As we navigate the spring market, one thing remains clear: now is the time to put a proactive mortgage strategy in place. Whether you're approaching renewal, considering a new home purchase, or thinking about leveraging your home's equity, being prepared ensures you're ready to act—no matter what the future holds. Why Timing Matters Interest rates are on pause—for now. After a series of rate cuts beginning last June, the Bank of Canada held its key interest rate at 2.75% earlier this month. While some economists anticipate the possibility of further decreases later this year, much depends on how the broader economy evolves. In the meantime, today's stable rates present an opportunity to explore your options—whether that means securing a better deal on a new mortgage or refinancing your current mortgage. At the same time, housing affordability and access to homeownership are major themes in the platforms of both the Liberal and Conservative parties. No matter who forms the next government, there will likely be policy changes that affect the housing market. However, those changes won't be immediate. Legislation and programs take time to design, pass, and implement. That's why preparing now makes sense—you'll be positioned to take advantage of today's conditions and ready to adapt when changes do come. A quieter market could be an opportunity. The spring market has been slower than usual, with many buyers and sellers waiting for clearer signals before making a move. This subdued environment can actually work to your benefit. With fewer buyers competing for homes, you may find better opportunities to negotiate or even secure a home at a better price. What you can do right now<ol><li value="1" class="editor_listItem" dir="ltr">If your mortgage is renewing within the next 12 months be proactive! You don't have to wait for your lender's renewal letter and you don't have to accept their offer without considering your options first. It's always a good idea to shop around – and renewal is a great time to re-evaluate your situation so you can make any changes if necessary. By starting the renewal process early, not only do you give yourself time to secure a better deal, potentially saving thousands of dollars in the long term, you can lock in a favourable rate and avoid unpleasant surprises.</li><li value="2" class="editor_listItem" dir="ltr">If you're considering a home purchase get pre-approved now to understand your buying power. Pre-approval helps you act quickly when the right property or rate becomes available. It also helps you focus your home search within your budget, saving time and stress. If the market shifts, having pre-approval in place makes it easier to act decisively.</li><li value="3" class="editor_listItem" dir="ltr">If you're thinking about accessing your home equity this is an excellent time, with home values in many areas remaining strong. Whether you want to consolidate high-interest debt, fund home improvements, or build financial flexibility for the future, refinancing now can give you more options as market conditions remain steady. Don't wait for potential changes in rates or policy—take advantage of the current window of opportunity.</li></ol> Even if you're not planning any immediate moves, it's always helpful to check in with your mortgage professional. With changes potentially on the horizon, staying informed will ensure that you're prepared for whatever comes next. Whether you're renewing your mortgage, buying a new home, or tapping into your equity, I'm here to help you build a strategy that aligns with both your short- and long-term goals. Let's connect today and get you on track for what's to come. Call or email me anytime—I'm here to help!

In A Market Waiting For Change, The Smartest Move Is Planni…

Being self-employed offers flexibility and independence but can also make securing a mortgage a bit more complex. With sometimes inconsistent income and fewer traditional employment records, many business owners find it challenging to meet conventional mortgage requirements. But don’t worry—there are proven strategies to help you navigate the process. 1. Get Organized Early Lenders need to see proof of income and stability. Gather at least two years’ worth of financial statements, Notices of Assessment, and bank records. Having these documents on hand shows you’re prepared and demonstrates financial reliability.2. Work with a Mortgage Broker A mortgage broker experienced with self-employed clients can guide you to lenders who specialize in non-traditional income scenarios. They can also explain which lenders will accept your full income, including retained earnings and one-time contracts.3. Consider Stated Income Mortgages If your income is hard to document, some lenders offer stated income mortgages or bank statement mortgages. These loans also consider your credit history and assets instead of relying solely on tax returns. While rates may be slightly higher, these loans can bridge the gap if traditional underwriting methods don’t reflect your earning power.4. Build a Strong Credit Profile A high credit score and clean credit history make you more appealing to lenders. Pay down high-interest debts, maintain consistent credit card payments, and avoid taking on new debt during the mortgage application process.5. Increase Your Down Payment The more you can put down, the less risk the lender assumes. If you’re self-employed, offering a larger down payment can make lenders more willing to approve your mortgage application. Being your own boss shouldn’t keep you from owning your dream home. By staying organized, working with the right experts, and exploring alternative mortgage products, you can successfully navigate the lending landscape and secure a mortgage that fits your needs.

Being self-employed offers flexibility and independence but can also make securing a mortgage a bit more complex. With sometimes inconsistent income …

5 Ways Self-Employed Individuals Can Secure a Mortgage

Entering the housing market for the first time can feel overwhelming. With soaring property values, stricter lending guidelines, and so many mortgage options, it’s hard to know where to begin. But armed with the right strategies, first-time homebuyers in Ontario can navigate the process with confidence. 1. Get Pre-Approved for Your Mortgage First A pre-approval not only helps you understand your price range, but it also shows sellers you’re a serious buyer. Knowing your budget upfront allows you to narrow your search to homes you can comfortably afford, avoiding disappointments down the road. 2. Consider All Down Payment Options While many buyers aim for a 20% down payment to avoid CMHC mortgage insurance, don’t overlook other options. You might qualify for the First-Time Home Buyer Incentive or use RRSP savings through the Home Buyers’ Plan. Even a smaller down payment can work, as long as you’re mindful of the overall cost of borrowing. 3. Factor in Closing Costs Beyond the purchase price, there are additional expenses such as land transfer taxes, legal fees, and home inspections. First-time buyers are often eligible for rebates or credits, so explore these to reduce your out-of-pocket expenses and budget 1.5% of the purchase price for closing costs. 4. Work with a Mortgage Broker Instead of relying solely on one lender, consider working with a mortgage broker who can shop multiple lenders to find you the best rates and terms. Brokers can also explain complex mortgage products, like fixed vs. variable rates, helping you choose the right fit for your financial situation. 5. Be Flexible and Patient The Ontario housing market can be competitive. Finding the right home at the right price may take time. By being patient and willing to adjust your expectations, you can avoid rushing into a purchase that doesn’t fully meet your needs. For first-time homebuyers, preparation is key. With a clear budget, knowledge of available assistance programs, and expert guidance from a mortgage broker, you can secure your first home without unnecessary stress. Remember, this is one of the most significant financial decisions you’ll make—take your time, ask questions, and stay informed.

Entering the housing market for the first time can feel overwhelming. With soaring property values, stricter lending guidelines, and so many mortgage…

5 Smart Strategies for First-Time Homebuyers in Ontario

options. Even with the latest rate drops, rates have risen since the low rate COVID years, meaning you may be facing higher payments than before. However, lenders are competitive, and there maybe opportunities to restructure your mortgage to better fit your financial goals. A mortgage review can help you determine whether refinancing, switching lenders, or adjusting your term length makes sense. Even if you’re not renewing yet, it’s a good idea to plan ahead and explore options before you’re locked into a higher rate. SELLERS: SETTING REALISTIC EXPECTATIONS If you’re considering selling this spring, the key is to price your home correctly. Overpriced homes tend to sit on the market longer, while competitively priced properties attract serious buyers. Work with a knowledgeable real estate agent to assess recent comparable sales and set a fair asking price. Presentation matters, too. With more homes hitting the market, staging and curb appeal can make a big difference in attracting buyers. Small upgrades, decluttering, and professional photos can help showcase your home in the best light. PLANNING AHEAD IS KEY Spring is an exciting time in real estate, but it’s also a season that requires careful planning. Whether you’re buying, selling, or refinancing, having a strategy in place will help you make informed decisions and get the best outcome. As your mortgage advisor, I’m here to help you navigate these choices. If you have questions about mortgage options, pre-approvals, or refinancing strategies, let’s chat. The right advice now can set you up for financial success in the months and years ahead.

options. Even with the latest rate drops, rates have risen since the low rate COVID years, meaning you may be facing higher payments than before. How…

Spring Market Outlook: What Buyers and Homeowners Need to K…

If your mortgage renewal is coming up and you’re facing significantly higher interest rates than when you first secured your loan, you’re not alone. Many Canadian homeowners are encountering a more expensive borrowing environment, which can impact monthly payments and overall financial stability. However, with the right strategy, you can minimize the impact of rising rates and make informed decisions for your financial future. <h2 class="editor_h2">Why Are Mortgage Rates Higher?</h2>Over the past few years, the Bank of Canada has increased its benchmark interest rates to combat inflation, and the 5-year Government of Canada bond yield has increased. As a result, lenders have raised their fixed rates, and variable mortgage rates have increased as the prime rate increased, leading to higher costs for borrowers. While rates may fluctuate, the trend has been towards more expensive borrowing compared to the historically low rates seen in previous years. <h2 class="editor_h2">What to Expect When Renewing Your Mortgage</h2>When your mortgage term ends, your lender will typically offer a renewal agreement. However, it’s important not to accept the first offer without evaluating your options. In a higher-rate environment, careful planning and negotiation are essential to securing the best terms. Here are a few key factors to consider: <h2 class="editor_h2">1. Assess Your Current Financial Situation</h2>Before committing to a new mortgage term, take stock of your finances. Consider: <ul><li value="1" class="editor_listItem" dir="ltr">How much your monthly payments will increase at a higher rate</li><li value="2" class="editor_listItem" dir="ltr">Whether you have any additional debt that needs to be managed</li><li value="3" class="editor_listItem" dir="ltr">Your long-term financial goals and budget</li></ul> <h2 class="editor_h2">2. Shop Around for the Best Rate</h2>Many homeowners simply renew with their existing lender, but this can be costly. It’s wise to explore offers from different lenders, including banks, credit unions, and mortgage brokers. A mortgage broker can help you access competitive rates and special promotions that may not be widely advertised. <h2 class="editor_h2">3. Consider a Shorter Term</h2>If you believe interest rates might decrease in the next few years, you may want to opt for a shorter-term mortgage (e.g., a 1- to 3-year term) instead of locking into a 5-year fixed rate. This gives you the flexibility to renew at a potentially lower rate in the near future. <h2 class="editor_h2">4. Explore Fixed vs. Variable Rates</h2> <ul><li value="1" class="editor_listItem" dir="ltr">Fixed-rate mortgages provide stability, ensuring your payments remain consistent throughout your term. This is a good choice if you want certainty in your budgeting.</li><li value="2" class="editor_listItem" dir="ltr">Variable-rate mortgages can be riskier but may offer lower initial rates. Historically, variable rates have been advantageous over the long term, but this depends on market conditions.</li></ul> <h2 class="editor_h2">5. Increase Your Payments (If Possible)</h2>If you can afford it, increasing your mortgage payments or making lump-sum payments can help reduce your principal faster, ultimately saving you interest costs over time. <h2 class="editor_h2">6. Consider Refinancing or Extending Your Amortization</h2>If higher rates are causing financial strain, refinancing might be an option. This could involve extending your amortization period to lower your monthly payments or consolidating high-interest debt into your mortgage. However, this means paying more interest in the long run, so weigh the pros and cons carefully. <h2 class="editor_h2">Final Thoughts</h2>Renewing your mortgage in a higher-rate environment can be challenging, but with careful planning and expert guidance, you can navigate this transition effectively. Avoid rushing into a renewal without exploring your options, negotiating with lenders, and considering alternative strategies that align with your financial goals. If you’re looking for tailored advice on your mortgage renewal, contact me so I can assist you in securing the best terms and reducing the impact of rising rates.

If your mortgage renewal is coming up and you’re facing significantly higher interest rates than when you first secured your loan, you’re not alone. …

Renewing Your Mortgage in a Higher-Rate Environment: What Y…

With trade wars and tariffs dominating the headlines recently, many are wondering what effect this could have on the housing market. Lower interest rates offer some relief, but we're now facing the potential of tariffs driving up costs. So, what does this mean for mortgage rates, home prices, and affordability? Here's an overview of how tariffs could impact the housing market. In late January, the U.S. announced that it would impose tariffs on certain Canadian goods, which prompted retaliatory measures from our government. Then, in an eleventh-hour deal, both countries agreed on a 30-day suspension. The U.S. recently announced that it would impose a 25% tariff on Canadian steel and aluminum imports. With the threat of more tariffs still looming, the situation remains unclear. If tariffs do go into effect, this could lead to higher costs in construction, home renovations, and mortgage rates. Here's what's already unfolding:<ul><li value="1" class="editor_listItem" dir="ltr">The Canadian dollar has seen drops, making imported goods, including construction materials, more expensive.</li><li value="2" class="editor_listItem" dir="ltr">Stock market fluctuations indicate general unease about economic stability, affecting investor confidence and borrowing conditions.</li></ul> How Could Tariffs Impact the Housing Market?Many materials used in Canadian homebuilding are imported from the U.S. If tariffs increase costs, this could lead to:<ol><li value="1" class="editor_listItem" dir="ltr">Higher Construction and Renovation Costs: Many materials used in Canadian homebuilding are imported from the U.S. If tariffs increase costs, this could lead to: Fewer new homes being built, further tightening supply. Rising home prices due to higher material costs. More expensive home renovations for current homeowners.</li><li value="2" class="editor_listItem" dir="ltr">Mortgage Affordability and Interest Rate Uncertainty: On January 29, the Bank of Canada announced its sixth consecutive rate cut to support the economy. Further rate cuts in 2025 were widely expected but some analysts suggest that tariffs could lead to inflation, which might pressure the Bank of Canada to halt or reverse rate cuts. Others argue that economic slowdowns resulting from trade disruptions could lead to further rate reductions.</li><li value="3" class="editor_listItem" dir="ltr">Market Volatility and Buyer Behaviour: Uncertainty surrounding trade policies could lead to mixed reactions in the housing market: Some buyers may rush to secure lower mortgage rates before potential increases. Others may pause their homebuying plans, waiting for greater economic clarity. Regional markets may be affected differently, with some areas maintaining demand while others slow due to affordability concerns.</li></ol> What Does This Mean for You? <ul><li value="1" class="editor_listItem">If you have a variable-rate mortgage: The recent rate cut means lower payments for now. However, if inflation rises due to trade disruptions, further rate cuts may not materialize, and rates may even increase.</li><li value="2" class="editor_listItem">If you have a fixed-rate mortgage: Refinancing might still be a good option while bond yields remain low, but market uncertainty could impact lender rates.</li><li value="3" class="editor_listItem">If you are planning to buy a home: Rising construction costs could mean fewer new homes and higher prices. Acting sooner rather than later could help secure a better mortgage rate and affordability.</li></ul> How to Stay Ahead The housing market is evolving rapidly and having the right mortgage strategy is more important than ever. Whether you're looking to buy, refinance, or explore your options, I can help you navigate these changes with confidence. Let's discuss your mortgage strategy before conditions shift! Call or email me today to plan your next steps.

