21 Dec

Last Market Update for 2012 – Happy Holidays!


Posted by: Stacey Anderson Doran

December 2012
Stacey DoranMortgage Specialist

DLC – The Mortgage Hub

Phone: 604 649 6200 Fax: 604 608 3336 E-mail Website


Credit rating mistakes are costing unsuspecting consumers thousands of dollars in higher interest rates and preventing some from getting much needed loans. Over the past few years, more than 500 complaints have been filed with provincial consumer affairs agencies across Canada about credit reporting agencies, many alleging errors by companies led to their poor credit scores. Click here for more details from CBC News.



Seal Out the Cold:

In winter, reduce the heat lost from your home or workplace by getting rid of drafts around windows, doors, baseboards and outside wall openings. Windows can account for a large part of heat loss in a building. Upgrade them if they are too old. Window insulators can help keep your home warm in winter and cool in summer. Insulate power outlets and other sockets using foam pads – this is really important if the walls are not properly insulated.


About DLC Leasing Inc
* DLC Leasing is the leasing division within Dominion Lending Centres Inc.
* Our leasing programs provide up to 100% financing on business-related equipment.
* Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back.
* Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options.
* With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality.
* Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies.
* Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs.
* Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.


Welcome to the December issue of my monthly newsletter!
With 2012 coming to a close, I want to sincerely thank you for your continued support throughout the year. Please accept my warmest wishes to you and your family over the holiday season and the coming New Year!
Though many external factors still loom, growth in the Canadian economy is expected to pick up over the course of next year. Headlines we are watching closely include: Canadian household debt and real estate levels, uncertainty over the US “fiscal cliff”, and the euro-area debt crisis.
  • Canada’s gross domestic product is forecasted to grow just below 2% next year and accelerate to about 2.3 per cent in 2014.
  • Concerns on household debt seem to be easing. On an annual basis, debt growth is at its slowest pace seen since 2002, and half the pace seen during the 2004-08 period.
  • Canada’s housing market is showing great staying power in the face of the global economic slowdown. Mark Carney has said recently that a combination of new mortgage rules introduced by the federal government, as well as a clear tightening bias from the central bank, are working successfully together to cool Canada’s red hot housing market. Major markets are cooling as a more sustainable housing situation in Canada is within sight.
  • Markets appear generally optimistic that there will be a positive result in negotiations to avoid the fiscal cliff in the United States. (http://www.theglobeandmail.com/report-on-business/economy/canada-faces-near-recession-if-us-plunges-over-cliff-carney-warns/article6198955/)
  • A worsening european crisis could effect Canada through tighter financial conditions and waning confidence. A weaker global demand would negatively impact Canadian exports and commodity prices.
  • Interest rates should increase (gradually) starting late next year as economic activity revs up.
Much debate has risen over the “Variable vs. Fixed” question in the latter part of 2012. Given that variable rate discounts are a thing of the past, accessing a fixed rate on a new mortgage today is a must. For those considering locking in, here are some key points of mention:
  • We currently have access to some of the lowest fixed rate offers in history (you will often access a lower option using a broker than you would dealing with a lender directly)
  • It’s not a question of whether rates will go up or not, it’s when, and by how much?
  • History has shown that it is more costly for variable-rate borrowers to wait for the first increase in prime rate before locking in. Fixed rates have often risen 50 bps or more leading up to initial rate hikes. Waiting for the 2nd increase in prime is even more costly.
  • In the past 20 years there have been four instances where multiple 50+ bps rate hikes occurred over spans of six months or less (ie. In 2005, prime jumped 175 bps in 9 months).
  • For those with deep discounted variable rate mortgages, you have benefitted greatly from a low interest environment and received incredible savings. We should likely connect in the New Year and explore a plan to capture an unbelievably low fixed offer while we still can.
*Even lower “quick close” offers may be available. Rates subject to change without notice.
Variable (insured) 2.65% (Prime-.35%)
2 year fixed 2.69%
5 year fixed 2.94%
10 year fixed 3.89%
I can also help you with your Commercial lending needs. Dominion Lending Centres Commercial has established excellent relationships in the lending community with pension funds, banks, credit unions, life insurance companies, trust companies, private institutions and individual investors. These relationships allow me to identify the source of funds which will be most likely to meet the needs of its borrower clients. DLC Commercial has the resources and the knowledge to prepare and underwrite a broad variety of transactions, including computer modeling, visual aids, written presentations and ancillary information.
Contact me today at www.staceydoran.ca for all your financing needs!
The remainder of this month’s edition looks at the latest research report on the state of Canada’s residential mortgage market, as well as suggests some home maintenance, repair and security tips. Please let me know if you have any questions or feedback regarding anything outlined below.

