Category Archives: Agricultural Mortgages

Outlook Shaky As Consumer Debt Expected to Rise

While the Canadian economy appears to be weathering the economic storm with surprising ease, Canadian consumers are beginning to show signs of distress. Just last week, Statistics Canada announced a net worth drop of $4,600 per household in the third quarter. Meanwhile, Canadians continue to borrow and buy on credit. Household debt per capita is up by $600 from the second quarter for a total of nearly $46,100 or 152.98%.

To put this into perspective, the American banks encountered trouble when the ratio of debt to disposable income hit 160%. Canadians are flirting with disaster if indebtedness levels continue to rise. Continue reading →

CAAMP Report Finds Canadian Consumers Believe They Have Too Much Debt

The seventh annual State of the Residential Mortgage MarketĀ report, conducted by CAAMP (the Canadian Association of Accredited Mortgage Professionals) has found that consumers are worried about debt. The report, which included survey data from 2,000 Canadians (half of which were homeowners), asked participants to what extent they agree with various statements based on a 10-point scale: a response of 10 indicated complete agreement. The statement, “as a whole, Canadians have too much debt,” received the the highest degree of agreement, scoring an average rating of 7.98 out of 10.

While debt remains a major cause of concern, there is a widespread opinion that Canadian real estate is a good long term investment. Consumers still feel that a mortgage is a “good debt” and very few regret taking on the size of mortgage that they did. However, there is still a very big perception that Canadian homeowners are largely unprepared for the financial obligations of purchasing a home. Continue reading →

Re/Max Report Predicts Robust 2012 Canadian Housing Market

The Canadian housing market showed exceptional resilience in 2011, according to Re/Max’s annual housing marketing outlook. Published early last week, the report states that an estimated 460,000 homes are expected to be sold this year, a significant increase over last year’s 44,010 properties.

Re/Max credits low interest rates for the housing market’s success, along with tight inventory levels and increased urban demand. And while the European debt crisis and worsening American recession continue to plague the global marketplace, it appears to have had little effect on the Canadian housing market. The country’s economic foundations actually grew in the past year, thanks to the addition of more than 200,000 jobs and slow but steady GDP growth. According to Re/Max’s report, economists are already looking forward to increased growth and renewed investment in 2012. Continue reading →

No Rate Change from the Bank of Canada

The Bank of Canada has opted to freeze rates for the 11th consecutive time, maintaining the 1.0% interest rate this morning.

The stay is consistent with Governor Mark Carney’s statements from October that forecasted no changes for the foreseeable future. The current Chairman of the Financial Stability Board insists that the Bank will remain flexible, in light of world and domestic future developments (specifically the never-ending European debt and banking crisis). Continue reading →

Agricultural Mortgage Rates and Information

Although agricultural mortgage rates are similar to consumer’s home mortgages, they can be a lot more flexible when it comes to payment options, tenure period, and also the transferability of financial debt. If you happen to have acquired a farm, or maybe are currently contemplating getting yourself into the farm industry, now is a good time to make contact with Family Lending and discover more about agricultural mortgages.

 

Big benefits associated with farm mortgages
When searching for a farm mortgage loan, or perhaps when looking into an agricultural mortgage refinancing, make sure you work with a mortgage broker first in an effort to comprehend the significant variations concerning consumer and farm rates on mortgages. Choosing a home mortgage for a farm property is actually a foolish first time purchaser mistake, as well as something that may cost you a lot of money in additional charges.
The greatest difference between a consumer mortgage and a mortgage loan for farm land lies in the unique alternatives made available from farming mortgage brokers. Included in this are more affordable interest rates, flexible repayment alternatives (including interest only repayments), periodic repayment selection, and also the opportunity to transport the mortgage loan to a different person (especially from one relative to a different one).

 

Specifically what does an agricultural property mortgage loan deal with?
A farm mortgage loan is very flexible because the amount of money can be utilized for a wide array of farm-related improvement. A farm mortgage loan not only provides capital for farm property, moreover it covers other types of mortgages to help you obtain or develop rural establishments, including pastures, smaller gardens, plant centers, in addition to ranches. It’s not necessary to be thinking about buying a traditional “farm” in order to take advantage of reduced rural rates on mortgages, so always remember that when conversing to your agricultural mortgage lender.

 

Farming rates on mortgages
Prevailing industry conditions and marketplace rates, mortgage loan option, principal sum, and the equity worth for the mortgaged property all play a role with the rates that agricultural mortgage brokers supply. Farm property rates on mortgages are categorized in a couple of standard classes: fixed farm interest rates as well as changing farm rates. For additional info on consumer fixed and variable mortgage please review our Fixed Property finance loan Versus Variable Home finance loan source of information.

Similar to consumer set mortgage loans, a rural set property finance loan offers stable interest rates. This sort of agricultural mortgage can often be somewhat higher, however it will never vary throughout the property finance loan period. A variable agricultural property finance loan varies from month to month subject to market conditions. Which means your monthly payment sum will always be varied, which often can cause additional stress to an already restricted budget. On the other hand, variable mortgages premiums can often drop lower than the usual fixed rate.

 

Check out a farm mortgage loan refinancing
If you’re currently having to pay an extremely excessive fixed rate on your agricultural mortgage loan, you might want to consider opting to remortgage in order to have a better rate. The key is to discover a varied mortgage rate when the prevailing market mortgage rate is lower, and then re-finance the property finance loan to a set rate whenever the market industry rate becomes too high. In the event the fixed interest rate gets to be greater than the market industry interest rate, you may then prefer to re-finance the mortgage back to a variable agricultural mortgage rate or lower fixed agricultural rate of interest.

 

Allow the specialized mortgage brokers at FamilyLending.ca help you find a competitive agricultural interest rate. Speak to a mortgage broker by contacting toll-free 1-866-941-6678.