With trade wars and tariffs dominating the headlines recently, many are wondering what effect this could have on the housing market. Lower interest r…

Navigating Uncertainty: How trade tensions could impact mor…

I get questions about downpayment all the time! So here is the lowdown on how much you need and how you might get it. How much do you need?Many Canadian homebuyers purchase a property with the absolute minimum downpayment. The thing is, the minimum can vary, so you want to be sure you know how it’s calculated.Will you live in the home? If the house will be owner-occupied, then you need 5% down for the first $500,000 of the purchase price and 10% for any amount over $500,000 up to $1,499,999. &nbsp;If the purchase price is&nbsp;$1,500,000&nbsp;or more, the minimum&nbsp;down&nbsp;is 20%.Hoping to skip the cost of mortgage default insurance? Then you’ll need at least 20% down. Any downpayment less than 20% of the purchase price requires this insurance, which will be added to your mortgage principal.Buying a rental or recreational property? If it’s not going to be your own principal residence, then you’ll need 20% down. Genworth and CMHC have a vacation/second home program that allows you to put 5% down but mortgage default insurance will be required. Rental properties require 20% down.Are you new to Canada? If you’re a permanent resident, then you’ll need the same downpayment as a Canadian citizen: 5% for the first $500,000 and 10% after that. If you are a non-permanent resident, then you’ll need 10% down. &nbsp;And if you’re not a resident of Canada, then you’ll need at least 35% down from your own resources (not borrowed). Smart ways to come up with a downpaymentIf you’re looking to buy a second home, refinancing your existing home is often the best way to get a downpayment. The best starting point is a review of your situation.If you’re saving for your first home, here are some ways to come up with the cash: <ol><li value="1" class="editor_listItem" dir="ltr">A financial gift. If you’re lucky enough to receive financial support from a parent or other blood relative, you’ll need to get a signed form stating that the funds are a gift and that you are not required to pay them back at any time. </li><li value="2" class="editor_listItem" dir="ltr">Your RRSP: You can withdraw up to $35,000 tax-free from your RRSP or $70,000 per couple. &nbsp;The recent federal budget increased this from $25,000 and also announced that in 2020, this program will be available to divorced individuals. &nbsp;You will be required to pay the funds back over 15 years. </li><li value="3" class="editor_listItem" dir="ltr">FHSA: An FHSA combines some of the features of an RRSP and TFSA. Contributions will generally be tax-deductible, and when a qualifying withdrawal is made, the amount withdrawn is not-taxable.</li><li value="4" class="editor_listItem" dir="ltr">TFSA/Investments: If you withdraw from your TFSA to boost your downpayment, you’re allowed to re-contribute, so you never lose your TFSA room. &nbsp;If you haven’t set up a TFSA, then do it today and set it up so money goes in every month.</li><li value="5" class="editor_listItem" dir="ltr">Early inheritance: Many parents and grandparents would rather help their children purchase a home while they’re alive than have them wait for an inheritance. </li><li value="6" class="editor_listItem" dir="ltr">Sell assets: For instance, a vehicle or jewelry. You need to show 3 months of bank statements to support your downpayment and explain any large deposits.</li><li value="7" class="editor_listItem" dir="ltr">Money from outside of Canada: If you’re bringing funds from outside of Canada, you’ll want to have those funds in Canada for at least 30 days before closing, and you’ll need to provide 3 months of financial history from the original account they came from.</li></ol> Often, homebuyers are actually closer than they think to buying that first or next property. Get in touch any time. Early advice can save time, money and stress!

The Lowdown On Down Payments

Most Canadians suffer with their highest personal debt load in January, when the “holiday hit” arrives and your credit card statements let you know just how much the festive season cost you. It’s especially hard if you already had outstanding debt before the holidays. That’s why now is the perfect time to talk about your Personalized Paydown Plan.&nbsp;If you have at least 20% equity in your home, I can show you how to use it to roll your high-interest debt into a new mortgage for overall savings. Here’s an example—in this case, mortgage, car loan, and credit cards total $355,000. We roll that debt into a new $358,000 mortgage, including a fee to break the existing mortgage, and take a look at the result:<table class="editor_table"><colgroup><col><col><col></colgroup><tbody><tr><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">&nbsp;</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">&nbsp;</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">MONTHLY PAYMENTS</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">Current</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">New</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">Mortgage</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp; $300,000</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $1,388</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $1,877</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">Car loan</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $25,000</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $495</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $0</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">Credit Cards</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $30,000</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $600</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $0</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">Total</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $2,483</td><td class="editor_tableCell" style="border: 1px solid black; width: 175px; vertical-align: top; text-align: start;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $1,887</td></tr></tbody></table>&nbsp;Current mortgage 2.79%, 5-yr term, 25-yr amortization; new mortgage 4.89%, 5-yr term, 30-yr amortization; car loan 7%, 5-yr amortization; credit card payment based on 2% of balance. For illustration purposes only. OAC. Subject to change. &nbsp;That’s a savings of $596 each month. Now let's decide how you can use that $596. If you use your prepayment privileges and apply it to your mortgage, you could reduce your amortization from 30 years to 18 years. Or, invest it in an RRSP, RESP, or TFSA to reap tax benefits and grow your wealth.&nbsp;You could also consider putting a portion into a dedicated “December fund” so the next holiday season doesn’t bring financial stress. Instead, you can enjoy guilt-free giving, knowing the bills are covered.&nbsp;While refinancing is not an option for everyone and every situation, I have access to other financing options that can help. If you think you could benefit from this kind of financial restructuring, get in touch and we can review your situation carefully to determine the best path for you.&nbsp;Two Tax-time Advantages for First-time Buyers&nbsp;The 90-day boost – If you’re buying your first home now and your closing date is at least 90 days away, let’s talk. The Federal Home Buyers’ Program (HBP) and a tax refund can boost the funds you have available for your purchase. First, make as big an RRSP contribution as you can – up to your contribution limit or $60,000 per person. You can even use your downpayment savings for this. Big RRSP contribution means a great 2024 refund. Then, after 90 days, you can go back into your RRSP and redeem your contribution under the HBP program. So you’ve got your original downpayment funds back PLUS a nice tax refund. You’ll need to pay the withdrawn funds back on a repayment plan, but this strategy can make a substantial difference in the affordability of home ownership!&nbsp;$1,500 for first-time buyers – Don’t leave money on the table if you bought your first home last year! You may be able to take advantage of the Home Buyers Tax Credit (HBTC) when you file your tax return. The $10,000 non-refundable HBTC provides up to $1,500 in federal tax relief. You qualify if neither you nor your spouse (or common-law partner) have owned and lived in another home for the past five years. For more information, visit the Government of Canada website.

Most Canadians suffer with their highest personal debt load in January, when the “holiday hit” arrives and your credit card statements let you know j…

Do you need a Personalized Paydown Plan for your holiday bi…

In&nbsp;the midst&nbsp;of&nbsp;the busy holiday season, there is some welcome news that could bring a little extra cheer at a time when many are looking to make the most&nbsp;of&nbsp;their budgets. Bank&nbsp;of&nbsp;Canada&nbsp;Announces Interest Rate Reduction On the final rate announcement&nbsp;for&nbsp;2024, the&nbsp;Bank&nbsp;of&nbsp;Canada&nbsp;once again reduced interest rates by .5%,&nbsp;in&nbsp;an effort to stimulate economic growth and maintain its inflation targets. This move aims to provide some relief to households, encourage spending, and support businesses across the country. While the rate cut has widespread implications&nbsp;for&nbsp;the economy, it also directly impacts various financial products, most notably mortgages. What This Means&nbsp;For&nbsp;Your Mortgage If you have a variable-rate mortgage, you're likely to see immediate benefits. The interest rate on your mortgage may decrease, which could lower your monthly payments. This is certainly a welcome gift&nbsp;for&nbsp;homeowners, as the lower payments may provide some breathing room&nbsp;in&nbsp;your budget, especially with the higher costs&nbsp;of&nbsp;living many have experienced&nbsp;in&nbsp;recent months.&nbsp;For&nbsp;those&nbsp;of&nbsp;you looking&nbsp;for&nbsp;some financial flexibility during the holidays, this change could be a timely and appreciated break. If you have a fixed-rate mortgage, the situation is slightly different. Since your interest rate remains locked&nbsp;in&nbsp;for&nbsp;the term&nbsp;of&nbsp;your mortgage, this rate cut won't directly affect your current payments. However, there's a silver lining: When your mortgage term comes up&nbsp;for&nbsp;renewal, you may be able to take advantage&nbsp;of&nbsp;the lower interest rates available at that time. This could provide an opportunity to secure a more favourable rate, reducing your future monthly payments or allowing you to pay off your mortgage faster. Opportunities To Consider With this interest rate reduction, now could be the perfect time to assess your mortgage situation and explore ways to make the most&nbsp;of&nbsp;these changing conditions. Whether you're considering refinancing your mortgage to take advantage&nbsp;of&nbsp;lower rates or simply reviewing your current terms to ensure they're still the best fit&nbsp;for&nbsp;your financial goals, this is a moment to evaluate your options. Refinancing could help you lock&nbsp;in&nbsp;a lower rate and result&nbsp;in&nbsp;long-term savings. Additionally, refinancing offers the possibility&nbsp;of&nbsp;adjusting your mortgage to better suit your current circumstances, whether you're looking to consolidate debt or shorten your mortgage term. Given the rate cut, you might also consider the benefits&nbsp;of&nbsp;consolidating other high-interest debts into your mortgage, taking advantage&nbsp;of&nbsp;more favourable terms. Warm Holiday Wishes As the year draws to a close and the holidays approach, I want to extend my heartfelt wishes to you and your loved ones. May this festive season bring joy, peace, and prosperity to your home. Whether you're celebrating with family, friends, or enjoying some quiet time to yourself, I hope you have the opportunity to relax, recharge, and reflect on the positive moments&nbsp;of&nbsp;the year. I'm Here To Assist For&nbsp;personalized advice, get&nbsp;in&nbsp;touch. Together, we can make the most&nbsp;of&nbsp;this opportunity and ensure you're set up&nbsp;for&nbsp;success&nbsp;in&nbsp;the coming year. From my family to yours, wishing you a wonderful holiday season and a bright start to the New Year!

In the midst of the busy holiday season, there is some welcome news that could bring a little extra cheer at a time when many are looking to make the…

Bank of Canada Cuts Policy Rate to 3.25 Per Cent

Feeling the post-holiday financial squeeze? You’re not alone. January credit card bills are arriving to remind us how much we spent on the festive season. That's why this is the perfect time to ensure you have the financial control to achieve your goals. Here are some strategies that can help: <ol><li value="1" class="editor_listItem" dir="ltr">Kill high-interest debt. If you carry significant credit card balances or other high-interest debt and have enough home equity, you can consolidate that debt into one low-rate mortgage. You’ll improve your cash flow and simplify your life with one easy payment. Best of all, you can pay down your debt faster and save thousands in interest. No more running up credit cards, and you’re golden. </li><li value="2" class="editor_listItem" dir="ltr">Boost your credit rating. You can improve your rating quickly with a few smart moves. Always pay your bills on time. Never let your credit card balance go past the 50% mark, i.e. if you have a $5,000 card, it should never exceed $2,500. That goes for any lines of credit, too. And don’t apply for store cards when you’re asked at check-out. The better your credit rating, the better the rates you can negotiate on your next mortgage. </li><li value="3" class="editor_listItem" dir="ltr">Step up your payments. If you are paying your mortgage monthly, consider changing to accelerated bi-weekly or weekly payments, increasing your payment amount, and putting a lump sum, such as a tax refund, on your mortgage principal. You can save significant interest over the life of your mortgage. Even small amounts add up. </li><li value="4" class="editor_listItem" dir="ltr">Renovate, don’t relocate. Feeling like it’s time to trade up? Consider this: the proper renovation might be all it takes to turn your current house into the home of your dreams. It is almost always less expensive to renovate than to relocate! I have some fantastic renovation financing options to help you improve the quality of your life while increasing the value of your home. </li><li value="5" class="editor_listItem" dir="ltr">Choose low-interest debt. A recent Mortgage Professionals Canada survey showed that almost 10% of homeowners had enough home equity to use their mortgages for low-cost financing. The average equity takeout was $47,600 for renovations, debt consolidation, investments, second homes and rental properties, purchases, or education. </li><li value="6" class="editor_listItem" dir="ltr">Do not sleepwalk through your mortgage renewal. Please contact me when you receive a renewal notice. Your renewal is your golden moment to save thousands. I can help ensure you get the best possible deal! </li></ol> If you’re feeling financially overwhelmed or have a new purchase, refinance, or renewal in your financial future, get in touch so I can help ensure you get where you want to go.

