Canada Mortgage Market Trends: Rate Expectations, Variable Makes a Comeback, and RIP First-Time Homebuyers Incentive
Discover the latest trends shaping Canada’s mortgage market in this insightful article. Explore the significant rate declines and the resurgence of variable-rate mortgages, driven by anticipated Bank of Canada rate cuts. Bid farewell to the First-Time Homebuyers Incentive (FTHBI) and embrace the tax-friendly benefits of the First Home Savings Account (FHSA), designed to empower aspiring homeowners. Stay informed, make strategic decisions, and navigate the path to homeownership effectively with these invaluable insights.
Considering Breaking Your Mortgage? Keep These Things in Mind
Breaking a mortgage involves altering the terms of your mortgage contract or not fulfilling the entire term. Common reasons for doing so include falling interest rates, changing financial circumstances, or the need to sell your home. Mortgages can be open or closed, with open mortgages allowing penalty-free contract changes but usually having higher rates. Closed mortgages involve fees for breaking the contract, and it’s essential to evaluate potential savings from lower interest rates against associated costs, which differ based on whether you stick with your current lender or switch to a new one.
Fixed or Variable? What to Consider as Your Mortgage Comes Up for Renewal
When deciding between fixed or variable mortgages upon renewal, Canadians facing this decision should consider two key factors: the outlook for interest rates and their own risk tolerance. Historically, variable rates were favorable during low-rate periods, but with current economic uncertainties, locking in a fixed rate could provide stability and predictability in monthly payments. However, the path of short-term interest rates suggests that variable rates may see a decline in the coming months, making them an attractive choice for those who can tolerate some uncertainty. Ultimately, the decision should be based on individual financial circumstances and the willingness to embrace potential rate fluctuations.
The Bank of Canada Has Been On a Rate-Hiking Tear. Is That About to Change?
The Bank of Canada, once focused on raising interest rates, may now be considering a pause due to changing economic conditions. In response to high inflation, the central bank had aggressively increased rates in 2022, but the economy has shown signs of deceleration. If the economy continues to weaken, the Bank of Canada could reverse its rate-hiking strategy and lower interest rates in early 2024. This potential shift could impact various financial aspects, including mortgage rates and savings account returns, making it important for individuals to stay informed about the changing economic landscape.
When are interest rates going down? And how did Canada get here?
The article explores the consequences of rising interest rates in Canada, leading to concerns among homeowners and businesses facing higher borrowing costs. Political leaders have criticized the Bank of Canada’s rate hikes, attributing increased inflation to these actions. Bank of Canada Governor Tiff Macklem expressed concerns about inflation progress. Interest rates influence economic behavior and are tied to the Consumer Price Index (CPI). Economists predict rates to stay at five percent until at least Q3 2024, with further increases in 2025.
Why private mortgages are becoming so popular in Canada
As it becomes more difficult to secure a mortgage traditionally through a bank, Canadians are turning to the private mortgage option. Increasing more people are using private mortgage brokers to finance homes for various reasons. The high interest rates are putting pressure on homeowners and some people simply aren’t able to get a mortgage at their bank. Private mortgages in dollar value are at $22.4 billion in Ontario alone.
How to eliminate your mortgage payments with a reverse mortgage in Canada
Amidst the rising interest rates in Canada, homeowners, especially those with large loans like mortgages, are facing financial concerns. The unexpected hikes have resulted in higher monthly payments, posing challenges to stay in their homes. However, there are solutions to ease the burden during this economic climate. For eligible homeowners, a reverse mortgage offers a viable option, allowing them to eliminate mortgage payments and securely remain in their homes.
How to Secure Easy Financing through a Private Mortgage Lender in Canada
If you have bad credit, have irregular income, depend on foreign income, or are new to Canada and don’t have employment history, a private mortgage is well suited to you.
How to Buy a Foreclosed Home in Canada in 2023
Foreclosure may be forced on a homeowner because of criminal activity or bad living conditions. There are many circumstances that can cause someone to be removed from their property. Lenders who keep the liens to properties like this will need to do something to get some of their money back as they will be at a loss. The lender is legally allowed to sell the home, putting it up for sale.
The 30 Cheapest Places to Live in Canada for 2023
If you’re currently living in one of the areas in Canada that are inflated, you may want to consider looking for a new place. There are plenty of affordable towns and cities in Canada to get in on owning a home. There are some mortgages you may not currently be able to access because you don’t qualify. If you have the freedom to move, you may want to consider it. There are a lot of Canadians that are working remotely now. If you don’t need to live in one of the expensive cities like Vancouver or Toronto, it’s a great opportunity to explore this incredible country.
