New Housing Measures Announced

April 20th Premier Kathleen Wynne announced a comprehensive package of housing reforms, ahead of the provincial budget aimed at cooling the GTA housing market. The release can be found here. The announcement follows extensive media coverage about the serious concerns with the over-heating markets. Mortgage Professionals Canada has been engaged with the Ontario government and many MPPs through our lobbying activities and our recent Queen’s Park Advocacy Day. We are pleased to see measures that will increase supply, improve data collection and curb speculation within the market place, which we have been asking the government to do. However, we are disappointed that there is no additional support for first-time buyers in this package, and we suggest caution that a foreign buyer tax will not have [...]

By |2018-05-09T16:44:17+00:00May 9th, 2018|Uncategorized|Comments Off on New Housing Measures Announced

Is now the right time to buy?

Like many Canadians you're probably wondering if now is the right time to buy?  However, thanks to the corrective measures taken by the government, estate prices seem to have come down. The twin cities of Toronto and Vancouver have always been notorious for their high real estate prices. In response to the reforms being undertaken and despite rising mortgage rates, you might just be able to afford you home now. As a rule, higher mortgage rates should bring housing prices down. But, for the time being, the soaring rates are only making buying a home a lot more expensive. Homeowners May Need to Watch for Dropping Prices If you’re looking to buy your home, keep in mind that the drop in real estate prices could offset [...]

By |2017-08-24T17:04:18+00:00August 24th, 2017|Uncategorized|Comments Off on Is now the right time to buy?

New Mortgage Rules Amidst Red-Hot Property Market

The Canadian Real Estate Association (CREA) recently reported that February home sales across Canada rose 5.2 percent on a month-over-month basis to reach a level that’s just 0.8 percent below the highest peak ever seen in April 2016.   Earlier this year, Canada Mortgage and Housing Corporation (CMHC) announced its plan to increase homeowner mortgage loan insurance premiums that just came into effect last week. CMHC introduced new insurance premiums that took effect on March 17, 2017, to reflect OSFI’s new capital requirements. When announcing the changes, CMHC indicated that it didn’t expect any significant impact by the new rates on the ability of Canadians to buy a home. For the average CMHC-insured homebuyer, the changes will increase their monthly mortgage payment by approximately $5. [...]

By |2017-03-23T19:03:07+00:00March 23rd, 2017|Uncategorized|Comments Off on New Mortgage Rules Amidst Red-Hot Property Market

One weekend spring cleaning tips

Get a head start on decluttering, organizing and simplifying your life with these tasks you can complete in just a couple of days. The one year rule. Pick an area in your home — your closet, cupboards or bookcase — and apply the one year rule. If you haven't worn it or used it in any way over the last twelve months, donate or toss it. You can make an exception for souvenirs or sentimental items. Organize your entertainment. Sort your books, magazines, DVDs, records, and games in a way that makes sense for everyday use. Put those for the kids on lower shelves for easy access, and sell or donate any they (or you) have outgrown. Monitor expiry dates. Check your medicine cabinet, beauty [...]

By |2017-03-02T17:28:26+00:00March 2nd, 2017|Uncategorized|Comments Off on One weekend spring cleaning tips

Spring into action: Protect your home

The flowers are blooming, the birds are singing and our homes have a bad case of the winter blues. “Spring cleaning” is a tradition that serves a very useful purpose - it rids your home and exterior property of build-up left from the winter months. “The winter season brings a lot more headaches than just bitter cold weather and snow,” says Glenn Cooper of Aviva Insurance. “Many side-effects of winter are noticed when spring comes along. It's important to take care of those problems before they lead to serious property damage.” Cooper offers four simple tips to help make exterior spring cleaning a breeze this year: 1. Inspect your property: Frozen ground can cause shifts in your landscaping and patios. If left unattended, it can [...]

By |2017-03-02T17:21:53+00:00March 2nd, 2017|Uncategorized|Comments Off on Spring into action: Protect your home

Canadian Housing Starts Trend Increased in January

The trend measure of housing starts in Canada was 199,834 units in January compared to 197,881 in December, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts. CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of Canada’s housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next. The standalone monthly SAAR for all areas in Canada was 207,408 units in [...]

By |2017-02-10T17:55:31+00:00February 10th, 2017|Uncategorized|Comments Off on Canadian Housing Starts Trend Increased in January

RRSP Contributions: lump sum payments or monthly withdrawals?

We’re in full RRSP season and many Canadians wonder what the best option is between lump-sum payments every winter and monthly withdrawals. Contributing to you RRSP has several advantages: aside from the obvious retirement savings, RRSP contributions are deductible and can be used to reduce your tax. An RRSP also gives you a certain degree of flexibility in your financial future, and you can tap into your RRSP for the Home Buyers' Plan that gives first-time home buyers the opportunity to withdraw up to $25,000 for their down payment. Both options (lump-sum or recurrent) work to contribute to your RRSP, but regular deposits are definitely preferred. Contributing regularly forces you to save every month, and you can also set up a pre-authorized withdrawal from your [...]

By |2017-02-07T18:44:23+00:00February 7th, 2017|Uncategorized|Comments Off on RRSP Contributions: lump sum payments or monthly withdrawals?

Are you taking advantage of the Equity in your Home?

What is Home Equity? Home Equity is the current market value of your property (home) minus the remaining mortgage balance. How You Can Use the Equity in Your Home to Save On Hefty Interest Charges People have been using home equity for a variety of reasons such as renovation, investing in other real estate property, refinance and even to consolidate debt. In order to facilitate homeowners, lenders have introduced a number of flexible home equity products. The option you choose depends on the amount of equity that you have presently built in your home as well as your own personal reasons for acquiring the extra cash. HELOC or Home Equity Line Of Credit Home Equity Line Of Credit, also known as HELOC is becoming a [...]

By |2017-01-13T22:33:25+00:00January 13th, 2017|Uncategorized|Comments Off on Are you taking advantage of the Equity in your Home?

New Mortgage Stress Test in effect October 17

What does the new stress test mean? Based on the new regulation, a stress test is now required for all insured mortgage seekers. This means that everyone looking to purchase a new home must undergo these tests to prove that they are capable of continuing their payments even if the interest rates  go up by a significant factor. Up until now, stress tests were not required for fixed-rate mortgages longer than 5 year term. However, with the new Department of Finance regulations in place, all insured mortgages, regardless of fixed or variable term will have to undergo and qualify the stress test.   How does the latest mortgage lending rule affect you? The federal government introduced a new mortgage rate stress test for all insured mortgages [...]

By |2017-02-07T18:35:34+00:00October 18th, 2016|Uncategorized|Comments Off on New Mortgage Stress Test in effect October 17

Does A Mortgage Term Affect Your Mortgage?

Buying a new home is probably the most arduous process most Canadians will ever undertake. When choosing a mortgage, you need to consider many factors. If you get the wrong combination, you may have to suffer the consequences for many years or pay a penalty. We meet people seeking to change their closed mortgages all the time. Usually, this is because they have realized they are getting a raw deal. How can you avoid such a scenario before you even sign on the dotted line? Knowing how a mortgage term affects your mortgage is one of the ways. Why does the term matter? In Canada, mortgages are available in almost any amortization period-5, 7, 10, 15, 20 and 25 years. In your search escapades, you will [...]

By |2016-06-08T19:03:12+00:00June 8th, 2016|Uncategorized|Comments Off on Does A Mortgage Term Affect Your Mortgage?