Six Financial Resolutions That Can Change Your Life

Given the large financial commitment of a mortgage, it's surprising that so many homeowners go on auto-pilot when it's time renew. Of course, your lender wants your repeat business and their renewal letter (typically sent between three and six months before your mortgage matures) will make it very easy and convenient for you to oblige – just sign the letter and your mortgage renewal is done. In fact, some borrowers may not even realize they don't have to accept their lender's offer. They can and should explore other options available in the marketplace, especially now since the stress test is no longer a factor if you want to switch lenders at renewal. So when you get your lender's renewal letter, ask yourself one simple question: "Can I do better?" The answer in most cases is a resounding "YES". Here's why getting a mortgage expert working for you as early as nine months prior to renewal is a great way to ensure you get the best deal: <ol><li value="1" class="editor_listItem">Recently announced changes have eliminated the stress test for borrowers who want to switch lenders at renewal, which means you have choice! Since I have access to over 50 lenders, and thousands of product options, I can shop around to make sure you are being offered the best deal possible.</li><li value="2" class="editor_listItem">A good credit score is important when you're looking to switch lenders – and your current lender may also take your score into consideration at renewal. You have more control over your credit score than you think, and you may want to discuss credit improvement strategies. I can help.</li><li value="3" class="editor_listItem">If you have enough equity in your home, you may be able to move high-interest debt to your lower-rate mortgage to improve cash flow and save on interest. Renewal is the perfect time to do this. I can run the numbers to see if this strategy makes sense for you.</li><li value="4" class="editor_listItem">Taking on new debt or leaving your current employment prior to renewal can affect your ability to move your mortgage to another lender. We can discuss the potential impact of changes to your personal situation.</li><li value="5" class="editor_listItem">If your mortgage is uninsured, I can help determine if you can switch to a lower-rate insurable mortgage that offers long-term savings.</li><li value="6" class="editor_listItem">If you need to free up cash flow for specific needs or life situations, a 30-year amortization might be an option for you to consider (20% or more in equity required).</li></ol> Remember, I work for you. With access to dozens of lenders and hundreds of mortgage options, my goal is to help you make informed decisions so you always get the best package of rate and features that best fits your needs.

Given the large financial commitment of a mortgage, it's surprising that so many homeowners go on auto-pilot when it's time renew. Of course, your le…

Six reasons to work with an expert on your mortgage renewal

The Government of Canada was busy the last few months, introducing major mortgage reforms to make homeownership more accessible and affordable for Canadians. Here's a summary of all the changes in one email for you:<ol><li value="1" class="editor_listItem" dir="ltr">Borrowers switching lenders at renewal will not need to complete the Stress Test:&nbsp;Canada's banking regulator, OSFI, is poised to ease mortgage rules for homeowners looking to switch lenders during mortgage renewal. Effective November 21, borrowers renewing with a different lender will no longer need to complete the mortgage stress test, simplifying the process for those with uninsured mortgages. In the past, even a straightforward renewal switch required borrowers to demonstrate their ability to manage payments at a rate 2% higher than the new mortgage contract rate. This posed significant challenges as rates climbed to 6%, bringing the stress test rate to 8%. While insured mortgages were already exempt from this requirement, uninsured borrowers will now receive similar treatment.</li><li value="2" class="editor_listItem" dir="ltr">Higher insured mortgage cap:&nbsp;Starting December 15, 2024, the insured mortgage cap will increase from $1 million to $1.5 million—the first adjustment since 2012! This update better aligns with today's housing market, allowing more Canadians to qualify for a mortgage with less than a 20% down payment.</li><li value="3" class="editor_listItem" dir="ltr">Extended 30-year amortization:&nbsp;Also coming into effect December 15, 2024, first-time homebuyers and new-build purchasers will be eligible for 30-year mortgage amortizations (previously capped at 25 years) on insured mortgages. The longer amortization period will help make home ownership more affordable by lowering monthly mortgage payments. The change should also encourage new home construction to help ease the housing shortage.</li></ol> These reforms build on earlier initiatives from 2024, including:<ul><li value="1" class="editor_listItem" dir="ltr" style="text-align: left;">RRSP Home Buyer's Plan:&nbsp;The limit was raised from $35,000 to $60,000, offering Canadians more flexibility when using their savings for a home purchase.</li><li value="2" class="editor_listItem" dir="ltr" style="text-align: left;">Permanent Amortization Relief:&nbsp;Homeowners facing rising mortgage payments now have long-term support through this measure.</li></ul> As more details are announced I will keep you informed, but these updates are designed to create new pathways to homeownership. Whether you're considering a move, or nearing mortgage renewal, now's the perfect time to explore your options! Let's chat about how these reforms could benefit you. Feel free to contact me for a free, no-obligation consultation.

Mortgage Reforms Announced by the Government of Canada

Recent inflation numbers indicate that inflation is slowing, and many economists are saying that the most recent drop in the inflation rate will give the Bank of Canada the slack that it needs to continue lowering their overnight rate. While this is a positive sign, it is not necessarily translating to relief in the cost of living. Many people are still seeking solutions to mitigate the effects of sky-high grocery prices and other goods on their finances. Let's take a look at one strategy that could prove to be the difference maker in providing the financial breathing room you need – mortgage amortization extensions. To start, let us clarify what an amortization period is. It represents the duration it takes to fully pay off your mortgage through regular payments. An amortization extension, on the other hand, refers to any period beyond your initially qualified amortization. Which Lenders and Banks Offer Amortization Extensions? Prime lenders, who are federally regulated, typically do not offer amortization extensions beyond 30 years. However, if your current mortgage has a shorter amortization period (i.e.: 20 years), you can extend it when refinancing with them. Alternative mortgage lenders, often referred to as "non-bank" lenders, may offer extensions of 35 to 40 years, provided you have at least a 20% down payment or more than 20% equity built up. Who Can Extend Their Mortgage and Why? First-time home buyers are typically limited to a maximum amortization period of 25 to 30 years. Most put less than 20% down needing default mortgage insurance that restricts amortization to a maximum of 25 years. However, if they have 20% or more to put down, they can extend the amortization beyond 25 years. In contrast, renewers may have the option to extend their amortization at the time of renewal. For example, they can go from 20 years back to 25 years or from 25 years back to 30 years to lower their monthly payments. Keep in mind that these options vary based on individual situations. It is important to understand that extending your mortgage amortization outside of renewal would require refinancing, which may incur penalties and necessitate requalification at current rates. Nevertheless, refinancing can be a viable solution in certain circumstances. To explore your options fully, I recommend discussing your specific needs with me. For Example ... Imagine a young couple bought their first home 5 years ago with a $750,000 mortgage at 3.5% interest. They initially chose a 25-year amortization, making a monthly payment of $3,745. Now, at renewal, their balance is $635,000 with rates at 5.39%. They're considering extending their amortization to keep their monthly payment the same. Let's compare the numbers: Amortization&nbsp;: Monthly Payment&nbsp;: Impact on monthly budget 20&nbsp;: $4,409&nbsp;: – $664 25&nbsp;: $3,926&nbsp; : – $181 30&nbsp;: $3,622&nbsp;: + $123 35&nbsp;: $3,419&nbsp;: + $326 40&nbsp;: $3,278&nbsp;: + $467 Please note that rates over 30 years are only available with subprime lending, are for illustration purposes only. Extending your mortgage amortization can be an effective financial strategy, but as with any important financial decision, it is essential to weigh the risks and benefits carefully. If you have any questions or would like to explore your options further, please reach out to me.

To start, let us clarify what an amortization period is. It represents the duration it takes to fully pay off your mortgage through regular payments. An amorti…

Exploring Mortgage Amortization Extensions

As announced on September 16, 2024, the federal government is expanding eligibility for 30 year amortizations for insured mortgages to all first-time homebuyers and all purchasers of new builds, and increasing the $1 million price cap for insured mortgages to $1.5 million, effective December 15, 2024. Let’s break these down to understand what they mean. <h3 class="editor_h3" dir="ltr" style="text-align: left;">Expanding 30-Year Mortgage Amortizations for First-Time Homebuyers and New Builds</h3>To provide more flexibility for homebuyers, 30-year mortgage amortizations will be expanded to include all first-time homebuyers and those purchasing newly built homes. This initiative specifically applies to borrowers who require high loan-to-value mortgage insurance and must meet the following conditions:<ul><li value="1" class="editor_listItem" dir="ltr" style="text-align: left;">The total loan-to-value ratio must be 80% or higher; and</li><li value="2" class="editor_listItem" dir="ltr" style="text-align: left;">The borrower must either be:</li><li value="3" class="editor_listItem editor_nestedListItem"><ol><li value="1" class="editor_listItem" dir="ltr" style="text-align: left;">A first-time homebuyer, or</li><li value="2" class="editor_listItem" dir="ltr" style="text-align: left;">Purchasing a newly constructed home.</li></ol></li></ul> <h4 dir="ltr" style="text-align: left;">Who Qualifies as a First-Time Homebuyer?</h4>To qualify as a first-time homebuyer, the borrower must meet one of the following criteria:<ul><li value="1" class="editor_listItem" dir="ltr" style="text-align: left;">The borrower has never previously purchased a home.</li><li value="2" class="editor_listItem" dir="ltr" style="text-align: left;">In the last four years, the borrower has not occupied a home as their principal residence that they, or their spouse/common-law partner, owned.</li><li value="3" class="editor_listItem" dir="ltr" style="text-align: left;">The borrower has recently undergone a breakdown of a marriage or common-law relationship. This provision aligns with the Canada Revenue Agency's Home Buyers’ Plan rules.</li></ul> <h4 dir="ltr" style="text-align: left;">What Qualifies as a Newly Constructed Home?</h4>A home is considered newly constructed if it has not been previously occupied for residential purposes. This definition includes newly built condominiums, even if there has been an interim occupancy period prior to closing. <h3 class="editor_h3" dir="ltr" style="text-align: left;">Increasing the Insured Mortgage Price Cap to $1.5 Million</h3>The cap on property values eligible for insured mortgages will be increased from $1 million to $1.5 million, providing buyers in higher-priced markets greater access to insurance-backed mortgages. This measure applies to borrowers needing high loan-to-value mortgage insurance and requires that:<ul><li value="1" class="editor_listItem" dir="ltr" style="text-align: left;">The total loan-to-value ratio is 80% or higher;</li><li value="2" class="editor_listItem" dir="ltr" style="text-align: left;">The value of the property securing the loan is less than $1.5 million; and</li><li value="3" class="editor_listItem" dir="ltr" style="text-align: left;">The down payment must meet the following requirements:</li><li value="4" class="editor_listItem editor_nestedListItem"><ul><li value="1" class="editor_listItem" dir="ltr" style="text-align: left;">5% on the portion of the purchase price up to $500,000.</li><li value="2" class="editor_listItem" dir="ltr" style="text-align: left;">10% on the portion between $500,000 and $1.5 million.</li></ul></li></ul> <h3 class="editor_h3" dir="ltr" style="text-align: left;">Important Dates and Additional Requirements</h3><ul><li value="1" class="editor_listItem" dir="ltr" style="text-align: left;">Effective Date: These measures will apply to mortgage insurance applications submitted to lenders on or after December 15, 2024.</li><li value="2" class="editor_listItem" dir="ltr" style="text-align: left;">Occupancy Requirement: These provisions only apply to high loan-to-value mortgages on homes occupied by the borrower or a close relative.</li><li value="3" class="editor_listItem" dir="ltr" style="text-align: left;">Other Criteria: All existing eligibility criteria for government-backed mortgage insurance will remain in effect.</li></ul> This expansion of eligibility and the increased price cap aim to make homeownership more attainable for first-time buyers and those investing in newly built properties, especially in competitive markets across Canada. As always, reach out if you have any questions.

Breaking Down the Latest Mortgage Reforms: Key Insights You…

Recent data from Mortgage Professionals Canada shows that 23% of all Canadian mortgage holders will renew their mortgage within the next year, and a staggering 50% will renew within two years. So chances are, you are looking at a mortgage renewal within the next two years and if not, unless you are in the enviable position of being able to pay off your mortgage at the end of your current term, a mortgage renewal will be on the horizon for you. When it comes to renewing your mortgage, whether you’re looking to lower your &nbsp;monthly payments, tap into home equity, or take advantage of the latest mortgage trends, preparing for your renewal can unlock new opportunities. Here are a few tips to put yourself in the most advantageous position possible at renewal time:&nbsp;<ol><li value="1" class="editor_listItem" dir="ltr">Start early.&nbsp;Begin by reaching out to me 4-6 months before your renewal date. We’ll review your current mortgage and start exploring options.It’s smart to get a 120-day rate hold so you’re protected against any rateincreases while we shop around or, perhaps we’ll explore a more flexiblesolution that fits your evolving financial goals.</li><li value="2" class="editor_listItem" dir="ltr">Review your financial goals.&nbsp;Is your financial situation the same as when welast negotiated your mortgage? Whether you're planning to pay off your mortgagefaster or want to access home equity for renovations or investments, this isthe time to re-evaluate your priorities, and make any necessary adjustments toyour mortgage.</li><li value="3" class="editor_listItem" dir="ltr">Consider variable rates.&nbsp;With the Bank of Canada’s recent rate cuts, and more expected, variable rate mortgages are regaining some of their former popularity. Many homeowners are turning to this option for potential cost savings. If you’ve been locked into a fixed-rate mortgage, it might be worth discussing a switch to a variable rate at renewal.</li><li value="4" class="editor_listItem" dir="ltr">Leverage your home equity.&nbsp;If you've built up equity in your home, you can use this to consolidate debt, invest, or cover significant expenses like home renovations. Together we can explore options that allow you to access equity while keeping your payments manageable. Note: This option can also be explored outside of mortgage renewal time. If you want to discuss how you can leverage your home equity at any point during your mortgage term, get in touch for a review of your situation.</li><li value="5" class="editor_listItem" dir="ltr">Shop around for the best rate.&nbsp;Don’t assume your current lender offers the best deal. Shopping around can help you secure a better interest rate or more favourable terms. Reach out and I can do the heavy lifting for you, comparing multiple lenders and options to find what suits you best.</li><li value="6" class="editor_listItem" dir="ltr">Get pre-approved.&nbsp;If you're considering switching lenders or mortgage products, getting pre-approved ensures you're ready when it’s time to renew. Pre-approval locks in a rate, so you’re protected if rates rise.</li><li value="7" class="editor_listItem" dir="ltr">Plan for the future.&nbsp;Your mortgage renewal is a great time to reassess your financial plans. Will you need a mortgage that's flexible with prepayment options, or are you focused on paying it off quickly? Plan with both short-term needs and long-term goals in mind.</li></ol> Taking a proactive approach to your mortgage renewal could save you thousands of dollars and set you up for long-term financial success. I’m here to help you navigate the renewal process and find the best solution for your needs. If you have any questions or want personalized advice on your upcoming renewal, or any mortgage need, don’t hesitate to contact me. I’m here to make the process as smooth and stress-free as possible.

