Banks hiked prime rate as BoC pumps up the Policy Interest Rate. The big banks wasted no time today in increasing the prime rate, as the Bank of Canada raised the key overnight rate. This is the second such increase in the last couple of months. We have seen the rate go from .50% to…
DetailsFirst Off… What’s A Reverse Mortgage? Like thousands of other canadians, maybe you’ve wondered, what is a Reverse Mortgage precisely? In short it’s a simple way for homeowners over 55 to turn up to 55% of their home into tax-free cash. It’s a loan secured against the value of the home, but unlike other loans,…
DetailsThe Bank of Canada raises the key lending rate today. The rate went up from .50% to .75% this increase is the first in the last seven years and it marks a change that will be coming to the Canadian lending market. The key lending rate or the Overnight rate is what financial institutions make day…
DetailsIs the Mortgage market collapsing in Canada? This is the question on everyone’s mind this week. If you have been following our blogs you will know that in Early October of 2016 I ran a blog called The Day After . In that blog post, I looked at the major implications that would be caused by…
DetailsIn our evolving explanation of the elements required to secure a mortgage, we come to one of the most misunderstood elements in the group. Income can be derived from various sources. Because of that reason banks will treat different sources of income differently. To understand this we must first understand what happens behind the scenes when a…
DetailsYour credit score is the first element that is looked at when one applies for financing. You can say that it is the lifeblood of your financial profile. In Canada, we have two main credit reporting agencies. They are Equifax & Transunion. Both agencies gather and build profiles on Canadians and use that information to determine…
DetailsCMHC raises premiums again. Effective March 17th The Canadian Mortgage and Housing Corporation will be significantly raising rates. The media and CMHC can sugar coat it all they want. The increase will hit Canadians and Monoline lenders hard. The new rates will see premiums jump to unprecedented values. that will have a long-lasting impact on the average…
DetailsThis morning, the Canadian Real Estate Association (CREA) released its December national real estate statistics showing home sales rose 2.2% month-over-month in the final month of last year. This rebound retraced less than half of the decline in November, when it posted the largest monthly decline in more than four years in response to…
DetailsThe dawn of the new mortgage rules is upon us. Just as the dawn of a new day reveals the storm clouds that we will face, so do the months of January and February reveal to us how the year will shape up for real estate in 2017. The last set of changes put in…
DetailsThe Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 percent. The Bank Rate is correspondingly 3/4 percent and the deposit rate is 1/4 percent. Economic data suggest that global economic conditions have strengthened, as the Bank anticipated in its October Monetary Policy Report (MPR). However, uncertainty,…
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