The federal government is tightening mortgage rules, which are clearly aimed at slowing down the Toronto and Vancouver housing markets. As of Feb. 15, there will be additional down payment requirements for homes that sell for between $500,000 and $1 million. The current 5% minimum down payment for the first $500,000 of the house price will be maintained, while requiring a 10% minimum down payment for the portion of the house price in excess of $500,000. For example, someone buying a $700,000 property would be required to make a down payment of 5% on the first $500,000 ($25,000) and 10% on the remaining $200,000 ($20,000). That would equal a total minimum down payment of $45,000, or 6.4% per cent of the total purchase price. The 5% minimum down payment for properties up to $500,000 remains unchanged and Canadians who already have a mortgage won’t be affected. Untitled
10-items-to-increase-home-insurance-costs-by-InsurEye   Without house insurance, you are extremely vulnerable to the cost of repair and replacement in the event of an incident; and most of us have a home insurance policy. However, there are many elements located in and around your home that make your policy more expensive. 1. Precious items: Wine collection, jewelry, art items, musical instruments, precious watches, expensive furs – anything that can potentially increase the size of your loss will result in higher rates. Consider a separate policy or rider for your luxury items. 2. Stove / Fireplace: Fire is great when it is contained, but fireplaces and wood stoves could cause fire and smoke damage. Rather than pay extra in your premium or have to undergo an inspection, switch to the safer gas or electric options. 3. Oil-based heating: Insurers prefer electric or forced-air gas furnaces, since oil-based heating systems are more likely to cause environmental and fire damages e.g. via oil tank leakage. 4. Business at home: If your house is also your head office, you are considered a greater risk as your personal and business property both require coverage. If your home is also used for particular types of business, such as bed and breakfasts, daycare, etc. it also means an additional risk in eyes of insurers.
property-taxesPaying your property taxes through your mortgage can offer the convenience of one less bill  to deal with each month. However, what is the real cost of this option and is it worth it for you?  Quick Property Tax Refresher Property taxes are typically paid to your municipality on a quarterly, semi-annual or annual  basis. The total taxes for the year are calculated based on your property’s assessment multiplied by the municipality’s

Economic growth is the main lever that elevates and lowers inflation, which in turn increases and decreases mortgage rates.

Canada’s economic engine ultimately determines the mortgage rates we pay. And these days, that engine is running at a lower RPM than in the past.

 “Canada’s economy is in a new age,” says Desjardins Economics. In a report released last week it states that economic growth potential “will remain between 1.5% and 2.0% from now until 2030.”

If this call is even remotely true (remote being the most we can expect from an economic forecast), then we’ll have gone from a 3.3% real average growth rate since the 1960s to as low as 1.5% for the next 15+ years. A healthy growth rate is closer to 2.5%.

Is it any wonder then that Desjardins concludes: “…interest rate equilibrium levels will be lower than in the past?” At these stunted growth levels, even risk-haters may start considering variable mortgage rates.

Economic growth is the main lever that elevates and lowers inflation, which in turn increases and decreases mortgage rates. It’s highly unlikely that an economy progressing at just 1.5% long-term — or even 2% — can generate sustained inflation above 3.0%. (3.0% inflation is the Bank of Canada’s maximum tolerance, above which it tends to hike interest rates.) Against that backdrop, 2.25% variable rates start looking far more appetizing. 


By: David Larock, Mortgage Planner, Integrated Mortgage Planners Inc.
If you have an open mortgage, you can discharge your mortgage at any time without penalty but if you have a closed mortgage with a fixed term you may have to pay a costly mortgage interest penalty depending on how much time is left on your term. The penalty amount will vary and can be quite high. Avoid paying a penalty to the bank because it's your hard earned money going down the drain. If you have a costly mortgage penalty that is preventing you from selling today, we can purchase your property through our Home Buying Program that will save you from having to pay the penalty. We specialize in these types of situations without charging you any fees or real estate commissions. Contact us with any questions you have: 604- 812-3718. Why Do Fixed Rate Mortgage Penalties Matter and How Is Your Penalty Calculated? Many people think that the differences in how lenders calculate fixed-rate mortgage penalties are a non-issue now that rates have fallen to ultra-low levels. Nothing could be further from the truth.

Mortgage application

Banks Operate Under the Scrutiny of Government Watchdogs. But When It Comes To Mortgages, Those Watchdogs Don’t Watch Everything They Could.

By: Rob Mclister / Speacial Report to the Globe and Mail
If you feel that your bank or broker is not acting in your best interest, use your own judgment and use the services of a bank or broker that meets your needs, not theirs. “Individual (bank) mortgage reps operate outside of regulatory boundaries which commonly govern licensed professionals,” says Samantha Gale, a former mortgage regulator with B.C.’s Financial Institutions Commission and chief executive officer of the Mortgage Brokers Association of British Columbia. Rules pertaining to mortgage rep competency, the suitability of mortgage recommendations and compensation disclosure are largely left to the banks themselves. That raises certain questions, like the procedure banks use when sending a mortgage applicant to another lender. At Royal Bank of Canada (RBC), for example, mortgage reps route applicants that don’t meet normal guidelines to their Alternate Mortgage Solutions (AMS) team. RBC’s AMS employees then farm those customers out to other lenders and the bank’s mortgage rep gets paid when the mortgages close. Some might easily mistake this practice for “dealing in mortgages,” an activity that normally requires a brokering license. But, because bank employees are the ones recommending the alternative lenders, and because banks are federally regulated, they aren’t bound by tough provincial rules that make it an offence to broker without a license.

This post covers standard mortgage types and associated terms. Each bank, credit union and private lender may also offer their own specialized mortgages and terms.

 Brought to you by: Kristen White


The period of time your mortgage agreement will be in effect, including your interest rate and terms and conditions. At the end of the term, you either pay off the mortgage in full, renew it or possibly renegotiate your mortgage agreement (for example, decrease your amortization period). Terms are generally for six months to 10 years.

Prepayment Charge / Penalty

Your lender may require you to pay a charge if you want to make a prepayment greater than the amount allowed in your mortgage agreement, or pay off or break a closed mortgage before the end of the term. Sometimes also called a penalty. Prepayment Privilege Terms of your mortgage contract that allow you to pay an amount toward a closed mortgage on top of your regular payments, without triggering a prepayment charge. For example, you may be allowed to make lump-sum payments up to a certain amount or increase the amount of your regular mortgage payments.

Prepayment Penalty

A fee charged to you by the lender for making a prepayment greater than the amount allowed in your mortgage agreement, or for paying off a closed mortgage before the end of the term.

Open Mortgage

A mortgage that can be prepaid at any time during the term, without paying a prepayment charge. The interest rate on an open mortgage may be higher than on a closed mortgage with a similar term.

Closed Mortgage

A mortgage agreement that cannot be changed before the end of the term. Your lender may let you make certain prepayments without paying a charge, but you will usually have to pay a charge to break or change your mortgage agreement.