Tricky changes to the mortge rules
Here is one of the changes of the mortgage rules that is now in effect – called the B21 Rules.
It will be sure to cause surprise for some customers that have large Line of Credits – LOCs
How the banks are now calculating monthly payments for secured lines of credit:
Downtown living the ‘new normal’
This is more support for central/ down town condos in Calgary supporting their prices as more people move to the core to avoid the commute.
Mark Herman, Calgary Alberta mortgage broker
Downtown living the ‘new normal,’ report says
Employers move to urban cores to attract qualified workers, retail follows.
Homeowners choosing urban living over suburbia is a key trend in Canada’s real estate market and is helping drive both retail and commercial development in city cores, according to a report. …
Interest rates expected to go up October 2015 says Bank of Canada
The Bank of Canada has updated when they plan to increase rates again … about a year from now – so next October? Expect rates to go up 1% then.
Mark Herman, top Calgary, Alberta mortgage broker
TD’s huge payout penalties in the news – $17,000!
Not only does TD have collateral mortgage registrations but they, and all the other banks love to gouge on the payout penalties.
http://www.cbc.ca/news/canada/edmonton/td-bank-client-devastated-by-17-000-mortgage-penalty-1.2790108
Worried about oil prices and the Calgary housing prices?
Have a look at this TD report about the price of oil and the Canadian economy.
Highlight: TD expects the Bank of Canada to keep rates the same until mid-2015.
Link to the TD report, outlining the various outcomes of the recent fall in the price of oil.
Calgary house prices grow the highest in Canada
Calgary’s house prices are growing the fastest in Canada. As I have been saying for ages, this is due to the continued in-bound migration by workers from Canada and overseas and it has been sustained for more than a few years now. CMHC forcasts it to continue for a few more years as well. Mark Herman, top Calgary Alberta mortgage broker
Second most sales homes in Calgary EVER for the month August!
The average cost of a home in YYC is now 545,000! When you include condos in the mix the average is 459,500!
To be able to buy many people are turning to condos as most are priced below 400k.
BUT conod purchases include: AGM’s, reserve fund studies, board meetings minutes, financial statements, engineering reports, bylaws, post-tension cables, elevators, and all the rest.
Calgary – 5th BEST place to live in the world! – the Economist
This is why Calgary housing prices are supported by about 20,000 new arrivals a year. The in-migration will continue for a while yet … and that will support housing prices.
Three Canadian cities — Vancouver, Toronto and Calgary — have been named as some of the best places to live in the world, according to a report by The Economist.
In the annual poll ranked Vancouver as 3rd most livable city in the world; followed by Toronto at No. 4, and Calgary tied for fifth place with Adelaide, Australia.
Mortgage rate data – short version
Below is the type of data that we watch for you on a daily basis. … short version – rates are holding at 114 year lows.
As expected the Bank of Canada has held the line on its benchmark interest rate for another setting.
Is it time for mortgage interest rates to start going up?
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The Canadian housing market shows no signs of slowing down during the typically slowing summer months. Economists say they continue to be surprised by the strength in the housing market and continued appetite that Canadians have towards home ownership. The U.S economy is growing much faster than expected and unemployment is down to 6.1% which is at its lowest level since the summer of 2008. Housing starts across the US have also exceeded the expectations of many economists. This encouraging news is causing speculation that the US Federal Reserve will be forced to raise interest rates faster than anticipated to ensure inflation does not become a concern. According to Bloomberg News, Charles Plosser of the Federal Reserve states, “The data keeps telling us we ought to be raising rates, if we wait too long we could find ourselves raising rates faster and higher than we want to.” Historically, our interest rates usually follow the lead of the US. With the hot real estate market this summer, it makes sense to get a pre-approved mortgage with a locked in interest rate while we are still at historical lows. Access to major banks, trust companies and credit unions combined with my expertise provides you the opportunity to get the right mortgage with the best possible rate and terms. Contact me today.
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