to stop paying them for good.

Read Amanda’s Blog | What Are Credit Card Grey Charges?
How Can Students Build Credit?
Students are often carrying a ton of debt – so is it really smart to add a credit card to the mix? Often enough, yes, as these years are the prime time for young adults to build their credit histories…

The Dirty “R” Word
If the word “Recession” fills you with unease, you’re not alone. The word doesn’t sit well with many people. Unless you are in the rare circumstance of having just come into a gratuitous fortune, or you are employed in a sector of the economy that has somehow been unaffected by it, a recession will to affect you. Even then, depending on the severity of the recession, unaffected sectors can be effected by proxy.

If you are self-employed or work on contract you may feel the pinch a little more astutely, and you may be uneasy when income is lower than usual.
Many people are panicked about what to do; they worry about what may be in store for them and what they should or shouldn’t spend money on. Conducting an audit on all of your outstanding balances is one key way to evaluate your financial security. Here is what you should be looking at:

Current mortgage balance, monthly payment and interest rate
Current balance, monthly payment and interest on vehicle loans
Monthly payments and balances on credit card and department store debts, plus interest rates
Monthly payment and balance on any other line of credit or unsecured loan and its interest rate

Don’t Get Scared, Get Prepared: Consolidate Debt, Refinance and Breathe Easy
This information will give you a rough idea of your financial situation, and will make any future decisions you make much easier…

Company: SafeBridge Financial Group Position: Mortgage Agent (Exclusive Mortgage Agent Mentorship Program) Location: Toronto, ON Mortgage Agent   About SafeBridge Financial Group At SafeBridge, our vision is to drive transformational change in the Canadian Mortgage Industry by redefining the traditional customer experience through our proprietary Mortgage Centered Financial Planning approach™. As the originators of Mortgage Centered Financial Planning™, we take pride in providing our clients with a truly coordinated approach that encompasses the three largest financial decisions most Canadians will ever make. We believe that any financial decision specific to one’s mortgage, insurance or investment portfolio should be made in READ MORE

For most people, buying a house is the biggest decision they’ll ever make. So it’s no wonder that having to pay for thing over the next 25 or 30 years makes a lot of people pretty anxious.
After all, it’s a pretty intimidating transaction. First you have to assemble a stack of cash for the down payment and closing costs. Then you have to convince someone to lend you an even more staggering sum – generally 80 per cent or more of the purchase price.
Then there’s the actual mortgage decision. Everyone knows friends or relatives who, lured by record low interest rates, have stretched their budget buying homes only to find themselves struggling to keep up with not only colossal mortgage payments, but with more than a few unexpected expenses as well.
Also read: The First Time Home Buyer’s Guide>
Rates Not The Only Factor To Consider
But it’s not simply about interest rates. Ask yourself these questions: How long do you plan to live in this house? Will you have or hope to make home improvements? Where do you see yourself in five or ten years? Is your relationship stable? Is your family growing? What’s your cash flow going to look like?
If you’re going to stay in your house and plan to pay off your mortgage gradually, you may prefer get a fixed rate loan where the payments won’t change…

TORONTO – Cameron Klem, a business owner in the construction industry, is looking to sell his home in Edmonton and buy a new one closer to the school his fiancee, a teacher, has been transferred to.
But despite a solid credit score, “huge revenue” and having been in business for seven years, Klem is having trouble securing a mortgage.
“It’s a pain,” says Klem. “It makes me ask myself if being self-employed is even really worth it when you have to go through this much trouble.”
Experts say lenders have become more stringent when it comes to providing mortgages to the self-employed, which could leave business owners shelling out more money to the taxman in order to prove their incomes.
The worst thing about being self-employed »

“Rule changes over the past six or seven years have dramatically limited the ability of self-employed people to get mortgages,” says Chad Oyhenart, a Vancouver-based mortgage broker at Dominion Lending Centres.
“It’s become quite a bit tougher on them…

