5 Mar

March 2015 Edition of My Monthly Newsletter

General

Posted by: Stacey Anderson Doran

March 2015
 

Stacey Doran

DLC – The Mortgage Hub

Phone: 604 649 6200604 649 6200
Fax: 604 608 3336
E-mail
Website

 
 


Introducing Dominion Lending Centre’s Chief Economist, Dr. Sherry Cooper
 
DID YOU KNOW…

Most mortgage lenders offer you the option of increasing your regular payment by a certain percentage each year.  Many also allow for an automated lump sum payment in addition to your regular payment.  One consideration for adjusting your payment up – even slightly each year – is that at the end of the term if interest rates have risen, you will reduce or even eliminate any kind of payment shock come renewal time.  With the added bonus of the extra dollars having all gone straight to your mortgage balance in the meantime.

 

HOMEOWNER TIPS

Recent studies have shown that the old adage of buying the worst house on the block may not offer the best rate of return.  Often it is the worst house, and priced accordingly, for good reason.  As an investment strategy, one is often better off focusing on the neighbourhood itself, with an average home in a hot neighbourhood often doing far better than the ugly duckling in a less desirable area.

 

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.

 

As we prepare to “spring forward” this weekend (don’t forget to move your clocks an hour forward this Sunday!) there is a lot of economic and mortgage related news to share. Please review the market summary below and feel free to contact me directly regarding any mortgage decisions you may be contemplating this spring!

 

MARKET SUMMARY

  • The Bank of Canada suggests that the dampening impact of lower oil prices will be felt in the first half of this year, leaving the possibility of another rate cut in coming months. A weaker Canadian dollar may offset the oil price shock by boosting non-energy exports and investment. Lower oil prices have been good for consumers and non-energy businesses that are heavy users of energy.
  • Analysts were uncertain as to whether or not the BoC would reduce the key lending rate for a second time in 2015. Governor Stephen Poloz suggested that January’s rate cut may have been the “appropriate amount of insurance” as the BoC held the key overnight rate “as is” for at least another month.
    • Prime remains: 2.85%, March 4, 2015 
    • Next rate announcement: April 15, 2015
  • Statistics Canada released January’s Consumer Price Index last week. Falling gasoline prices moved the annual rate of growth in the index down to 1.0% but the core inflation rate, which excludes volatile items like fuel and some food items, was 2.2%.
  • Canadian Real Estate: 
    • Year-over-year sales dropped 2.0% in January, softened by Calgary and Edmonton markets. CREA points out that removing Alberta numbers from the equation results in a 1.9% increase from a year ago. 
    • Toronto and Vancouver markets experienced increases of 6.1% and 8.7% respectively. 
    • 15 of the country’s 26 biggest markets were flat or lower to start 2015.
  • Qualifying for short-term mortgages (<5 year terms & Variable Rate Mortgages) eased recently. The “benchmark” qualifying rate has fallen 5bpts to 4.74%.
  • Incredibly low mortgage offers continue to flood the market (both variable & fixed). Be certain to contact your mortgage specialist to confirm the most current specials, any potential restrictions, and the corresponding prepayment details on all promotional products –

 

RATE SUMMARY

Variable Rate Mortgage (5 year) 2.00%* – 2.20%
3 year – Fixed Mortgage 2.49%
5 year  – Fixed Mortgage 2.49%* – 2.79%

*Promotional rates are subject to additional guidelines & qualification (check with your broker for more). Rates subject to change without notice (March 5, 2015)
 

The remainder of this month’s edition looks into mortgage payment frequency and a very important related keyword; ‘accelerated’.  We then offer some thoughts on whether or not now is the right day to purchase a property.

Please feel free to ask questions or offer feedback on anything outlined below via phone or email. Thanks again for your continued support and referrals!

Over the past number of years banks have come up with a rather confusing set of payment frequency options that have left some mortgage clients a bit disappointed 5 years down the road.

Rather than the Amortization crushing ‘Accelerated bi-weekly’ plan which a quality Mortgage Broker will discuss with you, clients left to their own devices run the risk of opting for simply ‘bi-weekly’ payments.  Here is the math;

Let’s use a $100,000 mortgage amount (to make working out your own numbers simpler) with a 25 year amortization, a 2.74% interest rate and a 5 year term.

Monthly Payments: $460.01
Ending Balance 60 months later: $85,043.18

Now let’s calculate bi-weekly payments and the balance remaining at the end of the 5 year term.

Bi-Weekly Payments: $212.18
Ending balance 60 months later: $85,043.60

The balance is 42 cents higher.  This is because you did not effectively pay anything extra over the 60 months to the lender.  The sum of the annual payments is identical.  Now let’s insert

  

the word ‘ACCELERATED’ (bi-weekly) into the equation.

Accelerated bi-weekly Payment: $230.00
Ending balance 60 months later: $82,563.13

Ah-ha, now you have a $2,480.47 lower balance, and you have paid $163.87 less interest over the 5 years.  Excellent!

