Posts Tagged ‘Refinancing’
Mortgage Rate and Housing Outlook
I recently had the opportunity to listen to an economist from Genworth Canada speak on his predictions about where mortgage rates and housing starts would be going over the next couple of years Really, there were not many surprises. By this point we all know mortgage rates only have one place to go and that is up. When we will start to see this increase is up for debate, but most "experts" agree it will be before the end of this year. Originally variable rates were predicted to start moving by July, but several bank economists have recently come out saying it will now be early fall. That is great news for those of us with variable rates. So how high will mortgage rates climb? It is hard to see the future without a crystal ball, but Genworth feels by the end of 2012 we will see prime rate around 6% and 5 year fixed rates around 7%. Keep in mind the 5 year fixed is the posted rate and most lenders discount the posted rate by ...
Mortgage Refinance – Revisited
Yes, I am posting another blog on refinancing your mortgage....there's no rule against posting more than one blog on a subject is there? I have been working with a few clients recently who have really been able to benefit from refinancing their mortgage. Most of us will negotiate our cell phone and cable bills with our providers every couple of years. Who hasn't phoned up Bell or Rogers and said the other was offering a much better deal than you are currently getting. You make a few idle threats about taking your business elsewhere and usually will get some sort of concession from your provider to get you to stay. You put in the time to save a few dollars on a $50/mth cell phone bill so why don't you atleast investigate what other lenders can offer you for your mortgage? You could possibly save $1000's of dollars and take years off your mortgage. But What About The Mortgage Penalty? At this point you are probably saying...."but, I have to pay a penalty to get out of ...
New Mortgage Rules Coming For Canadians
Canadian Finance Minister Jim Flaherty announced this week that Canadians will see new mortgage rules starting in March. This tightening of mortgage rules is meant to keep Canadians from using their homes as a piggy bank, and avoiding the scenario we have recently seen in the US. Consumer debt has been rising in Canada at a rapid pace in recent years and these mortgage regulations are in part meant to curb that growth by curtailing individual's ability to access the equity in their home or purchasing a home they technically couldn't afford by stretching the amortization to 35 years. What are the new mortgage rules? Reduced Amortization to 30 years - After March 18, 2011 Canadians who put down less than 20% on a home purchase will no longer be able to obtain a mortgage with an amortization greater than 30 years. The current max is 35 years which still might be available from some lenders, but only for low ratio mortgages (80% or less loan to value) Maximum mortgage refinance to ...
Flaherty Tightens Mortgage Lending Criteria in Canada
Jim Flaherty announces changes to Canadian Mortgage regulations. For several weeks there has been speculation surrounding the tightening of mortgage lending criteria and today those changes were finally announced. Flaherty was careful to reiterate that we are not currently experiencing a housing bubble, however these changes are being put in place to prevent Canada from experiencing the same real estate bust the US experienced. So What Changes Did Flaherty Announce For Canadian Home Buyers? All borrowers must qualify at the current five year rate. This means even if you are looking to get a 1 or 2 year mortgage with a rate that is lower than the current five year rate, you still need to make enough money to qualify for the mortgage amount at the going 5 year mortgage rate. We have already seen a rule similar to this imposed by the lenders with variable rate mortgages, but this new rule will make it mandatory across all lenders and mortgage types. Maximum loan to value for a ...
