Category Archives: First Time Home Owner

Make the Most of Low Mortgage Rates in 2012

Are you in the market for a mortgage renewal this year? Then pull up your socks, grab a mortgage calculator, and get ready to start saving some serious cash! If you’re one of the many Canadians who settled for a fixed-rate five-year mortgage back in 2007, chances are you’ve been kicking yourself ever since. At the time, locking in a 5 percent or higher interest rate seemed like a bargain – the market was hot, housing prices were high, and interest rates were on a continued climb.

And then the bubble burst, the U.S. economy toppled, and interest rates dropped to historic lows. Five-year fixed mortgage holders were left with massive payments while the rest of the country took advantage of some of the best mortgage rates ever.

But the tides are about to turn. Continue reading →

House Hunting Goes Social with HomeSort.ca

New interactive website will change the way you shop for real estate

Finding your dream home just became a whole lot easier thanks to HomeSort.ca, a new interactive website that makes organizing, comparing and sharing promising real estate listings easy. Developed by industry-leading online mortgage specialists, FamilyLending.ca, the HomeSort.ca system takes the hassle out of home hunting.

“Looking for a new place is tough,” explains Robb Nelson, President and CEO of FamilyLending.ca, “Monitoring, comparing, and sharing listings with your circle of friends and professional acquaintances used to require hundreds of emails, phone calls and print-outs. Now all you need is your free HomeSort.ca account.”

With a few simple clicks, users can save different real estate listings from external sites like HomeFinder.ca, Zoocasa.com and Realtor.ca into HomeSort.ca’s streamlined property management system. Simply copy and paste the URL of the listing and HomeSort.ca will save important details to your account for future access. Continue reading →

How Much Would an Interest Rate Increase Hurt Your Budget?

According to a recent study by the Bank of Montreal, four in ten Canadians would feel the pinch if best rate mortgages saw a two percent interest rate increase. The study, which was compiled by Leger Marketing, found that 43 percent of Canadian homeowners believe an interest rate increase would either hamper their ability to pay their mortgage or leave them on rocky financial footing.

The study also found that one out of every five Canadians surveyed felt that a two percent increase would hurt their ability to make their mortgage, while 23 percent were unsure how a hike would affect them. Just over half, 57 percent of respondents felt that they could still afford their home if interest rates were to increase (the survey was completed online with a national sample of 150 Canadians over the age of 18). Continue reading →

Budget Overview: What It Means for CMHC

From pennies to old age pensions, yesterday’s budget was full of unexpected quirks. What wasn’t surprising to best rate mortgage brokers was the government’s discomfort with the Canada Mortgage and Housing Corporation. Ottawa has voiced concern over the activities of the Crown corporation for months now, threatening to toughen its oversight of this important economic organization. Yesterday, the budget took aim at the CMHC, which controls about 75% of the mortgage default insurance market. Currently, CMHC is backstopped by the federal government; however, the organization is coming close to a mandated limit of $600-billion thanks to a sizzling housing marketing and the proliferation of bank-offered portfolio insurance packages (for more background information on this issue, review our article “CMHC Backing Fewer Loans: A Look at the Repercussions“).

According to the budget, “the government will introduce enhancements to the governance and oversight framework of the Canada Mortgage and Housing Corporation.” Continue reading →

What Will the Budget Bring?

According to a report in the Globe and Mail, next week’s highly anticipated federal budget should only contain “modest” spending reductions and little to no intervention in the housing market. Finance Minister Jim Flaherty delivered these and other comments outside of a volunteer firefighter station in Ottawa last Thursday. During the announcement, Mr. Flaherty stated that he would like to see if the market could “correct itself,” rather than force new regulations into place.

Flaherty’s response comes after Canadian banks requested Ottawa to institue mortgage insurance regulations in order to avoid what many areĀ foreseeingĀ as a major housing crash. The nation’s largest banks have been calling for the government to either lower the maximum amortization period for insured mortgages or raise the required minimum down payment amount for best rate mortgages.

Continue reading →