[By Genworth Financial Canada]
Most Canadians at some time in their lives have probably asked themselves whether it is better to rent or buy a home. Purchasing a home is one of the biggest decisions most people ever make in their lives. Ultimately, it is a personal choice. But it helps to look at the pros and cons of buying to determine whether home ownership is right for you.
Some Advantages of Buying a Home
Owning a home is generally considered to be a sound, long-term investment that can provide satisfaction and security for you and your family. A recent survey by real estate company, Re/Max, found that house prices in Canada have appreciated by 53.7 per cent over the last decade, or more than five per cent a year. Prices
skyrocketed most dramatically in Montreal (85.9 per cent), Calgary (81.7 per cent) and Halifax (77.3 per cent). Each month when you make your mortgage payment, you are building equity in your home. Equity is the portion of the property that you actually build through your monthly payment versus the portion that you still owe the lender. At the beginning of your mortgage, more of your payments go toward paying off the interest and less toward paying off the principal. However, the longer you stay in your home and the more mortgage payments you make, the more principal you pay off and the more equity you accumulate. Most mortgages also offer you the option of making additional monthly or annual payments to reduce your principal faster.
There is also a tax advantage. If your home is your principal residence, any profit you make when you sell it is tax-free. A home can appreciate, or increase in value as time passes, building more equity. As you build up equity, it’s usually easier to afford another more expensive home in the future thanks to the profit you’ll make when selling your current home.
As an owner, you can also decorate and improve your home any way you like. Ownership tends to give you a sense of pride and can give you and your family stronger ties to the community. If you do decide that home ownership is right for you, it’s important to choose a home you can afford. If you can’t afford to buy your dream home, purchasing a more modest home can be a great place to start building equity that one day may allow you to buy the home of your dreams.
Some Disadvantages of Buying a Home
It’s easy to get caught up in the excitement of buying a home. So it’s important to remember that home ownership has some additional responsibilities as well. For one thing, a home can be expensive. Chances are, your mortgage payments will be more than what you are currently paying in rent. There are also added costs of home repairs and maintenance.
Owning a home ties up some of your cash and is likely to reduce your flexibility to move to a new location or change jobs. While your home might increase in value as time goes by, don’t expect to get a big return quickly. There are no guarantees that your home will increase in value, particularly during the first few years. In the beginning, you could actually lose money if you sell because your home may not have appreciated enough to cover the real estate fees and moving, renovation and other costs. Real estate is usually considered a good investment over the longterm, however. When making the decision about whether or not to buy, it’s important to carefully choose a home you can afford, and then weigh the pros and cons. Millions of people enjoy the rewards of home ownership. But ultimately it is a personal decision based on your personal priorities.
Please call me so we can discuss whether now is the ideal time for you to purchase your first home.
Greg Barrow - 416 807 7123 or gbarrow@dominionlending.ca
Friday, March 27, 2009
Tuesday, March 24, 2009
Survey finds Canadians may not be benefiting from savings associated with rate guarantees
[Source - CNW Group - ING Canada Survey]
TORONTO, March 24 /CNW/ - A mortgage is one of the biggest expenses a Canadian will take on during their lifetime, yet close to half wait less than 30 days before their home's closing date to secure a rate, according to are cent Angus Reid poll. The poll, commissioned by ING DIRECT, found that 40 per cent of Canadian mortgage holders waited only 30 days or less in advance of the home's closing, while another 27 per cent waited nearly two months.
This last minute behaviour indicates that many Canadians are not taking advantage of the savings inherent in securing rate guarantees which are available as early as 90 to 120 days before a home closes. Analysis shows that those who used the full rate guarantee period of 120 days, saved 0.18 per cent on average or about a $1,800 over five years. These savings are based on a $200,000 mortgage with a 25 year amortization, five year fixed term at 6.96% (average posted five year fixed rate over last 10 years) and paid monthly.
Read Posting
Your business is important to me. That’s why I want to do everything I can to help you choose the right mortgage. Saving you time and effort.
Please let us know the date of your mortgage renewal — even if it is years away.
I will call you a few months before your renewal date to discuss the alternatives available to help you choose the mortgage that best suits your needs.
Simply click this link: gbarrow@dominionlending.ca to send me an email and include your Name, Email Address, Mortgage Renewal Date.
I would be happy to answer any question you may have regarding your upcoming renewal.
Have a great Day!
