Alberta Mortgage Matters

No Bank of Canada rate change

2012-01-25T09:50:00.000-08:00

The Bank of Canada announced that it is maintaining its target for the overnight rate at 1 per cent. As a result, the prime rate will remain at 3.00%, much to the benefit of variable rate mortgage holders.

In a press release, the Bank of Canada gave the following reasons as to why they took another pass on a rate hike this time around:

"The outlook for the global economy has deteriorated (since October)."
"...very favourable financing conditions are expected to buttress consumer spending and housing activity."
"...the ratio of household debt to income is projected to rise further."
"The economy is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October."
"With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada."

The next Bank of Canada rate meeting is March 8, 2012. It is expected to continue with no rate change at this meeting too.
What does this mean for you , the average consumer? If you have a variable rate mortgage or a line of credit, your interest rate will remain the same at least until March 8th. If you have a fixed rate mortgage, this announcement does not affect you at all.
By the way, if you have an unsecured line of credit you are probably paying about 6% now. If you own a home, you can get a line of credit secured against your home and pay about 3.50%. This can be a considerable saving. Contact me for more information on how you can save money.

Popularity of reverse mortgages increasing - Study

2012-01-12T10:24:00.000-08:00

The need for an improved cash flow in retirement is leading to record number of reverse mortgages in Canada, according to a HomEquity Bank study.

The report released by the only national provider of reverse mortgages in Canada notes its reverse mortgage originations were up 42% in the fourth quarter of 2011. On an annual basis, the company originated $239 million in reverse mortgages, a 16% year over year jump.

As at December 31, 2011, the bank’s portfolio of reverse mortgages of $1.2 billion was 17% higher than at the end of 2010.

“Since its inception 25 years ago, HOMEQ Corporation has analyzed the demographic wave of Canadian seniors and how our business can address these trends,” said Steven Ranson, president and CEO.

“Now, the wave is here and we are meeting seniors’ needs for improved cash flow in retirement. This tremendous market demand is fuelling our strong growth in originations, while our disciplined approach to operating the business is resulting in healthy net income growth.”

Reverse mortgages are offered to Canadian homeowners 55 and older and have no income, credit or health qualifications. Unlike traditional loans, borrowers don’t have to service the interest or repay the principal for as long as they own their home and are living in it.

Experts like Bryan Yu, economist, Central 1 Credit Union, are watching this trend closely. “It really speaks to the overall economic environment, but also over the longer term we’re looking at the demographic that are involved with reverse mortgages.”

Over the next 20 to 25 years, the Canadians population over 55 years will reach 10 million, Yu says, predicting that retirement tools such as reverse mortgage are going to get more popular.

“Instead of making a downward move [selling property] they might want to stay within the own home and [a reverse mortgage] provides them another tool that allows them to stay in place, but also obtain an income flow from that asset without selling it.”
If you have any questions about reverse mortgages and whether they are right for you or your parents Contact me to discuss this without any obligation. .

CIBC Poll: Paying Down Debt named the Top Financial Priority for Canadians

2012-01-04T08:57:00.000-08:00

Annual poll reveals the focus on debt management and budgeting is increasing - while retirement planning takes a back seat among younger Canadians

TORONTO, Dec. 28, 2011 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) Poll conducted by Harris/Decima reveals Canadians named paying down debt as their number one financial priority entering 2012, followed by managing day to day spending and retirement planning. Compared to the findings of the same poll one year ago, more Canadians are focusing on debt repayment in the year ahead.

Top 3 Financial Priorities, year over year:

2011 2012
Paying Down Debt 14 per cent 17 per cent
Managing Day to Say Spending & Budgeting 12 per cent 14 per cent
Retirement Planning 13 per cent 11 per cent

"More Canadians are recognizing the importance of managing debt as a component of their overall financial plan, and that is driving an increased focus on debt management and day to day budgeting entering 2012," said Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC. "Canadians are also increasingly seeing the connection between good management of their day to day budget and their longer term financial goals, recognizing that taking smaller steps today as part of a plan can lead to significant benefits down the road."

While paying down debt was the top priority among Canadians, financial priorities vary across age groups:

Among 25 - 44 year olds, 23 per cent named paying down debt as their top financial priority right now, while 14 per cent of this age group said building savings was their top priority.

Among 45 - 64 year olds, 20 per cent named retirement planning as their top financial priority right now, followed by paying down debt (16 per cent).

Managing day to day spending and budgeting was also a key theme in the survey across all age groups. Those 65 and over placed a particular emphasis on this aspect of their finances, with 24 per cent of those surveyed in this age group naming this as their top financial priority.

"It's not surprising to see that the financial needs of Canadians vary at different stages of life, which speaks to the need for individual financial advice," said Ms. Kramer. "For example, baby boomers have a clear focus on retirement, while Canadians over 65 years of age are focused on cash flow management given that many in this age group have started drawing on their retirement savings."

Ms. Kramer noted that while Canadians have a clear sense of their priorities for the year ahead, it is important to recognize that your finances are integrated.

"Paying down your debt can improve cash flow, which in turn gives you more money to work with each month to put towards your savings goals or longer term goals such as retirement," added Ms. Kramer. "With interest rates low as we enter the New Year, 2012 presents a good opportunity for Canadians to make progress on debt repayment as part of their long term financial plan."

While boomers maintained a strong focus on retirement, few Canadians in their 20s and 30s ranked retirement planning among their top financial priorities. Only 5 per cent of Canadians surveyed between 25-34 years of age said retirement planning was their top priority, while another 8 per cent said it was their second priority.

"It's understandable that younger Canadians are more focused on managing their mortgage and building their savings, but it's never too early to start saving for retirement, particularly with time on your side to have those savings grow over the years," added Ms. Kramer. "Part of a discussion with a financial advisor about your needs should include a long range plan for retirement that you can start taking small steps towards today."

KEY POLL FINDINGS

Percentage of Canadians that name paying down debt as their top financial priority by age:

18-24 21%
25-34 22%
35-44 24%
45-54 17%
55-64 14%
65 and over 9%

Percentage of Canadians that name managing day to day spending and household budgeting as their top financial priority by age:

18-24 9%
25-34 14%
35-44 10%
45-54 12%
55-64 13%
65 and over 24%

Percentage of Canadians that name retirement planning as their top financial priority by age:

18-24 2%
25-34 5%
35-44 7%
45-54 19%
55-64 21%
65 and over 5%

Results are based on a CIBC poll conducted by Harris/Decima, via teleVox, which surveyed 2,015 Canadians. The associated margin of error is +/-2.2%, 19 times out of 20. Polling was conducted between November 10th to 21st,

If you are having problems managing your debt I can help. Contact me and get your finances in order for 2012

Is it time to fix your mortgage?

2011-12-16T08:56:00.000-08:00

Variable rate mortgages have been the choice for many Canadians over the last decade or so. Many Canadians have benefited over the years by having a variable rate mortgage and therefore saving thousands in interest cost.

Times have changed. Variable mortgages are now around the 3% mark but 3 and 4 year term fixed rates are as low as 3.09%. The question of course is when are the prime lending rates going up? Of course no one knows for sure and while the European sovereign debt crisis continues to loom large, most believe that it is only a matter of time before the whole crisis is in the rear view mirror. It’s been decades since the short term variable rates were so closely aligned with fixed rate mortgages and of course it won’t last.

Your current mortgage situation is not like everyone else’s. Does it make sense for you to finally go fixed? Only by reviewing your current mortgage situation can we decide if it’s the right decision for you. I can also show you how to save thousands in interest cost at the same time and have your mortgage paid years sooner.

Remember it is not just the interest rate you have but the interest you actually pay that matters most.

Call me today and let’s get started.

Don't Believe all The Economic Headlines: CIBC

2011-12-12T09:15:00.000-08:00

Here's a report from Propertywire magazine that |I felt should be copied word for word. If you have any questions contact me .
A new report from CIBC Economics suggests that Canadians would be well advised to look at the full picture when reflecting on the housing industry. Simply, don’t be put off by the alarming headlines, but know the whole story- and all the details.
CIBC said in a report, “That is certainly the case when it comes to the highly debated ascent in household debt and the health of the Canadian residential real estate market. In both cases, any statement based on headline figures or average numbers can be hugely misleading. The truth is buried in the details—and there the picture is still not pretty, but much less alarming.”
While household debt levels in the country are high, they suggest they are not alarming. Data has put debt-to-income ratio at around 150%. CIBC says though, that that figure cannot be taken at face value. It has to be put in greater context- of the whole economy, saying that it is not the level of debt that is as important as the fact that the accumulation of debt has greatly decelerated. Canadians seem to be changing their attitudes towards debt, and are adopting appropriate behaviours to that end.
Like RE/MAX earlier this week, CIBC says that the stellar performance of the Canadian Housing market is a bit of a puzzler, when conventional wisdom and economic factors suggest that it should be taking a greater hit than it has. “The average price of a house has risen by 28% since reaching its recent cyclical low in January 2009, and it is now close to 50% above the level seen before the recession.”
What CIBC does underscore, is the dangers of identifying the national average price, as actually reflecting the average price in the nation. They centre on areas like Toronto and Vancouver, where high prices succeeded in skewing the national average. They remind Canadians that they housing market is made up of separate pieces, each with unique challenges and conditions. “Prices in the Canadian market and its sub-segments are higher than what can be explained by factors such as income growth, rent, and household formation.”

CIBC answers doomsday analysts who say that the market is overvalued, and set to crash, because there exist fundamentals to keep it afloat: “The fact that prices are overvalued today does not necessarily mean that they will crash tomorrow. After all, a violent market correction needs a trigger such as the sub-prime crisis, which ignited the US real estate meltdown, and/or abnormally high interest rates, as was the case during the 1991 property crash in Canada.”

Bank of Canada maintains overnight rate target at 1 per cent

2011-12-06T08:33:00.000-08:00

Good news for people with variable rate mortgages. Your bank prime rate will not be going up this session.

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at
1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.
Uncertainty around the global economic outlook has increased in the weeks since the Bank released its
October Monetary Policy Report (MPR). Conditions in global financial markets have deteriorated as the
sovereign debt crisis in Europe has deepened. Additional measures will be required to contain the European
crisis. The recession in Europe is now expected to be more pronounced than the Bank had anticipated in
October, as a result of increased deleveraging and tighter financial conditions, as well as necessary fiscal
austerity and structural reforms. For more information and to discuss whether a variable rate or fixed rate is best for you contact me

Variable-rate mortgages are so over.

2011-11-08T10:48:00.000-08:00

Rob Carrick, the Personal Finance writer for the Globe and Mail says that with the variable rate mortgages being sold at prime which is 3% why would anyone want this product. There are 4 year fixed rate mortgages available on the market now at 3% or3.09% so why take the risk. Rates are not going to go down so for the first time in 10 years Carrick is saying go fixed rate. If you want to discuss variable vs fixed rate and how it would affect your monthly payments call me and we'll talk.

Mortgage Alliance Sing and Win Contest

2011-10-27T12:36:00.000-07:00

For several years now, Mortgage Alliance has had radio commercials where a jingle is repeated several times " Mooortgee Alllianncee" Often when I give my business card to people they recoghnize the company right away. This year a contest was held for groups who wanted to win a $1000 prize for their organization or group. One of the winners was a karate club in Toronto. They will be spending the money on going to tournaments and on new equipment. Who know, perhaps one of their members will be a big winner in the Olympics. Here's there You Tube video. Sing and Win winners

Crystal Ball Time - no rate increases until Q3 2012

2011-10-21T12:59:00.000-07:00

Reuters News agency just released a poll of 40 economists that shows that most economists believe that interest rates will not go up until the third quarter of 2012. This means that people with variable rate mortgages will be able to keep their low rates for another 9-12 months. The vast majority of these economists lowered their expectation of a rate hike for the next 4 quarters.
Economists often do not agree but 95% of them feel that rates will stay the same at the next announcement for the Bank of Canada Overnight rate scheduled for the end of October. This is based on the belief that Canada's economy will continue to weather the recession storm. In addition they expect inflation to remain low so a rate increase to slow the economy will not be necessary. If you are thinking about going for a variable rate mortgage you should know that lenders lowered the discount on their mortgages from Prime rate - .40% to Prime -.10% this week. The difference between a fixed rate and a variable rate now stands at .39%.
If you want to talk to someone about which rate would be best for you, contact me and we'll review your particular situation and you can make an informed choice.

2011-09-22T13:21:00.000-07:00

o you have a variable rate mortgage or do you know anyone that does? They could be paying a lot more than they need to.

