 Our low-interest rate environment | ||
Where are interest rates heading and when will they start to move? This has been the hot topic of conversation for the past two years and it looks as if it will continue until rates finally start moving and everyone can exhale and say, "yes, there, we knew it."
Or consider this: Can we just accept that low-interest rates are now the norm, since we've been in this environment since 2010, instead of trying to second-guess what the Bank of Canada will do every month? In a recent report by CIBC's Chief Economist, Avery Shenfeld said maybe it is time for a new message.
It's easy to forget that the housing market has been a vital component to the success of the Canadian economy during the past decade. In many respects, the industry has helped to stabilize a faltering economy. Consumer spending and confidence remains
high - a large of part of that comes from allowing consumers to take advantage of low interest rates and to tap into their equity for either spending or investing purposes.
Yes, the government in Canada has had to keep our economy afloat during the recent recession first, by injecting billions of dollars in spending into the economy and second, by instilling a degree of confidence in Canadians and investors by tweaking credit guidelines. However, at the end of the day, it still comes down to actions taken by every day Canadians who put their faith in their ability to repay loans, their ability to manage their household debt, and through consumer spending, that is pulling us through.
We are very fortunate to have weathered the recession as well as we have. However many Canadians are still worried. They are worried about rising rates, they are worried about the possibility of decreasing home values, and they are worried about their ability to save for the future.
Let's look at recent messages from Bank of Canada's Mark Carney. He delivered the message that consumers will pay more in the future for what they borrow today. The latest economic news is positive for a growing economy going into 2013, which will make it easier for Carney to raise the rates. However, recently Carney backtracked slightly and has hinted that rates are not likely to rise until later in 2013 and/or into 2014. He also said that he sees no "imminent" changes ahead, but that "over time, rates are more likely to go up than not."
The latest Housing Market Outlook reports that although slight increases are expected in 2013, rates will remain low by historical standards.
Inflation is another reason rates could rise. Canada's inflation rate is sitting at approximately 1.2% - the lowest level in more than two years. If this should start to rise past Carney's 2.5% benchmark then rates could rise.
The retail sector is a good indicator about consumer confidence and the state of the economy. New research from Ernst and Young predicts that 2012 holiday retail sales in Canada are expected to increase by 3.5% over last year.
It's clear that Canada's economy continues to expand and that we are operating on sound principals. According to Carney, Canada is no longer in the recovery stage but in the expansion phase. That is good news for all economic sectors. Will interest rates go up? They will, but likely not until late 2013 so as not to negate any of the positive effects of a growing and expanding economy.
About The Mortgage Group Canada Inc.
TMG Canada is an innovative and progressive mortgage brokerage company. With mortgage professionals serving 9 provinces and 3 territories, TMG is national in its reach helping Canadians navigate their unique mortgage options with over 50 lenders. TMG has a network of more than 800 mortgage brokers and agents and has helped more than 200,000 Canadians arrange their mortgages in the past 20 years.  | ||
Angela Kroemer Mortgage Professional
1.250.650.4182
Showing posts with label Best low rates. Show all posts
Showing posts with label Best low rates. Show all posts
Thursday, November 8, 2012
Our Low-Interest Rate Environment
Tuesday, September 18, 2012
Retired Now? But your Mortgage Isn't Yet
Everyone looks forward to their retirement days. You have put in 30+ years in the workforce, now it is time for you to do what you want to do. Travel, ski, golf, fish, take up a hobby, the list is endless.
Lets go back 20 years. You are working and making good money, maybe your partner is working, also making good money. You buy a house. make monthly payments on the house and after 10 years you refinance the house. Kids got to go to college, this is a way for them to go. So now you are back owing the same amount for the mortgage as you did 10 years ago. You may even refinance again for your children's weddings.
Another 10 years have passed and now it is time to retire. Your mortgage is not paid off and you just realized your pension isn't going to be a big as you thought. Your mortgage payments are eating all that disposable income you were going to fill your days with.