How did this happen?  When one opts for ‘accelerated’ in the above scenario, the payment increases by $17.82 per payment, or $463.32 per year.  For a total of $2,316.60 in additional funds going straight to the mortgage balance.

The big picture is improved as well, as you have effectively lowered your amortization from 25 years to 22 years and 5 months.

Shaving 2.5 years off a 25 year mortgage might not seem huge, but in 22.5 years it surely will make you happy.  Imagine having $460.00 more per month (per $100,000 of mortgage balance) to play with for 2.5 years.

If you started with a $300,000 mortgage, then we are talking about $1380.02 per month X 30 which is a total of $41,400.60.  All from one word ‘accelerated’.

 

This question arises on a near daily basis within our social circles… Answer:  Today is the right day assuming one has found the specific property that works for them on all levels.

If the conversation is about a property which one plans to own for at least the next few years, then yes, the right time to buy is today.

Over a 7-10 year horizon the day-to-day, even the month-to-month gyrations of the market will tend to resemble those of a small yo-yo on a large escalator.  Yes there are some ups and downs but the lows often do not drop below the second last high. This is true of nearly any major urban 25 year chart of Real Estate Values.

There are some key considerations that will dictate not only the continued value, but perhaps more importantly your own ability to stay put for that magic 7-10 year timeframe:

  • Home location
  • Layout
  • Age
  • Size
  • Recreational amenities
  • Schools
  • Distance from workplace
  • Potential basement suite revenue

The list goes on…

Getting all of these variables aligned is something that takes dedication on the part of the both the buyer and Realtor.  The hunt itself can easily consume a few weeks or more, and for some may result in dozens of viewings.  This is more than enough to juggle without also trying to ‘time the market’ on that perfect home.

Speaking of timing; consider allowing for a small overlap during which you have access to both the current residence as well as the new one.  Being able to install new flooring throughout, complete interior painting, or upgrade kitchens and bathrooms, without having to live in the middle of the disruption is well worth an

  

extra month of rent or the marginal costs of bridge financing.  The costs involved are surprisingly lower than most clients expect.

Keep in mind during your search that the MLS #’s are an imperfect indicator of what is happening today in the market, as in literally ‘today’.  MLS data reflects purchase contracts that were negotiated 30, 60, 90 or even 120 days prior to the completion date which was itself in the previous months report.  In other words, by the time the MLS data indicates a trend one way or another, said trend has in fact been in motion for as long as 6 months and could be either reversing or ramping up further.

Where then to get the most accurate data? Talk to frontline folks, Realtors, Brokers, Appraisers, etc. for a better handle on up-to-the-minute trends.  Ask an Industry Expert.

Short term fluctuations in values and/or interest rates are themselves not the key factors in many peoples decision to buy. Instead it is finding that perfect combination of all the factors that create a home within a community and the realisation that homeowners win in the long run by owning, not by sitting on the sidelines.

It is all about finding a place you can call home for the duration. To be able to plant roots and become a part of a community.  Home ownership will undeniably continue to be a part of living the Canadian dream.

Perhaps the (short term) timing will feel imperfect, as it did for presale buyers in 2007, whose completion dates were set for Spring 2009.  However, a few years later most will be glad that they bought when they did.  In fact many were smiling again as soon as the Spring of 2010.

Home ownership remains the one true forced savings plan. It is one of the best investments we make socially as it provides an individual and/or a family with a certain sense of security, stability and community.

 
 
  • 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!
 

12 Feb

GO CANADA GO – February Issue of my Monthly Newsletter!

General

Posted by: Stacey Anderson Doran

Welcome to the February issue of my monthly newsletter!
MORTGAGE SUMMARY
  • TFSA and RRSP season is in full swing! In a recent survey, nearly 20% of Canadians polled admitted they were unable to save in 2013. In 2012, the same poll revealed nearly 30% of respondents did not save. Of those who claimed they couldn’t save – debt management, insufficient income, and high expenses were the main reasons why. Accessing equity in your home to take advantage of TFSA and RRSP contribution room will definitely assist when it comes to saving. Consolidating unsecured high interest debt at incredibly low mortgage rates will also put you back in the black when it comes to savings:
    • Promotional Offer (upon qualification):
      • Access 3.09%* 5 year fixed 
      • Access 2.35%* (Prime-.65%) 5 year variable 
      • No restrictions or penalties, 60 day rate hold
  • Canadian GDP figures for November (2013) were recently published by Statistics Canada. Led by mining and oil and gas, real GDP in Canada grew 0.2% in November, which was the fifth consecutive monthly increase. 
  • The BoC has made it clear it is unlikely to raise its benchmark overnight rate until next year, which is great news for variable rate mortgage borrowers. There is further speculation that a cut in the overnight rate may occur later in 2014.
Lenders across the board have been lowering rates (variable & fixed) in the past 30 days. It is important to know all the details on all rate/product offers you are considering. Please email me directly for more information:
 
RATE SUMMARY
 
5 year Variable 2.50% (Prime-.50%)
3 year Fixed 2.59%
5 year Fixed 3.09%*-3.29% (*60 day rate hold)

 

*Interest rates quoted effective February 11, 2014. Rates subject to qualification, and subject change without notice. Additional discounts may be available upon qualification!
 