Prime rates have fallen or remained steady over the last two years and with the latest Bank of Canada decision (April 12th) still unchanged at 1%, most banks prime rates are still at 3%. If you or anyone you know has a variable mortgage that was taken over the last several years chances are they are paying too much and will continue to pay more unnecessarily…why?..... because.. a lot of variable mortgage taken out a few years ago were at prime plus .5% or even plus .75% meaning the rate would be 3.5% to 3.75%!! Today’s variable mortgage are priced at Prime minus .60%.. meaning your rate could go from 3.75% to 2.40%.. That’s a difference of 1.5% which could easily save you thousands and thousands over the next few years even with the penalty to discharge.

With interest rates expected to remain low over the next little while, there is no better time to have a look at your own mortgage and switch or refinance your mortgage along with your other debt into one easy payment. Your mortgage amount might be higher but I can show you how to pay it off years sooner while keeping your monthly cash flow the same which means even greater savings.

Call or email me today and let me show you how this is all possible through Choice, Convenience and Counsel that a true mortgage professional like myself can offer because……why pay more than you have to…. Visit my website to apply.

Bank of Canada signals no interest rate increases for a while

2011-09-21T16:51:00.000-07:00

Governor Carney said yesterday that “given current material headwinds, the policy rate can return to its long-run level after inflation is projected to reach the 2 per cent target and output is projected to reach its potential”, highlighting the lack of urgency to tighten. The Bottom Line: Despite the upside surprise to core inflation, the Bank of Canada appears in no rush to tighten given the economic and financial market headwinds that are currently blowing. Low rate environment is here to stay for now. On the downside, low rates mean increase speculation and rising home prices. If you want to take advantage of these low rates and renew your mortgage early contact me to find out how much you can save.

Mortgage Alliance Rally of Hope raises record amount of Money

2011-09-15T15:21:00.001-07:00

I just got word today that the Mortage Alliance Company's charity , the MAC Rally of Hope raised over $110,000 to help fight breast cancer. This all started 4 years ago when a head office employee found out her mom had cancer. She decided to run in a local cancer fundraiser to give her mom some moral support.
Mortgage Alliance is unlike many superbroker mortgage companies. Everyone in head office acts like they are from a small town. and like they are family. The president, Michael Beckette and several other people supported her on the run. They decided that as we benefit from the community it was time to pay back for the support of home owners over the years. As a result, a cross Canada motorcyle run was organized. This event involved several head office people as well as individual mortgage associates riding portions of the Trans Canada from Vancouver to St. Johns , Newfoundland.
At a number of cities along the way, gatherings were organized by the local offices to welcome the bikers. The first year about $60,000 was raised. Now, the whole compnay has rallied around breast cancer as our corporate charity of choice.
Please support us when we ask you to buy a bracelet or attend a local function to raise funds. While this started as a Mortgage Alliance effort, we want it to become a community event in every town the motorcycles drive through. Let's face it, every one of those towns is affected by cancer, let's band together to fight this horrible disease. If you would like to help or want to know more about next year's event contact me

Picking a good Mortgage Broker

2011-08-08T15:02:00.001-07:00

I recently read an article written by a realtor in Orlando, Florida complaining about mortgage brokers not doing their job correctly. He suggested that you contact lots of mortgage brokers and then pick one.
This could cause a big problem. I don’t advise clients on real estate or law because I leave it up to the professionals who work in that field. In this case, the advice this realtor is giving could result in a ding to the client’s credit score which might prevent him or her from buying the property they really want.
Every time you contact a bank or a mortgage broker, they will obtain a credit report to determine what sort of rate you qualify for . Too many inquiries will lower your credit score and can result in you being denied financing.
The author further says that you should pick a local lender as the financing could be delayed if the lender is too far away. How far away is too far away? I don’t know, but I would suggest that if time is short you pick a lender who is fast. Some lenders in Calgary take a long time while other lenders in Toronto are quick. My suggestion is to leave it up to the mortgage broker.
Finally, I would like to add my suggestions as a mortgage broker. If you are looking for a mortgage broker check out their online presence. Do they seem knowledgeable? Do they write articles or just long winded advertisements. ? In Canada, one way to tell if someone has been in the business for more than 2 years is to see if they have their Accredited Mortgage Professional designation , the AMP.
This tells you that the broker is experienced and takes regular continuing education. In addition, they have taken an ethics course and have swore to put your interests first. (Keep this in mind if you are thinking about going to a bank to get a mortgage. Who do they work for? You or the bank? )
You can find a reputable mortgage broker by going to your provincial mortgage association, in Alberta this is AMBA , or the national mortgage broker’s association which is CAAMP for find a broker in your area. Remember that brokers are licensed for their province only. If you are buying a property out of province ensure that they are licensed for that province as well.

Using a mortgage broker is easy , they do the leg work for you and find you the best rates and terms for your particular situation. Mortgage brokers help take the stress out of one of life’s most important events, the buying of a home.
David Cooke is a senior mortgage consultant with Mortgage Alliance in Calgary , Alberta. If you require further information you can contact David Cooke at his website or on Facebook

More Canadians planning on buying their first home

2011-07-07T10:57:00.000-07:00

Genworth Financial Canada, a private mortgage insurance company which competes with CMHC announced today there that there has been a significant increase in the number of people planning to purchase their first home, moving from six per cent in 2010 to 11 per cent in 2011. The results are from an Environics poll "of those Canadians who are considering a first home purchase in the next two years, the most likely group to take the plunge include people under 35 (14 per cent), those with children (12 per cent) and those with incomes between $75,000 and $99,000 (11 per cent)." the poll states. This is good news for home owners. If more people get into the market,particularly first time home buyers, this will allow home sellers to get rid of their present property and move up to a larger home. What was even more interesting was Canadians opinion of financial literacy, understanding financial matters. 95% felt that schools should be teaching financial education. Something that surprised me was that 92% of peple felt that individuals should have a financial education before they can receive a credit card. What a great idea? If people had a better understanding of credit and how finances work we would probably have few bankruptcies and people getting in over their heads with debt. I would welcome this idea. If you have any questions about financing a home contact me . I would be happy to help you .

What NOT to do during your mortgage transaction

2011-07-05T11:41:00.000-07:00

What NOT to do during your mortgage transaction!

Having processed hundreds and helped our team process literally thousands of transactions in my career, I’ve come across so many different situations and it goes almost without saying that everyone’s situation is unique. Even more so, it’s important to note that as many things that this guide will educate you about mortgage products and the ‘right’ things to do to successfully obtain mortgage financing, there are also a few pitfalls that I’m happy to be able to help you avoid as well. Here’s a list of a few of the things that I’ve experienced in my career in helping clients with their mortgage needs… I’d recommend avoiding these during the timeline between starting the loan application process until your purchase, building or refinance transaction is complete:

Do NOT change jobs!

A job change may result in your loan application being denied by the lender, particularly if your new position pays less, you decide to go back to school, you’re shifting between fields of work, if by starting you’re placed on probation or if your income structure changes (lower base pay with commissions, full commission, etc…). I’ve seen this happen a few times and the main disconnect here is that borrowers believe that their loan is approved early in the process, lender’s won’t call to re-verify your employment prior to funding the loan. The reality is that lenders can, likely will and this could cause problems for you. Have any questions or concerns as they relate to your scenario? I’m here to help!

Don’t make any large purchases until your mortgage has funded!

A major purchase that requires a withdrawal from your verified down payment (furniture, electronics, vacations) or increases your debt load (vacations, car purchase, financing furniture, business loans, etc…) can result in your not qualifying for your loan. A lender may check or re-verify funds in the days coming prior to funding and your transaction could fall apart at the last minute.

Avoid switching banks or moving your money to another institution!

After your lender has verified your funds at one or more institutions, the money should stay there until needed for the purchase. Fund transfers can take time and if your money has “disappeared”, your approval could be cancelled on you. ** One exception of this is when you’re using invested funds (stocks, mutual funds) are held at a separate institution than your day-to-day chequeing account. As long as we can prove that you’ve owned the funds for 90+ days, we meet the federal anti money laundering requirement and you can safely transfer the funds between institutions.
If you have any questions please contact me .

Opps ! rates are going up soon

2011-06-30T12:53:00.000-07:00

Today's Financial Post had an article on rising variable rate mortgages. Inflation for May 2011 figures came in today and they don't look good. The best bet now is that rates will go up but by how much? 1/4 or 1/2 a point would be significant for many home owners. Perhaps in response to this National Bank announced that they are cutting their discounted rate from Prime rate - .75 to Prime - .65 as of 10 pm tonight. If you want a 180 day rate hold for this lower rate you have to contact me this afternoon. Don't miss out on what have been the lowest interest rates in 111 years.

No US House Price Recovery Until 2014

2011-06-21T21:50:00.000-07:00

Today an article appeared with an economist saying that US housing prices will not be rising until 2014. What does that mean to the average Canadian? An opportunity.
We've all heard about Canadians buying homes in Florida and Arizona at a fraction of what they would have cost in 2008. It appears there's still an opportunity for those of us who did not take advantage of this earlier.
How can a Canadian buy a property in the US? As a foreigner you need to provide at least a 25% down payment. With prices this low 25% isn't a huge number and the monthly mortgage payments might be $250, more like a car payment.
How do you get the 25% down payment? If you own a home in Canada and have owned it since at least 2006 you probably have at least $100,000 in equity. A Calgary mortgage broker like myself can arrange a line of credit or refinance your home to get you the cash for this investment. If you are interested in taking advantage of a once in a lifetime opportunity contact me and I will be happy to help you.

Here's the full article.

U.S. home prices won’t rise consistently until 2014 amid continuing structural problems in the housing market, an economist argues.

In Capital Economics latest look at the housing market, economist Paul Dales says that the current double dip in the market won’t reverse course quickly. He argues that the low level of demand isn’t something that a general economic recovery can easily fix.

Rising down-payment requirements for homes are keeping first-time buyers on the sidelines, while widespread negative equity is making it difficult for repeat buyers to move up to more expensive houses. “These constraints on demand are structural rather than cyclical, meaning that even faster employment and income growth over the next few years is unlikely to lead to anything more than modest rises in home sales. In any case, in recent months the economic outlook has deteriorated,” Dales writes.

To make matters worse, Dales notes that the risks to his forecast are more to the downside than the upside. If the economy stagnates, with the unemployment rising back up near 10% and disposable incomes declining that would put further pressure on housing. Meanwhile, if markets begin pushing up Treasury yields that could send mortgage rates higher. “After a year’s lag every 0.25% rise in mortgage rates tends to reduce house price inflation by between 1% and 2% per year,” he writes.

Courtesy of WSJ Real Time Economics

Bank of Canada Unveils Polymer Bank Note Series

2011-06-20T11:45:00.000-07:00

The Bank of Canada just unveiled our new money. It will be printed on a polymer based product instead of the special paper it has been printed on for many years.
The Bank of Canada unveiled a new polymer bank note series today at its head office in Ottawa. Information on the polymer material and advanced new security features was released, along with the images and designs of the soon-to-be-issued $100 and $50 bank notes, and the themes for the remaining notes in the series.

The $100 note, which is to be issued in November 2011, features images that focus on Canadian innovations in the field of medicine: from pioneering the discovery of insulin to treat diabetes, to the invention of the pacemaker and to the role Canadian researchers have played in mapping the human genetic code. Sir Robert Borden, Prime Minister of Canada between 1911 and 1920, in an updated portrait, remains on the front of the note.

The $50 note, which will be issued in March of 2012, features images of the Canadian Coast Guard Ship Amundsen in the North, reflecting Canada’s leading role in Arctic research. It also evokes the part that Canada’s northern frontier—with its vastness and splendour—has played in shaping our cultural identity. An updated portrait of William Lyon Mackenzie King, the Canadian Prime Minister between 1921 and 1930 and again from 1935 to 1948, is on the front of the note.

The notes will contain a number of unique features that expand the frontiers of bank note security and will make them difficult to counterfeit but easy to check. Most prominent are two transparent areas: the larger area extends from the top to the bottom of the note and contains complex holographic features; the other is in the shape of a maple leaf.

“The Bank’s objective with every new series is to produce a bank note that Canadians can use with the highest confidence,” said Governor Mark Carney. "The Bank is combining innovative technologies from around the world with Canadian ingenuity to create a unique series of bank notes that is more secure, economic and better for the environment."

RCMP Commissioner Elliott stated that, “These new and technically innovative notes will go a long way to deter the threat of counterfeiting in coming years.” He added that the RCMP will “continue to work with the Bank of Canada, and our policing partners, to maintain public confidence in Canada’s currency.”

In the next six months, the Bank will focus on raising public awareness of the coming note series. It will also continue to provide information to the cash-handling industry to help prepare the system for polymer notes, and will work to inform retailers, financial institutions and law enforcement agencies about how to check the new security features once the notes enter circulation.

