Federal Government’s Mortgage Insurance Changes
This morning, Federal Finance Minister Jim Flaherty announced changes to mortgage insurance rules intended to ensure the stability of Canada’s housing market.
These measures include:
- Amortization period capped at 30 years
- Reduction of government backing for home equity lines of credit
- Maximum refinancing reduced to 85% from 90% LTV
If you have any questions about these new changes, please contact me for further details.
Recently a close friend showed me how she was going to consolidate their high-interest debt into their mortgage to reduce their overall interest rate and free up hundreds of dollars in cash flow every month. Debt consolidations are nothing new, but they only work if the person is not simply looking for a quick fix.
In this particular case, $410 was freed up in monthly cash flow and the refinanced mortgage interest rate was lower. In many situations, however, consolidating debt into a mortgage comes at a cost: You must break your current mortgage and the high-interest debt then gets amortized into the new mortgage balance at a lower interest rate. Your overall debt goes up by a few thousand dollars (the cost to break the term and perhaps paying a CMHC premium on the increased balance on the mortgage), the rate of interest you pay overall goes down, but those high-interest debts are now being paid off over much longer periods of time.
So what’s better? Paying high interest for a few years or paying lower interest for a few decades? Well, you have to do the math, and then you have to figure out if you are just giving yourself more rope with which to hang yourself. Request an appointment today at Moncton Mortgage and we will do the calculation for you at NO charge!!
MatMortgage.ca is now heard on the Radio, we have include the ad with this post.
MatMortgage.ca Radio Ad
According to a recent survey sponsored by mortgage insurer Genworth Financial Canada, homeowners are in the best shape when it comes to financial fitness in Canada.
Sixty-five percent of homeowners pay off their credit card balances each month (versus 48% of non-homeowners). Furthermore, a quarter of those homeowners with mortgages have managed to make a lump-sum payment or accelerate their mortgage payments in the past year.
Nearly half (44%) of homeowners were able to pay all of their bills and save some money in the past year, suggesting a strong correlation between homeownership and financial fitness.
The Financial Fitness survey was conducted in conjunction with the Canadian Association of Credit Counselling Services. Compared to the same survey undertaken in 2007 when the economy was booming, Canadians are even more likely now to say their financial fitness is good (55% versus 50%).
Other key survey findings show:
- Mortgage holders more likely to have accelerated or made a lump-sum payment include those with incomes $75-$99k (32%) or $100k+ (30%), and women more than men (26% versus 21%).
- 49% of homeowners made down payments of 20% or more on their purchase
- 13% of homeowners say they are in great financial shape
- 12% of homeowners say they have requested a credit report within the past 12 months
- 59% of Canadians say they pay their credit cards in full each month
- 39% of Canadians say that in the past year they were able to pay their bills and save some money. A further 41% were able to pay their bills but not save
- First-time buyers/those who intend to buy a home as well as those requiring mortgage insurance are more likely to have spoken to a financial planner/coach in the past 12 months
Click here for complete survey findings.
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Today started our marketing campaign in Moncton and Dieppe, You will be able to see our billboards in a few areas around town.
Here it is
Today started our marketing campaign in Moncton and Dieppe, You will be able to see our billboards in a few areas around town.
Here it is
Matmortgage.ca Billboard
The Bank is indicating that it is willing to continue to raise rates but at the same time, it is clear that the Bank is not blind to what is happening around it.
A slowing US economy; uncertainty regarding Europe; a slowing Chinese economy and a rapidly cooling real estate market here at home, all will work to limit rate increases this year…
from CIBC World Markets’article
Do you know the difference between the Mortgage Broker and the Bank Mortgage Specialist? Don’t feel bad, not everyone knows the differences.
The foremost and biggest difference is that the Mortgage Broker works for YOU and the Bank Mortgage Specialist well you guessed it, works for the bank.
The Broker will make sure you get what is best for you and help you save as much as he can save you, his counter part will make sure the banks makes the most as it can in the deal.
The Broker can offer you products from many banks, credit unions and lenders. He hunts down the current best offers to be able to pass them on to you. If he doesn’t, he won’t survive, since he only get paid once the deal has been made.
If you would like to get a more information or apply, visit this page for Moncton Mortgage Broker