Remember the travelling, skiing, golfing, hobbies, that endless list.
So what does one do?
The wrong way to go--- I have seen this and it is tragic to see people do this. What they do is charge up their credit cards, if those get filled up, they go get more credit cards or a line of credit secured to their house. They live their life for a few years just like they planned to do it, except without the income they thought they would have. They are now living on CREDIT.
After a few years of juggling their credit card payments, mortgage and line of credit payments, their world comes crashing down on them. Sadly, their house goes into foreclosure, their credit cards get shut down and they have a pile of debt in their names. Not a great way to live out your retirement.
The right way to go-- If you recognize at the start that things must change, you will have an easier and happier retirement life, and we all want that. The good news is there are a few different ways to proceed to succeed.
1. Sell the family home and buy a smaller condo or home. This way the equity you do have in your family home and the increase in land value from the time you bought your family home may allow you to pay off the mortgage and also pay off the smaller dwelling. Leaving you mortgage free, with disposable income for your retirement. Or at the worst giving you a smaller mortgage payment with some disposable income.
2. Look into the Canadian Home Income Plan. (CHIP) Which is a reverse mortgage. With the equity in your family home, you may be able to pay off your mortgage or most of it, leaving you in the family home and increasing your disposable income since the mortgage payment will be paid or made smaller.
3. See if one of your children is interested in buying a house with a in-law suite. With the sale of your family home you and your child could share the mortgage payment. Or you could give them a portion of the proceeds of the sale of the family home, to pay for your in-law suite, which in turn will be the down payment your children will need to buy the home.
4. If your family home is big enough you could divide it into 2 suites. Living in one and renting the other one out. This will free up some of the disposable income that you want.
Whichever way you proceed make sure that you do make the decisions before you are in financial trouble. Because, once you are not making the payments on the mortgage, credit cards, or line of credit, your options because increasingly less.
If you need more information, give me a call or email me. You can check out my website by
Clicking Here
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
Local: 1.250.650.4182
TFP: 1.888.679.0190
Fax: 1.888.679.0192
Facebook Pages
#1 Tip for Consumers Looking to Get a Mortgage
Work with an AMP.
Accredited Mortgage Professionals
CAAMP (Canadian Association of Accredited Mortgage Professionals) requires that all members with the AMP designation receive ongoing education on industry best practices, government rules and changes, and etc. to help you navigate the mortgage process with integrity, responsibility and ease.
How do I know if my mortgage person is an AMP?
Usually they have AMP beside their name.
You can ask them.
You can go on CAAMP's website and search their name.
By clicking on the link above you will find my name, my phone number and my website.
Above my name you will find a header search by person, then type the person's name and scroll to AMP.
Similarly, you can find out if your mortgage person is a member of CAAMP, or if they are a AMP Residential Specialist or an AMP Commercial Specialist.
CAAMP also has a wealth of information for you, the mortgage consumer.
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
Local: 1.250.650.4182
TFP: 1.888.679.0190
Fax: 1.888.679.0192
Facebook Pages
Saturday, September 8, 2012
Business Financing? Yes, We have It With TMG Merchant Capital Program
TMG Merchant Capital Group
I am excited and pleased to announce a new division that The Mortgage Group Canada Inc has opened up and it is TMG Merchant Capital Group, powered by Merchant Advance Capital (MAC) is a Canadian owned and operated company headquartered in Vancouver, British Columbia. The founders of the company have significant financial and business experience, including owning and operating a variety of businesses.
Since day one, Merchant Advance Capital (MAC) have been providing easy access to capital to Canadian small and medium sized businesses by:
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Advancing capital based on future debit/credit card sales;
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Being able to work with any payment processing company;
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Saying 'yes' to more businesses; and
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Using a consultative approach and providing exceptional customer service!