Starting with the $20 note in 2012, the remaining bank notes in the polymer series will be issued by the end of 2013. The themes of the other denominations will be:

$20 The Canadian National Vimy Memorial—evokes the contributions and sacrifices of Canadians in conflicts throughout our history. (Portrait: HM Queen Elizabeth II)

$10 The Canadian train—represents Canada’s great technical feat of linking its eastern and western frontiers by what was, at the time, the longest railway ever built. (Portrait: Sir John A. Macdonald)

$5 Canadarm2 and Dextre—symbolize Canada’s continuing contribution to the international space program through robotics innovation. (Portrait: Sir Wilfrid Laurier)

The specific designs and detailed images of these notes will not be released until their official unveiling dates.

More information on the new polymer bank note series can be obtained by contacting Jeremy Harrison, Assistant Director, Public Affairs at 613 782-8782 or communications@bankofcanada.ca

Savvy Albertan first time homebuyers do their homework

2011-06-15T10:29:00.000-07:00

TD issued a report today based on a survey they took in April and May. The report says that Albertans are doing their homework. If you are going to make the largest purchase in your lifetime, you 'd better be doing your research. It is also important to hire a realtor to help you. They ask questions that you may not think of. Here is the report

- 2011 TD Canada Trust First Time Home Buyers Report reveals Alberta buyers least willing to pay more than asking price on a home-

CALGARY, June 15, 2011 /CNW/ - Albertans are the most willing in the country to visit multiple open houses before they purchase their first home. In fact, one-third say that they will view more than 10 houses in their search (32% versus 26% nationally). This is according to the TD Canada Trust First Time Home buyers Report, which for the second year in a row found that the overwhelming majority of first time buyers in Alberta (97%) expect to buy their home for at - or below - the listing price. Despite viewing so many homes and being set on finding a home to purchase at or below the list price, Albertans are most likely to say they'll spend six months or less shopping for their new home (76% versus 64% nationally).

The survey also found that many house-hunters are flying solo on the house-hunt. In Alberta, 41% of first time buyers plan to purchase their first home on their own (rather than with a co-purchaser). Nationally, nearly six-in-ten men (57%) will buy on their own, along with 33% of women.

"A home is a very big purchase and it's great that so many feel financially equipped to take on the expense on their own," says Jessy Bilodeau, Mobile Mortgage Specialist, TD Canada Trust. "Our report found that Albertans explore their options and stick within their price range when looking at homes. This is important - especially for those buying a home on their own. If you buy without a co-purchaser, should your financial situation change, you are the only person legally responsible for the mortgage. Ensure your mortgage allows room in your budget to set some money aside for the future."

While people buying independently don't have to compromise with anyone about the features, location and type of home they're looking for, first time buyers realize they may have to make concessions because the perfect home may not exist - or at least not be in their price range. Encouragingly, the survey found that Albertans name price as the factor they are least willing to compromise on.

First time homebuyers are most likely to say they would not compromise on:
• Price (60%)
• Number of bedrooms (48%)
• Garage or sheltered parking (39%)

They are most willing to make concessions about:
• Proximity to recreational activities (84%)
• Layout of home (82%)
• Features of the home and proximity to shopping (both 81%)

Compared to last year, home buyers doing slightly less homework

Many first time home buyers in Alberta are doing their homework to prepare for the home buying process. Albertans surveyed were most likely to research mortgage options (83%), estimate the cost of heating and water bills (76%) and calculate closing costs (75%).

Though a significant number of buyers are still taking steps to prepare themselves, the 2011 TD Canada Trust First Time Home buyers Report found an overall trend that not as many buyers as last year were preparing themselves; findings in Alberta were consistent with this trend. Nationally, steepest declines were in terms of getting pre-approved for a mortgage (76%, down from 91%), speaking to a mortgage lender before shopping (72%, down from 84%) and arranging for a home inspection (67%, down from 85%). First time buyers were also less likely this year to learn about mortgage options (85%, down from 93%), estimate heating, electricity and water bills (78%, down from 85%) and calculate closing costs (77%, down from 88%) in 2011 versus 2010.

"The majority of first time buyers in Alberta are taking the right steps to prepare themselves. To make sure they've covered all their bases, I recommend all buyers speak with a mortgage expert," says Bilodeau. "From getting pre-approved for a mortgage to estimating closing costs and hydro bills when you move in, there are many aspects of the home buying process and home ownership that many first time buyers may not even consider. A mortgage expert can walk you through the process and prepare you for each step along the way."

Buyers take in tenants to pay off mortgage faster:

One quarter of Albertans surveyed (25%) bought or plan to buy a home with a rental unit. Three-quarters (73%) say they will use the income from the rental property to pay their mortgage off faster. Those who will not be putting the payments towards their mortgage say it will help them live more comfortably (15%) or they'll put it towards savings (12%).

Half of those planning to buy a home with a rental unit expect it to generate $500-$750 per month in rental income (50%). Thirty-five percent expect to earn $750-$1,000, while fewer expect to earn more than $1,000 (8%) or less than $500 (8%) in extra income each month.

"Taking in a tenant can be an effective way to supplement your income and pay off your mortgage faster," says Bilodeau. "For the quarter of Albertan buyers who are considering taking in a tenant, I'd recommend exploring flexible mortgage options. For more information on your options Contact me If you want to crunch some numbers my mortgage calculators can be found here.

Is buying your student child a condo a good idea?

2011-06-06T14:03:00.000-07:00

Sometimes a parent decides to buy a place for their children while they hit the books in university or college. It can be a good alternative to paying thousands of dollars toward residence fees or rent. Just look at the math:
Student rent of $500 a month = $6,000 a year = $24,000 over 4 years of school.
That money could go to your mortgage instead as an investment for you.
In Ottawa, for example, you can buy an older one-bedroom condo for about $195,000. Or, buy a 2-bedroom for $240,000 and let your child's roommate help cover the mortgage by paying rent. Let's assume you pay 20 per cent down. Here's an example of what your monthly costs could total when mortgage rates are low:
Cost 1-bedroom 2-bedroom
Mortgage payment $800 $1,000
Condo fees $350 $450
Property taxes, maintenance $300 $400
Total: $1,450 $1,850
Think about it: if your child rents a place, your money is helping the landlord pay his or her mortgage and other costs. If you buy a place instead and rent it to them, you have a real estate investment with a guaranteed tenant: your child. If the investment goes up in value, you will make money. Just remember that those gains will be taxed.
Also remember, mortgage rates and other costs change, and these changes will impact the numbers and your decision.
Things to consider before you decide:
You can buy the property in your name, in your child's name, or both. If you buy the property in your name, you should consider:
• The rental income you charge can pay a lot of your costs. Just remember you have to declare that income on your tax return.
• As a landlord, you can also claim many of your expenses, including mortgage interest. Assess your costs carefully before you buy. They will vary with the local real estate market, mortgage rates and other factors.
• Plan for some vacancies. Your child (or their roommate) may not stay in the condo over the summer break. Are you really going to ask them to pay rent if they are living somewhere else for a few months?
• Remember that you will own a greater share of the equity as you pay off the mortgage. And, the value of the condo may rise over time. This can offset your costs. But whether you do more than break even depends on what happens to housing prices in the area.
There are other benefits, too. Your child won't need to look for a different place to live each year. They also won't have to worry about subletting every summer. And their furniture won't be coming back with them if they live at home over the summer break. Not a bad deal.
Remember: you may not make money if you buy a student condo.
But there are other reasons you may decide to go ahead. At the very least, you can provide your child with a nice place to live in a good neighbourhood while they go to school. Want to talk to a mortgage expert about this? Contact me and we'll go over the numbers.

The Big Picture according to Benjamin Tal

2011-06-06T12:12:00.000-07:00

Benjamin Tal, the deputy chief economist at CIBC recently published a report on what he thinks will happen to Canada's economy and looking at the big picture. Here is his report

Recently both the U.S. Federal Reserve (the Fed) and the Bank of Canada described the economic picture as “unusually uncertain.” And this was before the unrest in the Middle East and Africa and before the devastating development in Japan. Add to this scenario the recent downgrading of Spain and Portugal by Moody’s, and you have a world that is even more uncertain than “unusually uncertain.”

If the real measure of intelligence is what you do when you don’t know what to do, then the next few months will test the economic IQ of both the Fed and the Bank of Canada. Given the increased uncertainty, it is reasonable to assume that both banks will be extremely conservative when it comes to monetary policy.

While short-term volatility will continue to influence markets in the near term, the focus should be on the big picture, which is much more predictable. And this big picture is changing. The great recession gave birth to a dramatic shift in the engines of economic growth in North America, and any successful investment strategy must incorporate this information.

The near 3% growth rate projected for gross domestic product (GDP) in 2011 masks the dynamics of powerful economic forces pulling in different directions. A vibrant business sector will gradually take over an exhausted consumer and restrained government.

Government spending was a buffer for economic activity during the downturn, but with ongoing gains in business activity, the coming years should see the government hand the reins of growth back to the private sector. Significant reductions in spending will come by late 2011, when infrastructure stimulus projects wrap up. Additional cuts to program spending should see compensation expenses drop on wage restraint, employment attrition and select job cuts.

On the other side of the scale, corporate Canada is doing much better. By any measure, the current recovery in capital spending is impressive. The rate of return on capital employed is back to its mid-2008 level, and despite the surge in investment, corporate Canada’s cash position is at a record high (in relation to both equity and sales). Large corporations can still raise funds relatively cheaply, and cash-starved small- and mid-sized firms can now borrow more easily, with overall credit outstanding to this sector starting to show signs of life after being in negative territory for the past two years.

In fact, the manufacturing sector is already positioned to start expanding — with its current capacity utilization reading of 81%, it stands above its long-term average and a record six points above that of the rest of the economy. The last time the utilization gap approached this level was in 1995, and manufacturing investment advanced by an average annual rate of more than 10% for the following three years. With relatively elevated capacity use and rates of return on capital employed in the manufacturing sector approaching a 10-year high, look for business investment in manufacturing to rise strongly in 2011, joining the upswing in western oil sands projects.

While current economic uncertainty will continue to influence markets and lead to sharp swings in commodity prices and related equities, the new mix clearly suggests that investors should focus on the improving the conditions of corporate Canada, in general, and the manufacturing sector, in particular. With supply-chain opportunities arising south of the border as a result of the U.S. manufacturing sector’s increased exposure to emerging markets, look for growing opportunities for high-end Canadian exporters in the coming years with positive implications for their valuations.

Another opportunity in this environment is the dividend-paying segment of the market. The recent increase in risk aversion will benefit this sector directly, as it tends to attract conservative money, and indirectly as increased uncertainty will limit any potential upward pressure on interest rates.

Benjamin Tal, Deputy Chief Economist, CIBC If you have any questions about credit, mortgages or interest rates contact me.

Poll shows Canadians are split on fixed/variable rates being better

2011-06-03T08:57:00.000-07:00

Canadians are split in their views on whether a fixed rate or variable rate mortgage is the right way to go in the current rate environment, even as they anticipate higher interest rates over the next year, according to a recent CIBC/Harris Decima poll.

Key findings of the poll include:

39 per cent of respondents said they would choose a fixed mortgage if they had to choose between a fixed or variable mortgage today.
32 per cent said they would choose a variable rate mortgage.
One-quarter (25 per cent) were undecided as to which would be the better choice.

61 per cent of respondents believe interest rates will be higher a year from now, while 24 per cent believe that rates will remain the same over the next 12 months.
Only 3 per cent of respondents believe rates will be lower a year from now than they are today.

"The divergent opinions on whether to go fixed or variable underscores what our advisors see everyday in their meetings with clients - choosing the right mortgage depends on your personal financial situation, and there's no single answer for everyone," commented Colette Delaney, Senior Vice President, Mortgages, Lending & Insurance, CIBC Retail Markets.

While the poll revealed that Canadians believe rates are likely to increase in the next 12 months, Ms. Delaney advised homeowners to consider additional factors beyond interest rate predictions when making mortgage decisions. "You need to approach the fixed versus variable decision from the inside out, starting with your personal financial goals and working from there," added Ms. Delaney. "Your mortgage is a major part of your overall financial plan, and your decisions should be based on how your mortgage fits with your long term financial goals, not on short term rate fluctuations."

The poll results also highlight that views on choosing a fixed or variable mortgage can change depending on your stage of life. For example:

Among 25-34 year olds, who are more likely to be first time buyers or new homeowners, only 27 per cent would choose a variable mortgage
That climbs to 42 per cent among respondents 45-54 years of age, who are more likely to be near the end of their mortgage and have greater tolerance for rate changes within their mortgage payment

Ms. Delaney noted that homeowners can look at both a fixed and variable strategy over the life of their mortgage. "For most people, your mortgage is a long term proposition, so your strategy should look beyond your first term," commented Ms. Delaney. "You may choose to start with a fixed mortgage when you buy your first home, then transition to a variable mortgage in later terms when you have improved your financial situation and paid down some of the principal."