Please take moment to click and “LIKE” me on facebook…

Thanks again for your continued support and Happy Holidays!



Interviews this fall with more than 2,000 Canadians indicate that those holding mortgages are comfortable with their debt, a majority plan to pay off their mortgage in less than 25 years and at least one-third are taking advantage of current low interest rates to accelerate payments, according to the most recent survey report from the Canadian Association of Accredited Mortgage Professionals (CAAMP) released in late November entitled Annual State of the Residential Mortgage Market in Canada.

Following are some key statistics revealed in the report:

  • Among all mortgage holders, 65% have fixed-rate mortgages, 28% have variable-rate mortgages and 7% have a combination. For mortgages in 2012, there has been a significant shift to fixed-rate mortgages – 79% are fixed, 10% are variable and 11% are a combination of both.
  • 68% of mortgages obtained during 2012 have amortization periods of 25 years or less.
  • 32% of mortgage holders are making significant efforts to accelerate repayments, including taking one or more of the following actions in the past year: 16% have voluntarily increased their monthly payments; 15% have made a lump-sum contribution to their mortgage; and 6% have increased their payment frequency.
  • For mortgages that have been repaid since the 1990s, actual repayment periods have generally only taken two-thirds of the contracted periods.
  • Among borrowers who took out a new mortgage in 2012, a record 47% obtained it from a mortgage broker.
  • The average mortgage interest rate is 3.55%, which is lower than last year’s average of 3.92%.
  • Among mortgage borrowers who have renewed a mortgage this year, 61% experienced a reduction in their interest rate.
  • The average actual rate for five-year fixed-rate mortgages is 1.85 percentage points lower than typical (posted) rates in 2012.
  • There has been a considerable amount of locking-in (converting from variable rate to fixed rate). Among the 3.85 million Canadian homeowners with fixed-rate mortgages, 13% locked in during the past 12 months.
  • Of the 9.7 million homeowners in Canada, 5.95 million have mortgages and 3.75 million are mortgage-free.
  • 87% of Canadian homeowners have 25% or more home equity. 

As always, if you have any questions about the information above or your mortgage in general, I’m here to help!



Once you’ve settled into your new home, you may start seeing things you’d like to change or repair. Maintenance, repair and renovations are a normal part of homeownership. One of the best things you can do is get to know your home.

Every adult member of your household should know the location of the following:

  • Main shutoff valves for water, fuel and natural gas
  • Emergency switch for the furnace or burner
  • Hot water heater thermostat
  • Main electrical switch
  • Fuse box or circuit breaker box

Home Improvements Home improvements can make a home more pleasant to live in and may also increase its value.

Here are some things to keep in mind:

  • Think about changes that would appeal to someone buying your home in the future
  • Updating the bathrooms and kitchen in an older home can increase its resale value
  • Updating the paint on the outside of your house, installing a new roof, redoing your walkways and driveway, adding attractive mailboxes and landscaping will improve your home’s appearance
  • Some renovations can pay for themselves, especially if they result in savings on utility bills, a higher selling price or years of greater comfort and enjoyment in your home
  • Think about improving your home’s energy efficiency for comfort and savings

Secure your new investment

  • Change all the locks when you buy a new home
  • Add dead-bolt locks and window locks where necessary
  • Consider getting a security system
  • Use outdoor lighting. You can get lights that automatically turn on every evening or motion-sensor lights that come on when someone walks by
  • When you’re away from home, use lights and radios on automatic timers, and arrange to have your mail and newspapers picked up or stopped
  • Get to know your neighbours and keep an eye out for each other

Be prepared and stay safe When you move into a new home, it’s always important to:

  • Have a fire evacuation plan and make sure everyone in your home knows how to safely get out of the home from every room
  • Ensure that fire extinguishers are easily accessible at all times (there should be one on each floor)
  • Locate and test the smoke detectors in your home every six months
  • Locate and test the carbon monoxide detectors. They’ll detect high levels of carbon monoxide in your home, and can save you from illness or death
  • Make sure that any fire hazards, such as paper, paint, chemicals and other clutter are stored in a safe place
  • Collect your important papers and store them in a safe place
  • Keep a list of emergency numbers close to the phone and make sure your children are familiar with the list

For more information on home renovation, maintenance and safety, visit: www.cmhc.ca.


  • We are Canada’s largest and fastest-growing mortgage brokerage!
  • We have more than 2,200 Mortgage Professionals from more than 350 locations across the country!
  • Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
  • We work for you, not the lenders, so your best interests will always be our number one priority.
  • We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
  • We close loans in all 10 provinces and 3 territories.
  • We can process your mortgage in as few as 7 days.
  • We are the preferred mortgage lender for several of Canada’s top companies.
  • Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!