Merchant Advance:
A Merchant Advance is not a loan; it is a discounted purchase of future debit/credit card receivables for cash now. It has been designed to provide growth capital to small-medium sized businesses with no collateral required.
How It Works
The advance is a lump sum of cash in exchange of a lump repayment amount. The repayment amount is paid down a little bit each day through sales made on your credit card machine. Each day a percentage of your card sales automatically go towards chipping away at your balance until the repayment amount is $0.00.
A TMG Merchant Capital Program can be used for any business purpose, such as purchasing inventory, renovations, acquisitions, advertising & marketing, expenses etc.
Example:
An owner of a restaurant which processes approximately $30,000 of debit/credit card sales per month receives a TMG Merchant Capital advance of $24,500 in exchange for $32,400 of future debit/credit card sales collected using a 12% withholding. TMG Merchant Capital withholds 12% of all debit/credit card transactions until it receives $32,400 which in this example would take approximately 9 months. Once the restaurant owner has repaid the majority of the payback amount, he is eligible for a renewal.
The Benefits-There is no interest rate – the amount owed will never grow, so you know exactly how much the funds will cost from day one.
A Merchant Advance is not a loan; it is a discounted purchase of future debit/credit card receivables for cash now. It has been designed to provide growth capital to small-medium sized businesses with no collateral required.
How It Works
The advance is a lump sum of cash in exchange of a lump repayment amount. The repayment amount is paid down a little bit each day through sales made on your credit card machine. Each day a percentage of your card sales automatically go towards chipping away at your balance until the repayment amount is $0.00.
A TMG Merchant Capital Program can be used for any business purpose, such as purchasing inventory, renovations, acquisitions, advertising & marketing, expenses etc.
Example:
An owner of a restaurant which processes approximately $30,000 of debit/credit card sales per month receives a TMG Merchant Capital advance of $24,500 in exchange for $32,400 of future debit/credit card sales collected using a 12% withholding. TMG Merchant Capital withholds 12% of all debit/credit card transactions until it receives $32,400 which in this example would take approximately 9 months. Once the restaurant owner has repaid the majority of the payback amount, he is eligible for a renewal.
The Benefits-There is no interest rate – the amount owed will never grow, so you know exactly how much the funds will cost from day one.
-No fixed payments -repayment is made on a daily basis, through a percentage of your debit & credit card sales. If you sell $200 one day in debit & credit sales, and your daily withholding is 10.0 % then $20 will automatically go to chipping away at your balance.
- No collateral required – Merchant Advances have been designed for fund small- medium sized businesses, no collateral is needed to qualify.
- No changes to your existing hardware – Merchant Advances are compatible with any Merchant Service provider. You do not have to change who you process your debit & credit cards with.
- No delay on your sales – the no-delay debiting system ensures that you receive your sales right away so you never have to wait.
- Receive funding quickly – your business is able to receive funding in 7 business days. In comparison a bank could take 4-8 weeks.
- Repaid quickly – Merchant Advances are modeled to be repaid within a year so your business does not become burdened with long term debt.
-Does not report on your credit bureau – as a Merchant Advance is not a loan, it does not report to the credit bureau.
- No collateral required – Merchant Advances have been designed for fund small- medium sized businesses, no collateral is needed to qualify.
- No changes to your existing hardware – Merchant Advances are compatible with any Merchant Service provider. You do not have to change who you process your debit & credit cards with.
- No delay on your sales – the no-delay debiting system ensures that you receive your sales right away so you never have to wait.
- Receive funding quickly – your business is able to receive funding in 7 business days. In comparison a bank could take 4-8 weeks.
- Repaid quickly – Merchant Advances are modeled to be repaid within a year so your business does not become burdened with long term debt.
-Does not report on your credit bureau – as a Merchant Advance is not a loan, it does not report to the credit bureau.