The remainder of this month’s edition suggests five deeper questions you should consider asking about your mortgage, as well as shows you how to save energy and money with a setback thermostat. Please let me know if you have any questions or feedback regarding anything outlined below.
 
Thanks again for your continued support and referrals!

As a mortgage borrower – particularly if this is your first time embarking upon homeownership – there’s no doubt you have a load of questions related to the mortgage process. Aside from the most common questions, such as those relating to mortgage rate, the maximum mortgage amount you’ll be able to receive, as well as how much money you’ll need to provide for a down payment, the following five questions and answers will help you dig a little deeper into the mortgage financing process.

1. Can I make lump-sum or other prepayments on my mortgage without being penalized? Most lenders enable lump-sum payments and increased mortgage payments to a maximum amount per year. But, since each lender and product is different, it’s important to check stipulations on prepayments prior to signing your mortgage papers. Most “no frills” mortgage products offering the lowest rates often do not allow for prepayments.

2. What mortgage term is best for me? Terms typically range from six months up to 10 years. The first consideration when comparing various mortgage terms is to understand that a longer term generally means a higher corresponding interest rate and a shorter term generally means a lower corresponding interest rate. While this generalization may lead you to believe that a shorter term is always the preferred option, this isn’t always the case. Sometimes there are other factors – either in the financial markets or in your own life – you’ll also have to take into consideration. If paying your mortgage each month places you close to the financial edge of your comfort zone, you may want to opt for a longer mortgage term, such as five or 10 years, so that you can ensure that you’ll be able to afford your mortgage payments should interest rates increase.

3. Is my mortgage portable? Fixed-rate products usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current rate. With variable-rate mortgages, however, porting is usually not available. This means that when breaking your existing mortgage, you will face a penalty. This charge may or may not be

 

reimbursed with your new mortgage. Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day, while others offer extended periods.

4. What amortization will work best for me?The lending industry’s benchmark amortization period is 25 years, and this is also the standard used by lenders when discussing mortgage offers, as well as the basis for mortgage calculators and payment tables. Shorter timeframes are also available. The main reason to opt for a shorter amortization period is that you’ll become mortgage-free sooner. And since you’re agreeing to pay off your mortgage in a shorter period of time, the interest you pay over the life of the mortgage is, therefore, greatly reduced. A shorter amortization also affords the luxury of building up equity in your home sooner. While it pays to opt for a shorter amortization period, other considerations must be made before selecting your amortization. Because you’re reducing the actual number of mortgage payments you make to pay off your mortgage, your regular payments will be higher. So if your income is irregular because you’re paid commission or if you’re buying a home for the first time and will be carrying a large mortgage, a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be your best option.

5. How do I ensure my credit score enables me to qualify for the best possible rate? There are several things you can do to ensure your credit remains in good standing. Following are five steps you can follow: 1) Pay down credit cards. This is the #1 way to increase your credit score. 2) Limit the use of credit cards. If there’s a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month. 3) Check credit limits. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. 4) Keep old cards. Older credit is better credit. Use older cards periodically and then pay them off. 5) Don’t let mistakes build up. Always dispute any mistakes or situations that may harm your score by making the credit bureau aware of each situation.

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

 

Thermostats control heating and cooling appliances in houses. A setback thermostat gives the user the option of changing the temperature setting automatically at night and also during the workday when the occupants have left the house. A setback thermostat can help reduce overall household energy consumption.

A conventional thermostat simply regulates house heating at one temperature. For instance, in the winter, if you set the thermostat to 20°C (68°F), it will activate the heating system when the house temperature drops below 20°C and will shut the system off when the house air warms up past 20°C.

A setback thermostat contains an electronic clock. It can automatically turn down the temperature setting at night when you’re asleep, or during the day when you’re at work. It can also return the temperature to a more comfortable level before you wake up or arrive home from work. That way, you can have the energy savings of a lowered thermostat setting without the discomfort of having to wait for the house to heat up again.

The setback thermostat can also be used as a set-forward thermostat for an air conditioning system. It can allow the house to heat up when it’s unoccupied and return it to a comfortable temperature before occupants return from daytime activities.

Although this article deals with setback thermostats and forced-air heating systems generally, you can apply some of the advice to electric baseboards or to summer usage.

You can use a standard thermostat to set your house temperature lower during times when the house is unoccupied. This will lead to similar energy savings as with a setback thermostat, but without the convenience.

 

What’s a normal house temperature?

CMHC randomly surveyed Canadian households. Thermostat settings in the winter tend to be quite closely grouped around 20°C – 21°C (68°F – 70°F). Summer temperatures range much more widely, depending upon whether the house has air conditioning.

Where should I set the thermostat?