While homebuyers this Spring will need to make the fixed vs variable decision when they buy a new home, Ms. Delaney also encouraged existing mortgage holders to take a fresh look at their mortgage and evaluate their options to help reduce their balance faster.

CIBC has a mortgage offer for existing mortgage holders who may be in a closed mortgage with another financial institution and who want to consider switching their mortgage as part of their long term strategy to reduce the total interest they pay. The CIBC Mortgage Switch offer includes cash back up front to help mitigate the cost of moving a mortgage before it is up for renewal, and a competitive fixed or variable rate to help homeowners take advantage of today's low rates and pay down their mortgage sooner.

Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, the company's national telephone omnibus survey. These data were gathered between April 28 and May 1, 2011. A sample of this size has a margin of error of 3.1%, 19 times out of 20. If you want to discuss this poll and which option is best for you , Contact me.

Canada Guaranty set to expand its Lender Reach

2011-06-01T12:34:00.000-07:00

While most people are familiar with CMHC , Canada's largest mortgage default insurer, many are not aware that Genworth Financial, a private insurer is also active in Canada. In 2007, a third insurer entered the market in what could be called the boom times in the Canadian real estate market. While the firm did well, the failure of it's parent company, AIG Garanty in the USA, brought unwanted instability and ruined their name. MortgagebrokerNews , a online trade publication issued an article recently on the third insurer. Here it is in it's entirety. As per usual , if you have any questions contact me at Calgary Mortgage Broker.

Canada’s “third” mortgage default insurer is gearing up for a significant growth spur, the company readying to welcome a major lender to the fold at the same time it meets growth targets.

“We have achieved our year-to-date business projections, despite the relatively soft market,” Andy Charles, president and CEO of Canada Guaranty told MortgageBrokerNews.ca., pointing to January through May premium numbers that have seen the Canadian-owned company cement market share. The progress comes even as the growth of new originations slows for Central and Eastern Canada as well as key Western centres.

The return to a more stable spring market coincides with Canada Guaranty’s first-year anniversary, the company’s launch coming in April 2010 with the acquisition of AIG’s book in this country. The new company is the only 100-per cent Canadian-owned private mortgage insurer, with Ontario Teachers’ Pension Plan and National Guaranty Mortgage Holdings Inc. as principal shareholders. That ownership team inherited the market’s No. 2 private insurer with assets of $270 million and a total equity of more than $118 million. Market share at the time was pegged at one per cent to two per cent of Canadian volumes.

Charles is actively building on that position, with a strategy focused on winning large institutional lenders. It’s now paying off.

“Canada Guaranty anticipates the announcing a new major lender to the group in June,” he said, with details to follow over the next couple weeks. The addition of one of the country’s Big Six would strengthen the insurer’s hand as competitor Genworth Canada grapples with the slowing market.

While the leading residential mortgage insurer outside of CMHC realized $101 million on net premiums written during the first three months of 2011, that's $33 million lower than the previous quarter. It does, however, represent a year-over-year improvement of $7 million, according to the company’s Q1 financial statement.

Some analysts were expecting a surge in new policies resulting from a crush of homebuyers looking to get into the market ahead of tougher federal mortgage rules.

That wave of business failed to materialize.

“The government mortgage rule changes that took effect March 18, 2011 did not have a material impact on mortgage originations in the quarter,” according to the Genworth report. “We delivered solid net premiums written in a slower origination market,” added CEO Brian Hurley.

Canada Guaranty hasn’t yet released details about its own performance in the run-up to that mid-March deadline, although brokers and a CMHC official both point to an active period, reflecting an increased number of refinancing applications.

Building relationships with individual brokers as well as broker channel lenders has been a top priority for Canada Guaranty, Charles told MortgageBrokerNews.ca. A large part of that is a user-friendly model, offering broker tools such as AMP-accredited continuing education and a quarterly market report.

Rent to Own vs. Saving and Waiting

2011-05-31T13:55:00.000-07:00

I was reading a blog today and they asked the question- Why would tenants Rent to Own when it's cheaper to rent and save the down payment. The response was interesting.
Read below.

Why would tenants choose to Rent to Own, when it is cheaper to rent for a few years, save for down payment and then buy a house? In many cases it does cost less to rent an apartment or a house than it does to Rent to Own the same place. Even when you factor in the net rent payments each month (which is 80% of the total monthly payments, since 20% of their rent goes towards their accumulated down payment credits on average), renting probably costs less each month.

So, in reality we are only talking about those who want to enter our new purchase program. Our new purchase program is for tenants who want to buy a home that's listed on the Multiple Listing Service (MLS). Most of these tenants have saved between 5-10% down payment, have decent jobs but have credit challenges (which is what is preventing them from getting a mortgage).

One of the primary benefits for the tenant is for them to enter into the credit counseling program, which helps them re-build their credit every month in a very disciplined way. I know what some of you are thinking - why can't they do this on their own and still rent an apartment? This is a fair statement - which leads to my next point...

Rent to Own is a great forced savings program for tenants, with 20% (on average) of their monthly payments going towards their deposit. The reality is most of the tenants (and society in general I would say) have difficulty saving money, and this is a big motivator for the tenants. Home ownership is a very emotional decision. Even though it may cost more each month, when rent to own tenants see what is available on the real estate market, it's normal for them to get emotionally invested in their home. I see it every day. Tenants can't believe how much better their "rent to own" home is compared to where they used to live. Usually the homes are in much better neighborhoods and in better school districts. It's easy to see how making the jump into rent to own allows for a family to have a much more improved lifestyle. With that, I also believe we live in a society of instant gratification- everyone wants that shiny new car NOW, or beautiful big house NOW. So even though it may cost more to do our program, they get the home they want NOW. And in reality, when assessing the market rents compared to the tenant's effective rent payments, we are only talking about a 15% premium on average to live in a rent to own home. If they can have the better house, better neighourhood, better school and better lifestyle - isn't 15% more worth it? Our tenants think so. If you want to discuss this article or if you have questions about mortgages in Alberta , contact me

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Tips for Spring Home Buyers

2011-04-27T12:41:00.000-07:00

Today's Globe and Mail has an article on home buying. It cautions people to check to see if the renovations on the home you are hoping to buy are well done. The best way to gauge this is to put a home inspection into the offer to purchase. For $400 you can find out how much life is left in the furnace the roof shingles and how airtight the windows and doors are. It's never a waste of money. If something is halfway through it's lifespan you can plan to replace it in 5 years if you know that's how long it should last. Planning takes much of the risk out of a home purchase.
If you need more information on home buying, I have some videos and brochures from CMHC on renovating, buying and budgeting for a home. Contact me at my website and I'll send the info to you. Happy Spring house hunting. /

Beating the Wave

2011-04-14T15:52:00.000-07:00

We've all seen those movies where surfers frantically paddle their boards towards the shore in front of a desirable wave. Why? In order to take advantage of the full power of the wave they need to be ahead of it. The same is true about buying real estate. You want to be ahead of the wave. The problem is anticipating when the wave will arrive. CDC Consulting Inc. just put out an Economic Outlook forecast that includes a formula for anticipating the wave.

The Economic Formula to predict the future is as follows:
GDP growth >> Job growth >> Population growth >> Increased rental
demand (12 months later) >> Increased rents >> Property purchase demand
(18 months later) >> and eventually leads to property price increases.
Where is Alberta on this progression? Alberta Economy is set for solid growth in 2011: RBC
Reports 4.3% hike in GDP forecast for this year, TD projects 4.2% hike in GDP forecasts for this
year. The Conference Board of Canada states Alberta will lead the country in growth in 2011.
After being particularly impacted by the recession and late to the recovery, the Alberta economy
is once again hitting its stride. Owing to robust crude oil prices, an increase in drilling activity,
and a healthy inflow of inter-provincial and international migrants, Alberta is slated to be among
the provincial economic growth leaders in 2011 and 2012. As well, Calgary and Edmonton are
forecasted to lead the country in GDP growth for major cities for the next 3 years. Good growth
is 3%; however they are predicting a whopping 4.3% growth for Alberta. Alberta is leading the
country in employment gains, as 14,000 jobs were created in February.
But even more important is the projected number of construction jobs being created over the
next 8 years are expected to surpass 2007/2008 levels
This sounds like great news. I know that I have been getting more calls and email inquiries from first time home buyers who feel it is time to make the leap and buy a home. If you are interested in buying a home most realtors will not deal with you unless you have a preapproval from a lender or mortgage broker. If you have any questions or want to apply for a preapproval contact me .

Fixed vs. variable mortgages: How to choose

2011-03-30T12:28:00.000-07:00

I recently found the article below discussing variable vs. fixed rates. The article agrees with my point of view. First time home buyers need the security of a fixed rate while they get used to being home owners and the expenses that this entails. However, over time, a variable rate or an adjustable rate mortgage will save you money. In 95 of the past 100 years, the variable rate was the better choice.
Read below to find out more or check the rates out yourself at my website

The good news in the housing market these days isn’t just low interest rates.
Experts say that whether you choose a variable rate mortgage or a fixed rate for a set period of time, the difference over the long run is likely to be minimal.
“Rates have never been this low so Canadians are increasingly looking for advice when it comes to mortgages. The question of fixed versus variable takes on greater importance when you consider where rates are and the possibility that rates will start to increase towards the end of this year,” said Collette Delaney, senior vice-president of mortgages and lending at the Canadian Imperial Bank of Commerce.
Experts typically say that a fixed-rate might bring more peace of mind to first-time home owners, and that those who are further into their mortgage payments may like to try a variable rate to save some money.
But that may not be right for everyone.
“There is really no generic answer,” Delaney said. “What’s right for me may not be right for you or someone else because we’re all at different stages in terms of financial planning and lifestyle.”
The big advantage of fixed rate mortgages is that they offer a high level of stability. When you lock in a mortgage at a fixed rate, you’re locking in for the term of your mortgage so you will know, for each monthly mortgage payment, exactly how much is going to the interest and how much is going to the principal.
“You’ll know at the end of your term how much of your amortization you’ve paid off. The downside is that you can’t take advantage of lower interest rates. If rates do drop, you won’t have the ability to have more of your payment go towards the principle and less to interest,” said Bernice Dunsby, director of home equity financing at the Royal Bank of Canada.
With a variable rate mortgage, your monthly payments don’t change. What may fluctuate is your interest rate. That means when rates go down, an increased amount of your payment will actually go to your principal, and less to interest. That means when rates go down, you’re paying off your mortgage faster.
But when interest rates increase, so does the portion of your payment that goes to interest. With less going to cover the principal, it’s possible that your amortization period could be extended.
Research by Canadian economic experts shows that variable rate mortgages hold more benefits to consumers the vast majority of the time.
Moshe Milevsky, associate professor of finance at York University, studied mortgage rate data from 1950 to 2007 and found that choosing a variable rate mortgage would have saved Canadians $20,000 in interest payments over 15 years, based on a $100,000 mortgage.
He also found that Canadians would have been better off with a variable rate mortgage compared to a five-year fixed rate 89 per cent of the time.
The question is whether this other 11 per cent of the time when it is advantageous, is right now, said Benjamin Tal, senior economist with the CIBC World Markets.
“This is one of the few examples of times when it really doesn’t make much of a difference. If you take variable and I take fixed now and we meet five years from now, you would probably be able to buy me lunch, but it would be a cheap lunch.”
That’s largely because interest rates are so low right now. Economists are expecting rates to increase by about half a percentage point or more beginning in June, with further rate hikes to come in 2011.
Right now, variable rate mortgages tend to be about 1.75 percentage points cheaper than fixed rates. But interest rates will probably rise by more than that overall in the next couple of years.
“This will probably take variable rates, more or less to where fixed rates are now, maybe a bit higher. If you do the math, you would find the difference would not be very significant,” Tal said.
If you’re looking for peace of mind, he added, take the fixed rate.
“If you have a large mortgage vis-à-vis your income, I would go fixed and just relax about it. Learn the market, pay as much equity as possible but go fixed because you don’t want the volatility,” Tal said. “However, if you have been in the mortgage for a while and your mortgage is not as large relative to your income, pay with the variable and you will do better over five years from now but not significantly.”
Many banks have an array of mortgage products that combine the fixed and variable rates mortgages. These typically allow homeowners to combine the security of the fixed rates with the ability to take advantage of any interest rate declines.
But experts say that even if a variable rate mortgage could save you money in the long run, you still need to think about the risk.
“If a fluctuating interest rate is going to keep you up at night because you’re not sure how much is going to principle and interest, then maybe a variable rate mortgage is not right for you,” Dunsby said.

