Jan 16, 2024
You’ve saved enough for a down payment, your credit is in ship shape, you are gainfully employed, and you’ve even saved enough for closing costs and moving expenses. All systems go. You’re ready to get into the housing market!
Jan 5, 2024
In its recent decision, the Bank of Canada has opted to maintain the key policy rate at 5.0%. This move comes after assessing data as of October 2023, which indicates that the inflation rate stands at 3.1% and is expected to gradually move toward 2.5% by the third quarter of 2024.
Dec 28, 2023
Answer: Mortgage creditor insurance, along with optional add-ons like disability and critical illness coverage, provides vital protection. It ensures that significant loans, such as mortgages, will be paid off if you pass away or experience a health condition that prevents you from working.
Aug 14, 2023
Faced with high (and still climbing) interest rates and a housing market that just won’t quit, Canadians are getting creative in their pursuit of the homeownership dream. Some are simply scaling down, setting their sights on a smaller home, while others, who are able and willing, are uprooting their lives and moving to a different city or even province to get into the market. Those unwilling to compromise on location or size are choosing to rent out part of their home. But there’s another creative solution that seems to be gaining in popularity and that is purchasing a home as a group, either made up of friends, family, or business partners, all with the goal of breaking into the ever-competitive Canadian housing market.
Jan 9, 2023
A new year brings a host of new year’s resolutions. It’s very common for people to make these resolutions around family, friends, eating better, or even the cliché going to the gym more. This year, ensure to set some resolutions around your finances.
Dec 9, 2022
The holiday season is upon us, bringing an end to a tumultuous year. 2022 saw inflation reach levels not seen for 40 years, followed by substantial interest rate hikes. From March to December, the Bank of Canada raised its policy rate by a whopping 4.0%, causing some stress for Canadian homeowners, particularly those with variable-rate mortgages. If you have a variable-rate mortgage, these rate hikes may have you thinking about converting (or “locking in”) to a fixed rate, if your lender allows you to do so. Of course, this then commits you to a new mortgage term with your current lender. Let’s look at the potential upsides and downsides of making the switch.
Oct 11, 2022
When news reports present a consistently gloomy view of rising rates and the distinctly negative impact on the housing market, it’s easy to feel discouraged. But the news frequently doesn’t tell the full story, especially when it comes to the opportunities presented by uncertain times. Historical evidence indicates that for most Canadians, a housing market investment remains the most important wealth-creation decision they will ever make, providing a resilient foundation with leveraging opportunity to build out a strong portfolio.
Sep 9, 2022
With inflation at its highest level in almost 40 years, the Bank of Canada continues to take drastic action to cool the economy with the latest of six consecutive rate increases announced on September 7. Rising interest rates impact everyone with a mortgage but how and when you will see the impact depends on the type of mortgage you have. We often classify mortgages as either fixed-rate or variable-rate. What may not be commonly understood is that there are actually two types of variable-rate mortgages – adjustable payment and fixed payment – and the impact of rising rates on these two types is dramatically different. Here’s a look at how each mortgage type is affected:
Aug 3, 2022
If you thought the end of the pandemic would bring a return to economic normalcy, 2022 has certainly been surprising. Summer has seen inflation return to the forefront of consumers’ economic worries for the first time in decades. The inflation rate was 8.1% in June 2022, its highest level since 1983. Egged on by spiking fuel and grain prices following the outbreak of war in Ukraine, increasing costs across the board are putting pressure on Canadian families.
Jul 6, 2022
With interest rates continuing to rise, and housing markets beginning to cool, if you’re considering a home purchase anytime soon, it’s a good idea to revisit some mortgage fundamentals to ensure you’re in the driver’s seat when it’s time to put in an offer. Pre-approvals, home appraisals and financing conditions are three key components to a successful home purchase. So how do they all fit together?