TORONTO, March 24 /CNW/ - A mortgage is one of the biggest expenses a Canadian will take on during their lifetime, yet close to half wait less than 30 days before their home's closing date to secure a rate, according to are cent Angus Reid poll. The poll, commissioned by ING DIRECT, found that 40 per cent of Canadian mortgage holders waited only 30 days or less in advance of the home's closing, while another 27 per cent waited nearly two months.
This last minute behaviour indicates that many Canadians are not taking advantage of the savings inherent in securing rate guarantees which are available as early as 90 to 120 days before a home closes. Analysis shows that those who used the full rate guarantee period of 120 days, saved 0.18 per cent on average or about a $1,800 over five years. These savings are based on a $200,000 mortgage with a 25 year amortization, five year fixed term at 6.96% (average posted five year fixed rate over last 10 years) and paid monthly.
Read Posting
Your business is important to me. That’s why I want to do everything I can to help you choose the right mortgage. Saving you time and effort.
Please let us know the date of your mortgage renewal — even if it is years away.
I will call you a few months before your renewal date to discuss the alternatives available to help you choose the mortgage that best suits your needs.
Simply click this link: gbarrow@dominionlending.ca to send me an email and include your Name, Email Address, Mortgage Renewal Date.
I would be happy to answer any question you may have regarding your upcoming renewal.
Have a great Day!
Monday, March 23, 2009
Dominion Lending Centres Industry News
Here are some highlights from recent News headlines relating to Mortgages in Canada
[Source - Dominion Lending Centres - March]
With financial institutions in the United States either faltering or collapsing altogether, banks in Canada now find themselves among North America’s largest.
A new ranking by Bloomberg News puts four Canadian banks among North American’s top 10, as measured by assets. Royal Bank, Canada’s biggest bank by assets, is now seventh largest in North America, according to data compiled by Bloomberg from company filings. TD Canada Trust, Scotiabank and Bank of Montreal rank eighth, ninth and 10th.
All of Canada’s six largest banks were profitable in the quarter that ended January 31st, 2009 and, according to Bloomberg, reported less than US$20 billion in debt-related write downs since the credit crisis began in 2007. – CTV.ca
Canadian banks are turning down some of the funding that the government is making available to them, a sign that they are recuperating from the financial crisis.
The banks have stopped selling the government the full amount of mortgages they could under Ottawa’s $125 billion mortgage purchase program – the centrepiece of the federal government’s plan to help the industry.
That’s not to suggest they aren’t facing problems, with consumers increasingly losing their jobs and unable to pay off their debts. But the banks are no longer struggling to raise funds to make loans. – Globe and Mail
Bill C-10, legislation that will help provide the immediate economic stimulus the Canadian economy needs to combat the global recession, received Royal Assent last week – allowing for the implementation of important elements of Budget 2009.
Key measures in the Bill include improved access to financing for Canadian households and businesses, strengthened benefits for Canadian workers, enhanced availability of training, increased Employment Insurance benefits and tax relief for Canadians. In particular, extension of Employment Insurance benefits by an extra five weeks will take effect immediately, helping Canadians who rely on this program now instead of forcing them to wait longer.
“Through Canada’s Economic Action Plan, our government is providing the responsible leadership required during these challenging economic times by giving Canadians the necessary tools do deal with the global economic crisis,” said Finance Minister Jim Flaherty. “Bill C-10 enables the government to provide the potent economic stimulus needed to encourage growth and restore confidence in our economy.”
First-time homebuyers are being lured into the real estate market by falling prices, lower interest rates, more selection and new government incentives, a new report shows.
RE/MAX said preliminary figures show sales were up in February, after a terrible January, driven by more first-time buyers entering the market.
The report comes alongside new Statistics Canada figures showing the first year-over-year decrease in new-home prices in more than a decade.
RE/MAX said lower prices and record low lending rates are prompting many first-time buyers to “get off the fence, out of the rental, and into the market”. – Canadian Press
Xceed Mortgage Corporation announced last week that it intends to apply to the Minister of Finance for approval to be continued as a federally regulated Schedule I bank.
Although no formal application has been made, Xceed has had preliminary discussions with the office of the Superintendent of Financial Institutions (OSFI) regarding its intentions to carry on business as a bank and is optimistic that it will receive the necessary approval to do so, although no assurances have been provided by OSFI.
