Are the new changes in Canadian mortgages affecting the wrong people?

Housing policy is being created for the whole country based on markets in Toronto and Vancouver

They are Canada’s two hottest housing markets, and even some in the real industry don’t question the need to cool prices in both Toronto and Vancouver, but that opinion changes once you get beyond the orbit of those two cities.

There is almost a sense of bewilderment in places like Halifax and Edmonton or Montreal, where people wonder what overheated housing market anyone is talking about, because it’s not happening in their jurisdiction. DBRS Inc. said this week that from July 2015, to July 2016 prices across the country are almost flat once British Columbia and Ontario are excluded.

“It’s raining in Vancouver, but first-time home buyers need an…

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The Five C's of Credit

To most Canadians, buying a property is a daunting task in itself. But what about securing a mortgage? 

What factors are taken into consideration by lenders and underwriters that can make or break the loan?  Obviously, credit is a major decider in the equation, but what exactly goes into deciding credit worthiness?  What most Canadians aren’t aware of is that credit is not just a score or an ability to make payments on time. Credit is actually composed of a few different categories known as the five C's of credit.

The 5 C's of credit consists of: Credit, Capacity, Capital, Character & Collateral.

1. Credit shows the lender a snapshot of what the borrower’s repayment history has been over a period of time. This is the only way a lender can predict…

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Top 6 Reasons to Buy a House or Home in Kamloops in 2016-2017

Well 2016 is three quarters over, that was fast.

For people who happen to be planning on purchasing a house in the last part of 2016 or early 2017 there is a great deal to look forward to. Why?

MAKE SURE YOU UNDERSTAND THE NEW MORTGAGE RULES FROM OCTOBER 17 2016 HERE

A number of factors this year have dovetailed to make this an ideal time for home buyers to get out there and make a (winning) offer and finally allow them to buy a house in Kamloops. Here are six house-purchasing factors to be grateful for:

Reason No. 1: Interest rates are still at record lows

While they might creep up, it is nevertheless true that interest rates on home loans are at historical lows, you only need to read the news and speak to a lender to confirm this.

…

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Mortgage rules: What do the changes mean?

There are new changes that are going into effect this month surrounding Mortgage Guidelines in Canada.

A major shift in mortgage rules announced by the federal government this week will drive up rates for consumers and cut competition in the lending sector, say some in the industry.

The Liberal government has announced sweeping changes aimed at ensuring Canadians aren’t taking on bigger mortgages than they can afford in an era of historically low interest rates.

Mortgage expert Robert McLister says Ottawa is cracking the housing market with a “sledgehammer.”

He predicts consumers will bear the brunt of the blow and that housing prices will tumble because a “sizable minority” of first-time and high-ratio buyers will no longer qualify for the…

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Who Pays for What When Buying a Home?

Buying a piece of property is not a simple transaction, and buyers are often surprised by the number of parties involved, who of course, all need to be paid. 

But how is it determined who pays for what?  What is a seller expense and what is paid by the buyer? 

Inspections and Reports

It is generally up to the buyer to pay for a general home inspection and any other more specialized inspections such a roof, plumbing, or electrical inspection. If there is a well or septic system on the property it is generally up to the buyer to have those systems inspected and and to do a water test.  On a large property the buyer may also want a survey that marks the corners of the lot.  This may or may not be paid by the seller.  The allocation of costs for…

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Feds’ Strict New Mortgage Rules - Target First-Time Buyers and Millennials

Finance minister announces new “stress test” on applicants for all insured mortgages, which will “take lots of people out of the housing market,” according to local mortgage expert

Canadians applying for a mortgage that requires CMHC insurance will have to qualify under higher interest rates under a new “stress test” announced October 3 by federal finance minister Bill Morneau.

The tougher mortgage rules were announced as part of a wider series of "preventative measures" aimed at “ensuring the long-term stability of the market” and reducing risk, according to Morneau.

Under the proposed new mortgage qualification rules, the current “stress test” that currently applies to some insured, variable-rate mortgages and insured mortgages with terms of…

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What to Look For When Searching For a Neighborhood

How to Pick a Neighborhood to Live In

The process of buying a home can be incredibly exciting. Imagining you and your family living in a new, better space where you can all enjoy yourselves is motivation enough to work through all the challenges of finding and buying a house. Let’s face it – knowing how to pick a neighborhood is important!

When you buy a home, you are buying more than just a building. You are purchasing a lifestyle. Where your home is located, the neighborhood that it is located will influence the lives of you and your family for as long as you live in that house. This makes choosing the right neighborhood an integral part of choosing the right home. So how do you pick a neighborhood?

When looking for a home, most people will…

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10 Common Mistakes First-Time Home Buyers Make

A first-time home buyer falls in love with a property: afraid to lose out, any & all helpful advice gets thrown out the window, an offer gets put in and accepted.

This first-time home buyer has now spent more than he/she can afford on less of a house that he/she wanted.

Does this sound familiar? How can you avoid these mistakes

This is but one of the common mistakes first-time home buyers make when plunging into one of life’s most exciting, exhilarating and exhausting times: buying your first property.

At this point, there’s a lot that comes into play that you need to be aware of as you’re going through the different stages of buying your first property. Buying a home is quite different to what you’ve ever purchased before, which is why it’s…

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Starting from scratch an immigrants guide to getting started in Canada

Millions of immigrants come to Canada and quickly discover that getting established financially isn’t easy

Overview

Last year, Canada welcomed more than half a million newcomers to our country as immigrants, international students and temporary foreign workers. The number one source for new permanent residents is now the Philippines, followed by India, China, the U.K. and the States. Canada may be the best country in the world to live in, but that doesn’t mean that it’s easy to get established. People come to Canada dreaming of obtaining greater financial security and opportunities for themselves and their families, but they often spend years struggling to build up credit, find a decent job and grow their wealth.

In the pages that follow, we…

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10 Homebuyer Tips For Making The Most Out Of An Open House

The open house is one of the best resources a home buyer can take advantage of

It’s a great way to go check out a house that you might be interested, ask some questions and inspect both the interior and exterior in person without feeling any kind of pressure or obligation from the seller or their agent. The following are a few tips that will help you get the most out of an open house:

1. Use an Agent to hold the houses open exclusively to you

The best open houses are the ones you choose, based on your price, your criteria, and  a selection you have made with an agent. Instead of following open house signs that go on forever that lead you to a home way out of your price range, or not in the right school zone, or without the right number of…

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