9 items homebuyers desire in 2011

2011-03-09T13:26:00.000-08:00

Today I read an interesting article on 9 items that homebuyers in the US want. Granted, their housing market is a lot worse than ours but some of the items mentioned were outlandish. In addition to getting a rock bottom price, they want a house that does not need renovations , incentives like gift cards , less formal homes BUT they want a touch of luxury. Wouldn't a formal home be luxurious?
If you are looking for a bargain, expect to get less than you would get if you paid full price. I have heard of bank owned homes with the appliances, copper piping and light fixtures removed and sold by the previous homeowners.
Never was the term "Buyer beware" more appropriate than it is today in the US market.
If you are looking for a home purchase in Canada or you want to take advantage of low home prices to buy your vacation home in Arizona, you will need a 25% down payment. Call me and we can arrange to take the funds out of your Canadian home. All it takes is an application. Just click the APPLY ONLINE button.
If you want to keep up on the latest rates, sign up for my Rate Advisor. Every Thursday night you will receive up to date rates for fixed and variable rate mortgages.
Be sure to call me, Calgary mortgage broker extraordinaire, Dave Cooke

9 items homebuyers desire in 2011

Clearing up misconceptions about the March 18th rule changes

2011-03-08T13:22:00.000-08:00

Today I was speaking with an underwriter from a Calgary mortgage company. She said that she was swamped with mortgage applications all with a March 18th possession date. I guess their mortgage brokers did not take note of what is happening on March 18th. The rules clearly state that if you want a 35 year amortization for your mortgage or if you want to refinance and take out up to 90% of the value of your home, the deal must be in place by March 18th. This means that the paperwork must be in the lenders hands by March 18th. A possession date of April 30th would be acceptable. Frankly in our Canadian climate I would not want to be moving in March. You may be moving your sofa in snow or sleet. Ice on the sidewalk is a definite possibility.
If you have your eye on a property get an offer in now. Don't worry about having to take possession by the 18th. You still have time. If you have any questions contact me at 403-836-1201or visit my website at Mortgage Alliance

Cuatious Canadians tackle household debt

2011-03-02T09:22:00.000-08:00

Today's newspaper had a story about Canadians cautiously paying down their debts. A month ago the Harper government and the Bank of Canada were expressing concern about Canadian debt reaching 148% of an individual's earnings. Some of this can be explained as mortgage debt. No one expects someone to pay off a house in a year. This is on-going and the value of the asset, in this case, the house will appreciate over time.
What today's report states is that while debt has gone up and savings dropped, homeowners have seen their net worth increase by 27% since 1999, while renters have seen their net worth drop.
Once again we see proof that owning a home is a wise investment.

The new mortgage rules Q & A

2011-03-01T12:24:00.001-08:00

One of my lenders, Street Capital, just issued a memo addressing some of the questions that people have been asking about the new rules coming into effect on March 18th. I thought that they handled the questions so well it bears repeating here on my blog.

Will the new refinancing rules allow a borrower with a mortgage above 85 per cent loan-to-value (LTV) to refinance by extending the amortization period?

No. Effective March 18, 2011, borrowers will not be permitted to refinance a mortgage above an 85% loan-to-value, unless the borrower has a binding refinance agreement dated prior to March 18, 2011.

I have a written mortgage pre-approval from a lender, dated before March 18, 2011 with a 35 year amortization. Will I still be eligible for a 35 year amortization if I don’t sign an agreement of purchase and sale until March 18 or later?

No, a mortgage pre-approval is not considered to be a “binding agreement”. You may have a 35 year amortization only if your agreement of purchase and sale is dated before March 18, 2011.

Will the new parameters apply to assignment (“switch” or transfer) of a previously-insured loan from one approved lender to another?

No. As long as the loan amount and amortization period are not increased, the new parameters will not apply to a switch/transfer/assignment of mortgage to a different approved lender.

If I sell my current home and buy another, will the new parameters apply if I transfer the outstanding balance of my CMHC-insured mortgage to the new home?

As long as the outstanding balance of the insured loan, the loan-to-value ratio and the remainder of the amortization period are not increased, the new parameters will not apply when the CMHC mortgage insurance is transferred from one home to another.

What if I need to increase the amount of my insured loan when I sell my current home and buy another?

In this situation the new parameters will apply for any insured loan.

Is it only new Home Equity Lines of Credit (HELOCs) that are affected by the new parameters or existing HELOCs as well?

As of April 18, 2011, CMHC will no longer offer mortgage loan insurance on non-amortizing lines of credit to approved lenders, such as HELOCs. However, if a HELOC is already CMHC insured then it remains insured for the life of the mortgage.

HELOCs will no longer be insurable as of April 18, 2011. Is there any situation which would quality for an exception (e.g. binding agreement) to allow for these loans to be insured?

Survey- Canadians worried about rising interest rates

2011-02-24T09:26:00.000-08:00

A new survey says that 20% of Canadians with variable rate mortgages are worried that if interest rates rise they are not sure that they will be able to afford the monthly payments. BMO has suggested that you try the stress test to see. Pick a higher interest rate, figure out the monthly payments and see if it works with your budget. Why are they suggesting this? No one knows how to figure out monthly payments so you will go into a branch and they have an opporuntity to get you as a customer.
What you may not know is that you have already been stress tested at the time you took out your mortgage. Up until this time last year, all variable rate mortgage applicants were tested at the 3 year fixed posted rate. This rate is at least double the variable rate and often 2 1/2 times as great. Last year, Jim Flaherty changed that to the 5 year fixed posted rate. The present 5 year fixed rate is 5.44%. In order for you to get your present mortgage you had to qualify at this higher rate. Therefore you have been stress tested.
I should add though, that if you live in Vancouver or Victoria, the idea of having your monthly mortgage payment double is a scary thought and I have to wonder if you were councelled by your bank or broker as to the negative aspects of variable rate mortgages.
As a general rule, a person advising you on a mortgage should present the positive and the negative aspects of the product so that you can make an iformed choice. Unfortunately, many bankers and mortgage brokers offer you one choice which they have made. This is one reason that CAAMP, the Canadian Association of Acreditted Mortgage Professionals has introduced the AMP designation. Anyone with the AMP accreditation will work for you and not let their personal preferences get in the way. By the way, did you know that Joe or Jane at the bank has not taken a mortgage course and does not belong to your provincial mortgage association? They are bank employees and do not need to take any training or special courses. Scary isn't it?
The author is an accreditted mortgage professional with Mortgage Alliance in Calgary Alberta. Visit his webpage at http://mortgagealliance.ca/davidcooke

Choosing a mortgage broker over a bank

2011-02-23T14:15:00.000-08:00

Why should you use a mortgage broker instead of a bank. It brings it all down to 3 points

1. best rates – banks only offer you their best rates not their competitors. We have access to banks, mortgage companies, trust companies and private lenders. When a bank decides to increase its market share by offering extraordinarily low interest rates are exceptional terms a mortgage broker can offer you that. While banks can offer you their 5 or 6 different mortgages or HELOCS, I have access to 40 lenders and roughly 150 different mortgages and HELOCS>

2. customized products. – we carry products that banks can’t offer due to banking regulations ie: private lenders with interest only products, stated income products,one year open mortgages,New to Canada or even one for people who do not have employment.

3. customer service- as we rely so heavily on referrals we go above and beyond in our service, meeting clients at night, weekends, accompanying them to their branch to get their RRSP’s cashed. When a client comes to me with credit issues, I will work with that person to improve their credit and when they are credit worthy, I'll get them into their own home. When was the last time a bank offered to help you re-build your credit? Never!

If you want a savings account, a RRSP go to a bank. If you want a mortgage, go see a mortgage broker. You'll do much better with a broker.

CMHC Outlook for Q1 of 2011

2011-02-17T12:33:00.000-08:00

CMHC issued their housing outlook for 2011 for the first quarter. They expect housing prices to stabilize and then rise slightly this year. This is good news for anyone who has a property they bought at the peak of the housing boom as prices return to what they were at the time of their purchases.
Anyone who wants to renovate will now have more equity in their homes to pull out in a line of credit to finance these projects. Lines of credit are a great way to finance projects or purchases using low interest loans.
Here is an overview of what CMHC had to say about Alberta's economy

Overview
The recovery of oil prices is providing a welcome boost to the Alberta economy. Provincial crown petroleum and natural gas rights were auctioned at record values in 2010, which will lead to higher drilling and energy exploration in 2011. Investment in oil sands projects will also continue to grow, accelerating economic growth in Alberta. The natural gas industry will continue to be impacted by a low price environment and its contribution to the economy will be muted until prices move higher.
In 2011, employment growth in Alberta will recover and exceed the peak level of employment reached prior to the economic downturn. Improved labour market conditions will move the unemployment rate lower and draw more people to Alberta.
The turnaround of interprovincial migration flows in 2010 should continue over the forecast period, as Alberta’s labour market attracts more migrants in 2011 and 2012. International migration will remain elevated over the forecast period. Total net migration to Alberta is projected at 31,450 in 2011, then rise to 34,100 in 2012. Overall, migration patterns are expected to support housing demand in Alberta.

Leading economist- time to lock in your mortgage rate

2011-02-11T09:24:00.000-08:00

Benjamin Tal, chief economist at CIBC , says that the days of ultra low interest rates are coming to an end. If you have ever heard Tal speak he's usually right on the money when he predicts rate hikes and drops. It is often the first question he is asked at presentations. He is a cautious man, as many economists are. For Tal to come out and say, the good times are going to end, is like having him stand on top of the CN Tower with a megaphone to make an announcement.
The figures and charts he sees come across his desk tell the story, months before it hits the newspapers. What Tal is suggesting in today's National Post article is that rates for variable rate mortgages are about to go up and that it's time to lock into a fixed rate mortgage. Economists feel that there's a 75% chance that in May overnight bank rates, which determine the interest rate for VRM's will go up
.
Added to this , the posted fixed rates for a 5 year mortgage term went up on February 8th from 5.19% to 5.44%. If the fixed rate continues to go up then the switch to fixed rates will wipe out any benefit you gained from being in a VRM. As Tal says, |the window is closing"
If you want to discuss whether it's time for you to make the switch call me at 403-836-1201.

2011-01-25T14:59:00.000-08:00

Today in broker news, we were told that a recent poll by TD Canada Trust found that 89 per cent said being able to make additional lump sum payments or weekly or bi-weekly payments was important to them.
In addition, the survey also revealed that 75 per cent of Canadians would like the ability to defer or reduce their monthly mortgage payment in the case of an unexpected event or shortfall. As well, 60 per cent would be more likely to make a lump sum payment to pay off their mortgage faster if that gave them the flexibility to pay less at a later date if something unexpected came up.

This afternoon, TD Canada Trust announced that they would add a flexibility feature to their mortgages to make them more attractive to clients.
Why are they do this? Recently, TD Canada Trust decided to change the charge on title for their mortgages from a regular mortgage charge to a collateral charge. They are now registering a charge for up to 125% of the value of your home to allow for future lines of credit when the house value goes up. Unfortunately, this means it's very difficult to get out of a TD mortgage if you decide you want to refinance, low size or anything else before the end of your term. Every mortgage broker I know has stopped sending mortgages to TD as a result.
If they think that this will help to increase their business they are wrong.
Most lenders offer the opportunity to change from monthly to bi-weekly payments. Most will also allow a "miss a payment" option as well. Frankly I don't see TD offering the consumer anything they do not already have available to them from a variety of lenders.
As to the pre-payment privileges, offering 20% pre-payment is a waste for most consumers. With housing prices in the $400K range, the maximum that I have seen people using is 5% and this is a privilege that people pay for !.
As a matter of a fact, I have one lender who will lower the interest rate if you want a lower pre-payment privilege. Who great is that?
Contact me if you want more information at my website or call me at 403-836-1201.

Mortgage Rule Changes will trigger a mini boom before March 18th deadline

2011-01-20T11:19:00.000-08:00

Toronto readers woke up to an article in their paper saying that the new tougher mortgage rules will result in a mini-boom in home sales. How so? Well, last year when the rules changed, peope rushed out to buy revenue properties before the 20% downpayment rule came in. People rushed into homes again in BC and Ontario before the HST was enacted in their provinces in order to save money. Does this mini-boom benefit anyone? Not really, all that is happening is that we are stealing future sales and there will be a slow down after the new rules come into play.
The new rules will not have much of an effect and will actually make it harder for some people to lower their personal debt, which is the reason given for the rule change. When people refinance their homes they use the money in most cases to either pay for renovations which add to the home's value or they use the money to pay off high interest debts. With interest rates below 5%, it is easier to pay off principal and lower your debts faster than credit card debt at 24%.
The Toronto article can be found here. Time will tell as to whether these changes improve Canadians debt loads or not.