Be Prepared! Expert Tips for Mortgage Renewal Success

<a href="https://darrylkraemer.us12.list-manage.com/track/click?u=1994c3a1cb2581651afd5c0ba&amp;id=8468bf83a1&amp;e=683125e6c7" target="_self" class="editor_link">In a press release issued September 16, 2024</a>, the Canadian government announced two major changes to mortgage rules, building on earlier reforms announced in the federal budget. Calling them the “boldest mortgage reforms in decades”, these latest changes aim to make mortgages more affordable and put home ownership within reach for first-time buyers. The following changes will take effect on December 15, 2024: <ol><li value="1" class="editor_listItem" dir="ltr">Insured mortgage price cap increase: The cap for insured mortgages will be increased from $1 million to $1.5 million, making it easier for more Canadians to qualify with less than a 20% downpayment.</li><li value="2" class="editor_listItem" dir="ltr">Greater eligibility for 30-year amortizations: All first-time buyers and all buyers of newly built homes (including condos) will be eligible for 30-year amortization mortgages. </li></ol> These changes open up some new possibilities for aspiring homeowners and existing homeowners who may be considering a new purchase.Reach out if you have questions about the new changes and want to understand how they might work for you!

, the Canadian government announced two major changes to mortgage rules, building on earlier reforms announced in the federal budget. Calling them the “boldest…

Big mortgage rule changes

The brisk back-to-work attitude of September 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.&nbsp; Here are five ways to find some of your missing money:&nbsp;<ol><li value="1" class="editor_listItem" dir="ltr">Spending while unconscious. Track your spending and consider your impulse buys at the grocery, gas station, convenience and other stores; the services you are being charged monthly for that you don’t really use; or your brand name buying when generic will do. Look for the leaks, and then resolve to spend consciously. If impulse buying is a big culprit, always make a list and stick to it, only grocery shop once a week and never on an empty stomach!</li><li value="2" class="editor_listItem">Convenience costs.&nbsp; It’s a lot easier to spend more than you intend to when you exclusively use your credit cards because you aren’t seeing the money. You just press some buttons and presto, your purchase is made. You might not be so liberal with your money if you actually had to hand it over. Consider withdrawing a fixed amount of cash for your spending every week. </li><li value="3" class="editor_listItem">Examine your bills. Take a good hard look at your monthly bills and go through them line by line. Look for small, unexplained charges, fees, and add-ons. Some of them may be for services you don’t use or perhaps don’t remember requesting. Or they could be for services that you can actually live without. Even if the amount is small, why have it charged every month? </li><li value="4" class="editor_listItem">It doesn’t hurt to ask. Whether you are signing up for internet or buying a car, ask “is this the best you can do?” or “can you make it more affordable?”&nbsp; Do research in advance so you are prepared and knowledgeable on all things related to what you are buying. </li><li value="5" class="editor_listItem">Plug your biggest money leak: high interest. All of the savings you make in lifestyle choices mean nothing if you don’t put a plug on paying high interest. Always pay down your credit cards as much as possible.&nbsp; If debt is choking your cash flow and you have enough equity in your home, you may be able to move that debt to your lower-rate mortgage and save thousands. If high interest debt is a big money leak for you, get in touch. Using home equity to pay down debt is one of my specialties.</li></ol>&nbsp;&nbsp;

The brisk back-to-work attitude of September makes it a great time to review your finances and particularly your spending. Whether you are saving to buy a home…

5 ways to plug the money leaks!

For many Canadians, their home is a terrific repository of wealth. Home equity can build nicely by chipping away at payments and through increasing home values. Accessing home equity through a refinance (min 20% home equity) has for years been an easy, low-cost way to get needed funds. Various new mortgage rules and “stress-testing” has made refinancing more complicated, but it’s a strategy that continues to make good financial sense for certain homeowners that qualify. Here are five reasons why:1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fresh start.&nbsp;If you have too much high-interest debt, you may be able to roll everything into one manageable monthly payment on a low-interest mortgage. Then you get a financial re-set, and can potentially save thousands of dollars in interest.&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dream home.&nbsp;If you’ve found the perfect cottage, chalet, or the retirement home of your dreams, refinancing may be the way to make that purchase happen now if you’re not quite ready to sell your primary residence.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renovate.&nbsp;Renovating your home is often a less expensive option than moving. And the right renovations can improve the quality of your life and increase the value of your home.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wealth building.&nbsp;A rental property can give you a great wealth building opportunity and a source of retirement income.&nbsp;&nbsp;Or you may want to invest in a new business venture.&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Large expenditures.&nbsp;You may be able to get the funds you need for major expenses (tuition, wedding etc.): a much better strategy than loading it all onto high-interest credit cards.&nbsp;I have&nbsp;access to dozens of lenders, including alternative lenders that are not subject to the new rules and have less stringent qualification guidelines.&nbsp;If you are interested, I can provide you with a personalized analysis so you can determine whether a refinance makes sense.&nbsp;My job is to help you pay down debt, build wealth, create financial security, and enjoy life to the fullest!&nbsp;&nbsp;&nbsp;

For many Canadians, their home is a terrific repository of wealth. Home equity can build nicely by chipping away at payments and through increasing home values…

Top five reasons to refinance 

Although home debt is ‘smart’ debt, it’s a huge financial decision and there is a lot to think about, which can keep potential buyers up at night. That’s why professional advice is recommended when making one of the most important financial decisions that most Canadians will make in their lifetime. Homebuyers want to take advantage of today’s low rate environment but it’s hard to sort through all of the options out there and get the right combination of mortgage features, privileges and rate that is best matched to their needs. The right mortgage goes beyond just the rate--it’s important to also consider term, prepayment options, refinancing penalties, restrictions, and fees. Good planning for the purchase of a new home is also essential, especially for first-time homebuyers who may be tempted to over-stretch their capacity.&nbsp; I can help you build your home buying budget that includes considerations of your lifestyle, closing costs, and home ownership costs beyond the monthly mortgage payment. Having a realistic budget to start will bring you confidence, knowing that you are not overextending yourself. As for the all-important downpayment, there are a few options to consider for first-time homebuyers who may have smaller amounts to start: <ol><li value="1" class="editor_listItem">The Home Buyers’ Plan (HBP) - first-time homebuyers can withdraw individually $35,000 or $70,000 with a spouse tax-free from their RRSPs, provided they adhere to the repayment plan.</li><li value="2" class="editor_listItem">First Home Savings Account (FHSA) - a tax-free account that lets you save up to $40K for your first home. Contribute up to $8K a year, $40K lifetime, towards a down payment. All tax-free.</li><li value="3" class="editor_listItem">Gifted downpayment from a parent or blood relative – can be a source of funds as long as the homebuyer receives in writing that they are not required to pay the money back at any time. </li><li value="4" class="editor_listItem">Start off small – the dream house may be priced too high, so a starter home might be the right option for a first-time homebuyer. A smaller home or maybe a house just outside of the expensive area will help you get a foot in the door. You can take advantage of the low interest rates to pay off the home quicker and use the equity from the first home to buy the dream home later.</li></ol> I can also provide strategies that will help you pay the mortgage off faster and shave thousands off interest costs. For instance, you could set your payments now at rates that could be expected at your renewal date so you pay down more principal and don’t experience payment shock should rates be higher at renewal. There’s so much to consider. Professional advice can get you into the market to start your wealth building with smart debt and can save you thousands over the course of your mortgage.

Although home debt is ‘smart’ debt, it’s a huge financial decision and there is a lot to think about, which can keep potential buyers up at night. That’s why p…

Smart debt management gives first-time homebuyers an edge

The Bank of Canada has decreased its policy interest rate for the second consecutive time and signalled more cuts are coming if inflation continues to ease. What You Need to Know:<ul><li value="1" class="editor_listItem">The 25 basis points reduction brings the overnight rate to 4.5%, a level not seen since June 2023.</li><li value="2" class="editor_listItem">This follows last month's cut from 5% to 4.75%, the first reduction in more than four years.</li></ul> Why This Matters:&nbsp;Bank of Canada Governor Tiff Macklem stated that the decision is based on economic data showing slack in the labour market, excess supply in the economy, and a continued drop in inflation. If inflation eases as expected, more rate cuts could be on the horizon. What to Expect:<ul><li value="1" class="editor_listItem">Economists and big banks predict the Bank of Canada could cut rates up to four times by the end of 2024.</li><li value="2" class="editor_listItem">The speed of these cuts will likely depend on actions by the Bank of England and the U.S. Federal Reserve.</li><li value="3" class="editor_listItem">The next interest rate announcement is scheduled for September 4th.</li></ul> What You Can Do:&nbsp;This is a pivotal time for mortgage rates, and these changes could bring new opportunities for your financial strategy. Whether you're considering refinancing or exploring new mortgage options, now might be the perfect time to review your situation. I'm here to help you navigate these changes and make informed decisions. If you have any questions or would like to discuss how these rate cuts might benefit you, please don't hesitate to reach out.

The Bank of Canada has decreased its policy interest rate for the second consecutive time and signalled more cuts are coming if inflation continues to ease. Wh…

Big News: Bank of Canada Cuts Interest Rates Again!

Immediately after the Bank of Canada announced a rate cut of .25% in June, I received calls from some of my clients asking for advice and/or insight on how the rate cut might affect their mortgage or overall financial picture. With another announcement scheduled for July 24, I thought I'd share some perspective on how Bank of Canada rate changes might impact your financial decision-making. Many industry experts are predicting another rate drop – although they don't agree on the exact number – and some are predicting that the next rate cut will occur in September. Let's look at three hypothetical outcomes of the next rate announcement and what you should consider in each situation.&nbsp; If Rates Decrease by .25%FOR VARIABLE-RATE MORTGAGE HOLDERS:<ul><li value="1" class="editor_listItem" dir="ltr">Enjoy Lower Payments:&nbsp;If you have a variable mortgage with an adjustable payment, you'll see a modest reduction in your payment, and a little extra money in your bank account. If you have a variable mortgage with a fixed payment, your payment won't change but more of it will now go toward principal, helping you stay on track with repayment.</li><li value="2" class="editor_listItem" dir="ltr">Pay Down Debt:&nbsp;For adjustable payment mortgages, using the extra cash flow to "treat yourself" might be tempting but prioritizing debt repayment is definitely the smart decision here.</li><li value="3" class="editor_listItem" dir="ltr">Pay Down Principal:&nbsp;For fixed payment variable mortgages, principal repayment is built in but if you have an adjustable payment mortgage, consider using the extra money to make prepayments on your mortgage. This can help you pay off your mortgage faster and save on interest costs.</li></ul>FOR FIXED-RATE MORTGAGE HOLDERS:<ul><li value="1" class="editor_listItem" dir="ltr">Consider Refinancing:&nbsp;Although a .25% decrease might not seem like much, it could be enough to justify refinancing, especially since rates have already dropped by .25% this year. If your current mortgage rate is higher, let's touch base to review potential savings and costs.</li><li value="2" class="editor_listItem" dir="ltr">Prepare for Renewal:&nbsp;If your mortgage renewal date is approaching, keep your options open. Don't sign your lender's renewal offer since you may be able to secure a lower rate. Start the process early to put yourself in the most advantageous position when it's time to make decisions.&nbsp;</li></ul> If Rates Decrease by .5%FOR VARIABLE-RATE MORTGAGE HOLDERS:<ul><li value="1" class="editor_listItem" dir="ltr">Significantly Lower Payments:&nbsp;For adjustable payment mortgages, a larger rate decrease will result in noticeably lower mortgage payments, and for fixed payment mortgages, greater principal repayment.</li><li value="2" class="editor_listItem" dir="ltr">Aggressively Pay Down Debt:&nbsp;If you have an adjustable payment, use the extra cash to hammer down debt. I know it may not be the most fun, but your future self will thank you.</li><li value="3" class="editor_listItem" dir="ltr">Aggressively Pay Down Principal:&nbsp;For adjustable payment mortgage holders, this is a great opportunity to put a real dent in your mortgage principal and drastically reduce the total interest you'll pay over the life of your mortgage.</li></ul>FOR FIXED-RATE MORTGAGE HOLDERS:<ul><li value="1" class="editor_listItem" dir="ltr">Strong Case for Refinancing:&nbsp;A .5% decrease combined with the .25% decrease in June presents a strong case for refinancing. Even after factoring in any penalties, the long-term savings might be considerable. I can review your situation and provide a thorough assessment so you can make an informed decision.</li><li value="2" class="editor_listItem" dir="ltr">Lock In Lower Rates for Renewal:&nbsp;If you're close to renewal, this is an excellent time to lock in a lower rate. Starting the process early ensures you don't miss out on these favourable conditions.&nbsp;</li></ul> If Rates Stay the SameBoth variable- and fixed-rate mortgage holders won't see any changes in their payments. As always, focus on budgeting, making additional payments to reduce principal, and planning ahead for your renewal, even if it's a few years away. Understanding the market now can help you make informed decisions when the time comes. Whether the Bank of Canada announces another rate drop or a rate hold, there are ways you can optimize your mortgage and improve your financial health. Paying down debt, or improving cash flow can help make your life significantly more comfortable very quickly. If you have any questions or need personalized advice, don't hesitate to reach out. I'm here to help you navigate these changes with confidence.&nbsp;<table class="editor_table"><colgroup><col></colgroup><tbody><tr><td class="editor_tableCell" style="border: 1px solid black; width: 700px; vertical-align: top; text-align: start;">Pre-Approved?If you got pre-approved (a very smart first step) prior to the June Bank of Canada rate decrease, you might be pleasantly surprised to learn that you've got more buying power now – and possibly even more after the July announcement. This could have big implications for your home search. Get in touch to get an updated pre-approval based on current rates.</td></tr></tbody></table>