“Our decision to apply to form a Schedule I bank reflects the changes that have taken place in capital markets during the past two years,” said Ivan Wahl, Chairman and Chief Executive Officer. “We believe that forming a deposit-taking financial institution will provide Xceed with another important means of raising stable capital at a reasonable cost that we can deploy productively for Canadians, particularly for originating new mortgages and renewing existing ones.”
Finance Minister Jim Flaherty unveiled a new government website last week: www.actionplan.gc.ca that will allow Canadians to hold governments and public officials accountable for action on the economy.
“Canadians want governments and public officials at all levels to work together to stimulate the economy,” Flaherty said. “They want to see us taking action on the economy in an accountable and transparent manner.”
The website, which will be updated regularly, includes details of Canada’s Economic Action Plan, with links to specifics of initiatives and projects as they are announced. It also explains the roots of the global financial crisis and Canada’s relative performance.
“We are responding with unprecedented speed because we are in a global recession that has arrived with unprecedented speed,” Flaherty said. “Canadians will now be able to measure progress so they can hold both elected representatives and unelected officials to account.”
The International Monetary Fund (IMF) said last week that while Canada faces tough times ahead, sound government fiscal policy and a stable banking system have made the country one of the best-equipped to weather the global recession.
The statement by IMF Mission Chief Charles Kramer following his visit to Canada said the government has managed its budget well over the last 10 years, cutting the federal debt in half, which “has left the country in prime form at the beginning of the global turmoil.”
He said official response to the crisis – namely the fiscal package announced in January – was well-timed and well-planned. He also praised the Bank of Canada, which has cut its target rate by 400 basis points since December 2007, to a record low of 0.5%.
Looking ahead, “the authorities have expanded their toolbox for dealing with the possible emergence of more severe financial strains. These tools include capital injections and other policy measures that, while not needed now, are prudently being developed should the need arise,” he said. – CEP News
[Source - Dominion Lending Centres - March]
With financial institutions in the United States either faltering or collapsing altogether, banks in Canada now find themselves among North America’s largest.
A new ranking by Bloomberg News puts four Canadian banks among North American’s top 10, as measured by assets. Royal Bank, Canada’s biggest bank by assets, is now seventh largest in North America, according to data compiled by Bloomberg from company filings. TD Canada Trust, Scotiabank and Bank of Montreal rank eighth, ninth and 10th.
All of Canada’s six largest banks were profitable in the quarter that ended January 31st, 2009 and, according to Bloomberg, reported less than US$20 billion in debt-related write downs since the credit crisis began in 2007. – CTV.ca
Canadian banks are turning down some of the funding that the government is making available to them, a sign that they are recuperating from the financial crisis.
The banks have stopped selling the government the full amount of mortgages they could under Ottawa’s $125 billion mortgage purchase program – the centrepiece of the federal government’s plan to help the industry.
That’s not to suggest they aren’t facing problems, with consumers increasingly losing their jobs and unable to pay off their debts. But the banks are no longer struggling to raise funds to make loans. – Globe and Mail
Bill C-10, legislation that will help provide the immediate economic stimulus the Canadian economy needs to combat the global recession, received Royal Assent last week – allowing for the implementation of important elements of Budget 2009.
Key measures in the Bill include improved access to financing for Canadian households and businesses, strengthened benefits for Canadian workers, enhanced availability of training, increased Employment Insurance benefits and tax relief for Canadians. In particular, extension of Employment Insurance benefits by an extra five weeks will take effect immediately, helping Canadians who rely on this program now instead of forcing them to wait longer.
“Through Canada’s Economic Action Plan, our government is providing the responsible leadership required during these challenging economic times by giving Canadians the necessary tools do deal with the global economic crisis,” said Finance Minister Jim Flaherty. “Bill C-10 enables the government to provide the potent economic stimulus needed to encourage growth and restore confidence in our economy.”
First-time homebuyers are being lured into the real estate market by falling prices, lower interest rates, more selection and new government incentives, a new report shows.
RE/MAX said preliminary figures show sales were up in February, after a terrible January, driven by more first-time buyers entering the market.
The report comes alongside new Statistics Canada figures showing the first year-over-year decrease in new-home prices in more than a decade.
RE/MAX said lower prices and record low lending rates are prompting many first-time buyers to “get off the fence, out of the rental, and into the market”. – Canadian Press
Xceed Mortgage Corporation announced last week that it intends to apply to the Minister of Finance for approval to be continued as a federally regulated Schedule I bank.
