The Bank of Canada (BOC) recently lowered the bank of Canada overnight rate by a quarter of a percent in January.  This came as a surprise to everyone and the few people who had variable rate mortgages were rubbing their hands together, looking forward to their payments decreasing.  They did decrease but not the same .25%.  All of the major institutions colluded and decided to make even more money off of the backs of Canadians and only lowered their prime rates by .15%.

This begs the question, Is a variable rate mortgage really worth the risk if lenders aren’t going to follow the Bank of Canada rates cuts?  Read the below article from the globe mail on the this controversial topic.

Read me:

The bank of Canada changed it’s overnight lending rate by a quarter of a point last week which surprised economists, mortgage brokers and everyday citizens of Canada.  There had been talk of it happening but most people took it for just that, talk…

Here is an article that provides the everyday consumer with 5 things to know about this decision and a possible further rate cut!

BOMBSHELL!

A relative and interesting article on how much you need to earn in order to buy a home in some of Canada’s major cities. 

Here is the link;

Can you afford to buy a house in one of Canada’s major cities?

An interesting article on whether or not the Bank of Canada will follow in the footsteps of the Fed in the United States.  It seems like whenever we get close to raising interest rates, something happens on a broad scale and we pull our heads back in our shells.  The latest, plunging oil prices………

please read…..

In the past year nearly half of Canadians dealt with a major unexpected event or emergency that required them to borrow money or dip into their savings to cover the unplanned costs.  A CIBC poll suggested that 74% of those people did not have enough dedicated emergency savings and were forced to find other sources of money to cover the expenses.  Polling also suggested that the most used avenue to counteract this problem was the usage of credit cards to pay for the expense directly or to counter cover other household or daily expenses.  

Here in lies the probem with consumer debt!  The majority of these people will not recover from this extra expense for years to come because they are paying their debts at their outrageous credit card rates.

Be prepared for such an occasion by showing some self restraint and holding a small line of credit with NO balance.  This way when a bonafide emergency presents itself, you will already have the resources to deal with the financial realities of the situation.  If you cannot be trusted with access to emergency “borrowed” money then contact a mortgage professional who will be able to aid you with the process and find the most cost effective and least stressful avenue for your specific situation.

Most importantly remember that borrowed money is not your money! 

Hello folks, here is another example of why today’s mortgage consumer needs to hold their banking professionals accountable.  The big five banks are notorious for sending out their renewal letters with intimidating language and outlandish “standard” rates.  Please take the time to contact a mortgage professional to discover what is in your best interest because if you sign that renewal offer straight away you will regret it!

Here is a related article that could be of interest if your renewal time is approaching.

Please read me…..

Want to get a new mortgage or even your first mortgage?  Then, your credit score is a really big deal- it can make or break your mortgage payments, and ultimately determine whether you get the house you want.  But before we talk about credit scores, let’s talk about the debt that affects them.

There are two types of debt: secured and unsecured.  When you borrow money to buy a house, the bank can take back the house to recoup their money if you don’t pay the debt.  That means the debt is secured-it’s being balanced against something that you want to keep and gives the bank some measure of security that they’re going to be able to recover the money that they’ve loaned you.

Unsecured debt, on the other hand, means the bank can’t reclaim the thing you’re buying with the borrowed money.  (Credit card debt is unsecured, and so are student loans.)

Click here to look at the impact of four key consumer loans, a mix of secured and unsecured debt, on your credit score-and ultimately, your mortgage worthiness.

It may seem obvious with today’s low interest rates, high rents and a strong housing market; if you’ve got the money, buy now.

But how do you know when you are truly ready to take the plunge?

Read the article below for more information;

BUYING YOUR FIRST HOME!

Everyone these days has an opinion on the “pending” real estate crash in Canada and what is going to happen when interest rates rise to historically normal levels.  The bank of Canada has stated recently that they are researching a “neutral interest rate” which could mean that lower than average interest rates are here to stay. 

Read the below article for more information;

LOW INTEREST RATES, HERE TO STAY?

The most formidable task for a first time home buyer is coming up with a down payment.  If you are not one of the lucky few who have parents to lean on, saving for a down payment in today’s real estate market can be a daunting task.  

Here is a fantastic article with some very simple but realistic suggestions on how to climb that down payment mountain.  

Save for that Down Payment!