Costs of Home Ownership - Now and in the Future!

The importance of thoroughly researching the entire home buying process and the associated costs of home ownership cannot be overstated.

While working with a reputable realtor and mortgage broker will help prevent home buyers from making some of the more common mistakes associated with the purchase process, clients must be proactive in educating themselves with respect to the hidden costs of home ownership.

Mortgage and Housing Market - Stay Informed

As tougher mortgage rules slow housing market, critics call for a reversal

Garry Marr | Financial Post Nov 26, 2012

The real estate industry has ramped up its attack on rules making it harder to borrow but its challenges face one big obstacle — mortgage restrictions are working exactly the way the federal government wants them to.

In the past week the Canadian Association of Accredited Mortgage Professionals weighed in with complaints that Ottawa’s restrictions were killing consumer confidence and even raised the stakes further by suggesting the entire Canadian economy was at stake.

>>>Referral Contest<<< Win an IPhone5 or and IPad3

First off… Congratulations to Rayissa Palmer, Winner of a Brand New IPhone5 for referring  a client during my October Referral Contest.   The client got a 5 year fixed rate mortgage at 2.94% and have moved into their new house so everyone’s happy!

>>>New<<<    Year-End Referral Contest…Win A New IPhone5 or A New IPad3

Dear friends, family and colleagues…

Refer a new client resulting in a funded mortgage and win a Brand New IPad3 or IPhone5

Refer a client who funds a mortgage for between $350,000 – $499,999 and “Win a Brand New IPad 3” ($519 Value)

Refer a client who funds a mortgage > $500,000 and “Win a Brand New IPhone5” ($699 Value)

 ***Eligible on New Referrals received between Nov 27^th and December 31^th , 2012

Helping Realtors Sell Homes

To My Realtor Partners…

Please take a few minutes to read through what I think you will agree is the most in depth client screening service offered to Realtors in the mortgage industry!

My services have 1 purpose...”Helping Realtors Sell Homes”

New Motgage Rules - June 21st, 2012

Summary of changes to mortgage guidelines as per Finance Minister Jim Flaherty…(effective July 9^th, 2012)

1)   The maximum amortization period for purchases with less than a 20% down payment will be 25 years (down from 30 years)

2)   Home owners will only be able to refinance their homes up to 80% of the home’s value (down from 85%)

3)   The government is also resetting the maximum Gross Debt Servicing ratio (GDS) to 39% and the Total Debt Servicing ratio (TDS) to 44% (Currently, GDS does not apply to qualified borrowers with credit scores of 680+)  ***see below for info on GDS and TDS

4)   Mortgage Insurance will no longer be available of homes over $1 million (you will need to have at least 20% down payment)

OSFI (The Office of the Superintendent of Financial Institutions Canada is the primary regulator and supervisor of federally regulated deposit-taking institutions)

Announced the following changes…

1)   The maximum loan to value on home equity lines of credit (HELOCs) is cut to 65% from 80%

2)   The loan to value will be re-calculated upon any refinancing and whenever the lender deems prudent

3)   HELOCs will continue to serve as revolving lines of credit with no specific amortization period. However, OSFI says lenders must now expect borrowers to have the ability to fully repay HELOCs over time.

***Debt Ratios (GDS / TDS Ratios)

Lenders have long relied on two standard measures of one's "ability to pay" their mortgage:

Gross Debt Service (GDS): The percentage of the borrower’s income that is needed to pay all required monthly housing costs (mortgage payments, property taxes, heat and 50% of condo fees).

Total Debt Service (TDS): The percentage of the borrower’s income that is needed to cover housing costs (GDS) plus any other monthly obligations that an individual has, such as credit card payments and car payments.

The acceptable ratios for both have generally been 32% and 40% respectively.

For people with very high credit scores, GDS requirements are often waived and the TDS maximum is slightly higher (44% as of January 2011).

Domenic Mirabelli

Mortgage Intelligence

416.303.4480

Domenic.mirabelli@migroup.ca

BMO Mortgage Rate Special - What You Need To Know?

BMO has piqued the interest of mortgage consumers and the mortgage industry in general this morning by announcing a 2 week special rate of 2.99% on a 5 year fixed mortgage.   Like any mortgage product offered by any lender, this offering will meet the needs of certain clients but certainly not all.  What you need to know about BMO’s 2.99% 5 year fixed rate offer...

Aging population helping shape future housing market - CMHC

The Canadian Mortgage and Housing Corporation’s latest study on housing trends predicts that an aging Canadian population will help continue to drive demand for condominiums and smaller homes, institutional buildings such as old age facilities, as well as a lively market for renovators.

The oldest of the baby boomer generation are now entering their retirement years and by 2036, seniors will represent about one quarter of the total population in Canada.  That will mean an increase in older households and more headed by single seniors, who will demand a different kind of residence from the two-story detached home they raised families in.