Earlier this year HomEquity Bank increased its maximum loan-to-value on a reverse mortgage to 55% (in some cases slightly more). It was a change made with little fanfare, but one that will provide necessary cash to thousands more senior homeowners. Prior to this change, the bank lent up to one-half of a property’s appraised value. Now, qualified seniors can access at least $20,000 more on a $400,000 property, for example. This money can be a lifeline when an elderly homeowner has immediate expenses (e.g., medical costs), but no other source of liquidity and a need to stay in their home. READ MORE

Summer can be a tough season on the wallet. Whether you’ve shelled out for a family road trip, or are a student scraping together school funds, it’s a challenge to balance fun in the sun with prudent financial practices.
This week, we’ve looked at ways Canadians can cash in, whether from school grants, the new UCCB, or with their mortgage.
Is a Canadian Recession a Reality?
The economic data may paint a bleak picture, but it seems the Bank of Canada and Department of Finance are hesitant to say the “R word”. Since last week’s rate cut, economists and consumers are left wondering – has Canada officially entered a recession, and what does the economic future hold?
Read Rubina’s Blog | Is a Canadian Recession a Reality?>
5 Tips for Students Trying to Afford University
Ah, summer “vacation” – a frantic 16-week work period for post-secondary students looking to pad their bank accounts before the school year. Students know it’s a challenge to make funds last through the coming semesters…

With the latest Bank of Canada (BoC) rate cut to 0.50% comes a reminder that many would like us to believe our housing market is tenuous. Once again there is a lot of discussion about just how overheated our market is and the dire circumstances many current home buyers are likely to find themselves at renewal time.
First, let’s think about why the Bank of Canada decided to cut interest rates once again last week. In January the BoC surprised many of us and cut the overnight rate in response to a rapid decline in oil prices. This time around it did so because the Canadian economy has not rebounded the way the Bank had hoped.
In an effort to stimulate spending, the Bank used one of its levers to lower the cost of borrowing. In doing so the value of the loonie further decreased thereby making imports more expensive and exports cheaper. The hope is that foreigners will both invest in and buy Canadian goods. The caveat to that appears to be Canadian real estate where many economists and policy makers would prefer that no additional investment takes place…

A poll found that the average age a Canadian person will be before paying off their full mortgage is 57, according to St. Lawrence EMC. This is up a few years compared to age 55 a similar poll conducted in 2012 found. Canadians are making positive changes to speed up mortgage payments, but it may actually be their non-mortgage debt that determines how quickly they can become mortgage free.
St. Lawrence EMC said that the poll found that residents in British Columbia had the longest repayment expectation at 59 years, and 50 percent of Canadians that own homes said since they first took out their mortgage, their non-mortgage debt has increased. Canadian homeowners also said that lack of funds keeps them from making lump sum payments.
One way to determine how quickly a mortgage can be paid back is by using a mortgage calculator. A mortgage calculator can compare many mortgage rates side-by-side, showing someone that simple changes can speed up or slow down payments. Making changes like adding lump sum payments, making prepayments, accelerating payments or getting the lowest rate can affect interest over time…

Bank of America Corp could pay more than $12 billion to settle probes by the U.S. Justice Department and a number of states into the bank’s alleged handling of shoddy mortgages, the Wall Street Journal said on Thursday, citing people familiar with the negotiations.

Lenders to continue competitive discounting tactics through summer months
June 4, 2014: Toronto, Ontario – There’s nothing lukewarm about lenders’ efforts to stay competitive in this spring’s mortgage market. Rate discounting battles have risen with the mercury, providing buyers with a slew of affordable options. Lenders big and small have cut their fixed mortgage rates to 2.99 per cent and below, while variable mortgage borrowers will continue to enjoy low central and Prime rates for some time to come.
Fixed Mortgage Rates: Unchanged
The fixed-mortgage-rate battle wages on, as brokers and big banks alike wade in with discounted offers. Bond yields, which have trended lower during the spring months, show no sign of reversal, leading RateSupermarket.ca’s panelists to anticipate low rates to linger in the coming weeks.
Variable Mortgage Rates: Unchanged
Canada’s long-lagging inflation rate made news this month, reported to have finally hit the 2 per cent benchmark decreed by the Bank of Canada…