New mortgage rule changs for 2011

2011-01-17T10:52:00.000-08:00

Jim Flaherty , the finance minister, made 3 changes to the mortgage rules today.
1- mortgage amortizations were shortened from 35 years to 30 years
2- home refinancing was lowered from 90% to 85%
3- Home equity lines of credit()HELOCS) will not be insured by the government
How will this affect home owners and potential home owners? With 5 years shaved off their mortgages, monthly payments will rise. Consumers will get less house for their money as the monthly payments will put homes previously within their budget in the unaffordable category. How will this affect home owners and potential home owners? With 5 years shaved off their mortgages, monthly payments will rise. Consumers will get less house for their money as the monthly payments will put homes previously within their budget in the unaffordable category.
Of more importance is the 2nd rule change. If you want to refinance and take money out for your TFSA, RRSP, investments or for renos, you will be restricted to leaving 15% equity behind in your home. What most people will do is move to higher interest rate loans such as unsecured lines of credit, consumer loans and credit cards. I believe that this will encourage inflation and result in higher interest rates.
Finally, insuring HELOCS isn't an issue. Most HELOCS have 80% LTV limits so they were not insured anyways.
Today's new rules will be applied March 18th. If you are looking for a mortgage with a 35 year amortization to keep the payments down or if you want to refinance your home, you have until March 17th to take advantage of our present rules.
Call me at 403-836-1201 if you have any questions.

Surpising survey results

2011-01-11T14:23:00.000-08:00

The latest research on the broker industry from Maritz Canada for CAAMP, revealed some interesting facts about brokers and their relationships with consumers and lenders.

The study entitled “Canadian Mortgage Broker Channel: Consumer and Industry Perceptions” noted among other things that only 35 per cent of consumers have a full or good understanding of the services provided by mortgages brokers, 17 per cent are aware of the AMP designation and that while two-thirds of those looking for a mortgage consult with a mortgage broker on first mortgages, that falls to 27 and 21 per cent respectively on early-term renegotiation and scheduled renewals.

What does this mean? People have learned that mortgage brokers are a great source for financing for a home . However, these people are either staying with the same lender at renewal time, typically 5 years later or they are going to their regular bank.
This is a big mistake. If you have used a mortgage broker to purchase your home, you should be going back to him/her at renewal time. Some people are finding that they need a second mortgage or a line of credit. They go to their bank when the logical choice would be to go see the person who go you the financing originally. They will know which lenders will do second mortgages behind your first and they may suggest you break your mortgage and refinance if it will end up saving you money in the end.
Remember the old TV commercial. The doctor is guiding the patient through surgery on the telephone. If you wouldn't do surgery on yourself, why would you want to negotiate the largest financial decision you make in your lifetime without having the background. Leave it to the experts.
Who else can shop the market for you and get you the best rates? As well, mortgages may have changed since your last one and a mortgage broker would be aware of any changes that could benefit you.
The moral of today's story is : When it's time to renew your mortgage call your broker if he hasn't already contacted you. Make a smart choice.

TD mortgage changes handcuff consumers in the future.

2010-10-12T12:56:00.000-07:00

TD reently announced that they would be changing the way they put a charge on your title when you obtained a mortgage from them. They will now be making the mortgage a collateral mortgage. This will allow you to get a line of credit or increase your mortgage without having to have the paperwork done over again.
So, what's the downside? It will be much more difficult to get out of a TD mortgage if another better mortgage comes along. See the attached link for more details.

http://bit.ly/cEpDGw

Getting in for the long haul

2010-09-20T13:05:00.000-07:00

Today's newspaper had a great article about a man who locked into a 10 year mortgage. This may seem like an unusual thing to do in this day and age. However, 12% of Canadians are opting to go long and are taking mortgage terms of over 5 years. Why are these people doing this? Well, wouldn't it be nice to know that you will have the exact same payments until 2020? 10 year rates are presently in the 5% range. However, the cost for that security can be steep."The question is, is the insurance policy worthwhile?” says TD’s chief economist, Craig Alexander.

Today’s 10-year fixeds are guaranteed to cost roughly $6,900 more than a 5-year fixed over the first five years.* That’s $6,900 for every $100,000 in mortgage. So if your mortgage is $300,000, you’re paying a whopping $20,700 over 60 months for the “peace of mind” of a 10-year fixed. You can lower these costs by making pre-payments over the lifetme of the mortgage. Let's face it. In 5 years from now you should be making considerably more money than you are now. Increasing your payments or making lump sum payments can help to offset the higher costs of having a 10 year term.

This is why it is important to sit down with your mortgage advisor and discuss your options. If you know that your children will be reaching university in 5 years, having a mortgage rate set 5 years earlier and with your increased income, helping out with tuition costs may be do-able. Take the time to talk to your advisor and you can make an informed decision as to whether this is right for you.

“For many people it just might be (worthwhile)," Alexander says.
Getting in for the long haul

Transportation improvements will increase house values

2010-09-10T13:18:00.001-07:00

When the Ring Road and the new LRT stations are completed, communities within an 800-metre radius of these transportation improvements can anticipate a 10%–20% increase in their property values. The largest effect will be felt in older and more established neighbourhoods.

“Our research shows that when a highway increases accessibility to the region by providing new access or shorter commute times, residential property values rise by 12%–15% over similar properties not affected by the new highway,” says Don Campbell, author of the best-selling Real Estate Investing in Canada. “People need to understand that commute and travel distances are now measured in minutes, not kilometres.”

The 2010 Calgary Transportation Effect report reviews the peer-reviewed academic research that has been conducted on the impact of light rail, highway expansion and road improvements in other parts of the world.

The Calgary Transportation Effect report is available free to the public upon request by emailing the Real Estate Investment Network at info@reincanada.com

2010-08-24T13:22:00.000-07:00

If you’re struggling with too much debt you’re not alone. It seems as if the whole nation has a borrowing hangover. For years, credit was easy and many people became overextended. But we now live in an era of austerity and it’s time to get our affairs in order.

The 5 strategies you may want to avoid:

The first advice of experts in the field is to be sure you don't make your situation worse by making common mistakes. In particular try to avoid:

Paying only the minimum payment on your debt as this will results in the amount you owe actually growing and your problems will only become worse.
Relying on friends and family as this can damage relationships with the most important people in your life.
Unscrupulous credit counselors that demand cash upfront or high fees for help they promise, but don't deliver.
Using new high-interest loan to pay off lower interest rate loans – while it may be easier to just have one payment but it will actually increase the amount you have to pay back.
Declaring bankruptcy – this can have permanent and severe consequences on your financial future, avoid if you can, especially when debt settlement may work for you...
Debt Settlement

For many people, working with a Debt Settlement company can actually be a great solution. You’ve probably heard a lot of advertising for these services recently, but what exactly do they do.

Debt settlement is the process of negotiating with creditors to get them to forgive a big portion of your debt. Why would a credit card company do this? Well, it’s not out of the generosity of their heart. They have made the financial calculations and determined they are better off knowing for certain that they’ll get paid something rather than not knowing at all if they will get paid anything.

Settlement companies work with individual consumers to determine a reasonable monthly amount that they can afford to pay against their debt load. The individual makes the affordable payment every month into a special-purpose account, and as these funds accumulate, the settlement company reaches out to creditors to negotiate a full and final actual settlement amount that they will take.

Typically, these companies have excellent relationships with creditors and are negotiating on behalf of thousands of people every day. The amount of savings they can obtain for consumers can be significant.

While each situation is different, it’s not uncommon for debt settlement companies to negotiate reductions of as much as 50% of the outstanding amount and help get their customer debt free in just a few years.

There are a many debt-settlement agencies, so the next question is how to find a legitimate and trustworthy company to work with? One great way to start is by calling your mortgage broker. . They offer a free, no-obligation consultation to evaluate your options. If a debt consolidation using equity from your hom ewill work they can help you . If not, they usually can refer you to a lender with a low interest consolidation loan can be made.
To learn how much of your debt can be reduced, and how quickly you can be debt free, visit my website at http://mortgagealliance.ca/davidcooke
.

The Mortgage Girl Newsletter

2010-08-24T13:09:00.000-07:00

Not that there are a lot of people buying houses these days, but the answer to the age-old question of whether to go long or short on your mortgage is unclear yet again.

The Bank of Canada’s second quarter-of-a-point rate increase in the past two months is likely not going to do much to boost a real estate market that saw sales drop almost 20% across the country in June from a year ago.

The popular variable-rate product tied to prime that helped people buy a lot more house with more debt is going up too. The prime rate at the major banks, which tracks the Bank of Canada’s rate, is now at 2.75%.

But a funny thing happened as the Bank of Canada was raising rates. With much of the credit crisis seemingly behind us, the discounts on short-term borrowing are increasing as the cost of funds for banks also fall. Instead of borrowing at 100 basis points above prime, it’s now 70 basis points off prime.

At 2.05%, a variable-rate product today may look as attractive as ever, but the five-year fixed-rate closed mortgage is falling fast. It can be had for a shade under 4%, says Rob McLister, editor of Canadian Mortgage Trends.

“Bond yields have fallen out of bed and nobody expected that,” said Mr. McLister, adding the spread between the five-year Government of Canada bonds and five-year mortgages is still large enough that the banks may reduce long-term rates even more. However, at about 4%, the five-year closed fixed-rate mortgage isn’t far off its record low.

Bank of Montreal senior economist Sal Guatieri does agree that variable-rate products have worked out better than fixed-rate mortgages throughout history, but says the tide may be turning.

“Given that the central bank has already raised rates a couple of times now and will likely continue to raise rates, it probably is a correct assumption to make,” says Mr. Guatieri, noting the variable product usually works in a declining interest-rate environment. “The next five years might not quite follow the past. You could probably argue it’s wiser to lock in now. It’s a close call.”

Bank of Montreal is forecasting another 25 basis point move in September and says rates will climb another 1.5 percentage points by the end of 2011. If Mr. Guatieri and others are right, by 2012, the variable-rate products out today would clock in at just above 3.75%, if the discounting remains the same.

“If you are still in that variable-rate product then, you’d have to sweat out the next three years because there would still be possibly more increases,” says Mr. Guatieri, who adds his bank sees the overnight rate eventually going to 4% in the following three years. Based on the present gap between the Bank of Canada and prime, that would place the variable-rate product you get today at 6% by about 2015.

Fears of such a scenario are driving people into fixed-rate products again. That, plus new mortgage rules that make it easier to qualify for a mortgage if you go for a fixed-rate product with a term of five years or longer.

“The Bank of Canada is doing what it said: It’s going ahead with rate increases. If I was counselling someone, the prediction is rates are going up, so now is a good time to consider locking in for a term,” says Don Lawby, president of Century 21 Canada.

It makes sense, but with variable rate still at about 2%, it’s easy to see why people wouldn’t want to lock in. Even Mr. Guatieri says if you are secure in your financial situation and don’t need to fix your mortgage payments, “you might just want to let it ride.”

There just never seems to be a clear answer on whether to lock in or stay variable.
My take on this is that even at 3.75%, a variable rate is the way to go. Fixed rates are down in that neighbourhood right now but as I can get you in at 2.75% now, you can pay off huge amounts of principal right now by upping your monthly payments by a couple of hundred dollars. As the interest rate goes up you will be used to paying $200 a month more so it will not feel like an increase until you get up over that $200 threshold.
With fixed rates at historic lows, you can't lose which ever way you go. It is best to talk to a mortgage professional before you make an important decision like this. Call me at 403-836-1201 or apply online. Let's make this decision together.

Finally some good new from Europe

2010-08-13T13:22:00.000-07:00

Today news came out that the Euro zone had experienced its best GDP gains in 3 years. Why is this good news to Canadians? Interest rates tend to go up when there is turmoil in the world's financial markets. Greece's near default of it's national debt and the subsequent bail out put many countries finances under the microscope. Spain and Italy also had dangerous amounts of debt. Just last week critics were saying that we might have a double dip recession due to the weak recovery in the US and the fact that the Chinese economy seemed to be slowing down.
Today's reports are a lot more optomistic. Will oil prices go up? Will the TSX and the Dow Jones go up? It's hard to say but it may mean lower interest rates will stick around a bit longer. http://bit.ly/cXVcmC
Shorten & Share | bit.ly | a simple URL shortener

CALGARY REAL ESTATE BOARD | Protect Yourself Against Mortgage Fraud

2010-08-09T09:13:00.000-07:00

Protect Yourself against mortgage fraud. If you buy a house as a staw buyer and the mortgage goes into default, the bank will come after you. The $5000 that fraudsters offer you for using your good credit will not be worth the months of legal battles and possible jail time you face.

The Calgary Real Estate Board issued the attached news release on how to avoid mortgage fraud. Take a minute to read this over.

CALGARY REAL ESTATE BOARD | Protect Yourself Against Mortgage Fraud

Is it time to renew your mortgage?