The more you reduce the thermostat setting, the greater the possibility for savings. Generally, a drop of 2°C (3.6°F) will lead to some savings and little risk. Some householders reduce temperatures 4°C – 6°C (7°F – 11°F). But, temperature differences this large create potential comfort and moisture problems.

Does setting back the temperature save energy?

Yes. Research from the Canadian Centre for Housing Technology shows that winter setbacks for the houses tested would result in heating cost savings of 5-15%. The highest savings came with a setback of 6°C (11°F). See CMHC’s Research Highlight: Effects of Thermostat Setting on Energy Consumption.

Savings for the summer were about the same, although simply raising the thermostat set point in the summer from 22°C (71°F) to 24°C (75°F) led to more significant savings than the set-forward strategy and also offered better indoor humidity control.

Note that these savings are for two airtight, well-insulated, unoccupied houses. The savings in your home may vary, but are likely to be in the same range.

To learn more about other sustainable technologies and practices that can improve the performance of your home as well as information on owning or buying a home, call Canada Mortgage and Housing Corporation (CMHC) at 1-800-668-2642 or visitwww.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!
 
20 Mar

March Madness Rates & The Value of a Rate Hold.

General

Posted by: Stacey Anderson Doran

March 2013
 
Stacey DoranMortgage Specialist

DLC – The Mortgage Hub

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

 
DID YOU KNOW…

Now’s the perfect time of year for a free mortgage check up. With Spring on its way and interest rates still hovering near historic lows, now’s the perfect time for us to revisit your mortgage and ensure it still meets your needs. Perhaps you’ve been thinking about refinancing to consolidate debt, purchasing a rental or vacation property, or you simply want to take a vacation. Whatever your needs, I can evaluate your situation and help you determine what’s right for you.

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 March issue of my monthly newsletter!

 

 

March Madness is a fitting theme this month as real estate and interest rates hit full stride heading into the spring market. Rate wars have once again resulted in new all time low mortgage offers, and interest rates seem to be receiving the majority of the press these days. Please be certain to contact me to verify the fine print as some low rate mortgage products come with restrictions that can cost much more than your interest savings in the long run.

 
 
MARKET SUMMARY
  • February job gains surprised with an increase to employment of 50,700 jobs in spite of a somewhat sluggish economy. The US also gained 236,000 jobs exceeding expectations of 165,000 jobs created.
  • After debt growth concerns have eased, the Bank of Canada is turning its eye towards growing the economy. This move would indicate that the BoC is less worried about the potential for a housing bubble.
  • Growth in China and the US will outshine Canada in 2013 according to the latest from the OECD. It’s important to note that many other countries are still playing catch up to Canada and that growth in the US and China will have positive effects on Canada’s economy.
  • China’s Government is cracking down on real estate ownership in their country. This could yield positive spillover effects to Canada’s economy, as more Chinese citizens will look to move their money abroad.
 
“MARCH MADNESS” RATE SUMMARY
 
Variable 2.60% (Prime-.40%)
3 year fixed 2.65%
5 year fixed 2.89%
10 year fixed 3.69%

*Interest rates quoted effective March 15, 2013. Rates subject to change without notice. Additional discounts may be available upon qualification.

The remainder of this month’s edition discusses the value of obtaining a rate hold and preapproval, as well as offers some helpful mortgage fraud prevention tips. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!

 

 

 

Securing a rate hold is like having insurance on your mortgage rate – you no longer have to worry about mortgage rates increasing while you find your new home over the next 90-120 days. And if rates drop within that same period, so too will your preapproved rate.

For instance, if you obtain a 3.00% rate hold and then global risks subside and the economy strongly recovers over the next three to four months, that 3.00% could easily jump to 3.5% or higher. In this case, your rate hold for 3.00% would have saved you half of a percentage point, which would translate to a savings of a significant amount of money over the term of your mortgage.

 

But a rate hold means nothing if you don’t meet the lender’s qualifications. By obtaining a preapproval and a rate hold, you can be confident you have access to mortgage financing and you’ll know how much you can spend before you head out shopping for a property.

It’s important to note, however, that there is a significant difference between being preapproved and prequalified. In order to obtain a preapproval, the lender fully underwrites the deal, whereas with a prequalification only the most basic details are considered. Remember that many banks will only issue a prequalification, while mortgage brokers will ensure you’re preapproved.

As always, if you have questions about rate holds or preapprovals, or other mortgage-related questions, I’m here to help!

 

In recognition of March as Fraud Prevention Month, Canada Mortgage and Housing Corporation (CMHC) has compiled several helpful tips to protect borrowers against becoming victims of mortgage fraud.

Misrepresentation of information Mortgage fraud occurs when someone deliberately misrepresents information in order to obtain mortgage financing that would not have been granted if the truth had been known. This can include:

  • Misstating one’s position or inflating one’s income or length of service at their job
  • Misstating employment status (ie, salaried/full-time versus contract, part-time, hourly, commission-based or self-employed)
  • Misrepresenting the amount and/or source of the down payment
  • Purchasing a rental property and misrepresenting it as owner-occupied
  • Not disclosing existing mortgage and/or debt obligations
  • Misrepresenting property details or omitting information in order to inflate the property value
  • Adding co-borrowers who won’t be residing in the home and don’t intend to take responsibility for the mortgage
 

Another common form of fraud is when a con artist convinces someone with good credit to act as a “straw buyer.” A straw buyer is someone who agrees to put his or her name on a mortgage application on behalf of another person. In return for their participation, straw buyers may be offered cash or promised high returns when the property is sold. Often, straw buyers are deceived into believing that they’ll not be held responsible for the mortgage payments.

