Mortgages Canada

Mutual fund is an investment tool. To understand mutual funds you have to know what stocks and bonds are.

Stock: Stock is an ownership of the company. Imagine that you own a firm. You decided that you need investors. You slice up your company like a pie and sell each piece of a pie to other people. A piece of a pie can be called stock. Stocks are measured in percents %. If you own 50.000001% of the stock you own the company.

Bond: A document which guarantees that the government or a corporation will pay out amount owed, plus the interest, by specific date, to individual lenders. For example, you as an individual want to lend money to a corporation. You can do so buy buying bonds. Bond are simply papers that guarantee that the corporation to which you lend money will pay you back the amount, plus the interest. You become the lender and corporation becomes the borrower. Bond is a tool to make the transaction possible.

Mutual Fund: As an individual you have a choice of investing in stocks or bonds(there are more terms, but to keep it easy we left them out). You can do so by browsing stocks and bonds yourself and simply investing in what you like and what you think will generate return.

Mutual Funds bring large numbers of investors together and diversify their investments. A large number of investors will get together (for example 100) and create a mutual fund, combining their money. They will hire people to manage their money and invest all of their money into different companies, buying different stocks and bonds.

This minimizes risks associated with investment and increases chances for making profits. Mutual fund managers can look at different stocks, see which are doing good, not so good and bad. Invest a portion in a good stock, in a young company and so forth.

To make it easy for individuals to join mutual funds, all they have to do is buy mutual fund papers, simply known as mutual funds. Rest of the job is done for them.

Equity Grabbing

Equity grabbing is a predatory lending technique used to gain peoples homes. With cash-out refinance, people with a lot of equity in their homes(own most of their homes, since they paid out most of the mortgage) can get a bigger loan then they had before, meaning they will get cash against the equity in their home. They can spend this cash the way they want it, however they will have to pay it back over time at an interest rate. Interest rates do not differ from those on the market, but this where the catch is.

Predatory lenders talk borrowers into cash out refinance without specifying overly high interest rates. Once people sign up for the loan, they do not suspect anything, only when it comes to paying back money they borrowed at 14-20% interest rates. As many people simply cannot afford it, they default on the mortgage(cannot pay it back) which leads to foreclosure(lender taking borrowers home as per contract). In the end people are left without their homes. This is called equity grabbing.

Watch out for any offers, either by contractors who go door to door and offer to fix your roof(do any other fixes) by offering a loan, or phone via calls.

Escrow

Money, property, deed(contract), documents held under the custody of third party company until both parties settle the contract. For example, Ron is selling his house to Alex. To make sure that both of them play fair and do not fraud each other, they agree on an escrow.

• Ron gives his keys and documents from his house to an escrow company.
• Alex gives his money to an escrow company
• Escrow company puts everything into a safe and issues 3 keys. It gives one key to Alex, one to Ron and keeps one key to itself.
• Safe cannot be opened without 3 unique keys.

Once Ron and Alex settle everything - transfer takes place. Escrow company is witness to the transfer and will not allow it if one party is not satisfied (since it has 3rd key). If everything is settled, everyone signs the documents and transfer takes place. Ron gets his money, Alex gets his house and escrow company collects a fee from both of them.

Self Employed:

Who is considered self-employed? Whoever owns a company, is paid based on company performance, or whose ownership interest in a business is 25% OR GREATER, is considered to be self employed.

• T4 Tax Slip

If you are paid on commission or operator basis (taxi and truck drivers), you’re also considered self employed. Documentation varies depending on financial institution.

Self Employed Mortgage Documentation

• Copy of business financial statements, personal tax returns or corporate tax returns
• Copies of recent business bank statements to demonstrate cash flow
• Signed personal tax returns for the past 3 years, including schedules
• Signed year-to-date profit and loss statement and balance sheet
• Business credit report
• Articles of incorporation

Lenders will also want to know

• Income is regular, recurring and continuous.
• Independent verification of financial information is available
• Income is realistic given the type of business, experience and ability in comparison with other businesses in the same market.