Jun 3, 2022
The one-two-punch of supply chain issues and the war in Ukraine has pushed inflation in Canada to its highest level in 30 years and spurred the Bank of Canada to move toward a tighter monetary policy. On June 1, the Bank announced a second consecutive .5% increase to its policy rate (the third increase in 2022) and signalled its intention to continue increasing rates in the short term.
May 5, 2022
The Tax Free First Home Savings Account (“FHSA”) explained
Apr 8, 2022
Spring finally arrived after a long winter, and with inflation and the rising cost of living on everyone’s mind, there’s never been a better time to do a little spring cleaning… of your finances. A few quick and easy adjustments can make a difference to your bottom line each month.
Mar 8, 2022
The Bank of Canada has been signaling for a while now that they will respond to inflation by raising interest rates. Sure enough, on March 2nd they announced a hike in the overnight rate by 0.25%. Here are answers to the most commonly asked questions.
Jan 1, 2022
Canadians keep talking about the housing market! Are we in a housing bubble, will rates rise in 2022 and by how much, is this the right time to buy or refinance, is a lender’s renewal offer the best available, and on and on! For many, it feels like some uncertain times ahead. Often, it’s just a few sensible strategies that can help you thrive in the current climate. Here are my top tips for the year ahead:
Dec 1, 2021
Given inflationary pressures, the Bank of Canada indicated in their last rate announcement that rate hikes could take place earlier than previously indicated, in mid-2022, which means variable rates that rise and fall in tandem with the key rate will start climbing. Views among economists vary as to how many hikes we’ll see in 2022 and 2023 because no one really knows whether inflation is truly transitory given supply chain issues, or even if it won’t be a long-term issue at all.
Nov 1, 2021
Whether you’re purchasing a new home or want to complete a refinance of your current mortgage, it’s important to understand the role of the home appraisal and how it can impact the outcome of your mortgage application.
Oct 6, 2021
With the financial demands of school loans, living expenses, and finding a career path, many young people struggle to purchase their first home. Often, parents and grandparents are very sympathetic. They’ve enjoyed the financial benefits of long-term home ownership themselves and see how hard it is today to make that important first step into the real estate market. And when you add in the run up in home prices over the last 18 months, it’s not a surprise that homebuying assistance using these two strategies is up dramatically -
Sep 8, 2021
It’s September and there is some optimism that we may be moving towards the end of life in a global pandemic. The Fallhas always been a great time to go back to school on financial fitness, and this year it may be more important than ever. Here are some tips to help make sure your finances are fit and stay that way:
Jul 2, 2021
History has proven that homeownership is a solid long-term investment. You build your equity stake through your regular mortgage payments and your home’s price appreciation over time. But wealth building doesn’t have to stop there. Here are 6 ways to do more throughout your mortgage years.
May 31, 2021
This spring we’re seeing aggressive pricing for variable-rate mortgages, while fixed mortgage rates continue to be at historically low levels. Which is best for today’s uncertain environment?
May 4, 2021
There had been speculation that the government would act to cool the hot housing market, but the industry saw only modest measures in the April 19 federal budget. A national annual tax on foreign-owned properties that are left vacant or under-occupied was announced, which will take affect in 2022. This will only apply to "non-residents” to discourage offshore buyers.
Jan 27, 2021
Whether you are purchasing, refinancing, or moving your mortgage to a new lender, it’s important to have a clear understanding of the mortgage approval process. It’s a big financial commitment so you’ll want to be sure you can move through the process with confidence. Here is a general overview:
Oct 30, 2020
There has been a flurry of refinance activity this year given our rock bottom interest rates, providing homeowners with access to today’s low rates and the most cost-effective way to get needed funds. Refinancing means getting out of your current mortgage and replacing it with a new one. A minimum of 20% home equity is required to complete a refinance.
Oct 1, 2020
There’s a virtual credit file with your name on it! When it comes time to take out a mortgage, that file gets opened and the result is a credit score that will help determine whether and how much you can borrow and at what rate.