Consequences of misrepresentation Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be responsible for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.

Reporting fraud If you suspect that you or someone you know has been the victim of mortgage fraud, contact your local police department or The Canadian Anti-Fraud Centre: www.antifraudcentre-centreantifraude.ca; 1-888-495-8501; info@antifraudcentre.ca.

To find out more about mortgage fraud, visit the fraud prevention section of the Canadian Association of Accredited Mortgage Professionals (CAAMP) website:  http://mortgageconsumer.org/protect-yourself-from-real-estate-fraud.

 

 
  • 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!
 

 

14 Feb

Valentine’s Day Newsletter – How much does rate matter?

General

Posted by: Stacey Anderson Doran

February 2013
 
Stacey DoranMortgage Specialist

DLC – The Mortgage Hub

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

 
DID YOU KNOW…

It’s now easier than ever to apply for a Dominion Lending Centres Visa directly through my website by clicking on the “Learn More” section of the Visa banner. You can also find out more about the Dominion Lending Centres Visa products on this section of my website. There are six different credit card options available, including: 1) Student; 2) Classic; 3) No-Fee Gold; 4) Low-Rate Gold; 5) Travel Gold; and 6) Platinum. Each Visa card includes a minimum three-day complimentary insurance coverage (even on no-fee cards), low regular rates ranging from 9.9-19.9%, the chance for applicants to win 500 BONUSDOLLARS (1 BONUSDOLLAR = $1 Canadian) over the next three months (several draws in each of January, February & March), and the travel program is a great option thanks to no 14-day advance booking notice or blackout periods. For details or to apply today, visit my website, give me a call or send me an email.

HOMEOWNER TIPS

Homeowner Insurance:

Much like car insurance, the higher the deductible you choose, the lower the annual premiums will be on your home insurance. But the problem with selecting a high deductible is that smaller claims/problems such as broken windows or damaged sheetrock from a leaky pipe, which will typically cost only a few hundred dollars to fix, will most likely be absorbed by you as the homeowner.

Selecting New Windows:

Windows can be one of the most important components of any home. In addition to enhancing the style and beauty of a house, windows provide fresh air and ventilation, bring sunlight into interior spaces and keep harsh weather outside where it belongs. Thanks to technologies developed over the past few decades, new windows can also improve the energy efficiency of a home and significantly lower your monthly energy bills. But purchasing new windows can be a daunting task. So if you’re in the market to replace or upgrade your windows click here for some helpful tips on choosing the right windows for your home from Canada Mortgage and Housing Corporation (CMHC).

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.

 

 
 

 

Happy Valentine’s Day!

I just wanted to take a quick moment to spread some “mortgage love” bringing you up to speed on some of the recent economic highlights & incredible rate offers.

Should you have any questions at all, or would like to review your current mortgage, please don’t hesitate to contact me!

 

MARKET SUMMARY

  • The predicted slump in Canada’s housing market has seemingly failed to materialize. Apart from two areas of acute weakness (Toronto’s condo market & Vancouver in general), there has been an orderly retreat.
  • Using Toronto as an example, December 2012 showed a 20% drop in sales (units) compared to the year before. In January 2013 the numbers show a modest 1.3% decline year-over-year. Over the same period prices for a single family home rose 4.3% year-over-year.
  • Elsewhere in the country, away from the Toronto and Vancouver volatility, Calgary saw sales climb 15% while Edmonton was up 3%.
  • The recent non-bubbly housing start numbers and weak employment data should not distract Canadians from two key points –
    • After a short, sharp economic shock, Canada’s economy began its recovery in late spring 2009 and has hardly paused since.
    • In comparison with the US, the EU, and especially the UK, Canada’s performance has been stellar.
  • The Canadian labour market lost 22,000 net jobs in January and the unemployment rate edged down to 7.0%. January’s poor result should be seen as more of a pay-back for the outsized job gains seen in late 2012 when economic growth slowed. Job creation should come in around 10,000-20,000 in the next few months in a modest growth environment.

 

RATE SUMMARY

Variable 2.60% (Prime-.40%)
2 year fixed  2.69%
5 year fixed 2.99%* (or better)
10 year fixed 3.69%

*Interest rates quoted effective February 14, 2013. Promotion (ie. Quick Close) offers not listed. Rates subject to change without notice.

The remainder of this month’s edition suggests there are more important aspects of your mortgage than rate alone, as well as offers energy-saving tips for older homes. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!

