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.

Ford – Toronto moving ahead with plans to ditch land transfer tax

Toronto’s mayor recently confirmed that he will continue to move forward with one of his election campaign promises to lower and eventually eliminate Toronto’s land transfer tax.

Mortgage Financing Document Checklist

When purchasing a new home, refinancing or transferring an existing mortgage, knowing what documents and information may be requested by a lender can speed up the financing process and help you avoid any last minute surprises.  Here is a checklist to help you prepare...

Mortgage Default Insurance – Home Buyers Series Part 1 of 4

Back in the mid 1950’s, if you did not have 20% of the homes purchase price to put toward a down payment you would not qualify for a mortgage as lenders would only finance up to 80% of the home’s value.   

Still known today as conventional mortgage financing – requiring a 20% down payment put home ownership out of reach for many Canadians as escalating home prices made it more and more difficult to save enough for the down payment.  

The real estate and mortgage lending landscape changed dramatically in 1954 when the Canadian Government introduced mortgage default insurance. 

Realtor's Exposed!

I hope you’re not reading this article because you were looking for some dirt on Realtors?

To the contrary, this article touches on the benefits that Realtors or Sales Representatives provide to their clients throughout the complex and sometimes frustrating and confusing home buying / home selling process.

House Prices To Hold in 2012 - CMHC

The Canada Mortgage and Housing Corp. believes mortgage rates will likely remain at historically low levels at least until the last half of 2012, resulting in a balanced housing market and keeping average home prices to remain fairly flat throughout the year. 


Here is the link to the Globe and mail article:
http://www.theglobeandmail.com/report-on-business/economy/housing/house-prices-to-hold-next-year-cmhc/article2225301/


Domenic Mirabelli
Mortgage Intelligence
416.303.4480
domenic.mirabelli@migroup.ca


"Helping you find a mortgage...and peace of mind" 

Re/Max Report: Canadian Home Values Have Doubled Since 2000

Now this is what we would call a big deal! According to Re/Max, the Canadian real estate organization, the average home value has doubled in most big Canadian cities since 2000.

Re/Max examined the value of homes in 16 major markets across the country and calculated the changes that happened from 2000 to 2010.

Bank of Canada Outlines Mortgage Rate Discrimination

If you don’t think banks discriminate when deciding who gets the best mortgage rates... you may want to check out this report released by the Bank of Canada.  

Buying a Home? What you need to know about your Downpayment!

You’re downpayment is essentially your initial contribution toward purchasing a property.  A downpayment not only gives you a bit of ownership in your property but also gives the eventual mortgage lender a greater sense of security as you are invested in the property and have something to lose should you not be able to meet your mortgage commitments.

The Self-Employed Enjoying Mortgages Designed For Them

The self-employed now comprise approximately 16% of Canada’s total workforce. While many like to imagine that these are the lucky folks who are living their entrepreneurial dreams, talk to self-employed Canadians about getting a mortgage and many will tell you that the dream can have downsides. 

Recent Study Indicates Stable Housing and Mortgage Markets in Canada

A recent report released by the Canadian Association of Accredited Mortgage Professionals indicates that the Canadian housing and mortgage markets are both experiencing a period of stability.

Mortgage Penalties...Are Banks Gouging Canadians?

A $200,000 mortgage taken in December 2008 will cost you $16,800 to get out of today…. but 12 years ago it would have cost you approximately $8,340 and even today, it should only cost $11,640. Got your attention? Please read the entire report to better understand.

Home and Mortgage Affordability Guidelines

The Canada Housing and Mortgage Corporation (CMHC) provide two basic guidelines to help Canadians determine the maximum percentage of income that should go toward paying mortgage and other household debt.  Lenders generally use these same guidelines to help determine who they will lend to and the maximum mortgage amount they qualify for.

Mortgage Tips - Variable Rate Mortgages Not All Created Equal

Certain Banks like RBC, TD and Bank of Montreal compound the interest on their variable rate mortgages monthly rather than semi-annually which can cost clients thousands of extra dollars in interest payments.

Don't fall victim to these types of terms and conditions found in the small print.

"Helping you find a mortgage...and peace of mind"

Domenic Mirabelli
Mortgage Agent
M10000364

416.303.4480
domenic.mirabelli@migroup.ca