Sep 4, 2020
The recent shock to the economy has had many Canadians thinking seriously about what their life might look like after their paycheques stop. Even if you have a workplace pension plan to look forward to, you may find it falls short of the income you’d like to live on. Is it possible to take your pension into your own hands and create sustainable long-term income?
Jun 12, 2020
No one has a crystal ball to see what the next few months - or years - will bring, but it’s likely that some Canadians will have trouble with their debt in the wake of COVID. With that possibility in mind, the Canada Mortgage and Housing Corporation (CMHC) recently announced that it is tightening the rules for Canadian homebuyers looking for insured mortgages. Homebuyers with less than 20% downpayment require mortgage default insurance: an important protection for Canadian lenders.
Jun 2, 2020
As the longest spring in memory finally gives way to summer, it’s nice to see people safely enjoy the sunny weather. I hope that you and yours are in good health. There continues to be uncertainty about the shifting mortgage market. Here are the most common questions:
Apr 30, 2020
I hope you and your family are enjoying good health and finding some measure of happiness in this strange spring. Certainly, many Canadians are feeling the financial pressures mount as we work together to conquer this pandemic. The good news is there are strategies that can help.
Mar 31, 2020
Let me begin with my heartfelt hope you and your loved ones are in good health.
Mar 2, 2020
Anyone looking for a mortgage in the last few years has been introduced to the “stress test”. In order to qualify for a mortgage, Canadians must prove they can withstand an increase in rates, which requires them to qualify for payments far above what they will actually pay. The good news is that the Canadian government has decided to ease up on the stress test.
Feb 5, 2020
My home is my castle! It’s also your greatest wealth building tool. Home equity can build nicely by chipping away at payments and through increasing home values, ultimately creating a terrific repository of wealth and making your home not only your castle, but so much more!
Jan 6, 2020
The fresh start of the new year makes it a great time to review your finances and particularly your spending. Whether you are saving to buy a home or pay one off, your “money leaks” can add up to some big bucks over time. Here are ten ways to find some of your missing money and help you save over the long term:
Nov 28, 2019
It’s the most wonderful time of the year! And, it’s also the busiest. It can be difficult to get through the holiday season without at least some level of increased stress. If financial stress is something you are concerned about, then add something new to your holiday to-do list this year - a holiday debt-check!
Oct 30, 2019
Buying or building an energy-efficient home or making energy-saving renovations to your existing one can give you a more comfortable and healthier living space, while also reducing greenhouse gas emissions. And investing in energy efficiency will lower your costs for years to come!
Sep 20, 2019
A 1.9% online rate will definitely attract attention! But cheapest is not always best. Once the fine print is read, many will find they don’t qualify, and often there are restrictions that could really cost homeowners in the long run.
Aug 27, 2019
When buying your first home, don’t leave money on the table! Take advantage of the programs and incentives offered by the federal government that can help you achieve your new home.
Jul 11, 2019
Sometimes, a difficult past is standing in the way of a bright future. Bad credit can do that to you. After all, credit history is an integral part of the mortgage approval process.
Jun 25, 2019
The first-time buyer incentive, launching on September 2nd, is a shared equity program designed to reduce mortgage payments for qualifying first-time buyers who have the minimum 5% downpayment required for an insured mortgage. The Canada Mortgage and Housing Corporation (CMHC) will provide 5% of the cost of an existing home, or 10% of a new home. This incentive isn’t payable until you sell the property and is not charged interest.
May 31, 2019
We are deep in the competitive spring real estate market! And we’re seeing a very interesting rate anomaly. Fixed-rate mortgages are very competitively priced and gaining in popularity, while variable-rate mortgages are looking overpriced. We’re even seeing ten-year mortgages at good rates back in the news. If the market is telling us that fixed-rate mortgages have an advantage, then be sure to look at the fine print because the devil is in the details and early payout penalties matter.