 

 

 

Often times, borrowers are fixated on their mortgage rate because it’s the one aspect of their home financing they know to ask about. But, it’s important to look beyond mere rates into the bigger picture surrounding what’s significant when it comes to your specific mortgage needs.

If we dollarize the difference between 2.99% and 3.04%, for instance, it works out to an additional $2.66 in your monthly payment per $100,000 of your mortgage. Over the course of a five-year term, this culminates into just $159.60 per $100,000.

While “no-frills” mortgage products typically offer a lower – or more discounted – interest rate (like the 2.99% used in the example above), when compared with many other available products, the lower rate is really their only perk.

The biggest problem with looking at rate alone is that you may end up paying thousands of dollars in early payout penalties if you opt for a five-year fixed-rate mortgage, for instance, and then decide to move before the five years is up.

No-frills mortgage products won’t let you take your mortgage with you if you purchase another property before your mortgage term is up – ie, portability is not an option with this product. Portability is an important option that could save you money over the long term if the home of your dreams is within your reach before your mortgage term is up and rates have risen, which they have a tendency to do over a five-year period.

This type of product is only plausible for those who have minimal plans to take advantage of benefits that will help pay off your mortgage faster – such as prepayment privileges including lump-sum payments.

Essentially, this product is only ideal for: first-time homebuyers who want fixed payments and have limited opportunities to make lump-sum payments during the first five years of their

 

mortgage; and property investors who need a low fixed rate and aren’t concerned with making lump-sum payments.

It’s understandable why these products may seem appealing. After all, not everyone feels they have the extra cash to put down a huge lump-sum payment. And who needs a portable mortgage if you’re not planning on moving any time soon?

But it’s important to remember that a lot can change over the course of five years – or whatever term you choose for your mortgage. You could get transferred, find a bigger house, have babies, change careers, etc. Five years is a long time to be anchored to something.

Many people won’t sign a cell phone contract for longer than three years that they can’t get out of, so why would they then sign a mortgage for five years that they can’t get out of?

The thing is, you can still obtain great mortgage savings without giving up the perks of traditional mortgages. For starters, many lenders are willing to offer significant discounts if you opt for a 30-day “quick close”.

And there are many other ways to earn your own discounts. For instance, by switching to weekly or bi-weekly mortgage payments, or by obtaining a variable-rate mortgage but increasing your payments to match those of the going five-year fixed rate, you’ll be ahead of the typical discount of a no-frills product before you know it – and you won’t have to give up on options.

Banks don’t give anything away for free – they’re there to make money. That’s why it’s essential to discuss the full details surrounding the small print behind the low rates. It’s also important to take into account your longer-term goals and ensure your mortgage meets your unique needs now and into the future.

As always, if you have questions about mortgage rates, or other mortgage-related questions, I’m here to help!

 

If you own an older home, chances are, you’re always on the lookout for ways to reduce your heating costs. Adding insulation to your home not only helps you save money right now, but it’s also a way to “future proof” your home – protecting you against energy cost increases down the road. A well-insulated, energy-efficient home reduces the need for heating in the cooler months and cooling in the warmer months.

By far the best time to upgrade your home’s insulation is when you’re doing other renovation work. For instance, it may not make much economic sense to remove the exterior cladding on your home simply to add more insulation, but if you’re replacing the cladding because it’s worn or you want to upgrade the curb appeal of your home, this is the perfect time to add insulation to the outside of the walls and seal up leaks.

Fortunately, there are many different options to achieve different levels of energy performance in typical older homes by adding insulation to the attic, walls and foundation, and reducing air leakage.

Increasing energy performance The first step should always be to make your house more airtight. Use caulking and spray insulating foam to close up gaps around windows and doorways, and under thresholds. Inspect and replace worn weather-stripping and seals on windows and doors. Add foam gaskets behind the faceplates of electrical outlets and switches on exterior walls. Seal around outside faucets and vent hoods.

Doing this reduces drafty spots, making your home more comfortable, reduces exterior noise and dust, and actually helps the insulation you have in your house work better.

Air sealing is also one of the least expensive and most cost-effective energy-saving retrofit measures you can complete. Without it, you won’t gain the full benefit of increasing the existing insulation in your home as air leakage can reduce the effectiveness of many types of insulation.

You can save up to 10% on the space heating costs for a typical older home by improving the air tightness of the home by 30% and adding an additional R20 worth of insulation in the

 

attic, R10 on the basement walls, or R10 in the above-grade walls. The cost can range from $7,500 to $15,000 or more, depending on the insulation you choose, how much you install, other renovation work you are having done and how energy-efficient your house is to begin with.

To reduce your space heating costs by 25%, you may need to improve the air tightness of the home by 30%, add another R20 in the attic, and R15 to the exterior and basement walls. This work can cost anywhere from $18,000 to $30,000 or more depending on the full extent of the actual work that needs to be done.

Alternatively, instead of adding insulation, you may be able to achieve the same 25% goal by installing new Energy Star-rated windows. The cost of new windows is in the order of $15,000 or more depending on the number of windows to be replaced and the features selected. Ensure any new windows are well-sealed into their wall openings as air leakage can undermine their insulating value.

