According to a recent study conducted by TNS Canada, the nation’s housing market is expecting to see increased activity within the next two years. The online study, which was commissioned by TMG The Mortgage Group Canada, discovered that just under one third of Canadian renters are planning to buy real estate within the next two years. That amounts to a potential increase in demand of nearly 12%. Not surprisingly, many recipients credit mortgage interest rates for driving their purchase decision. Continue reading
Tag Archives: Mortgage Term
“Price War” Prompts TD and RBC to Up Rates
Canadian mortgage rates are on the rise again, reportedly thanks to “price-cutting” by some of the nation’s top banks. After briefly offering record-low rates of 2.99% on a 4-year fixed mortgage, both RBC and TD have raised rates by 40 basis points. The move comes rather unexpectedly; when the Royal Bank of Canada announced it was dropping their rates on January 13, the bank stated that they intended to keep the rates locked in the market until February 29. Continue reading
Getting to Know Your Debt-to-Income Ratio
Do you know your debt-to-income ratio? If you’re like most Canadians, the answer is no. Unfortunately, failure to fully understand this important element of your financial portfolio could cause you grief when it comes time to secure a mortgage pre-approval. Luckily, calculating your debt-to-income ratio is easy – all you need is a good financial calculator and a few necessary numbers. Continue reading
Reverse Mortgages on the Rise
Aging Canadian’s in need of a financial boost are cashing in record numbers, according to data released earlier this month. A report released by the parent company of HomEquity Bank, the nation’s sole provider of reverse mortgages, states that a record number of reverse mortgages (with a rough total worth of $67.2 million) were closed in the fourth quater of 2011.
Reserve mortgages are becoming increasingly popular among the nation’s elderly, especially those who have failed to save enough to fund a comfortable retirement. Reverse mortgages allow seniors to borrow up to 50% of the appraised value of their home; principal repayment (along with interest) is not collected until the home is sold.
Is a reverse mortgage right for you? It could be, especially if you’re house-rich but cash-poor. The following is a full analysis of the pros, cons and alternatives to Canada’s newest mortgage craze. Continue reading
Are Your Ready to Buy?
You’ve had it with your roommates and you’ve had it with paying rent. You’re ready to move out and you’re seriously considering taking the leap into homeownership. But just because you want to buy a home, doesn’t mean you should. Before you start planning your housewarming party, take a minute to sit down and consider everything that comes along with homeownership. From mortgage rate trends to better budgeting, there’s more to buying a house than simply signing an offer. Continue reading