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With a growing number of brokers entering the Canadian mortgage market, how do you find the one that will work best for you?
So, you’re ready to purchase a home.
If you enlist the services of a qualified and professional mortgage broker, then you can be sure that they will work diligently to secure you the best terms and rates available on a product that fits your needs. In addition, they will guide you through the whole home buying process.
But with a growing number of brokers entering the Canadian mortgage market, how do you find the one that will work best for you?
50 per cent of (or 2.1 million) Canadian households renovated their homes in 2009, and just over 40 per cent intend to this year.
According to a recent survey published by the Canada Mortgage and Housing Corportation (CMHC), 50 per cent of (or 2.1 million) Canadian households renovated their homes in 2009, and just over 40 per cent intend to this year. The survey took information from homeowners dwelling in the 10 largest Canadian housing markets: Vancouver, Edmonton, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec, Halifax and St. John’s.
When home values begin to decline, it ‘s best to take action before lenders and home insurers start narrowing their allowances
When home values begin to decline, it‘s best to take action before lenders and home insurers start narrowing their allowances. This is especially true in cases where refinancing and home lines of credit are concerned.
Many lenders require that a potential borrower has at least 20 to 25 per cent equity in the home from which they intend to draw a Home Equity Line of Credit (HELOC). In other words, if housing values fall and you lose, for example, five per cent of the equity you have amassed, you may also lose your ability to qualify altogether.
Continue reading “Falling Housing Prices Mean It's Time To Act”
HSBC mortgage products were often attributed lengthy turnaround times, and only put forward occasional rate promotions.
After a move to deal only with its top 100 brokers was initiated last year, HSBC Canada has decided to end even those arrangements and handle mortgages solely online or over the phone directly through their own employees. The bank will, however, honour all agreements with mortgage brokers currently in existence.
“We plan to concentrate on growing our business through our network of over 140 bank branches,” HSBC Bank Canada spokeswoman Sharon Wilks said.
Hybrid mortgages grant homeowners the best of both mortgage rate worlds and manage risk.
Nearly half of the prospective homebuyers aiming to purchase property over the next two years are intending to do so with a hybrid mortgage, says a recent survey conducted by the Royal Bank of Canada.
These numbers are up eight per cent from those attained in the same survey conducted by RBC last year. Yet, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP), virtually all Canadian homeowners with mortgages currently, or 94 per cent, have either a fixed rate or a variable mortgage. This means that only a potential six per cent of the market has actually committed to a hybrid mortgage.
Continue reading “Canadians Increasingly Looking to Hybrid Mortgage Products”
Mortgage insurance protects the lender in the event the mortgagor defaults on their mortgage payments.
Though mortgage default insurance is required in Canada on loans where 80 per cent or greater of the property’s value is financed though a lender, that is not the only case when it is beneficial to obtain insurance.
According to the Canada Mortgage and Housing Corporation (CMHC), as of December 31, 2009, 71 per cent of their $472-billion in outstanding mortgage insurance was for mortgages with a loan-to-value (LTV) ratio of 80 per cent or less. Fewer than five per cent of insured mortgages were for loans with an LTV over 95 per cent, and almost 90 per cent of insured mortgagors had already amassed at least 10 per cent in equity in their home.
Continue reading “Mortgage Insurance is Not Just for High Ratio Loans”
A CMHC study finds that First-time homebuyers conduct virtually all of their mortgage inquiries online.
The 2010 CMHC has revealed many interesting statistics from its survey, including the trend for first-time homebuyers to conduct virtually all of their mortgage inquiries online. Findings from the 2,503 Canadians surveyed in February illustrate that:
Continue reading “Majority of First-Time Homebuyers Shop Online”
On April 19th, all banks will be using what is referred to as a ‘benchmark rate’ to see who qualifies for a mortgage.
As of April 19, all variable or fixed-rate, high-ratio insured mortgages will be qualified using either the chartered-bank five-year posted rate or the contract rate, whichever is greater. This change comes as lenders announce their new policies regarding debt servicing.
The Bank of Canada will post this qualifying rate (also known as a benchmark rate) every Monday. Some banks, including TD and Scotia Bank, appear to be applying this rate not only to high-ratio loans, but to conventional mortgages as well.
Continue reading “Higher Qualification Rates Posted by Banks”
There comes a point in time when a house price rises so high that a purchase may just not be a wise decision.
There comes a point in time when a house price rises so high that a purchase may just not be a wise decision, especially in cases where you are putting less than 10 per cent down.
Mortgage pundit Moshe Milevsky says that ultra low interest rates, making home ownership appear so very much in reach of many prospective buyers, may also be the enticement that leads those homeowners into detriment later on down the road.
As of April 19, all unsigned pre-approved mortgages will be made null and void due to the new qualifying rate rules.
If you have been pre-approved for a mortgage at a specified rate, but as of April 19 have still not signed the purchase agreement, be forewarned that new qualifying rate rules will apply.
According to the Canada Mortgage and Housing Corporation (CMHC), a mortgage pre-approval does not represent a binding agreement for the lender to provide the said funds. Therefore, unless you sign your purchase agreement prior to the April 19 cutoff date, the rate you qualify for will be subject to the new rules.