Category Archives: Mortgage Term

Why a Bank Mortgage Might Not Make Cents

It’s no secret that the banking industry operates in a regulatory environment. Bankers and advisors are required to adhere to strict rules and restrictions… except when it comes to mortgages. According to Samantha Gale, a former mortgage regulator with B.C.’s Financial Institutions Commission and chief executive officier of the Mortgage Brokers Association of British Columbia, individual bank mortgage reps, unlike mortgage brokers and agents, operate outside of regulatory boundaries.

In fact, most banks set their own mortgage recommendations and compensation agreements themselves.

Consumer protection differs greatly between brokers and bankers. Since bank employees are the ones recommending the mortgage product, or an alternative lender, and these banks aren’t required to abide by the same broker regulations, there’s nothing stopping them from doing what they please.

Which begs the question, just whose interests are these bankers looking out for? Continue reading →

A Closer Look At Your Neighbourhood’s Housing Market

The elusive soft landing has finally hit ground in Canada, as the latest reports from the Real Estate Association show a decrease in year-over-year sales. The real estate group found that sales were down 0.1% in October from September. Actual sales for October (without the seasonal adjustment) were down 0.8% from a year ago.

While not unexpected (a housing slowdown has been anticipated since the government tightened mortgage rules back in June) experts are worried that the changes to the regulatory system may have a bigger impact than originally expected.  Continue reading →

The Perks of Paying Off Your Mortgage Faster

The amortizations gods have been good to Canadians over the past three years. Just 60 months ago, mortgage rates were nearly double what they are now, costing homeowners thousands of dollars in interest every year. In fact, if you were to compare interest costs in 2007 with today’s rates, you’d save over $100,000 in interest over a 25 year amortization period on a $200,000 home.

There’s no doubt that now’s the time to take advantage of these historically low rates. Which begs the question – are homeowners doing enough to capitalize on these record-breaking deals?

Continue reading →

Explaining Foreclosures in Canada

Found yourself in a financially tough spot? Having trouble making your monthly mortgage payments? Be careful – foreclosure could be around the corner. While it is generally in the interested of both the bank and you, the borrower, to avoid foreclosure proceedings, sometimes there is no other option.

A number of things happen when a homeowner defaults on their mortgage. Of course, the first step is to try and get your mortgage payments back on track. If your financial problems are temporary, you might be able to arrange some concessions on your payment schedule. However, I wouldn’t hold your breath. If a resolution isn’t reached, the bank will take steps to recover their debt. The most common forms include a Power of Sale and a Judicial Foreclosure. Continue reading →

How To Buy A House When You Have Bad Credit

According to recent reports, more than one in eight adult Canadians are expected to declare bankruptcy or negotiate a debt settlement with creditors. And yet, Canada’s homeownership numbers are currently at a record high. This just goes to show you that devastated credit doesn’t have to leave you high and dry when it comes to entering the housing market. Granted, credit-challenged consumers are bound to encounter more than their fair share of bumps along the road to homeownership. Even so, poor credit history isn’t insurmountable. Here’s what you need to know if you’ve recently gone through a bankruptcy or consumer proposal but are still optimistic about buying your first home. Continue reading →