Commission

• Signed personal income tax returns for the past 3 years, including all schedules and T4s, are usually required to assess a commissioned applicant income.

Mortgage Refinance Costs

Mortgage refinance closing costs add up to 2% – 5% of the money you’re borrowing.

How Much and How Soon Do I Save With Mortgage Refinance?

• To save money you must refinance with lower interest rate
• Saving starts only
• Interest rate must be at least 1% lower than the one have at the moment

In order to save on refinance you must calculate break even period. Break even period is when your monthly mortgage payment savings cover refinance closing costs, which takes several years. For instance, borrower refinanced from a 6% to 5% interest rate and now saves $150 per month. To get the refinance borrower had to pay $4000 in refinance closing costs out of his own pocket.

To calculate break even period, divide refinance closing costs by monthly savings. $4000 / $150 = 26,6. It will take 26,6 month or approximately 2 years for savings to start.

Mortgage: $150,000

Old interest rate: 7.86%

New interest rate: 5.12%

Length: 20 years

Closing Costs: $5200

The Break Even Period

Since closing costs were $5,850 let’s calculate the break even period.

$5,850 / $332 = 17,6 (approximately 17 and a half months).

During the first 17 and a half months period borrower will not save any money, but recover refinance closing costs. After that point borrower will start saving money.

No Cost Mortgage Refinance

There are 2 types of no cost refinances mortgages.

Adding Costs to Your Loan

If you refinance $100,000 and your closing costs are $3,000 lender can add it on top of the loan and give $103,000. You don’t pay for the costs right away, but gradually. Lenders charge interest on added amount.

Higher Interest Rate

Another way to avoid costs is to get higher interest then the best rate offered by the lender. Lenders simply adds the costs via interest rate.

Apply for a first mortgage and fulfill your goal of home ownership! MortgagesCanada.ca provides money-saving experience to first time home buyers by shopping 60 Canadian banks and lenders.

Your mortgage payments will consume large part of your monthly budget - make sure you get the delicacy of choice and see various terms / interest rates before choosing one bank or lender. Below, we’ve compiled valuable first mortgage Frequently Asked Questions (FAQ) so you don’t have to spend hours on research and get correct answers about your first mortgage from the start.  

First Mortgage FAQ

What do I need to get a first mortgage?

To get a first mortgage loan you need to:

• Have full time employment
• Provide proof of income
• 5% down payment
• Have good credit score
• Pay mortgage closing costs

If you don’t have 5% down payment.

• Get a 100% no money down mortgage.
• Get up to $20.000 tax free from Canadian government (RRSP Home Buyers Plan).

What are the fees associated with first mortgage?

Mortgage fees called closing costs add up to around 1.5%-2% of the mortgage. First mortgage closing costs include: document preparation, legal fees, appraisal and taxes. Find out more about mortgage closing costs.

How big of a mortgage do I qualify for?

To find out how much you qualify for, please fill out our mortgage qualification form, we will get in touch with you by phone or email and let you know the amount you are qualified for. Each lender is different, however the power of choice is true benefit that MortgagesCanada.ca provides when you need money for your first home.

If you want to know how big of a mortgage you can afford or how much per month you can spend on mortgage payments use our mortgage calculator.

What is considered good credit score?

Good credit score is around 700. Canadian credit score agencies use a scale from 300 to 900. Higher number means better credit score. The higher your score, the better interest rates you can get from various lenders.

You can get your credit score from:

• Equifax
• Transunion

Learn more about mortgage credit score.

How long will it take to get a first home loan?

Once you are approved for your first mortgage, it will take only 2-3 weeks for the whole process to be completed.

Can I get a mortgage before shopping for my house?

Absolutely. We will even freeze interest rates if you want to. After first mortgage pre-approval, you have 60-120 days to choose a home. If you have a brand new home under construction, we can work out a longer period.

What is the difference between Fixed Rate Mortgage and Adjustable(Variable) Rate Mortgage?

