12 Jun

Going long term or short term with your rate

Mortgage Tips

Posted by: Cory Kline

With all the news about interest rates rising do you go long or short with your rate when you set up your mortgage?
After discussing your current life situation and answering some key questions with your Dominion Lending Centres mortgage broker you can make some decisions and set your mortgage rate and term to best fit your needs.

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18 May

Prepare, Prepare, Prepare

Mortgage Tips

Posted by: Cory Kline

Every year since October 2008 it’s become more and more difficult to obtain a mortgage. The government claims to be casting a safety net over the Canadian housing industry via stiffer mortgage regulations. What do you need to know to help prepare yourself for a home purchase, refinance, debt consolidation, or even a simple renewal? Well the biggest item I cover on a daily basis is preparation.

It can take a client weeks or months to find the confidence to connect with a Mortgage Professional once they feel confident that they ready to obtain that next mortgage. Any Mortgage Professional worth their salt will be able to guide their clientele to prepare them properly for the mortgage.

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4 May

Attention Landlords!!!

Latest News

Posted by: Cory Kline

If you have not yet found yourself skimming the news online today, you may not have heard yet about the Provincial Government’s announcement regarding the Ontario Housing and Rental Markets.

The Provincial Liberal Government, laid out for the Province their plan to address issues in key aspects of the Real Estate and Rental Property Markets in the Province. There were 16 steps in total, however for this post, we are going to focus solely on the announced changes that deal directly with Rental Properties and Landlords. These changes may directly impact those of you who have or plan to acquire rental property. (Keep in mind that these were just announcements and many of them will have to be passed in the legislature before officially becoming law, although passing is highly likely).
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28 Apr

What Does It Actually Mean To Co-sign For a Mortgage?

Mortgage Tips

Posted by: Cory Kline

There seems to be some confusion about what it actually means to co-sign on a mortgage and you know that where there is confusion, your trusted mortgage professional seeks to offer clarity. Let’s take a quick look at why you may be asked to co-sign and what you need to know before, during, and after the co-signing process.

So why are you being asked? Last year there were two sets of changes made to the mortgage world which can likely explain why you are receiving this request in the first place.

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12 Apr

Bank of Canada Upgrades Forecast, But Keeps Rates Unchanged

Mortgage Tips

Posted by: Cory Kline

For years now, the Governor Stephen Poloz and his Bank of Canada colleagues have held the key overnight rate unchanged at 1/2 percent, while at the Federal Reserve has hiked rates several times with more to come. The jobless rate is at a mere 4.5 percent in the US, clearly at or near full employment and the Fed policy makers have suggested they will reduce liquidity further this year and next. Once again today, the Bank of Canada has held the key overnight rate steady while upgrading their outlook for the economy.

Economists now expect the Canadian economy to grow at a rate of roughly 2.5 percent, compared to 1.4 percent last year and a mere 0.9 percent the year before. Indeed, economic activity has accelerated sharply since the middle of last year–up at a 4.3 percent annual pace over that seven-month period. Job creation has been strong since the summer. The Business Outlook Survey suggests that business investment–a disappointing underperformer–is poised to rise as the oil sector digs itself out of the rut caused by the collapse in oil prices in mid-2014. Export growth accelerated sharply until February, which hopefully is a one-month aberration and housing activity certainly remains strong–too strong in the Greater Toronto Area and its environs, as well as in parts of British Columbia.

No one expects the Bank of Canada to raise rates simply because of the housing market, as housing markets are not overheated in much of the rest of the country.

In today’s Monetary Policy Report (MPR), the Bank boosted their forecast of Canada’s economy this year to 2.6 percent from 2.1 percent in the January MPR. For 2018, growth is now projected to be 1.9 percent (slightly below the January forecast). However, the Bank suggested that the “composition of aggregate demand is uneven.” According to today’s MPR, “In the oil and gas sector, a resumption of growth in investment spending is under way in the wake of significant adjustments to past declines in commodity prices. This contributed, together with very strong consumption and residential investment, to a temporary surge in growth in the first quarter. In contrast, non-commodity business investment and exports remain weak, raising questions about the medium-term sustainability of the upturn”.

“Economic activity will be supported by rising foreign demand, federal fiscal stimulus and accommodative monetary and financial conditions. In addition, the composition of demand growth is expected to broaden: the pace of household expenditures, especially residential investment, moderates as the contributions from exports and business investment increase, albeit at a much slower pace than would normally be expected at this stage of the cycle. Ongoing competitiveness challenges and uncertainty surrounding the prospects for global trade are expected to limit this broadening of growth. A notable increase in global protectionism remains the most important source of uncertainty facing the Canadian economy”.

The Bank’s forecast remains a bit below the consensus view of Bay Street economists. The Bank has underestimated growth for many quarters. The MPR suggests that “while the degree of excess capacity has declined since the January Report, the Bank judges that in the first quarter of 2017 it remains material, between 1 1/4 and 1/4 per cent”. The output gap is now projected to close in the first half of 2018, a bit sooner than the Bank anticipated in January.

Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres

 

11 Apr

Why is my mortgage rate higher if I put 20% down?

Mortgage Tips

Posted by: Cory Kline

You might think you would be rewarded for toiling away to save a down payment of 20% or greater. Well, forget it. Your only prize for all that self-sacrifice is paying a higher interest rate than people who didn’t bother.

Once upon a time we had high ratio vs conventional mortgages, now it’s changed to; insured, insurable and uninsurable.

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