2010-07-27T10:17:00.000-07:00

Today, an article in the Vancouver Sun entitled "
With low interest rates, is it time to reconsider your mortgage?" suggested that people renew their mortgages now before fixed and variable rates go up as expected over the next year. Although there is a penalty for early renewal , often 3 months interest, it may be worthwhile. The article quotes a local Invis mortgage broker who discourages people from going with a variable rate mortgage. He says that the terms change. This is not true. If you negotiate a variable rate mortgage at Prime rate minus .60 you get this rate for the whole 5 year term. I'm not sure why he made this remark.
Fixed rates are still recommended for first time home buyers but an experienced home buyer can easily manage variable rates going up and down. How far up can they go? Economists expect the rates to go up by 2% between now and 2011 and then plateau. They have already gone up by .5% and stand at 2.75%. With the discounted rate, mortgage holders are paying 2.15% Even if they go up by another 1.50% these people will only be paying 3.65% !
Some of you may be worried about monthly payments going up. There's a simple strategy to compensate for this. Pay more now. If your expected payment is $800 bi-weekly, make it $1000. You will pay down your mortgage at a much faster rate and when the rates go up over the next year you will already have paid down the principal and be in a much more secure position. If you are already making mortgage payments based on 5% or more, you will be able to enjoy a discounted rate and pay off your mortgage faster.
It's a win -win situation. If you need more details or want to discuss your particular situation, call me at 403-836-1201 or email me at dcooke at mortgagealliance dot com. Sorry, I have to put my email address this way to avoid spammers.

Read more: http://www.vancouversun.com/entertainment/With+interest+rates+time+reconsider+your+mortgage/3325562/story.html#ixzz0uu7YDMQR

GENWORTH FINANCIAL CANADA | Homeowners are more financially fit

2010-07-21T14:21:00.000-07:00

GENWORTH FINANCIAL CANADA | Homeowners are more financially fit

Free Great Mortgage Tips In Canada | Buying and Selling Real Estate

2010-07-13T10:23:00.000-07:00

Free Great Mortgage Tips In Canada | Buying and Selling Real Estate

Mortgage growth slows to 2003 levels

2010-06-29T14:28:00.000-07:00

Benajmin Tal, CIBC's chief economist just announced that mortgages are growing at the slowest rate since 2003.
http://research.cibcwm.com/economic_public/download/hca-100629.pdf

Calgary Real Estate - Calgary First Time Home Buyers

2010-06-25T14:12:00.000-07:00

Calgary Real Estate - Calgary First Time Home Buyers

Canadian Mortgage Broker News - Its Time to Lock In

2010-05-12T09:18:00.000-07:00

Canadian Mortgage Broker News - Its Time to Lock In

Dollar Smart Renos

2010-05-08T11:43:00.000-07:00

If you are thinking about doing some renovations, here's a great article on what to do and what to avoid.
http://www.househunting.ca/Home-Renovating/Dollar%20smart%20renos/2778375/story.html

A lot of Savings can cost you money later on.

Toronto-Dominion, Bank of Montreal Cut Mortgage Rate (Update2) - BusinessWeek

2010-05-08T10:26:00.000-07:00

With the financial crisis in Greece speading to Portugal and Spain, the stock markets around the world dropped on Thursday. Bond rates followed suit making fixed rate mortgage money less expensive. TD and BMO both cut their rates by .15% lowering them to where they were in April.
Will the drop continue? My crystal ball is cloudy on this today.

Toronto-Dominion, Bank of Montreal Cut Mortgage Rate (Update2) - BusinessWeek

Canadian Mortgage Broker News - Alberta MP added to BMO lawsuit list

2010-05-07T09:42:00.000-07:00

Just as the economy is getting its legs back this happens. Unfortunately, all lawyers and mortgage brokers will be painted with the same brush. See the attached link.

Canadian Mortgage Broker News - Alberta MP added to BMO lawsuit list

When will mortgage rates rise?

2010-05-04T13:09:00.000-07:00

Here's a good explanation about why fixed mortgage rates rise.

When will mortgage rates rise?

April 2010 Newsletter

2010-05-02T17:17:00.000-07:00

What you need to know about identity theft and the national census.

April 2010 Newsletter

The Canadian site can be found here. Equifax Canada

How are credit ratings calculated?

2010-04-23T22:02:00.000-07:00

How are credit ratings calculated?

Okanagan Mortgage Team: Home Buyer's Tax Credit

2010-04-23T21:40:00.000-07:00

Today's focus is on the Home Buyers' Tax Credit (HBTC).

What is this credit?

The Federal Budget 2009 proposed a tax credit for First Time Home Buyers as an action to provide support for Home Ownership. This proposal was thought to assist first-time home buyers with the costs associated with the purchase of a home (i.e. legal fees, disbursements and land transfer taxes).

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable income tax credit, based on the amount of $5000 for first time home buyers who plan to purchase after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax
relief starting in 2009.

How is the new HBTC calculated?

It is calculated based by multiplying the lower personal income tax rate for the year (15% in 2009) by $5000. So that means, for 2009, the credit will be $750.

Who qualifies for the HBTC?

The individual must meet the below criteria:

# They acquire a qualifying home.
# Neither the individual or spouse/common-law partner has owned and lived in another home in the year of purchase or any of the 4 preceding years.
# A person with a disability or are buying a house for a related person with a disability, you DO NOT have to be a first time home buyer. The home must enable the person with a disability to live in a more accessible dwelling.

Who is considered a person with disability?

An individual who is eligible for the Disability Tax Credit (DTC).

What is a qualifying home?

# The home must be located in Canada.
# This includes existing and new construction. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, apartments in duplexes, triplexes, fourplexes or apartment buildings all qualify.
# A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. (BUT a share that only provides you with a right to tenancy in the housing does NOT qualify).
# You or the related person with a disability must intend to occupy the home as a principal residence no later than ONE year of purchase.

Can my spouse/common-law/friend claim the HBTC?

Either person can claim the credit or you can share it. BUT the total of both claims cannot exceed $750.

If you are purchasing a home with a friend, and you both meet the conditions for the HBTC, either one of you may claim the credit or share it. BUT the total cannot exceed $750.

Does the home have to be registered under the applicable land registration system?

Yes. The home must be registered in accordance with the applicable land registration system.

How do I claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated for you to claim the credit.

Do I have to submit any supporting documents with my income tax?

No. But make sure that the information is available just in case CRA requests for it.

Is the HBTC connected to the Home Buyer’s Plan?

No. Some of the conditions for the HBTC and Home Buyer’s Plan are similar but they are not connected. Eligibility for the HBTC will not change if you participate in the Home Buyer’s Plan.

For more information on the First-Time Home Buyers’ Tax Credit, click on Department of Finance’s Budget 2009 (Page 128).

Canadian Mortgage Broker News - Housing bubbles have lasting effects: study

2010-04-21T12:36:00.000-07:00

:Canada did not make the list. I believe that this is because Canada has not and is not going to have a housing bubble. We are afterall, Canadians and we don't do extravagant. We are middle of the road type people.

Canadian Mortgage Broker News - Housing bubbles have lasting effects: study

Bank of Canada holds steady on rate, this time

2010-04-20T08:16:00.000-07:00

Inflation is worrying the Bank of Canada. Canada's recovery from the recession is quicker than anticipated when the January report came out. They have now revised projections and see rapid growth in the first half of the year. It now looks like the June 1st will be the first announcement of a rate increase for the bank overnight rate. This rate directly affects variable rate mortgages. Depending on who you listen to, the rate will go up by 1/4 per cent to perhaps as much as 3% over the next 2 years. This will more than double monthly payments for some.

Bank of Canada maintains overnight rate target at 1/4 per cent;
removes conditional commitment

OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.

Global economic growth has been somewhat stronger than projected, with momentum in emerging-market economies increasing noticeably. Exceptional stimulus from monetary and fiscal policies continues to provide important support in many countries. The recovery in the major advanced economies is still expected to be relatively subdued, reflecting ongoing balance sheet adjustments and the gradual withdrawal of fiscal stimulus commencing later this year. Despite recent progress, considerable uncertainty remains about the durability of the global recovery.

In Canada, the economic recovery is proceeding somewhat more rapidly than the Bank had projected in its January Monetary Policy Report (MPR). The profile for growth is more front-loaded than that presented in the January MPR. The Bank now projects that the economy will grow by 3.7 per cent in 2010 before slowing to 3.1 per cent in 2011 and 1.9 per cent in 2012.

This profile reflects stronger near-term global growth, very strong housing activity in Canada, and the Bank’s assessment that policy stimulus resulted in more expenditures being brought forward in late 2009 and early 2010 than expected. At the same time, the persistent strength of the Canadian dollar, Canada’s poor relative productivity performance, and the low absolute level of U.S. demand will continue to act as significant drags on economic activity in Canada. The Bank expects the economy to return to full capacity in the second quarter of 2011.

The outlook for inflation reflects the combined influences of stronger domestic demand, slowing wage growth, and overall excess supply. Core inflation, which has been somewhat firmer than projected in January, is expected to ease slightly in the second quarter of 2010 as the effect of temporary factors dissipates, and to remain near 2 per cent throughout the rest of the projection period. Total CPI inflation is expected to be slightly higher than 2 per cent over the coming year, before returning to the target in the second half of 2011.

In response to the sharp, synchronous global recession, the Bank lowered its target rate rapidly over the course of 2008 and early 2009 to its lowest possible level. With its conditional commitment introduced in April 2009, the Bank also provided exceptional guidance on the likely path of its target rate. This unconventional policy provided considerable additional stimulus during a period of very weak economic conditions and major downside risks to the global and Canadian economies. With recent improvements in the economic outlook, the need for such extraordinary policy is now passing, and it is appropriate to begin to lessen the degree of monetary stimulus. The extent and timing will depend on the outlook for economic activity and inflation, and will be consistent with achieving the 2 per cent inflation target.

In accordance with the removal of the conditional commitment, there will be no additional term Purchase and Resale Agreements issued by the Bank.

Information note:
A full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 22 April 2010. The next scheduled date for announcing the overnight rate target is 1 June 2010.

This press release is now available on the Bank of Canada’s website at:
http://www.bankofcanada.ca/en/fixed-dates/2010/rate_200410.html

The announcement dates from September 2009 through December 2010 are:

Thursday, 10 September 2009
Tuesday, 20 October 2009
Tuesday, 8 December 2009

Tuesday, 19 January 2010
Tuesday, 2 March 2010
Tuesday, 20 April 2010
Tuesday, 1 June 2010
Tuesday, 20 July 2010
Wednesday, 8 September 2010
Tuesday, 19 October 2010
Tuesday, 7 December 2010

All announcements will continue to be made at 09:00 (ET).

5 Great Reasons to Pre-qualify for a Mortgage

2010-04-12T11:04:00.000-07:00

A mortgage loan pre-qualification is the process of being pre-approved for a home mortgage before you going house-hunting.
Here are 5 good reasons why you should pre-qualify BEFORE you start looking :

1. Getting pre-qualified lets you know what you can afford and how high you can go. You won't waste your time or your realtors looking outside of your price range.

2. You won't go through the disappointment of being rejected on a mortgage application and losing your dream home.

3. If the property you are looking at is hot with multiple offers you can remove the subject to financing clause and make your offer stronger. This also puts you in a stronger bargaining position when it comes to price and possession date.

4. Preapprovals show you are a serious shopper. Your realtor and sellers will take you more seriously . By knowing your financial limitations, your realtor can spend more time finding a suitable home for you rather than wasting time looking for homes you would not qualify for.

5. After you make an offer , you have a lot of other things to do which will keep you busy for a few days. Arranging for a lawyer, a house inspection and finding a moving company.
If you would like to be pre-qualified call me at 403-8361201 or apply online at http://mortgagealliance.ca/davidcooke and click on APPLY NOW

Canadian Mortgage Broker News - International news: Key interest rate rises in Australia

2010-04-08T12:32:00.000-07:00

Canadian Mortgage Broker News - International news: Key interest rate rises in Australia

Watch bond market for rate hike clues

2010-04-07T10:38:00.000-07:00

Were you surprised by the interest rate hike last week? Read this article for more info on how bond rates affect fixed rate mortgages. The Bank of Canada overnight rate drives the variable rate market but most people think it affects fixed rates as well. Educate yourself with this article

Watch bond market for rate hike clues

Canadian Mortgage Broker News - MP Helena Guergis mortgage under the microscope

2010-04-05T11:05:00.000-07:00

Canadian Mortgage Broker News - MP Helena Guergis mortgage under the microscope

Loophole may help banks to lend to first-time buyers

2010-03-31T20:52:00.000-07:00

One of the problems with the new rules set up by Flarhety is that banks and mortgage companies have different benchmark rates. Which rate to use to qualify variable rate mortgages on?