It’s important to consider the effect of adding insulation and air sealing on the whole house. While improved air tightness goes hand-in-hand with reduced drafts and heat loss, it also reduces the amount of fresh air that can leak into your house, leading to moisture build-up and lingering odours if not balanced with energy efficient ventilation – a heat recovery ventilator, for example.

This is the reason that “build tight-ventilate right” has been the credo of energy efficient builders and renovators for more than 30 years.

Keep in mind that it’s always a good idea to get an energy audit of your house completed before you decide what to do and how much to invest. To formulate specific retrofit plans for your house, Canada Mortgage and Housing Corporation (CMHC) recommends that you retain the services of a qualified residential energy service provider to undertake an EnerGuide audit. Audits and ratings can be obtained from service organizations licensed under Natural Resources Canada’s EnerGuide program. For more information on finding a qualified service organization, visit http://oee.nrcan.gc.ca/residential.

CMHC has a wide range of helpful information for homeowners on sustainable technologies and practices and renovating for energy available from www.cmhc.ca or by calling 1-800-668-2642.

 

 
  • 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!
 

 

24 Jan

What does a mortgage broker do? – Welcome to the January issue of my monthly newsletter!

General

Posted by: Stacey Anderson Doran

January 2013
 
Stacey DoranMortgage Specialist

DLC – The Mortgage Hub

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

 
DID YOU KNOW…

Dominion Lending Centres has launched a new Visa Card Program! You can now conveniently apply for a Dominion Lending Centres Visa directly through me. There are six different cards available, including: 1) Student; 2) Classic; 3) No-Fee Gold; 4) Low-Rate Gold; 5) Travel Gold; and 6) Platinum. Each Visa card includes a minimum three-day complimentary insurance coverage (even on no-fee cards), low regular rates ranging from 9.9-19.9%, the chance for applicants to win 500 BONUSDOLLARS (1 BONUSDOLLAR = $1 Canadian) over the next three months (several draws in each of January, February & March), and the travel program is a great option thanks to no 14-day advance booking notice or blackout periods. For details or to apply today, give me a call or send me an email.

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 January issue of my monthly newsletter!
 

What does a Mortgage Broker do?

It is still a mystery to the majority of Canadians and is costing them far too much money. A good Mortgage Broker becomes your advocate when borrowing and can save you over $37,000 over the life of your mortgage including almost $5,000 during the first term alone1.

Studies conducted by Maritz Research & the Bank of Canada show that working with a Mortgage Broker versus the bank saves the average borrower 17.5 basis points on their first mortgage2 and 40 basis points on every subsequent mortgage renewal3.

 

Saving is all about the best rate right?
 
That’s the big shiny price tag and when it’s low, we feel like we got a deal and are part of a secret society of clever borrowers. The rate is obviously very important, but there is more to mortgage planning than just the interest rate –
  • Am I allowed to break the mortgage if I need to consolidate debt?
  • What will it cost me?
  • How much extra can I pay down on my mortgage every month? every year?
  • What if I want to buy a second home or rental?
  • How can I make my mortgage interest tax deductible?
Interest rates at all time lows have many of us asking how we can take advantage of the potential savings. As the remainder of this newsletter highlights, quite often it can make sense to break the terms of your existing mortgage and take advantage of todays rates below 3%4. A bank would never help you get out of your higher-rate contract as it takes your money out their pockets. A Mortgage Broker however, recognizes that the mortgage process isn’t over once the paperwork is signed. Market conditions can, and do, change creating excellent opportunities for savings!
 
We all wish we had a little more time and little (or a lot!) more money. We know you work hard for your money and we will work just as hard throughout the life of your mortgage to make sure you’re keeping more of it in your pockets. Whether you would like to learn some tips and tricks to help you become mortgage-free faster, or you would simply like to access a better rate, contact me today to get started!
 
1 Savings calculations based off $350,000 starting mortgage balance, 25 year amortization with contract rates of
4% for a mortgage broker versus 4.175% contract for first term with bank and 4.4% contract rate for renewing terms. Savings is the interest savings over the life of the mortgage and monthly payment savings over the life of the mortgage.
2 Allen, Jason & Clark, Robert & Houde, Jean-Fraçois; Discounting in Mortgage Markets; February 2011; Bank of Canada
3 Davies, Kyle & Daniel, Rob; Canadian Mortgage Broker Channel: Consumer and Industry Perceptions; January 2011 Maritz Research
 
RATE SUMMARY
Variable (insured) 2.65% (Prime-.35%)
3 year fixed 2.70%
5 year fixed 2.89%
10 year fixed 3.79%

4 Interest rates quoted effective January 21st, 2013. Rates subject to change without notice.

Please let me know if you have any questions or feedback regarding anything outlined below. Thanks again for your continued support and referrals! Happy New Year!

 

 

With mortgage rates still hovering at historic lows, chances are you’ve considered breaking your current mortgage and renewing now before rates begin to rise.