Immediately after the Bank of Canada announced a rate cut of .25% in June, I received calls from some of my clients asking for advice and/or insight on how the…

Navigating Bank of Canada Rate Announcements

Understanding the real facts about mortgages is crucial for making informed decisions that can save you time, money, and stress. Unfortunately, there are many myths out there that can lead to confusion or missed opportunities. In this article, we'll debunk some of the most common mortgage myths. Myth #1: You Need a 20% Downpayment While it's true that a 20% downpayment can help you avoid mortgage loan insurance and reduce your monthly payments, it's not a hard and fast rule. There are several loan options available that require much lower downpayments as long as you have insurance. For example, Canada has three mortgage insurance companies CMHC, Sagen, and Canada Guaranty which allow you to put down as little as 5% if the house is under one million dollars. If the home you are looking to purchase is over one million dollars, the minimum down is 20%. Don't let the 20% myth hold you back from exploring your options. Myth #2: Prequalification and Preapproval Are the Same It's easy to confuse prequalification with preapproval, but they serve different purposes. Prequalification is an initial estimate of how much you might be able to borrow, based on self-reported information. It's a useful starting point but not a guarantee. Preapproval, on the other hand, involves a thorough credit and financial check, providing a more accurate and reliable estimate of your borrowing power. This can make a significant difference when you're ready to make an offer on a home. Myth #3: You Can't Get a Mortgage with Student Loans Many people believe that having student loans automatically disqualifies them from getting a mortgage. However, if you meet the required ratios and have a good credit history, student loans do not have to be a barrier to homeownership. Lenders consider several factors, including your debt-to-income ratio, credit score, and employment history. To improve your chances, focus on reducing existing debt and avoiding new loans. Maintaining a good credit score by making timely payments on your student loans will enhance your mortgage application. With diligence and the right strategy, balancing student loan payments and securing a mortgage is within reach. Myth #4: The Lowest Rate Is Always the Best Option While securing the lowest mortgage interest rate may seem like the best option, it's essential to consider the bigger picture. A lower rate can be enticing, but it often comes with trade-offs such as higher fees, or less favourable loan terms. It's crucial to evaluate the overall cost of the mortgage, including closing costs, fees, and the loan's duration. Sometimes, a slightly higher interest rate might come with better terms, such as lower closing costs or more favourable repayment options, which could be more beneficial in the long run. Myth #5: You Should Always Choose a 25-Year Amortization The 25-year amortization is a popular choice and can often increase overall cashflow, but it's not the only option. Depending on your financial situation and goals, you may want to explore a 15-year amortization where you will pay less interest on the overall term of your mortgage however you will have higher monthly payments. Another option to improve cashflow can be a 30-year amortization (but certain requirements apply for this, so please give me a call if you are&nbsp;interested). With a 30-year amortization, you will pay more interest over the course of your mortgage, however it is a good option to increase monthly cashflow. Always remember, the best solution is to consult with your mortgage broker. Understanding the realities behind these common mortgage myths can empower you to make better decisions and take advantage of the opportunities available to you. If you have any questions or need personalized advice on your mortgage needs, don't hesitate to reach out.

Understanding the real facts about mortgages is crucial for making informed decisions that can save you time, money, and stress. Unfortunately, there are many …

Myths Debunked: Get the Real Facts!

In a significant move reflecting the changing economic landscape, the Bank of Canada has announced its first cut in the benchmark rate since launching a historic inflation-fighting campaign two years ago. This reduction, to 4.75%, carries implications that ripple across various sectors of the economy. Immediate Impact on Borrowers:&nbsp;Variable-rate mortgage holders and individuals with debt linked to the central bank's rate are poised to benefit immediately from reduced interest payments. This adjustment comes at a time when many have been closely monitoring inflation trends and economic indicators. Contextualizing the Decision:&nbsp;The anticipation surrounding this move is underscored by the current economic environment. Inflation, after reaching a 40-year high in 2022, has gradually receded, standing at 2.7% as of April. Simultaneously, the economy has experienced a slowdown, providing fertile ground for such a decision. Governor Tiff Macklem's Perspective:&nbsp;Governor Tiff Macklem emphasized a cautious approach to further rate adjustments. While acknowledging the potential for additional cuts if inflation continues to decline,&nbsp;Macklem&nbsp;signaled a measured decision-making process. The upcoming interest rate decision scheduled for July 24th will undoubtedly be watched closely by market participants and economists alike. Implications for the Economy:&nbsp;This rate cut serves as a marker of the Bank of Canada's commitment to managing inflationary pressures while supporting economic growth. Its timing reflects a nuanced understanding of the current economic dynamics and a proactive stance toward maintaining stability. Looking Ahead:&nbsp;As we navigate the evolving economic landscape, staying informed about policy decisions, such as this rate cut, becomes increasingly vital. We will continue to monitor developments closely and provide insights into their implications for businesses, consumers, and the broader economy. Stay tuned for more updates and as always, please reach out with any questions, I'm here to help.

In a significant move reflecting the changing economic landscape, the Bank of Canada has announced its first cut in the benchmark rate since launching a histor…

The Bank of Canada Lowers Benchmark Rate to 4.75%

We're going to talk about why you shouldn’t fear a credit score drop when applying for a mortgage. Ross Taylor recently posted about the common concerns we hear as Mortgage Agents and Brokers when speaking to clients about the impact of credit inquiries on their credit scores. Often, the thought of a mortgage credit check can make potential borrowers hesitant and fear it might lower their overall credit scores. Without a complete history and proper credit report, any mortgage advice and opinions on their borrowing power will be filled with disclaimers, just in case there are any outstanding balances, loans, or late payments the client has either forgotten or has not yet disclosed. And, of course, sometimes there are outright errors in the credit report. Let’s dive into why borrowers shouldn’t worry excessively about their mortgage credit inquiry. To be clear, if someone wants a formal mortgage pre-approval or even a rate hold, then yes, absolutely, we have to pull a credit report. Here’s the reality: 1) Minimal impact: A single credit inquiry usually has a very small effect on your credit score, potentially lowering it by just 5 to 8 points. 2) Credit score buffer: Most diligent credit users have a score buffer that more than compensates for the minor deductions caused by inquiries. 3) Purpose of building credit: Remember, a big reason for maintaining a good credit history is to utilize it when making significant decisions like buying or refinancing a home. In essence, avoiding a credit check could hinder your ability to get pre-approved for a mortgage. It’s crucial to let your mortgage professional proceed with the necessary checks to ensure you’re on the right track to securing your home loan.

We're going to talk about why you shouldn’t fear a credit score drop when applying for a mortgage. Ross Taylor recently posted about the common concerns we hea…

Don't fear a score drop when applying for a mortgage

For many homeowners, home improvements aren't just about creating a more comfortable living space — they're also key to boosting property value. Here are the home improvement projects that offer the highest return on investment (ROI), and some helpful tips on balancing costs and benefits. <h1 class="editor_h1">High-ROI Home Improvement Projects</h1> KITCHEN RENOVATIONSUpgrading your kitchen can have a significant impact on your property's value. New cabinets, countertops, and appliances can refresh the space, making it more appealing to potential buyers. Kitchen renovations offer an average ROI of up to 70-80%. For cost-effective upgrades, consider minor changes such as replacing hardware or painting cabinets, which can still create a substantial visual impact. BATHROOM UPGRADESModernizing bathrooms, including fixtures, lighting, and tiling, can significantly boost value. Such projects can offer an ROI of up to 60-70%. To balance costs, consider reglazing tubs or replacing faucets, which provide an immediate facelift at a fraction of the cost. ENERGY-EFFICIENT UPGRADESInstalling energy-efficient windows, doors, and appliances not only increases the immediate value of your home but also leads to long-term savings through lower energy bills. The ROI of these upgrades can be measured both in terms of immediate value increase and long-term savings. CURB APPEAL ENHANCEMENTSEnhancing the exterior of your home through landscaping, painting, or installing new doors can significantly improve its curb appeal, offering an immediate visual impact. Such projects can yield an ROI of up to 90-100%. <h1 class="editor_h1">Balancing Costs and Benefits</h1> DIY VS. PROFESSIONAL HELPDeciding whether to take on a renovation yourself or hire a professional requires careful consideration of several factors. First, evaluate the complexity of the project. If it involves specialized skills, such as electrical or plumbing work, or significant structural changes, it may be safer and more efficient to hire a professional. Next, assess your own skills, time, and resources. Consider the potential for mistakes that could lead to higher repair costs down the line. You will also want to examine your budget; professional help may increase initial expenses, but can ensure quality work that adds lasting value to your home. BUDGETINGStart by setting a clear budget that reflects your goals, project scope, and current financial situation. Consider breaking down costs into categories, such as materials, labour, permits, and contingency funds for unforeseen expenses. For financing, explore options such as home equity loans or lines of credit, which leverage your home's existing equity for funds. Personal loans are another alternative, offering fixed interest rates and repayment terms. Comparing different financing options, understanding their terms, and aligning them with your renovation goals will ensure your project stays on track and within budget. FUTURE-PROOFINGChoosing renovations that will add value to your home now and for years to come requires a strategic approach. Focus on projects that enhance both functionality and aesthetics. For instance, modernizing kitchens and bathrooms can create immediate appeal while remaining relevant over time. Additionally, consider energy-efficient upgrades, such as improved insulation, windows, and appliances, which not only lower energy bills now but also attract environmentally conscious buyers in the future. Curb appeal enhancements, like landscaping and exterior improvements, offer immediate visual impact and contribute to long-term value. This strategic combination of current appeal and enduring functionality can yield substantial returns for years to come. Focusing on high-ROI projects, balancing costs, and making informed decisions are key to successful home improvements. If you have any questions or are considering exploring mortgage options to fund your upgrades, feel free to reach out. I am here to help!

For many homeowners, home improvements aren't just about creating a more comfortable living space — they're also key to boosting property value. Here are the h…

Home improvement: Which projects boost your property value?

Most homeowners should expect to pay a penalty if they want to break their mortgage to get a better rate or for a complete refinance. &nbsp;Homeowners in 5 year fixed mortgages often look to break their mortgage during their 3rd year for debt consolidation or to accommodate changing life circumstances. The penalty to break a mortgage is typically the greater of <ul><li value="1" class="editor_listItem">three months’ interest, or </li><li value="2" class="editor_listItem">the interest-rate differential (IRD). </li></ul> With the IRD, your mortgage lender will want you to pay the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates.&nbsp; Unfortunately, not all lenders calculate IRD the same way so you should always get the actual penalty from your lender.&nbsp; Check your lender’s website for their prepayment penalty calculator. If you want to look at breaking your mortgage, we can review the terms and conditions of your mortgage and do an assessment of your situation to determine if your benefit outweighs the cost. There is no cost or obligation.&nbsp; Often penalties are rolled into the new mortgage so you don’t have to be out of pocket.&nbsp; We are experts at providing the advice, education and resources that homeowners need. It pays to be informed, and we’re here to help!

Most homeowners should expect to pay a penalty if they want to break their mortgage to get a better rate or for a complete refinance.  Homeowners in 5 year fix…

The cost to break your mortgage

When your mortgage application is being considered, your lender will look at your credit habits: do you pay your bills on time? Do you tend to get over-extended on your credit card? These habits are reflected in your credit rating. In order for your lender to assess your borrowing profile, you’ll need two revolving sources of credit that are each at least two years old. Worried that some sloppy financial habits might keep you from a great rate or even from getting a mortgage?&nbsp; Here’s the thing: you can give yourself some credit. This important factor in your mortgage negotiation is entirely within your control. Start now to develop good credit habits: <ol><li value="1" class="editor_listItem" dir="ltr">Pay every bill on time. That one habit is your single biggest game-changer.</li><li value="2" class="editor_listItem" dir="ltr">Don’t run up your credit cards. Use the 50% rule. If your limit is $5000, never let the card go higher than $2500. </li><li value="3" class="editor_listItem" dir="ltr">Don’t ever let any bill go to Collections, even if it’s for a small or disputed amount. These black marks on your credit are hard to erase. If it’s happened, be prepared to explain why, and be sure it’s paid in full and reported to Equifax. </li><li value="4" class="editor_listItem" dir="ltr">If you’ve ever been bankrupt or under a consumer proposal, you’re going to have some extra challenges. You’ll need to have been discharged for two full years. And you’ll need to prove that you’ve re-established credit after the discharge, with at least two re-established &nbsp;revolving credit items and a two year history of satisfactory repayment. Strong income and downpayment will help. </li></ol> If you’re wondering how to polish up your credit, get in touch. I can review your situation and give you some tips on how to boost your credit rating. What are you doing next week? It might be a perfect time to get started.