Although no formal application has been made, Xceed has had preliminary discussions with the office of the Superintendent of Financial Institutions (OSFI) regarding its intentions to carry on business as a bank and is optimistic that it will receive the necessary approval to do so, although no assurances have been provided by OSFI.
“Our decision to apply to form a Schedule I bank reflects the changes that have taken place in capital markets during the past two years,” said Ivan Wahl, Chairman and Chief Executive Officer. “We believe that forming a deposit-taking financial institution will provide Xceed with another important means of raising stable capital at a reasonable cost that we can deploy productively for Canadians, particularly for originating new mortgages and renewing existing ones.”
Finance Minister Jim Flaherty unveiled a new government website last week: www.actionplan.gc.ca that will allow Canadians to hold governments and public officials accountable for action on the economy.
“Canadians want governments and public officials at all levels to work together to stimulate the economy,” Flaherty said. “They want to see us taking action on the economy in an accountable and transparent manner.”
The website, which will be updated regularly, includes details of Canada’s Economic Action Plan, with links to specifics of initiatives and projects as they are announced. It also explains the roots of the global financial crisis and Canada’s relative performance.
“We are responding with unprecedented speed because we are in a global recession that has arrived with unprecedented speed,” Flaherty said. “Canadians will now be able to measure progress so they can hold both elected representatives and unelected officials to account.”
The International Monetary Fund (IMF) said last week that while Canada faces tough times ahead, sound government fiscal policy and a stable banking system have made the country one of the best-equipped to weather the global recession.
The statement by IMF Mission Chief Charles Kramer following his visit to Canada said the government has managed its budget well over the last 10 years, cutting the federal debt in half, which “has left the country in prime form at the beginning of the global turmoil.”
He said official response to the crisis – namely the fiscal package announced in January – was well-timed and well-planned. He also praised the Bank of Canada, which has cut its target rate by 400 basis points since December 2007, to a record low of 0.5%.
Looking ahead, “the authorities have expanded their toolbox for dealing with the possible emergence of more severe financial strains. These tools include capital injections and other policy measures that, while not needed now, are prudently being developed should the need arise,” he said. – CEP News
Thursday, March 12, 2009
Halton - The Safest Place to Live in Canada
[Century 21 - Sean Kavanagh]
Have you been looking for a safe place to buy a house to raise your kids? Have you been looking to retire in a community you will feel most comfortable living in? Are you thinking of purchasing in an area where everyone wants to live. Halton region is your best choice.
According to Maclean's magazine's 2009 ranking of crime in Canada, for the second year in a row, Halton was named the safest place to live in Canada! To most residents of the region, this will not come as a surprise, but Halton has been deemed the safest place to live in the GTA and the safest regional municipality in all of Canada.
Violent crime is prevalent in Toronto and is rising in the surrounding areas of Peel and Durham, but Halton has not experienced the same levels of crime. Halton Police Chief Gary Crowell acknowledges the efforts of the police force as one of the contributing factors, but offers that it is a community collective that enables the region to remain the safest in the country. "What this Maclean's ranking does is to validate that our officers, civilians, volunteers, local politicians, and community partners are all equally committed to keeping Halton as safe tomorrow as it is today."
If you are require more information on buying real estate in the Halton region, or if you have questions about current market trends I highly recommend you contact Sean Kavanagh of Century 21 Miller Real Estate Services, Brokerage. He can be reached at:
www.seansells.ca,
www.seankavanagh.ca
or call Sean at 905-220-9198 he'd be glad to answer any questions to accommodate all of your real estate needs.
Have you been looking for a safe place to buy a house to raise your kids? Have you been looking to retire in a community you will feel most comfortable living in? Are you thinking of purchasing in an area where everyone wants to live. Halton region is your best choice.
According to Maclean's magazine's 2009 ranking of crime in Canada, for the second year in a row, Halton was named the safest place to live in Canada! To most residents of the region, this will not come as a surprise, but Halton has been deemed the safest place to live in the GTA and the safest regional municipality in all of Canada.
Violent crime is prevalent in Toronto and is rising in the surrounding areas of Peel and Durham, but Halton has not experienced the same levels of crime. Halton Police Chief Gary Crowell acknowledges the efforts of the police force as one of the contributing factors, but offers that it is a community collective that enables the region to remain the safest in the country. "What this Maclean's ranking does is to validate that our officers, civilians, volunteers, local politicians, and community partners are all equally committed to keeping Halton as safe tomorrow as it is today."