Our differentiator: TMG Merchant Capital, we want to be a part of your success. Many merchant cash advance companies offer larger up-front advances, but their programs have high withholding percentages which can severely impact a your cash flow. They also increase the discount at which the future sales are purchased in order to cover the increased risk of having merchants that are not as healthy during their program.
We believe in offering a cost effective service that makes financial sense for you, our clients, and we wish to build long-standing relationships for your financing needs.
The Process:Day 1:
Application forms and merchant processing statements submitted.
Day 3:
Conditional offer is made to the applicant, subject to satisfactory review of remaining documents.
Day 5:
Final agreement sent out and executed after one day of review of remaining documents.
Day 7:
Account is funded after banking environment is set up.
Day 3:
Conditional offer is made to the applicant, subject to satisfactory review of remaining documents.
Day 5:
Final agreement sent out and executed after one day of review of remaining documents.
Day 7:
Account is funded after banking environment is set up.
Contact me and see how much you qualify for today!
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
Local : 1.250.650.4182
T.F.P: 1.888.679.0190
T.F.F: 1.888.679.0192
Email :akroemer@mortgagegroup.com
Website : www.KROEMERmortgages.com
Facebook Pages
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Tuesday, September 4, 2012
Renovations You May Regret
You certainly can renovate your house to a point that you are comfortable with it, but don't take it personally when your realtor advises you on what will get your house sold and what will not.
Some of your loved renovations may have to be torn out to get your home sold as not everyone is a do it yourself type of person. Potential buyers who have to hire people to do renovations only see more unnecessary money that has to be spent after buying your house.
Renovation upgrades, such as kitchens and bathrooms, are usually fairly reliable for adding to a home’s resale value. But there are others (and if you’ve gone househunting in the last few years, perhaps you’ve seen a few) that are just plain bone-headed. What’s worth the cost and what isn’t?
Which home upgrades are least likely to return their full investment (or close to it) when you sell, or can even turn buyers off. Some of her answers might surprise you.
Wall-to-wall broadloomOnce considered a selling feature, this is now a liability in many buyers’ eyes. Broadloom is incompatible with pets and people with allergies, and is perceived as hard to clean. If you have hardwood floors, have them refinished or consider installing them if you don’t.
Whirlpool baths, saunas and indoor hot tubsOnce considered chic, these are now often seen as just expensive, energy-guzzling extras.
Expensive built-in sound systems and home theatresSome buyers will be attracted to this, but not everyone is an audio/cinephile, nor will they pay a premium for a house with this feature.
Colourful bath fixturesThese went out with poodle skirts. Chances are the buyer will just see them as a renovation to-do and will plan to get rid of them after the purchase.
Ornate chandeliers, wallpaper and paint treatmentsTaste is very individual and idiosyncratic decorating can turn buyers off; stick with neutral, simple decor.
Odd rooms and wallsA wall bisecting a large bedroom into two unusably small ones or a cramped powder room under the stairs or in a closet … many buyers will see these as merely a future renovation expense. (Same goes for inexplicably missing walls, such as a bathroom that is open to the adjacent bedroom.)
Overly fancy appliancesStainless steel-finish appliances are worth paying a few more dollars for (compared to equivalent white or colour models), but six-burner professional stoves, double dishwashers and a fridge big enough for a restaurant rarely recoup their initial cost.
Cheap laminate or vinyl tile flooringSome types of laminate are attractive and practical; others just look cheap and fake. Especially avoid peel-and-stick vinyl tiles or be prepared to replace them when you put the house on the market. For not much more money, choose hardwood, stone, bamboo or cork.
Swimming poolThere is some debate about this among realtors; to some buyers, a swimming pool is a selling feature. But a pool rarely recoups its entire cost, and it will reduce the number of potential buyers interested in your home.
Turning a three-bedroom into a two-bedroom homeEven if that third bedroom is very small, it’s still a bedroom. No matter how spacious your newly enlarged master bedroom or how luxurious that new spa bath, the demand for two-bedroom homes is significantly smaller than for three-bedrooms, and they command considerably lower prices.
