The Canadian dollar continued to go up in value, reaching 98 cents US yesterday for the first time since May. This is usually what happens when the Bank of Canada raises interest rates, as they have twice recently and are expected to possibly do again in their next rate update.
Real Estate Owners, Mortgage Brokers and Home Buyers due for a “Reality Check”
Today I got this article come across my desk from the Financial Post talking about the “new reality” that everyone in the housing market will be facing in the near future. It is talking about the historical returns in the appreciation of real estate and how they are unsustainable, and gives some examples of people who have recently been burned by speculation in the real estate market.
Real Estate Prices and Sales Down in Vancouver
The mortgage news of the day today is that the Canadian housing market has cooled down considerably the past couple months compared to this time last year. The Canadian Real Estate Association has reported that housing sales are down 45% in Vancouver this year compared to July of 2009. Prices have also dropped since April, now being down 2.8 percent.
Online Mortgage Applications – Do You Know Who You Are Dealing With?
A question that I often receive when meeting with mortgage clients is “why is it that you do not have an online mortgage application?” I think today is a good day to write about exactly why I do not employ this tool in my mortgage operation, and I think it is food for thought for everyone searching for a mortgage on the internet. (more…)
Another Debate on Variable vs. Fixed Mortgages
In this article in the Financial Post, the age old debate of variable rate mortgages vs. fixed rate mortgages is raised…yet again. It infers that people are in over their heads with variable rate mortgages and that most people are best getting into a fixed rated mortgage. (more…)
West coast couple stakes it all on property – Alternative Analysis from a Mortgage Broker
I came across this article today in the Financial Post, in which a financial planner breaks down the situation of a volunteer reader. He delivers an opinion that I am inclined to disagree with. Although I am a mortgage broker and not a financial planner, I will attempt to explain my thoughts in detail with regards to the article. (more…)
ICICI Bank Joins The Mortgage Broker Channel
Although I had heard of ICICI Bank previously, we as mortgage brokers did not have access to them for our clients, and the client would have to go directly to one of their few branches to obtain a mortgage. However, this has now changed, and I now have access to this relatively new bank. There is a good article on them at the Financial Post, talking about their quick rate of growth. (more…)
Slow US Economy Could Affect Canada Variable Rates
Further to my comments yesterday about continuing to recommend variable rate mortgages to clients, there is a new story about the Chairman of the US Federal Reserve talking about an uncertain economic recovery in the US. (more…)
Bank of Canada increases Prime Lending Rate, Affecting Variable Rate Mortgages
As widely anticipated, the Bank of Canada today increased its prime rate to 2.75%, affecting variable mortgages. The Bank of Canada is the first central bank in the G7 to raise rates once, let alone twice as they have did for the first time 5 weeks ago. (more…)
Keep The Condo…Pay Down The Mortgage…Lower Your Taxes
On the Globe and Mail website today is a segment in which a reader poses a question about her financial situation and a financial planner provides some advice.
In this segment, a 57 year old woman on disability with some savings, some equity in a condominium and a fairly manageable mortgage asks how to best go about her finances when it comes to retirement. (more…)