With “fixed rate mortgage” interest rates stay fixed for long periods of time(5-30 years). With “adjustable rate mortgage” interest rates change every 1 month or every 6 months.

Which mortgage is better?

Fixed Rate Mortgage: interest rates stay fixed for long periods of time. You get equal monthly payments throughout the term of your mortgage(for 5, 10, 15 or 25 years). Fixed rate mortgages have slightly higher interest rates.

Adjustable(variable) Rate Mortgage: interest rates change every 1, 2, 3 and 6 months(depending on mortgage type). Monthly interest rates may go up and down, affecting your monthly mortgage payments. Interest rates are dependant on Canadian economy and market conditions.

Both have advantages and disadvantages. MortgagesCanada.ca looks at various scenarios and recommends a mortgage that will cost you minimum over the years and offers lowest monthly payments.

What is CMHC?

CHMC stands for Canada Mortgage and Housing Corporation. CHMC is run by Canadian Government and provides mortgage insurance to all borrowers who put less than 25% down payment on their homes. CHMC website.

Who does MortgageCanada.ca work for?

For you. This is why we went into the trouble of compiling and sourcing all possible banks and lenders throughout Canada, so you have a wide line up of first mortgage options to choose from.

Why do I need a mortgage broker?

For the benefit of choice. Big banks only show you one side of the coin. There are dozens of lenders, who do not advertise and do not have local branches. To stay competitive they offer lower rates and better mortgage packages. MortgagesCanada.ca finds those lenders along with major banks and passes the savings to you.

There must be hidden fees?

There are none. We show you everything on paper. Costs are the same if you used a bank and lower!

How safe is my information?

We won’t sell your information to anyone. We respect your privacy and only share information with lenders for approval purposes. Check our privacy policy.

Apply for your first mortgage with MortgagesCanada.ca to fulfill your goal of home ownership!

Apply Now

Have more questions or concerns? We’re here for you.

Contact us by email

Mortgages Canada

Mortgages that suit your finances. Home loans that save money in the long run. Free Services.

MortgagesCanada.com has established a network of mortgage lenders and mortgage brokers all across Canada, for the purpose of satisfying your wallet and lifestyle. Lowest rates and best mortgages is our specialty. We are an independent mortgage company, not tied to any bank and we work hard to get mortgages that fit your finances.

We only deal with established, competent, fair mortgage brokers, who share our philosophy of giving best mortgages at lowest interest rates.

MortgagesCanada.ca has compiled numerous articles, calculators, financial institutions and brokers, to give you guidance in picking best mortgages.

Mortgages Daily Interest Rate Updates.

Save money in the long run by knowing what the rates are.

Our website provides up to date, daily interest rate updates on mortgages. We gather information from numerous financial institutions to give precise numbers of what interest rates to expect on your home loan. Save money on interest by taking advantage of the rates you like.

Home Loan Calculators.

Make estimates on the mortgages you like.

We provide full suite of resources which include useful calculators, giving financial guidance as to what mortgages are right for you. Each calculator is specially designed for specific mortgages, ensuring that you can foresee precise payment estimates, interest rates and terms. Our mortgage calculators arm you with an advantage of knowing what you should be paying when times of negotiations come.

House is a big investment. Biggest one for you. Mortgage gets you the house, so be wise. Mortgage payment is going to be constant, monthly commitment. You want it smooth, predictable and fair. This is why it’s important to shop and compare. Imagine new shoes? You wouldn’t dream buying first ones you saw. So why it’s different with mortgages? Shop around, or pass it to Canada Mortgages. We have 50+ lenders to look at, so we’ll find one that fits you.

What’s Mortgage Underwriting? What are the Factors that Affect Pre-Approval Process? During mortgage underwriting lenders look at your credit history, debt-to-income ratio, home price and down payment. The end result is “yes” or “no” on a mortgage application. There are few more factors you should know about mortgage approval. Read to find out more.