If you are require more information on buying real estate in the Halton region, or if you have questions about current market trends I highly recommend you contact Sean Kavanagh of Century 21 Miller Real Estate Services, Brokerage. He can be reached at:
www.seansells.ca,
www.seankavanagh.ca
or call Sean at 905-220-9198 he'd be glad to answer any questions to accommodate all of your real estate needs.
Wednesday, March 11, 2009
Perfect time to get new mortgage, experts say.
[680News reporter Colin D'Mello interviews Laurie Campbell, the executive director of Credit Canada]
Toronto - With interest rates at its lowest point in years, many people are looking to re-negotiate their mortgages, and get a better deal.
Whether it's with the person's current bank, or a new one, some experts said knocking down the interest rate can be accomplished.
Laurie Campbell, the executive director of Credit Canada, told 680News people can even get the bank to pick up the legal fees.
"There are going to be penalties, and not many banks are going to take on those penalties. You can; however, in many cases, find yourself in a better position if you actually do break that mortgage agreement and get a new one drawn up," Campbell said.
She said people can appeal to their banker first, ask for the bottom line rate, and then shop around and haggle.
Campbell said people can do the same thing with their credit card company and ask for a preferred rate.
"But, remember, you better be a preferred customer, you better not have any late payments, you better not have a high debt [and] you better be in stellar condition," she added
After you have listened to the interview, please call Greg at 416 807 7123 to see if you can save money by refinancing your mortgage.
Toronto - With interest rates at its lowest point in years, many people are looking to re-negotiate their mortgages, and get a better deal.
Whether it's with the person's current bank, or a new one, some experts said knocking down the interest rate can be accomplished.
Laurie Campbell, the executive director of Credit Canada, told 680News people can even get the bank to pick up the legal fees.
"There are going to be penalties, and not many banks are going to take on those penalties. You can; however, in many cases, find yourself in a better position if you actually do break that mortgage agreement and get a new one drawn up," Campbell said.
She said people can appeal to their banker first, ask for the bottom line rate, and then shop around and haggle.
Campbell said people can do the same thing with their credit card company and ask for a preferred rate.
"But, remember, you better be a preferred customer, you better not have any late payments, you better not have a high debt [and] you better be in stellar condition," she added
After you have listened to the interview, please call Greg at 416 807 7123 to see if you can save money by refinancing your mortgage.
Tuesday, March 10, 2009
Mortgage & Real Estate Headlines
Canadians becoming more optimistic about buying a home: poll
[Canadian Press - March 4, 2009]
OTTAWA - A new Royal Bank survey suggests more Canadians are becoming optimistic about the housing market and contemplating home ownership. The RBC survey - conducted in early January by Ipsos Reid - found 65 per cent of the people polled thought it was a buyer's market. The survey also found 27 per cent of the respondents intended to buy a home over the next two years, up four points from last year's poll. The four-point increase is the biggest uptick recorded by the annual RBC home-buying intentions survey since 2001. The online survey is based on responses from 2,026 adult Canadians, from Jan. 6 to 9.
Time to rethink your mortgage: Refinancing to lock in low rates.
[Canada.com - March 9, 2009]
Have a fixed-rate mortgage at 4.5 per cent or higher? Then you should be refinancing, says Steve Moffitt, senior mortgage consultant with Equimac Mortgage Centre in Vancouver.
"There's never been a better opportunity historically, never, for doing a refinancing, '' he adds.
If only it were that simple. In fact, determining whether you should refinance or not depends largely on the penalty you will pay to get out of your current mortgage, and the amount of money you could save with a new one. Full Story
Good time to re-mortgage for those who can do it
[Canada.com - March 9, 2009]
Six months ago, before the credit crunch bit and risk became a cutting four-letter word, obtaining or renegotiating a mortgage was pretty much a formality. It's harder now. Financial institutions haven't necessarily changed their lending criteria for mortgages, but they do apply them more strictly. "Grey-area" borrowers who would have received the benefit of the doubt a year or two ago might need to apply several places now before finding a taker. The doors are still wide open, though, for clients with steady income, significant assets and/or a solid credit history. They are, in fact, the object of keen competition between lenders, and as such are in an excellent bargaining position in what is normally the biggest month of the year for mortgage transactions. Full Story
Breaking up with your mortgage
[Financial Post - March 7, 2009]
Excerpt from Article: "While not encouraging people to break their mortgages, the banks are acknowledging that some consumers who locked into higher rates can save money if they refinance at the new lower rates."
