Has the US housing market hit bottom?
This is a copy of the blog from Boris – the president of MERIX bank – a broker bank we love and deal with often. It is worth pasting all of it here AND it is good news!
Article written by Boris Bozic on the 17 Jul 2012 in Current Events
I’m referring to the real estate market in the U.S. There have been some signs that real estate market may have reached the point where you can actually see the bottom. Interesting to note that new home construction is up in many regions of the U.S. Drive through parts of Florida and you’ll be surprised by the number of new homes being built. Another sign is the number of pending sales just recently reported. On a year over year basis, pending sales were up 14.5% in the West, 22.1% in the Midwest, 19.8% in the Northeast and 11.9% in the south. Another sign that real estate market is getting better is due to increased foreclosures.
Rates to hover for 1 year; till June 2013.
This is good news. But remember, the market is smart and will start to increase bank and lending rates before in anticipation of the Band of Canada’s rate increase.
AND this does NOT mean that fixed rates will not increase. They are set by the prices of the bond market not the government. This only says the government will leave the Prime rate as is, which as been at 3% for about 2 years now.
NEW MORTGAGE RULES
Here is the news release from the Canadian Association of Accredited Mortgage Professionals (CAAMP):
The Federal Finance Minister announced further changes to Canada’s mortgage insurance rules. Four measures were announced:
How much do you think you’ll get back for that reno?
This is one of the better articles on renovations. We did hear of a client who showed my recipts for $88,000 of back yard landscaping. It was super awesome and he had a massive rock moved in from Golden, BC at at cost of more than $20,000.
Tax Freedom Day was June 11th!
First posted: Tuesday, June 12, 2012 06:46 PM MDT | Updated: Tuesday, June 12, 2012 07:59 PM MDT
The federal government expects a deficit of $21 billion this year. (Chris Roussakis/QMI Agency)
If you’ve ever tried to calculate all the taxes you pay in a year to all levels of government, you’ve probably given up somewhere along the way.
Is there ever a bad time to invest in a rental property?
Fabio Campanella, Special to Financial Post May 22, 2012 – 10:48 AM ET
Record low interest rates coupled with an overly extended bull market for Canadian residential real estate has some investors questioning the validity of investing in a rental property.
Why putting less than 20% down can lead to a better mortgage rate
This is true – the banks are sending us 2 rates … 1 rate for a CMHC/ Genworth insured mortgage and a slightly higher one for more than 20% down – or a conventional mortgage that is not insured.
Interest Rates to go up soon – the boring data
Carney raises outlook for economy, issues dollar warning
JEREMY TOROBIN
OTTAWA— Globe and Mail Update
Published Wednesday, Apr. 18, 2012 10:35AM EDT
Bank of Canada Governor Mark Carney lifted his projections for the economy for each of the first three quarters of 2012 in a new forecast Wednesday – and took an intriguing step toward clearing the path for higher interest rates by apparently seeking to unhinge the Canadian dollar from oil prices.At a news conference in Ottawa after releasing his forecast, Mr. Carney seemed to employ a tactic known as “jawboning,” used when officials try to cool speculators’ enthusiasm for the dollar (CAD/USD-I1.01-0.0005-0.05%), saying that trading the currency as if it will always rise in tandem with global oil prices (CL-FT102.74-1.46-1.40%) is a “recipe for losing money.”
More problems with collateral mortgages
Here is more bad news on collateral mortgages.
People refuse to sign a 3 year cell phone contract but then for some reason have no problem in losing every single thing you have ever made and be sued into bankruptcy by your bank for taking one of these mortgages. Again, we do not offer them but TD, Scotia, ING, and RBC have them as STANDARD. I would rather take a new 3 year cell phone contract!
Collateral Mortgages Part II: Why Banks Like You to Have Them.
Collateral mortgages: Why banks like them
Collateral mortgage can be a great product for homeowners who use their homes to borrow and invest. But compared to a conventional mortgage, it is harder to transfer to another bank at the end of your term.
If you’re buying a house and are shopping for a mortgage this spring you may come across something called a collateral mortgage. This home financing tool has been around for a while, but mainly in the background. Now it’s going mainstream with both TD Bank and no-frills ING Direct abandoning the conventional mortgage in favour of this type of financing exclusively. Other big banks make collateral mortgages available, but for now offer both kinds.