List supplied By Martha Uniacke Breen
For information on mortgages
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
Local: 1.250.650.4182
TFP: 1.888.679.0190
Fax: 1.888.679.0192
Facebook Pages
Monday, September 3, 2012
Your Personal Mortgage Shopper
A mortgage professional, in theory, is educated in all aspects of mortgages. By working closely with one, you access this specialized knowledge and experience.
Imagine if you could turn to an expert when you wanted to make a major purchase. He or she would visit stores, collect the important information about the product and then help you make the best choice. When you’re buying a new home or renegotiating your mortgage, this is what a mortgage professional can do for you.
Basically, we shop around and find you the best deal. When you walk into your bank to discuss mortgage options, the banking officer can only offer you the products from that bank and, depending on your credit history and the product, knock a few points off the interest rate. But a mortgage professional has access to a wide variety of products because he or she can work with any bank, credit union or trust company. They also know who is offering the best rates for the type of mortgage you need and know how to negotiate for a lower posted rate.
A mortgage professional, in theory, is educated in all aspects of mortgage. By working closely with one, you access this specialized knowledge and experience. This is especially valuable for those who have hard-to-place mortgages—such as the self-employed or people with poor credit history. A mortgage professional will know what banks will be more favourable to the client or be aware of alternative ways to secure a mortgage.
Another benefit is the reduced impact on your credit score. Every time you go to a bank and they check your ability to get a mortgage, it’s a hit on your credit score. A mortgage professional will check your credit score once and then shop it to five or more banks at once. If you do plan to comparison shop, this is one way to protect your credit from taking an unnecessary dive.
But how much will all this cost a homebuyer? Brokers are paid a “finder’s fee” — about 0.8 per cent to 1 per cent of the mortgage amount — by the bank or institution, which is not passed on to the person buying the mortgage. The bank can afford to do that because of the volume they get. Since they don’t have an in-house person managing the account, answering questions, taking calls and sending paperwork back and forth, they save on costs and pass that on.
With so many mortgage professionals on the market, it can be a challenge knowing which one to pick. Ask friends and family for recommendations and meet with potential mortgage professionals to see if they are a fit. Follow blogs and websites of mortgage professionals. Ask lots of questions.
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| For Mortgage Information
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
Local: 1.250.650.4182
TFP: 1.888.679.0190
Fax: 1.888.679.0192
Facebook Pages
|
Published on Thursday August 30, 2012
Leigh Doyle
Chris Young for The Toronto Star
Saturday, August 4, 2012
The Importance of Choosing a Mortgage Professional in the Current Canadian Mortgage Environment
This current mortgage environment may be the best time to find the most suitable deal with the help of an experienced broker.
Why is that? Please read on.
Due to low mortgage rates in Canada, banks and brokers are both offering lucrative mortgage deals. With speculations of mortgage rates rising in the future, for Canadians this may be the best time to secure an appropriate deal according to calgaryherald.com.
Keep reading for some long-term advantages of choosing mortgage brokers over banks and the more clear benefits of brokers over banks.
As many borrowers are struggling to find the best deal before the Canadian mortgage rates climb and while banks will be the first to toughen their policies and increase their rates, this may be the best time for borrowers to secure their chance of finding the right rate by choosing a broker.
The Toronto Real Estate Board thinks that with a stricter mortgage policy in effect, there are some clear advantages of choosing a broker. Brokers offer more choices and open doors to better options and flexible terms. The possible reason behind this is their professional relationship with a wide number of lenders.
Without the mortgage broker, a borrower is confined to the best deal offered by the particular bank.
On the other hand, a mortgage broker has access to multiple lenders and banks and therefore, is able to find more competitive mortgage rates and deals.
Due to their professional relations, banks and lenders are more likely to offer brokers better rates than they’d offer the individual buyer. Yet, since the brokers are not working for any bank or financial institution specifically, they can offer impartial and unbiased advice to their clients according to torontorealestateboard.com.
