Tag Archives: Best Mortgage Rate

Toronto and Vancouver Markets Begin to Cool

Home sales in Canada’s two hottest markets, Toronto and Vancouver, have already begun to cool thanks to new mortgage rules. According to the Toronto Real Estate Board, July home sales in the city slipped 1.5 percent compared to a year ago. Properties in Vancouver dropped 11.2 percent from June.

Concerns about a bubble in both communities had been mounting since 2011. Recent changes to mortgage legislature has effectively slowed demand in both markets; Vancouver’s market posted a 10-year low in sales, while Toronto’s numbers were down 21 percent in the second quarter from one quarter earlier (source: Urbanation Inc.). Continue reading →

Understanding Amortization

A shorter amortization period can help you pay off your mortgage faster and save you money. Obvious? Perhaps. So why are more and more people choosing to stretch their amortization as long as possible? The recent changes to Canadian mortgage regulations that limit amortization periods to 25-years have caused a bit of tension across the country as families scramble to manage increased payments.

However, at the end of the day, this restriction will go a long way to improving the pocketbooks of families from coast-to-coast. It wasn’t long ago that home hunters strove for shorter amortization periods in order to pay off their mortgage as soon as possible. As mortgage rules relaxed, so too did our dedication to frugality. Continue reading →

Is a One-Year Fixed Rate Mortgage Right For You?

Rates have nowhere to go but up.

Or at least, that’s what everyone keeps telling us. Banks, economists, mortgage brokers, even Finance Minister Jim Flaherty is insisting that interest rates will start to climb later this year.

And yet, they keep going down. The mortgage establishment continues to drop interest rates, pushing long-term fixed mortgage rates like they’re going out of style. Which might be the case. With no clear sign of imminent rate hikes, borrowers are beginning to consider shorter term options in order to maximize their savings.  Continue reading →

Why You Should Buy Commercial Real Estate Now

Tired of paying high leasing rates at your current commercial location? Well, what if you knew you could save more in the long term if you opted to buy a building for your business today? Low interest rates, low vacancy rates and a tight supply are creating the perfect purchasing situation for entrepreneurs across the country.

According to Steve Murphy, senior vice-president of commercial and treasury management at BMO, now is a particularly good time to invest in commercial property, both for their own uses and for leasing opportunities. “There is a strong demand for these properties by users, who are often able to lease out part of the property for additional rental income.” Continue reading →

New Mortgage Rules Will Dampen Economic Growth?

Finance Minister Jim Flaherty stated last week that he realizes tightening mortgage rules could slow economic growth by force-cooling the housing market, and also that he was prepared to take this risk. Since then, TD Bank Mortgage professionals have estimated that Ottawa’s move to reduce the maximum amortization period to 25 years could curtail growth by as much as 0.2 percentage points in 2013. Continue reading →