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.
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.
Greener Homes Grants: making the most of new home energy retrofit programs
Canadian homeowners can access government programs for greener home retrofits, including interest-free loans of up to $40,000 over ten years (Canada Greener Homes Loan), grants of up to $5,000 (Canada Greener Homes Grant), and a 25% mortgage insurance premium reduction (CMHC Eco Plus). These retrofits help improve energy efficiency and can lead to significant long-term savings, with potential reductions of up to 78% in energy costs over ten years, making them a wise investment amid rising energy prices.
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.
Are we in a buyer’s market? April 2023 Edition
While interest rates have gone up, there are some things that contribute to it being a good time to buy. Many Canadians know that home ownership is a great long-term investment. However, they also acknowledge the higher interest rates may have a negative effect on their ability to buy or sell a home. At this point, 67% of Canadians wouldn’t consider purchasing a home in the early part of 2023.
Tips on paying down debt in retirement
In a perfect world, we’d all retire debt free. But the majority of Canadians today are retiring with some debt. In fact, the Financial Post reports a sharp increase in the number of seniors seeking debt relief, and it’s understandable. Carrying debt can be overwhelming, especially on a reduced income. Fortunately, there are tools and resources you can use to help you get your debt situation under control, no matter what stage of life you’re in.
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 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.
Canadian mortgage market: rising interest rates and what that means for consumers
After flat and falling interest rates for many years, 2022 has been the year of rising interest rates. We saw prime rates go up for the first time in almost 4 years. Fixed rates are going up as well.
Let’s look at what rising interest rates means for consumer in the Canadian mortgage market.
How to Repay a Reverse Mortgage
Reverse mortgages may have the word “mortgage” in the name, but unlike a traditional mortgage, you aren’t required to make any regular payments during the term of the loan. You do have to pay back the lender eventually though. Here are some of the ways you can pay back a reverse mortgage lender.
Reverse Mortgage vs. HELOC: When Each One is Best
Are you trying to decide between a reverse mortgage and HELOC? Here are some things to consider.
When is the Right Time to Take Out a Reverse Mortgage?
Is now the right time to apply for a reverse mortgage? Here is when taking out a reverse mortgage can make the most sense.
How do I calculate how much home equity I have?
Buying a home for the first time is a fantastic experience. The process seems like it goes by super quickly, but so many homebuyers do not realize some of the expenses of buying your first home. So, we thought it was about time that we took some time to let you know some of the costs that you may face when it is time to put pen to paper. We should note that each sale is a little different, and you might see different or lower costs when it is your time to buy.
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.
What Renovations Increase the Value of Your Home & Why its Wise to do Them
There are certain renovations that can offer more value than others. If you’re selling your home, you will want to know what renovation efforts are going to be worth the most to potential home buyers. Some renos may be expensive without adding that much value, causing you to sell at a loss.
We’ll walk you through the factors to consider when it comes to home renovations.
Tax Benefits of Owning a Home
Buying a home has many benefits. While it’s probably one of the biggest purchases you’ll ever make, there are advantages that can save you money in the long run. There are deductibles and tax benefits you can take advantage of as a homeowner. It’s important to understand these benefits so you can figure out what kind of financial advantages that owning your home can offer you.
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?
Using Your Home Equity To Buy Another House
When it comes to real estate markets, it is vital to have easy access to funding while buying another home. If you are wondering whether you can use your equity to purchase another house, then you’ll find the answer here. Home equity loans can be very low, and can also be a convenient way to facilitate your home purchase.
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.
How Home Equity Loans and HELOCs Work
Are you looking to borrow equity from your home? You have two main options: home equity loans and HELOCs. In this article, we’ll look at how they both work.