Another reason why mortgage brokers will be able to find better deals is that they are more aware and well-informed about the Canadian mortgage market.
When dealing directly with banks, borrowers usually have to carry out all the research, and more importantly, negotiations on their own.
But due to lack of industry and market knowledge, prospective buyers may be unable to negotiate for the best rates. So, bankers may find them an easy target to lure into deals that are more profitable for banks instead of the borrowers.
It seems not all the banks are deceiving in this aspect. As a matter of fact, some banks do offer special rates and deals for their older customers, but a long standing history and flawless credit score plays a crucial role in this aspect.
In contrast to this, mortgage brokers may find an appropriate deal even for borrowers with low credit score issues. Mortgage brokers take out the time to analyze your credit score in a better way. A low credit score does not always mean that a borrower cannot qualify for a better mortgage rate. In that case, brokers will dig out the best deal for you even when banks won’t.
Another major negative view related to mortgage brokers is that the industry is not regulated and therefore, the risk is higher. But as far as Canada mortgages are concerned, this assumption is false. According to the Canada Mortgage and Housing Society, all reputable mortgage brokers are regulated by federal and provincial financial services regulation agencies.
Like banks and other major institutions, brokers are also required to strictly adhere to the rules and compliance standards. In the case of British Columbia mortgage brokers, The Financial Institutions Commission (FICOM) regulates all mortgage professionals and protects borrowers against related fraud and crimes. This can be verified at http://www.fic.gov.bc.ca/.
Rates will rise. This may be your last chance to find the rates which will allow you to afford to purchase a home. Yet, the best mortgage deal is not just about the best mortgage rates. It is about finding rates that will benefit you in the long run. Only an experienced, knowledgeable and honest mortgage professional can help you find that deal before it is too late.
Due to low mortgage rates in Canada, banks and brokers are both offering lucrative mortgage deals. With speculations of mortgage rates rising in the future, for Canadians this may be the best time to secure an appropriate deal according to calgaryherald.com.
Keep reading for some long-term advantages of choosing mortgage brokers over banks and the more clear benefits of brokers over banks.
As many borrowers are struggling to find the best deal before the Canadian mortgage rates climb and while banks will be the first to toughen their policies and increase their rates, this may be the best time for borrowers to secure their chance of finding the right rate by choosing a broker.
The Toronto Real Estate Board thinks that with a stricter mortgage policy in effect, there are some clear advantages of choosing a broker. Brokers offer more choices and open doors to better options and flexible terms. The possible reason behind this is their professional relationship with a wide number of lenders.
Without the mortgage broker, a borrower is confined to the best deal offered by the particular bank.
On the other hand, a mortgage broker has access to multiple lenders and banks and therefore, is able to find more competitive mortgage rates and deals.
Due to their professional relations, banks and lenders are more likely to offer brokers better rates than they’d offer the individual buyer. Yet, since the brokers are not working for any bank or financial institution specifically, they can offer impartial and unbiased advice to their clients according to torontorealestateboard.com.
Another reason why mortgage brokers will be able to find better deals is that they are more aware and well-informed about the Canadian mortgage market.
When dealing directly with banks, borrowers usually have to carry out all the research, and more importantly, negotiations on their own.
But due to lack of industry and market knowledge, prospective buyers may be unable to negotiate for the best rates. So, bankers may find them an easy target to lure into deals that are more profitable for banks instead of the borrowers.
It seems not all the banks are deceiving in this aspect. As a matter of fact, some banks do offer special rates and deals for their older customers, but a long standing history and flawless credit score plays a crucial role in this aspect.
In contrast to this, mortgage brokers may find an appropriate deal even for borrowers with low credit score issues. Mortgage brokers take out the time to analyze your credit score in a better way. A low credit score does not always mean that a borrower cannot qualify for a better mortgage rate. In that case, brokers will dig out the best deal for you even when banks won’t.