Perhaps you want to free up cash for such things as renovations, travel or putting towards your children’s education? Or maybe you want to pay down debt or pay your mortgage off faster?

If you’ve thought about breaking your mortgage and taking advantage of these historically low rates, feel free to give me a call or send me an email to discuss your options.

In some cases, the penalty can be quite substantial if you aren’t very far into your mortgage term, but we can determine if breaking your mortgage now will benefit you long term.

People often assume the penalty for breaking a mortgage amounts to three months’ interest payments so, when they crunch the numbers, it doesn’t seem so bad. In most cases, however, the penalty is the greater of three months’ interest or the interest rate differential (IRD).

 

The IRD is the difference between the interest rate on your mortgage contract and today’s rate, which is the rate at which the lender can relend the money. And with rates so low these days, the IRD tends to be greater than three months’ interest. Because this is a way for banks to recuperate any losses, for some people, breaking and renegotiating at a lower rate without careful planning can mean they come out no further ahead.

Keep in mind, however, that penalties vary from lender to lender and there are different penalties for different types of mortgages. In addition, the size of your down payment and whether you opted for a “cash back” mortgage can influence penalties.

While breaking a mortgage and paying penalties based on the IRD can result in a break-even proposition in the short term, if you look at the big picture, you’ll see that the true savings are long term – as we know that rates will be higher in the years to come. Your current goal is to secure a long-term rate commitment before it’s too late, and here lies the significant future savings.

As always, if you have questions about breaking your mortgage to secure a lower rate, or general mortgage questions, I’m here to help!

 

Canada Mortgage and Housing Corporation (CMHC) recently introduced two new tools to help Canadian homebuyers make informed and responsible home-buying decisions – including a calculator and mobile app.

CMHC’s new Debt Service Calculator allows homebuyers to evaluate their financial situation and understand how much they can comfortably afford to spend on a mortgage. The easy-to-use calculator allows users to quickly estimate their gross debt-service ratio (GDS) and total debt-service ratio (TDS) – both important measures in assessing their financial readiness for homeownership. The Debt Service Calculator can be accessed by visiting: www.cmhc-schl.gc.ca/en/co/buho/buho_005.cfm.

 

CMHC’s new ‘Ready, Set, Home’ mobile app provides consumers, particularly first-time homebuyers, with comprehensive CMHC information and tools at your fingertips. The app helps homebuyers keep track of the details throughout the home-buying process and provides access to a variety of helpful calculators, articles and other resources.

Recognizing the increasingly fast-paced, electronic and mobile environment, the new ‘Ready, Set, Home’ mobile app is a free application that offers quick and convenient access to CMHC’s extensive housing information. The app can be downloaded to your Blackberry, Android or iPhone device at: www.cmhc.ca/mobile.

These new tools are the latest additions to CMHC’s comprehensive suite of free resources available to support Canadian homebuyers.

 
  • 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!
 

 

21 Dec

Last Market Update for 2012 – Happy Holidays!

General

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

 
DID YOU KNOW…

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.

 

HOMEOWNER TIPS

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!
 
 
(FINAL 2012) MARKET SUMMARY
 
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.
 
RATE SUMMARY
 
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!
 

 

25 Nov

Canadian Cancer Society – Daffodil Ball

General

Posted by: Stacey Anderson Doran

Friends & Family,
 
I recently joined the committee for the Daffodil Ball and couldn’t be more excited to be a part of this amazing event!  I chose to support the Canadian Cancer Society because it funds life-saving research, providing for a greater impact against more cancers than any other cancer charity. Not only does the Canadian Cancer Society invest in laboratory research but they also fund clinical trials and behavioural studies focusing on prevention, early detection, screening and quality of life issues as well as delivering support and information to people affected by cancer. Sadly, cancer is still the leading cause of death in Canada but the good news is is that research saves lives. Today, over 60% of Canadians diagnosed with cancer will survive. In the 1940’s this number was only about 25%. We have all been touched in one way or another by this disease so I am hoping that you can come and join me to help us change the story for our future generations. I am more than happy to organize ticket sales so please do let me know if you would like to join us on Saturday April 27, 2013 at the Fairmont Hotel Vancouver for the 17th Annual Canadian Cancer Society Daffodil Ball.
 
Tickets are $550 per guest or $450 per guest if purchased before February 15, 2013.
 
For the ultimate Daffodil Ball experience, consider the additional luxury of a VIP Table (please ask me for more details @ stacey@themortgagehub.ca).
 
Share the 2012 Daffodil Ball event video with your friends and family to show them what they could be a part of.
 
30 Oct

Happy Halloween Everyone!!

General

Posted by: Stacey Anderson Doran

To keep within the spirit of Halloween I wanted to share my recipe for Pumpkin Pow Soup! The jack-o’-lantern is not only of the symbols of Halloween but it is also full of goodness!! Pumpkin which is loaded with vitamin A, C, K, E, antioxidant carotenoids and lots of minerals is the main ingredient in this delicious spicy & sweet soup. I hope you enjoy it as much as I do!