It seems hardly a week goes by this spring without a new announcement from Canada Mortgage and Housing Corporation – another slew of changes were announced today, targeting multi-unit developers and low-ratio mortgage borrowers.
What are the New Changes for Mortgage Borrowers?
As of July 31, low-ratio mortgage borrowers who take out CMHC insurance will be subjected to the same restrictions as high-ratio borrowers. These include:

A maximum home price of $1 million

An amortization cap of 25 years

Debt-to-income requirements: 39 per cent for Gross Debt Service and 44 per cent for Total Debt Service ratios, respectively.

The group affected are home buyers who pay more than 19.99 per cent down on their mortgage, and who also choose (or their lender chooses) to take out additional insurance to securitize the mortgage, further limit risk, or help with capital requirements. This insurance, however, is optional unlike high-ratio mortgage insurance, which is required by law for any buyer paying less than 19…

Despite inflation hitting 2 per cent in April, Bank of Canada Governor Stephen Poloz has maintained the key interest rate at 1 per cent in yesterday’s interest rate announcement. While some experts are still predicting a rate hike by the end of this year, the BoC’s current stance indicates it’s not yet confident enough to raise rates, despite stating that “financial conditions remain very stimulative,” in Canada. Here’s more on the announcement and what this means for mortgage rates.
Slow Global Growth
The Bank notes that the global economy continued to be weak in the first quarter of 2014. Canada was no exception. Growth was further slowed by the extreme winter weather we got this year. The Bank is confident that Canada’s economy will improve later this year as “The ingredients for a pickup in exports remain in place.” These ingredients include a lower dollar and a pickup in the U.S. economy, our biggest trading partner.
Downside Risk Remains
The latest numbers from April show the total Canada Price Index (CPI) was up to 2 per cent…

As a mortgage broker, signing up with a franchise or broker network has advantages. But for those who were previously licenced under a large brokerage, switching to a franchise/network model…

Company: Equitable Bank Position: Regional Business Manager (2) Years of Experience Required: Minimum 3-5 years Licences or Registrations Required: AMP designation is an asset Location of Positions: Montreal, QC and…

It seems like not a week goes by that a major news story doesn't rock the Canadian real estate market regarding mortgage rates. While it's true that mortgage rates are an important factor when it comes to homebuying, it's even more essential for Canadians to understand exactly how mortgage rates work, and how they can affect home loans.
What are mortgage rates?
A mortgage rate is a term used to describe the interest on a home loan. For most individuals, obtaining a mortgage is a necessary part of buying a home. Mortgage rates are figured on the principal balance of a home loan, meaning how much money is still owed before the loan has been fully repaid. Since a higher balance means more interest, mortgage rates are typically more expensive at the beginning of a loan. As the balance is paid off, less interest is able to build up. This is also why homebuyers spend so much time searching for low rates, as lower interest means less money owed.
Additionally, since mortgage rates mean that more interest is able to build up, higher rates make it more difficult to pay off a loan faster…

Last week, CBC’s Kathy Tomlinson made national headlines with her breaking story about TD charging car loan interest rates of 25%.  Wow!   Are you kidding me?  The reaction was incredible and went viral.  Over 4000 comments in just a few days. Now, this doesn’t have anything to do directly with mortgages, but it’s relevant […]

 Last week’s Employment Stats shocked everyone when we didn’t see the expected 14,000 new jobs created as Economists were expecting.  Instead, we got hit with a reported 46,000 jobs lost in December.    Economists aren’t always accurate with their forecasts (news flash) but they usually aren’t this far off either. We won’t look at why […]