Another major negative view related to mortgage brokers is that the industry is not regulated and therefore, the risk is higher. But as far as Canada mortgages are concerned, this assumption is false. According to the Canada Mortgage and Housing Society, all reputable mortgage brokers are regulated by federal and provincial financial services regulation agencies.
Like banks and other major institutions, brokers are also required to strictly adhere to the rules and compliance standards. In the case of British Columbia mortgage brokers, The Financial Institutions Commission (FICOM) regulates all mortgage professionals and protects borrowers against related fraud and crimes. This can be verified at http://www.fic.gov.bc.ca/.
Rates will rise. This may be your last chance to find the rates which will allow you to afford to purchase a home. Yet, the best mortgage deal is not just about the best mortgage rates. It is about finding rates that will benefit you in the long run. Only an experienced, knowledgeable and honest mortgage professional can help you find that deal before it is too late.
|
| For a great mortgage rate. |
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
Local: 1.250.650.4182
TFP: 1.888.679.0190
Fax: 1.888.679.0192
Your Mobile Mortgage Professional in The Comox Valley TM
Saturday, June 23, 2012
Why Did Canada Change The Mortgage Rules June 2012?
2012 Announcement on Measures to Support the Long-Term Stability of Canada’s Housing Market
General
Q. Why is the Government making these changes at this time?A. These measures will support the long-term stability of the Canadian housing and mortgage markets and promote savings through home ownership. They are intended to be timely, targeted and measured. The measures will reinforce the importance of borrowing responsibly and using home ownership as a savings vehicle. The Government actively monitors developments in the housing market and is committed to taking action when necessary.
Q. What will be the impacts of the adjustments to the rules for government-backed mortgage insurance on the Canadian economy?
A. The adjustments to the rules for government-backed mortgage insurance will provide significant benefits to the Canadian economy by supporting the stability of the housing market and promoting savings through home ownership. The short-term impact on the housing market is expected to be manageable, given that the majority of Canadian families are already taking a prudent approach in managing household debts. In the long term, these measures are expected to have a positive impact on the economy through higher savings and a lower number of financially vulnerable households.
Q. When do these measures take effect?
A. The new measures will take effect on July 9, 2012.
Q. Are further measures expected?
A. The Government actively monitors developments in the housing market, consumer debt and the economy, and is committed to taking action when necessary to support the long-term stability of the housing market and protect the investment of Canadian families.
Q. Do these measures apply to multi-unit buildings?
A. These standards apply to mortgages on residential property with four units or less.
Q. Why is the Government lowering the limit on refinancing again?
A. The new measure announced today will reduce the maximum amount on refinancing to 80 per cent from 85 per cent of the value of the home. Limiting the amount of refinancing will promote saving through home ownership and limit the shifting of consumer debt into mortgages guaranteed by taxpayers.
Q. Why is the Government lowering the maximum amortization period again?
A. The new measure announced today will reduce the maximum amortization period to 25 years from 30 years. Limiting the maximum amortization period will reduce the total interest payments Canadian families make on their mortgages, helping them build up equity in their homes more quickly and pay off their mortgages sooner.
For example, reducing the amortization period from 30 years to 25 years on a mortgage would result in a moderate increase in the monthly payment. However, over the life of the mortgage, this modest increase would result in a significant reduction in the total interest payments. For a $350,000 mortgage at 4 per cent interest rate, the interest savings could be over $45,000.
Q. Why is the Government limiting the maximum gross debt service (GDS) and total debt service (TDS) ratios?
A. The GDS ratio is the share of the borrower’s gross household income that is needed to pay for home-related expenses, such as mortgage payments, property taxes and heating expenses. The TDS ratio is the share of the borrower’s gross income that is needed to pay for home-related expenses and all other debt obligations, such as credit cards and car loans.