Do you have poor credit? Banks generally decline people with poor credit. This is because banks are portfolio holders. For the most part, they do not sell their mortgages on financial markets. If you have poor credit, you can still get a mortgage, from smaller lenders. They generally do not advertise and rely on brokerage network. Canada Mortgages can get you a mortgage if you have poor credit.

Mortgage industry experienced some bad practices. Number of criminals scammed people out of their money. One of the common tricks is posing as repair people, willing to do repairs on property if you sing up for a loan. That loan turns out to be a mortgage, with high interest rate, designed to drive people into foreclosure. Watch out.

Looking to consolidate debt? Canada mortgages offers debt consolidation services via all in one mortgage. All in one mortgage, works like other debt consolidation mortgages. It takes all your debt such as credit cards, car loans, mortgages, home equity loans and combines it one fixed payment. This way your pay less in over interest and have more money each month.

How to Avoid Prepayment Penalty? Number of mortgage lenders charge prepayment penalty for paying off your mortgage balance earlier and for the privilege of refinancing. The only way to avoid it is to make sure you do not sign up for one in the first place. How to spot mortgage prepayment penalty in a contract and more…

What is cash out refinance? Cash out refinance is an alternative to Home Equity loan. When the owner of a house has lived on the property for long enough for the value to go up, he can refinance with a bigger mortgage, where accumulated equity will be free to spend.

What is a LIBOR Rate? LIBOR stands for London Interbank Offered Rate, which is set by London Central Bank. It is the best interest rate offered by banks to their best customers, such as other banks and corporations. LIBOR also affects adjustable rate mortgages, since when LIBOR adjusts, so do variable rate mortgages.

How to get money for mortgage down payment? Registered Retirement Savings Plan allows Canadians to withdraw up to $20.000 for down payment from the RRSP fund. To qualify for the program participants must have rented or owned property within past five years. You must pay back the amount within 15 years, 1/15th each year.

RRSP is a fund registered with Canada Revenue Agency, for retirement savings. All additions to the RRSP are tax deductible. You can put investments such as stocks, bonds, mutuals and regular money. If you pay 25% in taxes, for every $100 you put into the fund you will save $25 in taxes. This is done to promote the plan by Canadian government, as it’s also a good source for getting mortgage down payment.

What is private mortgage insurance? Mortgage insurance is mandatory insurance that all borrowers with less then 25% down payment must have. It is provided by Canada Mortgage and Housing Corporation(CMHC). After paying back at least 20% of the loan amount, you take the insurance off. After you pay back 23% of the mortgage, lenders are required by law to take it off.

What is Appraisal? Appraisal is an audit of a property. When you state the price of a house, lenders want to verify that you are telling the truth. There’s been a number of false claims in the past and lenders want to protect themselves. You will need to hire an independent appraisal company, as most lenders will not give you a mortgage without appraisal.

What’s a Balloon Mortgage?  Mortgage that has regular monthly payments, but does not get paid in full by the end of a term. At the end of a term, balloon mortgage requires a large lump sum to cover the unpaid balance. Balloon mortgages aren’t very popular, but if you want smaller payments and have a cash at hand and need to devote income to something else, balloon mortgage may be an option.

What’s a Biweekly mortgage? Bi-weekly mortgage is a mortgage for which you pay every two weeks. Since there are 52 weeks in year, you end up paying 13 month per, which shortens mortgage life. With biweekly mortgage you pay half payments every two weeks. If you’re looking to shorten mortgage life, biweekly might be for you.

Mortgage Pre-Approval Tips. Things to keep in mind when applying for a mortgage:

- What is the duration of pre-approval process?

- Will interest rates be locked?

- Will the lender provide written commitment upon approval?

- Will there be any penalties if you decide to pay more per month or have extra cash to invest?

When applying for a mortgage, apart from interest rate charges, there will be a number of service related fees, government taxes and commissions. A number of unethical mortgage brokers take advantage of people and overcharge them with fees which go into their pockets. To make sure this doesn’t happen to you, ask you mortgage company the following questions:

- Will commissions be a part of the mortgage?

