The recent mortgage rules changes have created a new reality in the real-estate world. I would like to look into these changes and share my thoughts with you: The News On October 17, 2017, the Office of the Superintendent of Financial Institutions (OSFI) released revised guidelines for the mortgage industry. The new regulations will take effect starting January 1, 2018. Current contracts will...
Porting Facts Although many homeowners have a mortgage with a portability feature that allows them to transfer it to their new home, in many cases it doesn’t work. In the best case scenario there will be an allowance to port only 80% of the current mortgage. The math says it all: breaking one’s current mortgage is simply cheaper than porting it....
Choosing an “on sale” fixed rate at a bank that collects high mortgage penalties According to unofficial statistics 6 to 7 out of 10 mortgage owners will payout the mortgage early and will pay mortgage penalties. At the point of taking the mortgage, all these people will confidently declare they will never payout the mortgage earlier and pay mortgage penalty. Still...
Changing the stress rate The recent change to mortgage rules indicate that in order to receive a variable interest rate that has been the best choice for the last 15 years, each mortgage request will be judged by fictitious interest rate of 4.84% and not 4.64% (=stress rate) as it was till now. This is another hardening of mortgage rules that...
As predicted, the overnight rate has been lowered today by 0.25% taking it to a new low level of 0.5%. What impact does it have over us? Firstly, it’s another reflection of a the recession we all experience: higher rates of un employment, more and more small and medium businesses closing down and difficulty to find a job. Secondly, it may have...
Greater Vancouver is blessed with divers population coming from all over the world. In the last decade, investors and families bring foreign money and purchase big houses in best areas and cities. Houses are purchased above asking and the demand seems to drive the prices up. in some cases those properties are left vacant, and the buyers frequent them only few days every...
If you wish to purchase a house in Canada and take a mortgage for it, banks will need to calculate the proportion between your household income and the monthly payment for the mortgage (GDS). On top of it they will look at the proportion between this income and the overall monthly commitment you carry, including student loans, credit cards payments, car...
House prices in Vancouver constantly go up. In the last year and a half the East side of the city took turn and rose in value. Same time Toronto experienced price hikes that broke the record. The high housing price makes it hard to purchase a decent house in the above cities. on top of it, some of the million dollars...
A month ago I had the pleasure to participate in one of the "Flipping Houses in Vancouver" seminars that have been flooding Vancouver lately. When I first got the invite for the 3-hour session, I was quite suspicious. The organizers promised to reveal where and what to buy, how to do it and how to finance a successful flip in the...
Definitely! Here’s a true story brought to you from Alberta: A mutual friend introduced Jonathan to me. When we met, there were two questions on his mind: Can I help arrange a mortgage in provinces other than British Columbia and Toronto, and can a non-resident that has no SIN be qualified to get a Canadian mortgage? I was happy to reply...