The new measure announced today will set the maximum GDS ratio at 39 per cent and reduce the maximum TDS ratio to 44 per cent. These debt service ratios measure the share of a household’s income that is required to cover payments associated with servicing debt. Both measures are already used by lenders and mortgage insurers to assess a borrower’s ability to pay. Setting a GDS limit and reducing the TDS limit will help prevent Canadian households from getting overextended and reduce the number of households vulnerable to economic shocks or an increase in interest rates.
Q. Why is the Government introducing a maximum allowable price for insured mortgages?
A. The new measure announced today will establish that government-backed mortgage insurance is only available for a new high loan-to-value mortgage if the home purchase price is less than $1 million. Because homes priced at or above $1 million would not be eligible for government-backed high ratio insurance, borrowers for these homes would require a down payment of at least 20 per cent.
Introducing a maximum allowable price will ensure that government-backed mortgage insurance operates the way it was originally intended: to help working families and first-time homebuyers. This measure is expected to have a negligible impact on working families and first-time homebuyers as the vast majority of these borrowers purchase properties priced below the threshold.
http://www.fin.gc.ca/n12/data/12-070_2-eng.asp
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley
Facebook Page https://www.facebook.com/#!/akroemer
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Saturday, May 19, 2012
Comox BC, Allowing Secondary Suites
http://comox.ca/hall/latest-news/2012-05-18-secondary-suites/secondary-suites
Comox BC, has allowed home owners to put in a secondary suite into their detached single family homes.
What are the benefits of this:
- families that could not afford a mortgage will now have help in paying their mortgage
-seniors who want to stay in their home will have increase income.
-affordable rent for seniors
-affordable rent for small families
The Comox Valley is notorious for low wages. This will help as rents will be more in line with the low wages.
There are rules to follow to make your house into 2 suites, but as long as you follow those rules you will be able to get help in paying your mortgage by having renters in part of your home.
For mortgage options:
1. Purchase Plus Improvements-- you want to buy a home in Comox and you want to build a secondary suite. This program will allow you to borrow 10% of the purchase price up to a maximum of $40,000.00 to do the additional upgrades to make your home 2 suites.
2. Refinance Plus Improvements- If you have equity in your home but do not have the cash to do the improvements to make your home into 2 suites. You can refinance your home to do the improvements.
Both of these programs offer the same low interest rate as a mortgage. This way you do not have to deal with expensive credit cards or lines of credit.
For more information give me a call or email .
www.KROEMERmortgages.com
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley
Comox BC, has allowed home owners to put in a secondary suite into their detached single family homes.
What are the benefits of this:
- families that could not afford a mortgage will now have help in paying their mortgage
-seniors who want to stay in their home will have increase income.
-affordable rent for seniors
-affordable rent for small families
The Comox Valley is notorious for low wages. This will help as rents will be more in line with the low wages.
There are rules to follow to make your house into 2 suites, but as long as you follow those rules you will be able to get help in paying your mortgage by having renters in part of your home.
For mortgage options:
1. Purchase Plus Improvements-- you want to buy a home in Comox and you want to build a secondary suite. This program will allow you to borrow 10% of the purchase price up to a maximum of $40,000.00 to do the additional upgrades to make your home 2 suites.
2. Refinance Plus Improvements- If you have equity in your home but do not have the cash to do the improvements to make your home into 2 suites. You can refinance your home to do the improvements.
Both of these programs offer the same low interest rate as a mortgage. This way you do not have to deal with expensive credit cards or lines of credit.
For more information give me a call or email .
www.KROEMERmortgages.com
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley
Tuesday, May 8, 2012
Did the bank decline your mortgage application?
Check out my sweet deal on my website www.KROEMERmortgages.com
Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
Local: 1.250.650.4182
TFP: 1.888.679.0190
Fax: 1.888.679.0192
Your Mobile Mortgage Professional in The Comox Valley with an Office TM
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