Good news! On October 23rd, the Bank of Canada reduced the overnight rate by one half percentage point, lowering it to 3.75%. This is a cumulative cut from the peak by 1.25%. This cut was the fourth consecutive one this year, and will bring much welcome relief to anyone holding a variable rate mortgage, or […]
The federal government has announced a new mortgage program geared to assist homeowners in adding space to their existing homes to create additional self-contained living spaces, such as basement apartments, in-law suites or converted garages. Currently, any refinance, no matter the purpose, is maxed out at 80% loan to value ratio (LTV). That means you […]
The federal government has announced two big updates to updates to CMHC eligibility for First-Time Homebuyers. Whether the changes are an effort to garner votes, or increase affordability is up for debate. THE FIRST UPDATE: INCREASE TO THE MAXIMUM VALUE Currently, CMHC-eligible insured or insurable mortgages are limited to home values of $1 million. The […]
There was a recent announcement from the Federal Government regarding the maximum amortization for insured mortgages for First Time Home buyers when purchasing newly built homes, up to 30 years, from the current maximum of 25 years. This change is effective August 1st, 2024. This change is in addition to the previously announced Tax Free […]
Good news this morning! Tiff Macklem, the Governor of the Bank of Canada, announced a quarter point percentage rate cut to the benchmark rate from 4.75% down to 4.5%. This is the second consecutive meeting resulting in a rate cut announcement this year. Lenders typically follow suit, dropping their own Prime rates within a day […]
I’m sure you’ve seen the ads pop up when online, on TV or heard them on the radio? Mortgage brokers advertising a “super low rate” for a mortgage. They make it sound like they have special rates that no one else does. Is it true? Do these people actually have the best rates that no […]
The Bank of Canada announced a cut to the overnight interest rate from 5%, by 25 basis points or 0.25%, to 4.75% on June 5th, 2024. Starting in March of 2020, rates were steadily cut to a historic low of .25% which held until March of 2022 at which point rates started to increase steadily […]
Managing your down payment is not often something people think about when looking to buy a home. Of course, there are lots of things to consider when preparing to purchase a home, and the down payment is an important one. Often as mortgage professionals, we speak in general terms without getting into fine details. These […]
As of April 1st, first-time home buyers in Canada will have a new tool, the First Home Savings Account, to help them save for the down payment for a home purchase. This is a great program for prospective buyers. What is a First Home Savings Account? The First Home Savings Account, or FHSA as it […]
Despite real estate prices declining slightly from the highs of 2022, prices are still at relatively high historic levels. This, coupled with historically high rates and the associated payments, has continued to make affordability a big issue, especially for first-time home buyers. High real estate prices mean large down payments and large mortgage payments. For […]