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11 Jul



Posted by: Tracy Luciani Price


With the new maximum 25 year amortization,  and refinances now restricted to 80 per cent, mortgage financing has become both more difficult and expensive* with higher payments, and more income needed. The above applies to high ratio mortgages only. Note we still have 35 year amortizations for conventional mortgages. The silver lining is that although payments are now higher, the interest is not and you will be paying down your mortgage sooner, and building equity faster.

On the weekend we drove the entire Fergus/Elora market and it was ‘spooky’ how few For Sale signs we saw. Many streets had ‘no’ homes for sale at all, and it just felt weird. We checked out 3 listings, 2 MLS and 1 Property Guy private for sale and guess what? They were all sold, just waiting to firm up the financing. Inventory is way down. People have been spooked by all the negative press and have hunkered down. We just hope that if you are one of them,  you have taken yourself to financial safety.

Folks if you are buying, it has never been more important to make sure not only that you qualify but how much you qualify for. If you go to a bank, unfortunately because they only do a superficial check, the pre-approval may be of little value. If you come to us, you will receive a ‘GUARANTEED’ pre-approval you can ‘bank’ on …LOL…and we likely will not finance you with a bank because of the collateral mortgage products they have…look out.

We had a couple buying a home last week who planned to get the smallest mortgage they could by putting down the entire inheritance they received. He works in the auto industry and she was self employed. This spelled ‘Caution’ to us from an employment standpoint, so we suggested they take a comfortable mortgage and bank and invest the rest. We convinced them to keep reserve cash in the event of another down turn and potential job loss.

Have you planned ahead for a possible downturn or a drop in house prices? If not we suggest you do. Leveraging your mortgage to generate a financial ‘safety’ cushion at today’s rock bottom rates…(we now have a 3.89% ten year fixed rate mortgage…unbelievable)…offers potentially huge savings of tens of thousands of dollars over the next decade, and it will keep your payments low, low, low.

Call us today to make an appointment for a mortgage (financial) check up, and learn what options and strategies are available to you. We have many more than the banks do.