When your mortgage application is being considered, your lender will look at your credit habits: do you pay your bills on time? Do you tend to get over-extende…

Give Yourself Some Credit 

The big news on Friday last week was the unveiling of Trudeau's new plan aimed at solving Canada’s generational housing crisis, introducing new tax incentives and proposals to build more housing on public lands to tackle chronic supply and affordability challenges. The prime minister said the government wanted to make sure no Canadian puts more than 30% of their income towards their home through an approach centred on building more homes, making it easier to rent or own, and help those who can’t afford a home. Here's the highlights are it pertains to the mortgage industry. Included in the plan is a new program to permit homeowners to access up to $40,000 in loans at low interest rates to add a secondary suite to their homes and consulting on proposals to restrict the purchase of existing single-family homes by large corporate investors. Finance minister Chrystia Freeland announced that the government planned to give first-time homebuyers access to 30-year amortization periods on newly built homes. She also announced an increase to the home buyers’ plan (HBP) RRSP withdrawal limit to $60,000 from $35,000 for new home purchases by first-time buyers. Both are nice measures, but it is too bad the 30yr amortization is only on new builds and not all homes as this limits it effectiveness overall. First-time home buyers would still benefit from contributing to an FHSA first, because contributions to that plan provide a tax deduction, growth is tax sheltered and withdrawals are tax-free if made to buy a qualified home. However, there’s now “additional incentive” to direct any remaining savings toward an RRSP to round out your down payment. Of note for the mortgage sector, the plan proposes to consult with the industry on making a tool available through the Canada Revenue Agency (CRA) to verify borrower income with a view to combating fraud.

The big news on Friday last week was the unveiling of Trudeau's new plan aimed at solving Canada’s generational housing crisis, introducing new tax incentives …

Highlights from Trudeau's 2024 housing plan

If your debt is piling up – credit cards, store cards, car and loan payments– then the interest that you’re paying could be standing in the way of your financial security. &nbsp;The good news is that Canadian homeowners have a great option: debt consolidation. It’s a simple concept: you roll up all the extra debt you have outside your mortgage, and you consolidate it into a new or existing mortgage. If you’ve built up some equity in your home, then this consolidation is the simplest way to power through your debt.&nbsp;The key advantage is the low interest rate: you’re trading your higher-interest loans for one easy low interest payment. So you can see huge savings in interest charges and be out of debt faster than you thought possible. The second big advantage is cash flow. If you’re struggling with your monthly debt load, then a consolidation can offer big relief.&nbsp;Dig out your credit card and loan statements. Write down the balances for each, note the interest rates you’re paying, and jot down the monthly payment amount. Now make an appointment with us and get a realistic appraisal of your options and savings.

Debt consolidation can offer big relief

Given the large financial commitment of a mortgage, it's surprising that so many homeowners sleepwalk through the mortgage renewal process and don't look at all their options in the marketplace. Many accept whatever their lender offers or just have a short negotiation to shave a few points off. While it's tempting to choose what is easiest, it's so important to have a mortgage expert give you a second opinion and start working for you as early as 9 months prior to renewal. Here's why: <ol><li value="1" class="editor_listItem" dir="ltr">With access to over 50 lenders and hundreds of mortgage options I can make sure you are being offered the best rate and mortgage possible. </li><li value="2" class="editor_listItem" dir="ltr">If you have enough equity in your home, you may be able to move high-interest debt to your lower-rate mortgage, improving cash flow and saving on interest. Renewal is the perfect time to do this. I can run the numbers to see if this strategy makes sense for you.</li><li value="3" class="editor_listItem" dir="ltr">Having a good credit score is important if you want to switch your mortgage to a new lender for a better deal. Your current lender may also take your score into consideration at renewal. You have more control over your credit score than you think, and you may want to discuss credit improvement strategies. </li><li value="4" class="editor_listItem" dir="ltr">Taking on new debt or leaving your current employment prior to renewal can affect your ability to move your mortgage to another lender. We can discuss the potential impact of changes to your personal situation. </li><li value="5" class="editor_listItem" dir="ltr">If you need to free up cash flow for specific needs or life situations, a 30-year amortization might be an option for you to consider (20% or more in equity required). </li></ol> At renewal, you can renegotiate everything pertaining to your mortgage – with no penalties – which means this is an important moment of opportunity. So as soon as you hear from your lender about your mortgage renewal, get in touch for an important second opinion!

Given the large financial commitment of a mortgage, it's surprising that so many homeowners sleepwalk through the mortgage renewal process and don't look at al…

5 reasons to get a second opinion on your mortgage renewal

Your credit score is essentially your passport to financial opportunities. With a possible range of 300 to 900, your score tells lenders what kind of a risk you are likely to be as a borrower. A low credit score can prevent you from getting the lowest mortgage rate, or even from getting a mortgage at all. But here’s the thing, this important factor in your mortgage negotiation is entirely within your control. That’s why it’s important to know the key credit behaviours that can boost your score or keep it high: <ol><li value="1" class="editor_listItem" dir="ltr">On time, all the time. The single biggest factor in your credit score is having a timely bill payment history. Never let a bill get past due. That one habit is your single biggest game-changer. Set up automatic payments if that will help.</li><li value="2" class="editor_listItem" dir="ltr">Know your limits. Your credit score is based on your balances relative to your available credit. Look at your credit limits and try not to use more than 30 per cent of the available amount. If your limit is $10,000, try to not let your balance go higher than $3,000. </li><li value="3" class="editor_listItem" dir="ltr">Don`t let it happen. Don’t ever let any bill go to Collections, even if it’s for a small or disputed amount. These black marks on your credit are hard to erase. If it’s happened, be prepared to explain why, and be sure it’s paid in full and reported to Equifax. </li><li value="4" class="editor_listItem" dir="ltr">Be selective. When you’re asked - would you like to apply for our Store Card to save $X dollars on your purchase today - don’t do it; the high rate that goes with that card isn`t worth your savings on that particular purchase.</li><li value="5" class="editor_listItem" dir="ltr">History is important. Make sure you do have a credit history. You may have a low score because you do not have a record of owing money and paying it back. You can build a credit history by using a credit card.</li></ol> If you are wondering how to polish up your credit, I would be happy to review your situation and outline your best options for credit improvement. If you want to get a mortgage while you work on bettering your score, I can also advise how that may be possible.&nbsp;

Your credit score is essentially your passport to financial opportunities. With a possible range of 300 to 900, your score tells lenders what kind of a risk yo…

Five credit habits that can boost your score

Sometimes unforeseen financial circumstances can impact your ability to make your regular mortgage payments. Or perhaps your debt demons have been caused by taking on too much other high-interest debt.&nbsp; It can be tempting to want to conceal your debt problem for as long as possible – but that’s almost never the best strategy. With early intervention, there are weapons available that can help you fight these demons! Your mortgage lender doesn’t want to see you default on your mortgage; they’d much rather help homeowners find a way to keep their home. For mortgages insured by the Canada Mortgage and Housing Corporation (CMHC), they have identified several tools available to help you ride out a period of financial uncertainty: 1.&nbsp;&nbsp;&nbsp;&nbsp; Converting a variable-interest rate mortgage to a fixed-rate mortgage to protect you in the event of a sudden jump in interest rates.2.&nbsp;&nbsp;&nbsp;&nbsp; Your lender may be willing to offer a temporary payment deferral, or other flexible options for short-term relief. If you’ve made any lump-sum payments against your mortgage in the past – or if you’ve been on an accelerated payment schedule – that history can help.3.&nbsp;&nbsp;&nbsp;&nbsp; You may be able to extend your amortization period to reduce your monthly payments. You can shorten the amortization again later if your circumstances change.4.If you’ve actually missed a few payments already, you may ask if the lender is willing to add them to the mortgage balance and extend the payment period accordingly. (Best, however, to start talking before you start missing payments!)5.&nbsp;&nbsp;&nbsp;&nbsp; A special payment arrangement unique to your situation may also be possible. Genworth Canada also has a Homeowner Assistance Program designed to help homeowners who are experiencing temporary financial difficulties that may put their mortgage at risk. Ultimately though, it’s best to seek help at the first sign of financial trouble. Getting in touch and having a conversation is a great place to begin – because as an independent mortgage professional, I work for my clients and look out for their best interests, not the lenders, and I know what the lenders are after. It’s possible that your financial situation just requires some extra penny-pinching to stay on budget. But if you find yourself adding to your credit card debt – or borrowing to make mortgage payments – then it’s time to have that conversation. The earlier you get help, the easier it will be to conquer those debt demons!

Sometimes unforeseen financial circumstances can impact your ability to make your regular mortgage payments. Or perhaps your debt demons have been caused by ta…

How to Deal With Mortgage Payment Difficulties

A bridge loan is a short-term financing tool that helps you “bridge” the gap between old and new mortgages when you move from one home to another. You may be taking possession of your new home a week or two in advance of closing on your current home, either because of how your closing dates worked out, or because you want to do some renovating on your new home before you move in. Whatever the reason, bridge financing is going to be your best friend for a few weeks: making it possible to easily transition from the old to the new. Here’s what you need to know:<ol><li value="1" class="editor_listItem">It’s for a specific amount, which is your home’s selling price minus your current mortgage and costs (realtor and legal fees). </li><li value="2" class="editor_listItem">It’s for a short period of time i.e. 1 to 30 days, and your lender will want to see a firm sale agreement for your existing place, with conditions waived.&nbsp; </li><li value="3" class="editor_listItem">Not all lenders offer bridge loans, although there are private lenders that meet this need.&nbsp; Since you are working with a mortgage broker, you are in good hands: I can put together a combination of a new mortgage and bridge loan even if it’s not with the same lender. </li><li value="4" class="editor_listItem">Expect to pay more. Your bridge is going to be at a higher rate than your mortgage, and will include administration fees, even when the bridge loan is with the same lender. Bridge loans from private lenders will likely have higher rates and fees, although they may offer more flexible terms.&nbsp; For most homebuyers, the convenience is worth it!</li><li value="5" class="editor_listItem">Plan in advance just in case.&nbsp; Together we’ll discuss your ability to carry two mortgages in the event that a rare worst-case scenario plays out. Your lawyer will pay out your bridge loan from the sale proceeds of your home. If for any reason the sale falls through, your lawyer will register the bridge loan as a charge on the property. And if you require a longer bridge i.e over 30 days, or for an amount over the lender’s maximum, your lender may register a charge against the property and your costs will increase</li></ol> Most homebuyers say a bridge was well worth it to buy some extra time for a smooth transition. If you think you’ll need a bridge, let’s talk. My ability to offer you multiple lending options definitely works in your favour!&nbsp;

A bridge loan is a short-term financing tool that helps you “bridge” the gap between old and new mortgages when you move from one home to another.  Here’s what…

Bridge financing: what you need to know

When you find the condo or house of your dreams and want to make an offer, do you need a financing condition? Unless you can pay cash for the home, then yes you do. That little phrase – “conditional on financing” – is an important protection for buyers.&nbsp; When an offer to purchase is made “conditional on financing”, we gain the time needed i.e. 3 to 5 days to ensure that you are fully approved for the necessary funds. Your lender needs to feel as comfortable about the property as you do and will likely conduct an assessment. After all, the property is the lender’s security if something goes wrong. Even if you have a mortgage preapproval, the lender may decline the property for reasons such as:&nbsp; <ul><li value="1" class="editor_listItem" dir="ltr">The address may be just outside the acceptable location perimeter for the lender. </li><li value="2" class="editor_listItem" dir="ltr">Concern over a former grow op, an environment matter, or zoning issues. </li><li value="3" class="editor_listItem" dir="ltr">The appraisal may not match the offer you’ve made.</li></ul> Don’t let the rush to buy overcome common sense. A preapproval is a guideline only, and a lender could disregard it: especially if your income or financial situation has changed. That “conditional on financing” gives you time to confirm with the lender, and to withdraw the offer if the lender’s queries turn up something negative about the house. An offer without conditions leaves you and your family on the hook. If the financing falls through, you will lose your deposit, and could be sued by the seller. It’s not the happily-ever-after scenario you envisioned when you made your offer. If you really want to put in an offer with no financing conditions, I can assist you in mitigating your risk i.e. review the strata docs, listing information, and contact the lender and insurer about the property prior to writing the offer, which can help eliminate some of the risk but nothing can be 100% guaranteed. Let me help you make sure your homebuying journey has a happy ending.

When you find the condo or house of your dreams and want to make an offer, do you need a financing condition? Unless you can pay cash for the home, then yes yo…

 “Conditional on financing”: the most important part of you…

As we find ourselves in the midst of RRSP season, it's an opportune time for homeowners like you to evaluate how your property can be a pivotal asset in boosting your financial growth. The deadline for RRSP contributions is fast approaching on March 1, making now the perfect time to consider the strategic benefits of homeownership beyond the routine of mortgage payments. Owning a home is much more than a monthly financial commitment; it represents a strategic asset that can significantly enhance your net worth. Many homeowners face the challenge of balancing mortgage payments, monthly bills, and the important goal of retirement savings. However, with a carefully crafted strategic plan, it's possible to streamline your debts, reduce interest outlays, and simultaneously bolster your retirement savings. A significant number of Canadians hold equity in their homes. This untapped equity can be a powerful tool in enhancing your savings and overall financial status. Let's explore two practical examples of how you can leverage your home's equity: <ol><li value="1" class="editor_listItem" dir="ltr">Borrowing to invest:&nbsp;If you have enough equity in your home and unused RRSP contribution room, consider the option of using your home equity to invest directly into your RRSP. You can then apply any tax refund you receive toward your mortgage using your prepayment privileges. This approach can be a savvy method to augment your retirement fund while utilizing the value you've already built in your property.</li><li value="2" class="editor_listItem" dir="ltr">Debt consolidation:&nbsp;Another strategy involves consolidating high-interest debts, such as credit card balances or car loans, into your mortgage. This consolidation can lead to significant improvements in your monthly cash flow. Furthermore, by simplifying your monthly payments, you gain the dual benefits of financial efficiency and peace of mind.</li></ol> For many homeowners, these strategies have translated into reduced monthly debt payments, less interest paid over time, and the added bonus of a growing retirement fund. As your trusted mortgage professional, I'm dedicated to helping you explore these options and determine the best path forward tailored to your individual needs.&nbsp;A brief updateOn January 24, the Bank of Canada held the overnight rate at 5% for the sixth consecutive month. With the softening of the Canadian economy, almost all economists who've weighed in on the forecast of the overnight rate for 2024 agree that there are most likely no rate hikes coming this year. This news increases buyer confidence and is setting the stage for a strong Spring market. What's on the horizon for you this year? Thinking of making a move?&nbsp;In the constantly evolving Canadian real estate market, staying informed and prepared is key to turning your dream home into a reality. I strongly recommend getting a mortgage pre-approval. A mortgage pre-approval is not just a preliminary step; it's a comprehensive evaluation of your financial health. This step clarifies your budget, locks in your interest rate (for up to 120 days, depending on the lender), ensures you're ready to make a confident offer on a home within your means, and marks you as a serious buyer, giving you an edge if you find yourself in a multiple offer scenario. Is your mortgage renewal coming up?&nbsp;If your mortgage is renewing this year or even next year, it's never too early to start discussing options and strategies. We'll review your current situation – in the context of the current interest rate environment – and develop a plan that will help you stay on track. As always, remember that I'm here to help you achieve your short- and long-term homeownership and wealth-building goals. Get in touch anytime!

