Calgary listed as an “out-performer” in Canadian real estate market

Great news to show support for Calgary home prices. It is due to the in-migration which has Canadians from all over moving here for higher quality and higher paying jobs. That is not expected to slow any time soon.

Calgary listed as an “out-performer” in Canadian real estate market

Pace predicted to be moderately lower for the rest of Canada

 By Mario Toneguzzi, Calgary HeraldMarch 11, 2013

Calgary realtor Kaitlyn Gottlieb of Century 21 Bamber Realty Ltd.

Photograph by: Colleen De Neve Colleen De Neve, Calgary Herald

CALGARY — Canada is expected to embark on a gradual, modest, downward housing market adjustment over the next three years with a “measly” two per cent annual price gain over the next decade, says a study released Monday by TD Economics. Read More

How the Bank of Canada just affected your Mortgage.

This is a great article by broker in Toronto.

Wednesday, 06 March 2013 20:42

With a movement towards lower rates for a longer period of time what should you do?

This Newsletter will explain what the Bank of Canada said at this morning’s meetings and aid you in your mortgage decision making process.

The Bank of Canada and most economic indicators suggest that our economy is struggling and we need low rates and economic stimulus to support it well into the future. Whether you have a Fixed or Variable Rate Mortgage right now, or have an impending mortgage decision to make in the next 6 to 8 months reading this newsletter could really help.

There are few lines from the Bank of Canada’s meeting today that strike us as important enough to quote for you.
First off: “considerable” monetary stimulus “will likely remain appropriate for a period of time.”

This is a change from the previous Bank of Canada message, and to us signals that low rates will be the norm for a while. The Bank of Canada had been indicating that the low rates we are experiencing were to be removed in 2013. However, now there is no expected removal date.

Secondly: “With continued slack in the Canadian economy, the muted outlook for inflation, and the more constructive evolution of imbalances in the household sector, the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required,”

The outlined comments signal to us that the Bank of Canada remains comfortable with rates being as low as they are and keeping them there for some time. It should also be noted that the Bank of Canada is now less concerned with the amount of our consumer debt.
We agree that the economy is on shaky ground, and as mentioned in last month’s newsletter, Banks are looking for ways to profit from consumers in the current market. Our sound, unbiased mortgage advice based on this information:

1. Be wary of the low fixed rate mortgage offers coming from the Banks, they come with horrible penalties!
Consumers should be paying attention to the message from the Central Bank and avoiding the messages coming from the Economists writing reports from Canada’s Big Banks. The flurry of Banks rushing to offer low 5 year fixed rate mortgages can be blinding, but one must look carefully at what is being offered. Today the CBC news quoted us for an article explaining some of these low rate mortgages. We would caution prospective mortgage shoppers on some of the strategies employed by these Banks. Most importantly the penalties to break these mortgages will be enormous. Our strong distaste for such practices is a matter of record. I strongly feel that the increase of these low rates mortgage offers will only serve to trap more consumers with high penalty mortgages offered by The Big Banks. There are plenty of mortgages available that are not from the Big Banks, they have low penalties and great interest rates. Consumers must be careful when they are shopping, it is too bad that only one third of all Canadians use a Mortgage Broker. A good Mortgage Broker can really help you navigate through the various pitfalls and traps that arise when you deal directly with a Bank, and can help you secure a Mortgage that saves you money.

 

What Rates Could Do to Affordability

Here is a great article on rates and what is expected for the year ahead.

Remember the 10 year term is at the all time low of 3.69% right now!

What Rates Could Do to Affordability

When it comes to home values, mortgage payment affordability acts like a giant lever.

A meaningful rise in mortgage payments (relative to income), would bear down on home prices, and vice versa. Read More

more on the B20!

THE B20!

More on what the B20 is doing:

  • According to simulation, 17% of high ratio mortgages funded in 2010 could not have been funded today.
  • This includes 11% of prospective high ratio homebuyers who can’t qualify for a mortgage under the new 25 year amortization rule.
  • ource: CAAMP Annual State of the Residential Mortgage Market, November 2012.

What Does This Mean for You?

Consumers’ buying power in the housing market has been affected. In order to adapt and continue to meet your clients’ needs, you need to work with a mortgage broker who knows how to get real estate purchases done.   Read More

Calgary listed as one of the more affordable housing markets in Canada

Great headline for sure. 1 RBC report has 2 articles written about it below.

1.

Calgary listed as one of the more affordable housing markets in Canada

RBC report says city market experiencing a ‘renaissance’

CALGARY — Calgary experienced a housing market renaissance in 2012, reaping the benefits of strong provincial GDP and in-migration, which propelled home resales in the area, says a report released Monday by RBC Economics Research. Read More

Inspection needed even when buying new condo

Many people do not get inspections for new condos but since it is one of the most expensive things you can buy, it is worth it. Read below for more info.

Many buyers think it’s unnecessary to hire a building inspector before purchasing a new condo. Prospective owners often assume a condo building and their unit of interest is fine and everything is to code and working properly. While this is usually the case, purchasers still need to protect themselves against those rare occasions where a problem exists. Read More

the B20 !!

There will be lots more on THE B20 – as it is the #1 issue with getting real estate deals approved right now.

To start with, that the B20 is:

  • Needs multiple financing condition extensions
  • Pre-approvals collapse at the bank and with on-line or inexperienced brokers
  • Seemingly strong purchasers outright and irreversibly declined
  • Losing out in multiple-offer situations
  • Approvals taking forever

 SUMMARY

The reason you are having a tough time removing financing conditions (COF) for your deals is called “the B20” and the details are attached. Have a read to find out why. Better yet, feel comfortable suggesting your clients use 1 of Canada’s Top-10, full-time, professional, fully-independent, mortgage brokers with a Master’s Degree in Finance, who knows what these rules mean and how to get your deals done. On time. Read More