22 Jun

CMHC MAKES IT HARDER TO QUALIFY FOR AN INSURED MORTGAGE

First Time Home Buyers

Posted by: Tracy Luciani Price

Once again, the Canadian Mortgage and Housing Corporation (CMHC) is tightening the criteria to get a mortgage with less than a 20% down payment. Any potential home buyer with less than a 20% down payment must purchase default insurance on their loan and have a minimum down payment of 5%. CMHC is a federal Crown Corporation […]

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21 Jun

CANADIAN HOME SALES AND NEW LISTINGS RECOVER ONE-THIRD OF PANDEMIC LOSS IN MAY

General

Posted by: Tracy Luciani Price

There was good news today on the housing front. Home sales surged by a record 56.9% in May from April’s unprecedented collapse. Data released this morning from the Canadian Real Estate Association (CREA) showed national home sales recovered roughly one-third of the COVID-induced loss between February and April (see chart below). On a year-over-year (y-o-y) […]

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15 May

CANADIAN HOME SALES AND NEW LISTINGS PLUNGE IN APRIL

General

Posted by: Tracy Luciani Price

The pandemic shutdown has put every sector of the economy into a medically induced coma, so, of course, the housing sector is no exception. Data released this morning from the Canadian Real Estate Association (CREA) showed national home sales fell a record 56.8% in April, compared to an already depressed March, in the first full […]

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30 Mar

Why Are Mortgage Rates Rising?

General

Posted by: Tracy Luciani Price

Over the past month, the Bank of Canada has lowered its overnight rate by a whopping 1.5 percentage points to a mere 0.25%. Many people expected mortgage rates to fall equivalently. The banks have reduced prime rates by the full 150 basis points (bps). But, since the second Bank of Canada rate cut on March […]

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27 Mar

Bank of Canada Moves to Restore “Financial Market Functionality”

General

Posted by: Tracy Luciani Price

The Bank of Canada today lowered its target for the overnight rate by 50 basis points to ¼ percent. This unscheduled rate decision brings the policy rate to its effective lower bound and is intended to provide support to the Canadian financial system and the economy during the COVID-19 pandemic (see chart below). Strains in […]

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10 Mar

ADDBACKS AND OFFSETS: QUALIFYING FOR RENTAL INVESTMENTS

General

Posted by: Tracy Luciani Price

It may sound like we’re talking about football formations here, but if you are considering the purchase of a rental property or already own a rental property, knowing about addbacks and offsets is an important concept to understand when qualifying for your next mortgage. Addbacks and offsets are two different methods for accounting for the […]

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9 Mar

Global Markets in Turmoil as Oil Plunges, Propelling Yields to Record Lows

General

Posted by: Tracy Luciani Price

Global Markets in Turmoil, Oil Prices Plunge Along With Yields Markets shuddered in the face of a price war for oil and the economic fallout from the growing outbreak of coronavirus. Frightened investors poured into haven assets sending yields to unprecedented lows. Oil prices tumbled 30% after Saudi Arabia said it would cut most of […]

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21 Jan

NEED AN APPRAISAL – 7½ TIPS FOR SUCCESS

General

Posted by: Tracy Luciani Price

Do you need to get a current value of your property? Then you are going to need an appraisal. Banks and other lending institutions want to know the “current” market value of your home before they consider loaning money on the property. An appraiser checks the general condition of your home and compares your home […]

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