"It poses an obvious question for anyone who has locked into rates as high as 5.75% on a five-year fixed-rate mortgage: Should they break that mortgage? It probably does make sense to break it now, says Vince Gaetano" Full Story
[Canadian Press - March 4, 2009]OTTAWA - A new Royal Bank survey suggests more Canadians are becoming optimistic about the housing market and contemplating home ownership. The RBC survey - conducted in early January by Ipsos Reid - found 65 per cent of the people polled thought it was a buyer's market. The survey also found 27 per cent of the respondents intended to buy a home over the next two years, up four points from last year's poll. The four-point increase is the biggest uptick recorded by the annual RBC home-buying intentions survey since 2001. The online survey is based on responses from 2,026 adult Canadians, from Jan. 6 to 9.
Time to rethink your mortgage: Refinancing to lock in low rates.
[Canada.com - March 9, 2009]Have a fixed-rate mortgage at 4.5 per cent or higher? Then you should be refinancing, says Steve Moffitt, senior mortgage consultant with Equimac Mortgage Centre in Vancouver.
"There's never been a better opportunity historically, never, for doing a refinancing, '' he adds.
If only it were that simple. In fact, determining whether you should refinance or not depends largely on the penalty you will pay to get out of your current mortgage, and the amount of money you could save with a new one. Full Story
Good time to re-mortgage for those who can do it
[Canada.com - March 9, 2009]
Six months ago, before the credit crunch bit and risk became a cutting four-letter word, obtaining or renegotiating a mortgage was pretty much a formality. It's harder now. Financial institutions haven't necessarily changed their lending criteria for mortgages, but they do apply them more strictly. "Grey-area" borrowers who would have received the benefit of the doubt a year or two ago might need to apply several places now before finding a taker. The doors are still wide open, though, for clients with steady income, significant assets and/or a solid credit history. They are, in fact, the object of keen competition between lenders, and as such are in an excellent bargaining position in what is normally the biggest month of the year for mortgage transactions. Full Story
Breaking up with your mortgage
[Financial Post - March 7, 2009]Excerpt from Article: "While not encouraging people to break their mortgages, the banks are acknowledging that some consumers who locked into higher rates can save money if they refinance at the new lower rates."
"It poses an obvious question for anyone who has locked into rates as high as 5.75% on a five-year fixed-rate mortgage: Should they break that mortgage? It probably does make sense to break it now, says Vince Gaetano" Full Story
Monday, March 9, 2009
Refinancing Your Mortgage - Can you SAVE Money?
It is definitely worth a call to a mortgage professional to see if you will! One 5 minute telephone call can save you hundreds on your monthly payment and thousands on the interest you'll pay.
For example, if your current mortgage details are as follows:
Your outstanding balance is: $242,000
Your monthly payment is: $1550
Your remaining term: 24 months
Your current interest rate is 5.25%
Remaining Amortization is 260 months
5 Year Fixed Interest Rate are now as low as 4.1% (Variable are as low as 3.3%)
You are thinking of "breaking" the mortgage in order to obtain a better interest rate.
According to your mortgage contract, you are required to pay the lender 3 months interest as a penalty for breaking the mortgage. Is it worth while to wait for an additional 24 months, and simply renew the mortgage at that time - and take your chances on the interest rate - or is it better to "break" the mortgage, and pay the penalty?
In fact, if you do "break" the mortgage - while you must increase your mortgage principal by the amount of the penalty - an additional $3,200 - you will end up reducing your monthly payment to $1,303 (compared to the old $1,550).
So, even with the penalty, it is worthwhile to break the mortgage because your savings on monthly payments over two years add up to $5,681.
In addition you will knock 3.27 years or 39 months off your amortization.
If you would like to review your current situation, please call Greg at 416 807 7123 or send an email to gbarrow@dominionlending.ca. I would be happy to answer any of your questions and even happier if we can save you money!
Have a great day!
For example, if your current mortgage details are as follows:
Your outstanding balance is: $242,000
Your monthly payment is: $1550
Your remaining term: 24 months
Your current interest rate is 5.25%
Remaining Amortization is 260 months
5 Year Fixed Interest Rate are now as low as 4.1% (Variable are as low as 3.3%)
You are thinking of "breaking" the mortgage in order to obtain a better interest rate.