The 10 best real estate apps for Canadians looking for a house in 2023
The technology of real estate has made great progress, making it easier than ever to house hunt while navigating complex home equity loans applications. Here’s our list of the 10 best real estate apps available to Canadians.
US Investment Property Financing for Canadians
Better still, so far as the US government is concerned, there are no restrictions for Canadian citizens wanting to purchase real estate in America. With that in mind, here’s what you should know about buying and financing an investment property in the US.
Private Mortgage Loans: What They Are and How They Work
Getting approved for a conventional mortgage isn’t always easy—especially if you have poor credit or lack confirmable income. Fortunately, private mortgage loans can fill the gap when you don’t meet the criteria of conventional lenders.
Should You Use Your Home Equity for a Loan or Line of Credit
One of the ways you can take advantage of your current status is by using your home equity as collateral. It’s important to consider what your home equity position is. Have you been paying off your mortgage for a long time and have a lot of equity? Your equity builds up every year in your property and as you pay off the loan, you’re also increasing that equity.
Can I Sell My House When I Have a Home Equity Loan?
If you have a home equity loan or line of credit like many Canadian homeowners, you may be wondering whether you can still sell your house. The short answer to that question is: yes, you can. The bigger question is: should you?
How to Use a Home Equity Loan for an Investment Property
There are varying reasons that a homeowner will choose to take out a home equity loan. It may be to purchase another property or it could be used for improvements. Another loan type is a HELOC, which is a line of credit secured by your home. You can withdraw funds whenever you need them so it offers a bit more freedom than a home. We’ll give you more insight on how to use your home equity loan to buy an investment property.
Mortgage vs. HELOC: When Each One is Best
Are you trying to decide whether a mortgage or HELOC is best for your property? Here are some things to consider.
A Mortgage Gift Letter: When Do You Need One?
One way to keep the financing low in Canada is to use a mortgage gift letter to buy a home. To make full use of the letter, you need to follow some basic rules to proceed with financing.
Canadian Mortgage Rate Trends for 2021
In this article, you will find key information about current mortgage rate trends in Canada. The Bank of Canada (BoC) target rate, which is linked to variable mortgage rates, is at its lowest right now, so don’t expect any further drops! BOC has made a commitment to keep key rates low until the economy begins to recover. Many forecasters are predicting economic recovery will not gain pace until 2022 / 2023.
Difference between prime mortgage lenders and private lenders
When buying a new home or commercial real estate property, individuals and businesses use mortgage loans instead of making a single upfront payment. When taking a mortgage loan, borrowers can choose between a mortgage lender and a private lender. A mortgage lender can either be a prime mortgage lender or a subprime mortgage lender, depending on the borrower’s credit score.
Homewise is a Free Online Mortgage Service That Saves You Time and Money
It’s almost too good to be true, but that’s what we love about our business; we get to help people realize their home buying dreams, and do it in a way that saves them a lot of time, money, and confusion.
10 Ways to Save for Down Payment
Finding ways to save for a down payment is a normal part of the process of purchasing a home. The majority of home buyers secure financing to make what is probably the largest purchase of their lives. Here are 10 practical ways to save for a down payment!
How to Build Your Team Before You Buy a House
In a perfect world, you find a house you love, you buy it, and live happily ever after! If only house hunting was as fast and easy as a transaction at the mall. Buying a property is a process that requires time, money, energy, and a qualified team to help you navigate the journey. To help you build your team and prepare for a house purchase, here is what you need to know!
How to Buy a House with Your Partner
Buying a house is a big step. It’s expensive, time-consuming and stressful. But when everything is said and done, it can be one of the most rewarding experiences in your life. Having a partner to navigate this experience with you can be a blessing with the proper planning and communication. Here are 4 things to discuss with your partner before buying a house together.
Canadian Mortgage Stress Test FAQs
On January 1, 2018 the Canadian government applied new guidelines to the Mortgage Stress Test (MST). Basic requirements were already in place for borrowers who put less than a 20% down payment on their home mortgage loan. With the new test guidelines, all conventional mortgage loan borrowers became subject to the new revisions regardless of the down payment amount. The changes included a number of other stringent rules for federally governed lenders to approve mortgages.