As we find ourselves in the midst of RRSP season, it's an opportune time for homeowners like you to evaluate how your property can be a pivotal asset in boosti…

RRSP contributions, home equity, and mortgage strategies to…

According to a TD Canada Trust First-Time Home Buyers Report, one of the biggest lessons learned by 60 per cent of new home buyers was that they should have been more thorough when budgeting and accounting for all of the costs of home ownership.&nbsp;Generally you need to set aside 2 to 4 per cent of your home’s selling price in total closing costs, which can include:&nbsp;<ul><li value="1" class="editor_listItem">Appraisal fee</li><li value="2" class="editor_listItem">Home inspection</li><li value="3" class="editor_listItem">Tax: depending where you are, it’s called a Land Transfer Tax, Land or Deed Registration Fee, Tariff or Property Purchase Tax. This tax can take buyers by surprise because the amount can be substantial. Ask your mortgage broker for an estimate of what this can add up to in your situation.</li><li value="4" class="editor_listItem">Legal fees</li><li value="5" class="editor_listItem">Title insurance</li><li value="6" class="editor_listItem">Utility hook ups</li><li value="7" class="editor_listItem">Reimbursement of bills pre-paid by the previous owner, for instance property tax or utility bills</li><li value="8" class="editor_listItem">Interest adjustment</li><li value="9" class="editor_listItem">Moving costs</li><li value="10" class="editor_listItem">Furniture/appliances</li></ul>&nbsp;When setting your budget, you also need to consider the ongoing costs that will become a part of your monthly home ownership expenses, which include:&nbsp;<ul><li value="1" class="editor_listItem">Home insurance</li><li value="2" class="editor_listItem">Property taxes</li><li value="3" class="editor_listItem">Utilities – gas/hydro/water</li><li value="4" class="editor_listItem">Cable/Internet</li><li value="5" class="editor_listItem">Ongoing maintenance</li></ul>&nbsp;Talk to us early. We’ll make sure you are clear on all of the costs and ongoing expenses associated with a new home. Get off on the right foot in your home buying journey!

Generally you need to set aside 2 to 4 per cent of your home’s selling price in total closing costs         Talk to us early. We’ll make sure you are clear on …

Understand your closing costs and ongoing expenses

It’s impossible to plan for many of the things that will happen in our lives, like job loss, illness, divorce, relocation, or another personal matter. Or when much better mortgage rates become available. The fact is, there are lots of reasons why it makes good financial sense to break your mortgage. Generally, to break your mortgage, you can expect to pay a prepayment penalty: the greater of either: a) three months’ interest, or b) the interest-rate differential (IRD). With the IRD, your mortgage lender will want you to pay the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates. Not all lenders calculate IRD the same way, and the differences can amount to thousands of dollars. It helps to know which lenders have the most fair prepayment penalties. With access to dozens of lenders – we’ve got that information at our fingertips. Don’t let anyone tell you prepayment penalties are “all the same”. They’re not. If you ever need to get out of your mortgage out early, the right mortgage could save you thousands!&nbsp;&nbsp;

It’s impossible to plan for many of the things that will happen in our lives, like job loss, illness, divorce, relocation, or another personal matter. Or when …

Give me a fair break! What does it cost to break your mortg…

Happy New Year! I hope you had a wonderful holiday season and are ready to embark on a prosperous 2024. As we usher in the new year, I want to keep you informed about the latest developments in the Canadian mortgage market that may have an impact on your financial decisions. 2024 brings significant insights into the future of the economic landscape. The Bank of Canada has started the year with careful consideration of its monetary policy. Interest Rate Cut on the Horizon?According to a recent article by Bloomberg, there's a possibility that the Bank of Canada may lower interest rates in the coming months. However, Governor Tiff Macklem has stressed that any rate reduction would be contingent on several months of sustained downward momentum in core inflation. This cautious approach underlines the central bank's commitment to ensuring the stability of the Canadian economy. Shifting Focus: From How High to How LongAs we begin this new year, we witness a shift in the focus of Canadian officials. They are now more concerned about how long interest rates should remain at their current levels rather than how high they should go. This shift reflects their dedication to prudent economic management.<table class="editor_table"><colgroup><col></colgroup><tbody><tr><td class="editor_tableCell" style="border: 1px solid black; width: 700px; vertical-align: top; text-align: start;">BANK OF CANADA 2024 INTEREST RATE ANNOUNCEMENTSJANUARY 24 &nbsp;|&nbsp; MARCH 6 &nbsp;|&nbsp;&nbsp;APRIL 10 &nbsp;|JUNE 5 &nbsp;|&nbsp; JULY 24 | SEPTEMBER 4&nbsp;&nbsp;|&nbsp; OCTOBER 23&nbsp;&nbsp;|&nbsp; DECEMBER 11&nbsp;</td></tr></tbody></table>Comparing to the Federal ReserveAcross the border, the Federal Reserve in the United States has decided to maintain borrowing costs at their current levels. However, forecasts indicate a consensus that rate cuts may come into play in 2024. Federal Reserve Chair Jerome Powell has been vocal about policymakers' contemplation of rate adjustments as inflation gradually approaches the target goal of 2%. What to Anticipate in 2024As we venture into this new year, I want you to know that we will continue to keep you well-informed about any significant developments in the Canadian mortgage market and their potential impact on your financial situation.&nbsp;Do not hesitate to reach out to me, your mortgage broker, should you have any questions or require assistance with mortgage or financial planning. I’m here to provide you with personalized guidance and support.

Happy New Year! I hope you had a wonderful holiday season and are ready to embark on a prosperous 2024. As we usher in the new year, I want to keep you informe…

Bank of Canada's 2024 Outlook: A Year of Consideration

If you are rate shopping, you’ll notice that the lowest available rate will be for a variable mortgage, which is why I’m often asked “what does variable mean and how is it different from a fixed-rate mortgage?”&nbsp;With a variable mortgage, your mortgage rate will move in conjunction with your lender’s Prime lending rate, which in turn tracks the Bank of Canada’s benchmark rate, and will typically be quoted as Prime minus a specified percentage. It can be difficult to predict our economic future so&nbsp;you won’t know for sure what kind of rate ups and downs might be ahead of you. With a fixed-rate mortgage, your payments are fixed for the term of the mortgage, which offers stability.&nbsp; Fixed-rates are usually better suited to first-time buyers or those who haven’t owned a home for a very long period. Ask yourself these questions: Do you like or need to know exactly what your payment is going to be over a longer period of time? Do you want to avoid the need to consistently watch rates? Do you have less than 20% down? If you answered “yes” to all or most, a fixed-rate mortgage could be the better choice for you.&nbsp; A variable-rate mortgage is best suited to people who have a flexible budget and can tolerate slightly more risk. Ask yourself these questions: Do you watch market conditions? Can you handle any rate increases that could increase your payment? Do you have more than 20% equity in your home? If you answered “yes” to all or most, a variable-rate mortgage might best suit your needs. Most variables allow you to exercise an option to “lock in” a fixed rate at any time for the remaining portion of your mortgage term or longer. You can also set up your payments at what they would be if you took the higher rate, which helps you pay down your mortgage faster, and creates a financial buffer for you if rates rise later.&nbsp; If the uncertainty of a variable rate is going to give you sleepless nights, you’re in good company. Many Canadians prefer the certainty of a fixed-rate mortgage. They know exactly how much they will pay over the term of their mortgage, and they can plan accordingly… with no financial surprises. However, lower-rate variable mortgages with a strong Prime minus offer give you the potential to save a lot on interest. And, if your circumstances change and you need to get of out of your mortgage, you will appreciate the lower penalty to get out of a variable versus a fixed-rate mortgage.&nbsp; &nbsp;Your best option is to get professional and personalized advice. I would be happy to help you determine which option is best suited to your needs.

With a variable mortgage, your mortgage rate will move in conjunction with your lender’s Prime lending rate, which in turn tracks the Bank of Canada’s benchmar…

Fixed or Variable-Rate Mortgage?

When your mortgage comes up for renewal, your lender will send you a letter suggesting you renew at their current offer. If you do, you’ll be renewing your mortgage with your eyes closed! This is your moment of opportunity to negotiate the best possible deal, either with your current lender or with a new one. Do you know if the same lender remains your best choice? &nbsp;Manulife Bank of Canada in their latest consumer debt survey found that two-thirds of homeowners (65 per cent) did not compare products from several different lenders to make sure they were getting the best deal the last time their mortgage came up for renewal. Auto-renewing your mortgage and not getting fully discounted rates could cost you hundreds of dollars each month.&nbsp;Wouldn’t it be better to put that money towards reducing your mortgage principal? &nbsp;You also need to consider that your mortgage needs may have changed.&nbsp; This may be a good time to roll your high-interest credit cards and other debt into your mortgage to get one lower payment, boost your cash flow and save on interest costs. Or you may want to take some equity out for renovations, a second property or for investing. You mortgage could be your best choice for lowest-cost funds.&nbsp;Renewal is also a good time to decide whether you should consider a fixed or variable rate mortgage, increase or decrease your payments, or take advantage of prepayment privileges to pay your mortgage off faster. &nbsp;When you switch your mortgage to a new lender, you will go through an approval process similar to when you took out the original mortgage. You can either assign your existing mortgage or you can apply for a new one should you want to borrow a larger amount.&nbsp;Your lender may charge a discharge fee, and you may need to pay legal and appraisal fees if you are getting a completely new mortgage. You won’t have to pay for your mortgage broker’s service (oac) because the lender selected pays compensation for the services and mortgage solution provided to you. &nbsp;Bring your renewal notice to your mortgage broker six months prior to your renewal date. Many lenders provide a 120-day rate guarantee for pre-approved clients to protect them against a rise in mortgage rates.&nbsp;There are some great options out there; be sure to look around.

Don’t renew your mortgage with your eyes closed

Recent inflation numbers indicate that inflation is slowing, and many economists are saying that the most recent drop in the inflation rate will give the Bank of Canada the slack that it needs to hit pause on any rate hikes for the time being. While this is a positive sign, it is not necessarily translating to relief in the cost of living. Many people are still seeking solutions to mitigate the effects of sky-high grocery prices and other goods on their finances. This month, we are focusing on one strategy that could prove to be the difference maker in providing the financial breathing room you need – mortgage amortization extensions. To start, let us clarify what an amortization period is. It represents the duration it takes to fully pay off your mortgage through regular payments. An amortization extension, on the other hand, refers to any period beyond your initially qualified amortization. Which lenders and banks offer amortization extensions?Prime lenders, who are federally regulated, typically do not offer amortization extensions beyond 30 years. However, if your current mortgage has a shorter amortization period (i.e.: 20 years), you can extend it when refinancing with them. Alternative mortgage lenders, often referred to as "non-bank" lenders, may offer extensions of 35 to 40 years, provided you have at least a 20% down payment or more than 20% equity built up. Who can extend their mortgage and why?First-time home buyers are typically limited to a maximum amortization period of 25 to 30 years. Most put less than 20% down needing default mortgage insurance that restricts amortization to a maximum of 25 years. However, if they have 20% or more to put down, they can extend the amortization beyond 25 years.In contrast, renewers may have the option to extend their amortization at the time of renewal. For example, they can go from 20 years back to 25 years or from 25 years back to 30 years to lower their monthly payments. Keep in mind that these options vary based on individual situations.It is important to understand that extending your mortgage amortization outside of renewal would require refinancing, which may incur penalties and necessitate requalification at current rates. Nevertheless, refinancing can be a viable solution in certain circumstances. To explore your options fully, I recommend discussing your specific needs with me. For example...Imagine a young couple bought their first home 5 years ago with a $750,000 mortgage at 3.5% interest. They initially chose a 25-year amortization, making a monthly payment of $3,745. Now, at renewal, their balance is $635,000 with rates at 5.39%. They're considering extending their amortization to keep their monthly payment the same. Let's compare the numbers:<table class="editor_table"><colgroup><col><col><col></colgroup><tbody><tr><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">Amortization</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">Monthly Payment</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">Impact on Monthly Budget</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">20 yrs</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">$4,409</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">-$664</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">25 yrs</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">$3,926</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">-$181</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">30 yrs</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">$3,622</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">+$123</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">35 yrs</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">$3,419</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">+$326</td></tr><tr><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">40 yrs</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">$3,278</td><td class="editor_tableCell" style="border: 1px solid black; width: 233.333px; vertical-align: top; text-align: start;">+$467</td></tr></tbody></table>The rates shown are for illustration purposes only and subprime lenders' rates over 30 years amortization may differ.&nbsp;Extending your mortgage amortization can be an effective financial strategy, but as with any important financial decision, it is essential to weigh the risks and benefits carefully. If you have any questions or would like to explore your options further, please reach out to me.