According to your mortgage contract, you are required to pay the lender 3 months interest as a penalty for breaking the mortgage. Is it worth while to wait for an additional 24 months, and simply renew the mortgage at that time - and take your chances on the interest rate - or is it better to "break" the mortgage, and pay the penalty?
In fact, if you do "break" the mortgage - while you must increase your mortgage principal by the amount of the penalty - an additional $3,200 - you will end up reducing your monthly payment to $1,303 (compared to the old $1,550).
So, even with the penalty, it is worthwhile to break the mortgage because your savings on monthly payments over two years add up to $5,681.
In addition you will knock 3.27 years or 39 months off your amortization.
If you would like to review your current situation, please call Greg at 416 807 7123 or send an email to gbarrow@dominionlending.ca. I would be happy to answer any of your questions and even happier if we can save you money!
Have a great day!
Friday, March 6, 2009
Greater Toronto REALTORS® Reported 4,120 Resale Housing Transactions in February
Greater Toronto REALTORS® Reported 4,120 Resale Housing Transactions in February
March 5, 2009 -- Toronto Real Estate Board Members reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month compared to $382,048 during the same month last year. See details.
March 5, 2009 -- Toronto Real Estate Board Members reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month compared to $382,048 during the same month last year. See details.
Wednesday, March 4, 2009
Sears Certified Real Estate Services
Sears and QV Realty have brought together experienced real estate professionals who have proven their ability to offer expert advice whether you’re buying or selling a home.
We’ve also created an incredible rewards program. When you buy or sell your home, you could earn thousands in Sears Gift Cards.
It’s called Sears Certified Real Estate Services. And it’s made buying or selling a home a whole lot easier.
When you sign up, we’ll refer you to a Sears Certified Agent best suited to help you find or sell your home. Each one is a real estate salesperson or broker who currently works with one of the many national real estate companies you already know. They have years of specialization in the communities they serve, and have been Certified as meeting high standards for experience, dedication to customer service and demonstrated results.
Plus, with a Sears Certified Agent, you could earn 0.6% of your home’s sale price in Sears Gift Cards. Even if you’re buying your first home, this could add up to thousands. Use our calculator to see how much you could earn.
http://www.searsrealestate.ca/
-------------------------------------------------
This is interesting, if anyone has used these services, please contact us or leave a comment on how your experience was. Thanks
We’ve also created an incredible rewards program. When you buy or sell your home, you could earn thousands in Sears Gift Cards.
It’s called Sears Certified Real Estate Services. And it’s made buying or selling a home a whole lot easier.
When you sign up, we’ll refer you to a Sears Certified Agent best suited to help you find or sell your home. Each one is a real estate salesperson or broker who currently works with one of the many national real estate companies you already know. They have years of specialization in the communities they serve, and have been Certified as meeting high standards for experience, dedication to customer service and demonstrated results.
Plus, with a Sears Certified Agent, you could earn 0.6% of your home’s sale price in Sears Gift Cards. Even if you’re buying your first home, this could add up to thousands. Use our calculator to see how much you could earn.
http://www.searsrealestate.ca/
-------------------------------------------------
This is interesting, if anyone has used these services, please contact us or leave a comment on how your experience was. Thanks
Tuesday, March 3, 2009
The Banks are quick to match Bank of Canada's Rate Cut
BMO - http://www.newswire.ca/en/releases/archive/March2009/03/c5387.html
Royal Bank - http://www.newswire.ca/en/releases/archive/March2009/03/c5118.html
TD - http://www.newswire.ca/en/releases/archive/March2009/03/c5394.html
CIBC - http://www.newswire.ca/en/releases/archive/March2009/03/c5389.html
Scotia - http://cnw.ca/en/releases/archive/March2009/03/c5448.html
National - http://www.marketwire.com/press-release/National-Bank-Financial-Group-TSX-NA-956588.html
Royal Bank - http://www.newswire.ca/en/releases/archive/March2009/03/c5118.html
TD - http://www.newswire.ca/en/releases/archive/March2009/03/c5394.html
CIBC - http://www.newswire.ca/en/releases/archive/March2009/03/c5389.html
Scotia - http://cnw.ca/en/releases/archive/March2009/03/c5448.html
National - http://www.marketwire.com/press-release/National-Bank-Financial-Group-TSX-NA-956588.html
Bank of Canada lowers overnight rate target by 1/2 percentage point to 1/2 per cent
Bank of Canada Press Release - March 3, 2009
OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3/4 per cent.
OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3/4 per cent.The outlook for the global economy has continued to deteriorate since the Bank's January Monetary Policy Report Update, with weaker-than-expected activity in major economies. The nature of the U.S. recession, with very weak auto and housing sectors, is particularly challenging for Canada.
Stabilization of the global financial system remains a precondition for the global and Canadian economic recoveries. The timely implementation of ambitious plans in some major countries to address toxic assets and recapitalize financial institutions will be critical in this regard.
National accounts data for the fourth quarter of 2008 and other indicators of aggregate demand point to a sharper decline in Canadian economic activity and a larger output gap through the first half of 2009 than projected in January. Potential delays in stabilizing the global financial system, along with larger-than-anticipated confidence and wealth effects on domestic demand, could mean that the output gap will not begin to close until early 2010. These factors imply a slightly lower profile for core inflation than was projected in the January MPRU.
The effects of the recent aggressive monetary and fiscal policy actions in Canada and other major economies will begin to be felt in the second half of this year and will build through 2010. Once the global financial system stabilizes and global growth recovers, the underlying strength of the Canadian economy and financial sector should ensure a more rapid recovery in Canada than in most other industrialized economies.
The Bank's decision to lower its policy rate by 50 basis points today brings the cumulative monetary policy easing to 400 basis points since December 2007. Consistent with returning total CPI inflation to 2 per cent, the target for the overnight rate can be expected to remain at this level or lower at least until there are clear signs that excess supply in the economy is being taken up.
Given the low level of the target for the overnight rate, the Bank is refining the approach it would take to provide additional monetary stimulus, if required, through credit and quantitative easing. In its April Monetary Policy Report, the Bank will outline a framework for the possible use of such measures.
The Bank will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required to achieve its 2 per cent inflation target over the medium term.
Information note:
The next scheduled date for announcing the overnight rate target is 21 April 2009. A full update of the Bank's outlook for the economy and inflation, including risks to the projection, will be published in the Monetary Policy Report on 23 April 2009.
Monday, March 2, 2009
Mortgage Interest in Canada
Most Canadians’ largest liability is their mortgage. Because mortgages accrue interest every month, it is important to every homeowner’s financial well-being to understand how interest works, and to implement and execute a smart payoff strategy, minimizing the amount of interest paid. Here are a few key pieces of information to know about mortgage interest.
When looking to reduce their monthly payments, many homeowners choose to lengthen their mortgage amortization from 25 to 30, or even 35 years. While this makes the monthly budgeting easier, mortgagors should be aware that it will also dramatically increase the total paid on the mortgage. In fact, most homeowners are shocked to hear the even if they take 25 years to pay their mortgage at an average interest rate of five percent, they will pay approximately 75 percent interest on the original sum borrowed!
Mortgage interest in Canada compounds twice a year, which means that twice a year borrowers are being charged interest on the interest on their mortgage. It adds up fast.
It is my job to properly educate my clients about every aspect of their mortgage and take the fear out of the process of borrowing large sums of money. Please give me a call (416.807.7123) to answer any questions or concerns you may have about the interest you are paying on your mortgage, or any other mortgage related topic.
You can also try emailing me at gbarrow@dominionlending.ca or visit my website (www.gregbarrow.ca) for more information, mortgage calculators or to sign up for my monthly newsletter.
When looking to reduce their monthly payments, many homeowners choose to lengthen their mortgage amortization from 25 to 30, or even 35 years. While this makes the monthly budgeting easier, mortgagors should be aware that it will also dramatically increase the total paid on the mortgage. In fact, most homeowners are shocked to hear the even if they take 25 years to pay their mortgage at an average interest rate of five percent, they will pay approximately 75 percent interest on the original sum borrowed!
Mortgage interest in Canada compounds twice a year, which means that twice a year borrowers are being charged interest on the interest on their mortgage. It adds up fast.
It is my job to properly educate my clients about every aspect of their mortgage and take the fear out of the process of borrowing large sums of money. Please give me a call (416.807.7123) to answer any questions or concerns you may have about the interest you are paying on your mortgage, or any other mortgage related topic.
You can also try emailing me at gbarrow@dominionlending.ca or visit my website (www.gregbarrow.ca) for more information, mortgage calculators or to sign up for my monthly newsletter.
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