Loophole may help banks to lend to first-time buyers

The doomsday view of the mortgage market

2010-03-26T11:59:00.000-07:00

I tend to believe Benjamin Tal before I would listen to Garth Turner. See the attached story

The doomsday view of the mortgage market

Canadians worried about home prices, mortgage rates: Surveys

2010-03-24T18:33:00.000-07:00

Canadians worried about home prices, mortgage rates: Surveys

http://www.mortgagebrokernews.ca/news/43624/details.aspx

2010-03-24T08:22:00.000-07:00

New home sales were up 327% in February over last February 2009 in the Toronto area

http://www.mortgagebrokernews.ca/news/43624/details.aspx

Canada’s housing boom leads developed countries - thestar.com

2010-03-23T12:09:00.000-07:00

Canada's historic low interest rates and prices that are still below their 2007 peaks have lead many Canadians to buy homes this year. Added to the introduction of the HST in BC and Ontario , which has increased demand even more in these provinces, it looks like Canada will lead the world in housing purchases this year.
The Toronto Star article on this is attached.

Canada’s housing boom leads developed countries - thestar.com

New mortgage rules leave homebuyers confused

2010-03-17T14:38:00.000-07:00

New mortgage rules leave homebuyers confused

With housing in bloom, owners in mood to sell

2010-03-16T13:04:00.000-07:00

More houses on the market in Calgary as prices rise.

With housing in bloom, owners in mood to sell

Canadian housing market shows signs of cooling

2010-03-15T19:24:00.000-07:00

Canadian housing market shows signs of cooling

The Flaherty effect

2010-03-13T09:42:00.000-08:00

Another story about rates rising in the late spring from the Financial Post.
The Flaherty effect

CMHC Changes starting April 9, 2010

2010-03-12T10:53:00.000-08:00

Changes to the CMHC Self Employed Product will be effective April 9, 2010. For purchase and portability the maximum LTV will be 90%. For refinance the maximum LTV is 85%. Qualification rules have changed for this product. If a client has been self employed in the same business for more that 3 years, they are NOT eligible under the CMHC Self Employed Product without Traditional third party validation of income (qualified deal). CMHC will continue to require that the borrower have a minimum of 2 yeas experience in the same field. This can include time spent working as a non self employed worker in the same field. Lenders are expected to obtain a copy of the business or GST license or Articles of Incorporation. Therefore if a client is self employed over 3 years, then you cannot do a self employed product. It must be qualified. If a client is self employed up to 3 years, you can do a self employed product.

8) Commissioned income will no longer be eligible for the CMHC Self Employed Product without traditional third party validation of income.

I have been notified that GENWORTH will follow suit.

Canadian Mortgage Broker News - Guidelines tightened for self-employed borrowers

2010-03-10T14:59:00.000-08:00

CMHC is changing the rules for self employed people who want to buy a home. The rules change April 9th Call me to get preapproved now at 4038361201 or apply online at http://mortgagealliance.ca/davidcooke

Canadian Mortgage Broker News - Guidelines tightened for self-employed borrowers

How to Find Canada's Best Mortgage Broker

2010-03-07T19:07:00.000-08:00

You've already found him. Now you can confirm what you already know. Dealing with a mortgage broker is the smart way to go.

How to Find Canada's Best Mortgage Broker

'Frantic' hunt for a house

2010-03-07T19:02:00.000-08:00

'Frantic' hunt for a house
BC housing market heats up as time runs out before the new federal rules on mortgages in April and the HST in July.

Housing starts expected to rise this year

2010-03-04T11:43:00.000-08:00

Housing starts expected to rise this year

Interst Rates stay put as speculation increases

2010-03-03T15:53:00.000-08:00

The Bank of Canada hs kept rates down for the past 11 months. Can they keep their promise to maintain them at this level until June?

What it really costs to own a Home

2010-03-03T10:18:00.000-08:00

A great article on home ownership costs. It's American but many of the items are just as valid in Canada.
http://bit.ly/1cztPP

Bank of Canada holds steady

2010-03-02T10:52:00.000-08:00

The Bank of Canada chose to hold steady and keep the bank overnight rate at .25% The bank pledges to try and keep this rate steady until the end of the second quarter of 2010 which means June

5 Steps to a Higher Credit Score

2010-03-01T09:35:00.000-08:00

5 steps to a Higher Credit Score

Learn how to manage your credit score and improve your creditworthiness. Think of your credit score as a picture of your credit risk. This picture reflects your risk at a specific point in time. A picture does not change; however, when you take another one, you will probably look a little different. Similarly, when your credit information changes, your score will also change to reflect the updated information.

There are steps you can take to ensure that each time a new "credit picture" is taken, it shows your best side. By observing the following guidelines, you can influence your credit worthiness for the better:

Be punctual - Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score.
Check your credit profile regularly and take the necessary steps to remove inaccuracies - Don't let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit profile contact the creditor associated with the account or the credit reporting agencies to correct it immediately.
Watch your debt - Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $500.
Give yourself time - Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit profile open in order to lengthen your period of active credit use.
Avoid excessive inquiries - A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.

Remax warns not enough homes for buyers

2010-02-26T11:48:00.000-08:00

Remax warns not enough homes for buyers
Prices may rise in the spring due to there not being enough inventory in Calgary

Interesting Bank Statistics

2010-02-26T09:25:00.000-08:00

Number of credit cards (VISA, MasterCard) in circulation (2008): 68.2 million

|There are about 34 million Canadians. This equates to 2 cards per person. But think about it.
This is every Canadian. That means that if you have 4 children and 2 parents in a household you would have 12 credit cards.
Scary, isn't it? While one or two cards for an adult is okay, we obviously have too much available credit. Most of this is at 19-24% interest rates which is almost impossible to pay off if you make minimum payments.

A better solution is to open a line of credit which will be at prime plus one or two per cent. Prime is currently 2.25%. At this rate, you can make monthly payments and actually pay down your debts.
Call me or apply online for a line of credit at my website
http://mortgagealliance.ca/davidcooke

Make 2010 the year when you get control of your debts.

Canadian Mortgage Broker News - From the Press: What people are saying about the new mortgage rules

2010-02-17T09:39:00.000-08:00

What people are saying about the new mortgage rules. I tend to agree that going from 100% financing to a new maximum of 80% for revenue properties is drastic and it will kill this market.
I just got an email 2 days ago from a broker in Phoenix offering me a chance to buy a 4plex with nothing down. It was fully rented out. It looks like the US might be a better place to invest now.

Canadian Mortgage Broker News - From the Press: What people are saying about the new mortgage rules

2010-02-16T08:31:00.000-08:00

This morning Jim Flarety , the finance minister, changed the rules for obtaining a mortgage. He wants to make it more difficult for people to buy a home and to discourage people buying revenue properties. Here are the 3 new rules

All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term;

The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home;

Non-owner occupied properties will require a minimum down payment of 20%

What do you think about the new rules?

5 Steps to Personal Power

2010-02-15T10:18:00.000-08:00

Brian Tracy is a motivational speaker who follows the teachings of Napoleon Hill. Here is an example of some of his work.

Five Steps to Personal Power
By Brian Tracy

There is a five-step power process that you can use to keep yourself positive and to achieve your goals faster. This five-step process brings together several of the very best techniques ever discovered for permanent mind change. It contains and illustrates all of the key principles that you need to know to become a highly effective, positive "possibility thinker" in your own life.

Imagine Your Perfect Future
Perhaps the biggest obstacle to creating a wonderful life is "self-limiting beliefs." Everyone has them, and some people have so may of them that they are almost paralyzed when it comes to taking action. A self-limiting belief is an idea you have that you are limited in some way, in terms of time, talent, intelligence, money, ability, or opportunity. The way you free yourself from these negative brakes on your potential is to change your thinking about who you are and what is truly possible for you.

Show Me the Money
Start with your income. How much do you want to be earning, one, two, three, and five years from today? Look around you and ask, "Who else is earning the kind of money I want to earn, and what are they doing differently from me?" If you don't know or you aren't sure, go and ask them. Do your homework.

Design Your Perfect Life
Imagine your perfect lifestyle. If you had no limitations at all, how would you like to live, day in and day out? If you were financially independent, what kind of home would you live in? What kind of car would you want to drive? What kind of life would you like to provide for your family? What sort of activities would you like to engage in throughout the week, month, and year?

Turn Your Ideal into Reality
When you sit down and design your ideal lifestyle, you can then compare it to what you are doing today and notice the differences. You can then start thinking about how you could bring your real or current lifestyle closer to your ideal. When you idealize your income and your lifestyle, you develop vision for your life. You begin to practice a key quality of personal leadership. You begin projecting into the future and making plans to turn your future dreams into a current reality.

The Person you Become
Create an ideal future self in terms of your personal and professional development. What kind of person do you want to be in the future? What additional knowledge and skills do you want to acquire? In what areas would you like to become absolutely excellent? What subjects would you like to master? What do you need to learn to move up in your field? What is your growth plan to get from where you are to where you want to go?

Action Exercise
Look for something good in every problem or difficulty. Practice being an inverse paranoid, convinced that there is a vast conspiracy to make you successful.

Ottawa thinking about tightening mortgage rules

2010-02-11T09:55:00.000-08:00

Ottawa is pondering advice it received from the big 6 banks. They want the minimum down payment to be increased to 10% or amortizations shortened to 30 years.
The president of ING mortgages disagrees. He wants to qualify borrowers using a higher interest rate to ensure that when rates rise as we know they will, people will be able to handle the higher payments.

http://bit.ly/bSvu50

http://www.mortgagebrokernews.ca/news/43554/details.aspx

Advisors News | Economic | ADVISORS - January housing starts on the rise

2010-02-09T08:27:00.000-08:00

January housing starts for Canada on the rise

Advisors News Economic ADVISORS - January housing starts on the rise

2010-02-05T14:19:00.000-08:00

Although we expect mortgage rates to go up in the next 4 months they are defying the odds and have dropped this week. I now have 5 year variable rate mortgages at Prime - 25% or 2%
Fixed rates dropped as well to 3.69%
To think, that when I got my first mortgage I got 9.98% which was below double digits and I was in 7th heaven.

Canadian Mortgage Broker News - Mortgage market strong, housing bubble nonexistent: Carney

2010-02-05T08:50:00.000-08:00

Canadian Mortgage Broker News - Mortgage market strong, housing bubble nonexistent: Carney

Canadian Mortgage Broker News - Islamic financing in Canada legal, but still poses hurdles

2010-01-27T11:36:00.000-08:00

Islamic financing is possible in Canada but difficult to find.

Canadian Mortgage Broker News - Islamic financing in Canada legal, but still poses hurdles

Variable Vs. Fixed Rates

2010-01-22T09:41:00.000-08:00

86% of Canadians are opting for fixed rate mortgages despite the fact that variable rate mortgages are at historic low rates (presently 2%) . Why is this? Are Canadians so risk adverse and conservative?
What do you think?
Here's an article on the subject. http://bit.ly/608nh4

Canadian Mortgage Broker News - Street Capital rolls out two new adjustable rate mortgages

2010-01-22T09:39:00.000-08:00

Canadian Mortgage Broker News - Street Capital rolls out two new adjustable rate mortgages

Bank of Canada concernede about housing bubble

2010-01-12T12:22:00.000-08:00

Housing prices have gone up tremendously in Toronto and this is of concern to the Bank of Canada. Will they increase interest rates. Read the attached article and find out.

http://bit.ly/91JPfB

Canadian Mortgage Broker News - Housing bubble seeds in place, says Merrill Lynch economist

2009-12-18T13:56:00.000-08:00

Canadian Mortgage Broker News - Housing bubble seeds in place, says Merrill Lynch economist

Twitter vs. Blogs

2009-12-18T13:51:00.000-08:00

I am trying to keep up with the times.
I have started a Twitter at
twitter.com/davidcooke1 where I make up to the minute announcements about rate changes and
mortgage related news.
However, I find that 140 characters is limiting and a blog allows space to properly explain concepts and ideas.
What do you prefer? Blogs or Tweets?

US style housing bubble unlikely

2009-12-18T13:47:00.000-08:00

Benjamin Tal, senior economist with CIBC stated today that we are unlikely to see a US style housing bubble. We do not have the debt loads that Americans had in 2006 and 2007 leading up to the recession. You also have to keep in mind that they were finaincing at up to 120% of the value of the home.
for more information visit my website at http://mortgagealliance.ca/davidcooke

to see the whole article
http://bit.ly/7eMvX6

The gap between Variable and Fixed rates shortens

2009-10-27T13:25:00.000-07:00

Here's an article on variable vs. fixed rates

http://tinyurl.com/yhf9nv4

Call me to discuss what's best for you .