Recent inflation numbers indicate that inflation is slowing, and many economists are saying that the most recent drop in the inflation rate will give the Bank …

What affects mortgage rates?Government policies to protect the economy during the pandemic resulted in exceptionally low mortgage rates for both fixed- and variable-rate mortgages. As we moved out of the COVID period and towards recovery, fixed rates have moved quite a bit upwards. But did you know that fixed rate and variable rate mortgages are not influenced by the same factors? Let’s look at the mechanics of both. How are variable rates set?The chartered banks set the prime lending rate (the rate they offer their best customers). They base their decisions on the Bank of Canada’s overnight rate because that’s the rate that influences their own borrowing. There are approximately eight times a year the Bank of Canada makes rate announcements. Variable mortgage rates and lines of credit move in conjunction with the prime lending rate, with most lenders currently offering variables at prime minus a certain percentage. The Bank of Canada in their most recent announcement did not increase the overnight rate. How are fixed rates set?Fixed-rate mortgages are a little different.&nbsp; Banks predominantly use Government of Canada bonds to raise money for fixed-rate mortgages. In the bond market, interest rates can fluctuate more often since they’re subject to the changing moods of traders and bond investors as they try to figure out how fast the economy will grow and where inflation is headed. That’s why you watch the bond market for clues on where fixed mortgage rates will go next. Recently the yield for 5-year government bonds went down, causing fixed mortgage rates to follow suit. We are starting to see fixed mortgage rates drop across the board right now as the bond yields decline. This chart clearly shows just how low rates were from 2008-2022 on a historical basis. <img src="https://media.licdn.com/dms/image/D5612AQFkKhxViFK8Xw/article-inline_image-shrink_1000_1488/0/1701703695892?e=1707350400&amp;v=beta&amp;t=16kD6L9NFI4AWOTAoURxQG9NG63vA3_brymdwumH_sk" alt="" width="inherit" height="inherit" class="editor_image"> Why are there so many different mortgage rates?Fixed and variable are not the only factors affecting rates. There are rate premiums for certain situations i.e., rental properties, 30-year amortizations. There are different rates for insured, insurable and uninsured mortgages. Rock-bottom online rates often come with restrictions and high penalties. The rate you qualify for can be very different from what your neighbour got. That’s why it is so important to get in touch for unbiased professional advice when you need to determine the best mortgage and rate applicable to your situation, whether it’s for a purchase, renewal, or refinance. Knowledge is power!

What affects mortgage rates? Government policies to protect the economy during the pandemic resulted in exceptionally low mortgage rates for both fixed- and va…

What affects mortgage rates? 

Cheapest is not always best. We know that’s true when we’re shopping for anything else. But we still tend to believe that lowest rate is the one and only factor in choosing a mortgage. Most Canadian homeowners would be shocked to discover that their low-rate mortgage could actually cost them more in the long run. Why? Because the right mortgage is about a lot more than just rate. It’s true that even a small reduction in rate can mean interest savings over the life of your mortgage. And mortgage brokers are experts at seeking out competitive rates from a wide range of lenders. But they also look deeper. Sometimes those cut-rate mortgages come with higher fees, penalties, or restrictive terms, which could prove more costly over the long term than a slightly higher-rate mortgage with flexible terms. Pre-Payment PenaltiesOne of the best ways to save interest, for example, is to use pre-payment options. If you get a quarterly bonus, a tax refund, or a seasonal income boost, then you have some excellent opportunities to slash your mortgage costs. Putting extra money against your mortgage principal could save you thousands of dollars in interest. If your cut-rate mortgage doesn’t permit pre-payments, that’s a huge missed opportunity. Teaser RatesAlso watch for low-rate “teasers”: cut-rate mortgages with a short timeline. Sometimes a lender will offer a rate that is good for just 30 days, after which the rate will jump. If closing takes a little longer, or there’s a glitch in documentation, then you need to be prepared with a backup plan. These teasers can be stressful – and not always the best deal anyway. Mortgage TermTerm is also very important to look at. Most tend to promote that a 5-yr fixed-rate mortgage is the only safe option. However 6 in 10 Canadians find out that it is anything but. Statistically speaking, 6 out of 10 clients will break their mortgage early, at an average of 38 months! In Ontario, mortgages come in various structures, with closed, open, and partially open being the primary types. <ol><li value="1" class="editor_listItem" dir="ltr">Closed Mortgages: These have fixed terms, typically ranging from 6 months to 10 years. During this period, you're committed to the agreed-upon interest rate and terms. While you can make extra payments, significant changes may incur prepayment penalties.</li><li value="2" class="editor_listItem" dir="ltr">Open Mortgages: These offer more flexibility. You can pay off the entire mortgage or make extra payments without penalties. Open mortgages are suitable for those planning to sell their property or make substantial payments in the near future.</li><li value="3" class="editor_listItem" dir="ltr">Partially Open Mortgages: Combining elements of both, partially open mortgages allow prepayments up to a certain limit without penalties. If you anticipate making occasional lump sum payments, this type provides a balanced approach.</li></ol> Your choice depends on your financial goals and flexibility needs. Closed mortgages often offer lower interest rates, suitable for those with stable finances, while open or partially open mortgages provide flexibility but might come with slightly higher rates.An accredited independent mortgage broker will determine the features and privileges that best meet your personal situation, looking at: <ol><li value="1" class="editor_listItem">Refinancing penalties</li><li value="2" class="editor_listItem">Fixed vs variable rate</li><li value="3" class="editor_listItem">Term</li><li value="4" class="editor_listItem">Pre-payment options</li><li value="5" class="editor_listItem">Payment flexibility</li><li value="6" class="editor_listItem">Restrictions</li><li value="7" class="editor_listItem">Fees</li><li value="8" class="editor_listItem">Portability</li><li value="9" class="editor_listItem">Assumability</li></ol> As you can see, rate is important, but is one of 9 factors that need to be consider to ensure you have the right mortgage solution for your specific situation and goals. Most people spend more time choosing the right car than choosing the right mortgage, although it’s likely the largest expense they’ll likely ever undertake. Make sure you have a mortgage that is custom-built for your personal situation. Cheapest isn’t always best. And obviously the most expensive mortgage is rarely the best choice either. But the right combination of rate and features – matched to your needs – is the fastest route to mortgage freedom. It’s your mortgage broker’s job to help you with that route-planning: a map for your financial future. Whether you’re buying your first home, getting ready for renewal, refinancing a mortgage, taking out some equity for debt consolidation, renovations, or investing – it’s a good time to get some fresh, timely, expert perspective.

Cheapest is not always best. We know that’s true when we’re shopping for anything else. But we still tend to believe that lowest rate is the one and only facto…

That low-rate mortgage could actually cost you more.

If you’ve got a mortgage – or plan to get one this year – you probably know that it’s more complicated than it used to be just a few short years ago. That said, I have many tips and strategies that can help you get the mortgage you need, tweak the one you have, or help you plan for renewal. Here are my top eight:&nbsp; <ol><li value="1" class="editor_listItem">To get the best deal, you need options. When you go to your bank, you’re talking to one lender. Their best deal might not be THE best deal. It’s also difficult to qualify at a bank if you are self-employed, have past credit issues or finding the stress test a challenge.&nbsp; Credit unions, alternative and private lenders are increasingly helping people get into new homes or refinance their mortgage. </li><li value="2" class="editor_listItem">Best-rate quotes are often meaningless.&nbsp; Mortgage rule changes have thrown mortgage pricing up in the air. Your actual rate depends on a whole slate of factors, which is why you can only get an accurate rate quote after an in-depth assessment of your personal situation. </li><li value="3" class="editor_listItem">The devil is in the details. People tend to focus on rate, but you can save thousands by making sure you get a mortgage that has fair penalties, allows you to prepay, and ensures you will also be treated fairly at renewal. Don’t end up paying exorbitant fees, or be forced to take a high rate at renewal. </li><li value="4" class="editor_listItem">An insured mortgage might be a smart move.&nbsp; If your mortgage is “uninsured” and you want to switch to a new lender for a better rate at renewal, that lender will qualify you using a "stress test", which may affect your ability to move your mortgage, and giving your lender no incentive to offer you the best rates. It’s possible that you can switch your mortgage to a lower-rate insurable mortgage that has more flexibility.&nbsp; </li><li value="5" class="editor_listItem">A 30-year amortization can give you wiggle room on cash flow.&nbsp; A longer amortization (20% or more in equity required) allows you to minimize your mortgage payments and free up cash flow for uses like investing, business needs, post-secondary education, maternity leave, home maintenance, or other life situations.You can keep your payments at a shorter amortization and only use this flexibility if the need arises.</li><li value="6" class="editor_listItem">Monitor your credit score. The best rates go to borrowers with the best credit scores. Lenders are also paying closer attention to any warning signals that clients may have trouble paying their mortgage. If your credit slips and your lender feels your risk has increased, you may be offered a higher rate at renewal. </li><li value="7" class="editor_listItem">A rental suite can be a sweet mortgage helper. A home with a rental suite could help you buy a single-family home instead of a condo, get you into that neighbourhood you love, or help you offset mortgage payments in the house you’re in so you can become mortgage free sooner or have the freedom to channel money into other areas. </li><li value="8" class="editor_listItem">Plug your biggest money leak. If debt is choking your cash flow and you have enough equity in your home, you may be able to move that debt to your lower-rate mortgage and save thousands. Using home equity to pay down debt is one of my specialties!</li></ol> Make sure your mortgage strategy is working for you and helping you build wealth. Get in touch for a review of your situation.&nbsp; &nbsp;

If you’ve got a mortgage – or plan to get one this year – you probably know that it’s more complicated than it used to be just a few short years ago. That said…

Eight mortgage tips and strategies

Considering the 2023 housing market's dynamics, with its high interest rates and market unpredictability, let's discuss the significance of&nbsp;home&nbsp;equity. One of the most valuable assets homeowners have is their&nbsp;home&nbsp;equity.&nbsp;Home&nbsp;equity&nbsp;is the difference between the current market value of your&nbsp;home&nbsp;and the outstanding balance on your mortgage. The two common methods of tapping into your&nbsp;home&nbsp;equity&nbsp;are refinancing and second mortgages. Let's review together what&nbsp;home&nbsp;equity&nbsp;is, how you can use it and what are the main differences between refinancing and second mortgages. Understanding&nbsp;Home&nbsp;EquityHome&nbsp;equity&nbsp;is the portion of a&nbsp;home's value that you truly own, calculated as the difference between the property's current market value and the remaining balance on your mortgage. It accumulates over time as you make mortgage payments, reducing the loan principal, and as your property's value increases due to market appreciation or improvements. I'm here to assist you in understanding this concept and how it applies to your unique situation. The Refinancing OptionRefinancing involves the replacement of your current mortgage earlier than its maturity with a new one, often pursued to secure more favourable terms or tap into your&nbsp;home's&nbsp;equity. While in today's market, with higher interest rates, this option is less commonly used, it's essential not to dismiss it entirely, as it can still serve specific financial objectives in certain situations. The Second Mortgage OptionA second mortgage is an additional loan secured against your&nbsp;home, separate from your primary mortgage. It allows homeowners to access funds without affecting their existing and potentially lower-rate primary mortgage. However, the suitability of a second mortgage depends on your specific financial situation and the lender products you qualify for.That's why a conversation with me, your mortgage broker, can be invaluable in helping you understand the best options for you and your family. Financial Goals Achievable by Utilizing&nbsp;Home&nbsp;Equity<ul><li value="1" class="editor_listItem" dir="ltr">Home&nbsp;improvements</li><li value="2" class="editor_listItem" dir="ltr">Debt consolidation</li><li value="3" class="editor_listItem" dir="ltr">Education expenses</li><li value="4" class="editor_listItem" dir="ltr">Emergency funds</li><li value="5" class="editor_listItem" dir="ltr">Investment opportunities</li></ul> Qualification and ProcessWhether you're thinking about refinancing your existing mortgage or considering a second mortgage, lenders typically take several factors into account. These include your credit score, income level, your ability to manage repayments in a changing rate environment, the&nbsp;equity&nbsp;in your&nbsp;home, and proof of ownership due to the prevalence of title fraud in today's market. Additionally, most lenders will require a current appraisal of your&nbsp;home. Meeting these qualifications is crucial for moving forward with either option, and I'm here to help.Refinancing and second mortgages each involve unique processes. Refinancing essentially replaces your current mortgage with a new one, a journey that includes everything from your initial application to approval and closing. On the other hand, obtaining a second mortgage allows you to tap into additional funds and often follows a more streamlined process with quicker completion. Remember, to make the most informed decision tailored to your specific circumstances, don't hesitate to reach out to me. I'm here to assist with reviewing options that best aligned to your financial goals and supporting you every step of the way.

Considering the 2023 housing market's dynamics, with its high interest rates and market unpredictability, let's discuss the significance of home equity. One of…

Home Equity: Refinancing or Second Mortgage

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Stay updated with expert mortgage advice from Darryl Kraemer at Invis. Our blog covers essential tips, industry news, and insights for homebuyers in Ontario. Read now for valuable information on your home financing journey.

Darryl Kraemer's Mortgage Blog | Expert Advice for Ontario Homebuyers - Invis

Restez informé grâce aux conseils d'expert hypothécaire de Darryl Kraemer chez Invis. Notre blog couvre des conseils essentiels, des nouvelles de l'industrie et des perspectives pour les acheteurs en Ontario. Lisez dès maintenant pour obtenir des informations précieuses sur votre parcours de financement immobilier.

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