- How much will be total closing costs? Can you explain all of them?

- Do the appraisal fees and credit report charges need to be paid at time of approval?

- If the rate goes down, are there any extra charges?

- Can the mortgage be converted to another type of a loan without extra fees? If not, how much will it cost?

- Can I pay more every month if I have extra cash and want to reduce the principal without any penalties?

Consider your financial status, long term and short terms goals, then make the decision based on it. The final call is yours.

Many borrowers do not have a down payment, so their challenge is in qualifying for a Canadian mortgage with good credit and income. Borrowers who have money for mortgage down payment always find it difficult choosing how much money they should put down.

The more you put down on a mortgage the less you will pay in the interest over time. You also have the option of buying down points (interest rates), which can save you money on mortgage interest, if you are planning on having a mortgage for more than 5 years.

What is an escrow account? It is the account that holds your insurance payments and taxes for two months in advance. Escrow account ensures that taxes and mortgage insurance is paid on time. Most lenders require escrow account as way to protect themselves from losses in case borrower doesn’t pay taxes on his own.

How not to choose your mortgage. There is plenty of information on the internet about mortgages and how to make the right choice, but most don’t like talking about what not to do. Borrowers tend to make their mortgage decisions based on monthly payment offered to them. This is #1 thing you should avoid as a borrower… Read More

What Drives Mortgage Interest Rates? Supply and Demand. It is the supply of money and demand for it. Inflation is at the core of mortgage interest rates. When inflation is high lenders are lees keen to lending. Who wants a mortgage which will cost less down the road? Demand is high, so must be the supply. If inflation is too high thou, lenders raise mortgage rates to compensate.

Should you buy a home with a mortgage? Qualifying yourself to buy is easier than most think. Look at internet classifieds and find out average prices for the home you want. Use mortgage calculator to calculate how much you can afford, add $100-$200 to the amount calculated and you will figure you monthly mortgage budget.

Know Your Adjustable Rate Mortgage(ARM) Resets.

“Reset” refers to the first adjustment in interest rates after introductory rate. When you get ARM, it is usually locked for 3/1 or 5/1 terms. 3/1 means it is locked for 3 first years with introductory rate, then rates adjust every year(same with 5/1 but for 5 years). Once the introductory period passes, you will experience rise in interest rates. For example your rate was 4%, which was given at a discount, below the market price. 3 years down the road, will go up. If the current rates are 6%, expect interest rates adjustments to be around 6.5%. After that interest rates will follow market markup and either go up and down. To know when your ARM resets, check the contract as it should state the terms. Prepare to allocate additional finances, since the increase will require more money every month. After that, interest rates will float according to market.

Prepare for interest rate changes ARM and Fixed Rate - lower you monthly bills.

ARM(Variable)

Once the rates go up, expect ARM payments to rise $40 – $70. This is the short term price for lesser ARM rates. Adjustable rate mortgages do save money in the long run, however be ready for unexpected. Monitor markets constantly, as the inflation plays major part in interest rates. If you see rates climbing or they already did, it is wise to stash some funds on the side, to ease the transition. You can also prepay 45 days prior to changes. Lenders will take into account additional funds and offer lower rates for the upcoming term.

Fixed Rate (FR)

FR customers enjoy the cushion of stable payments, but there isn’t a way to lower monthly dues other than refinancing or getting rid of private mortgage insurance(PMI). If you’ve paid 20% of the balance, get rid of the PMI, as it will save you somewhere close to $100 on monthly mortgage bills. To get rid of PMI contact your lender and state you’ve got to the 20% mark and want it off.

Should you get mortgage for a townhouse or a condo? In condos and townhouses you share ownership of common areas such as walls, facilities etc, while with townhouses you might own a backyard or a parking. Getting a mortgage in Canada will not usually impact the choice, so you can select to your own liking.

When getting a loan from a Canadian mortgage provider for a condominium, lenders are going to look at a number of factors: occupancy level (50% + is preferable), construction level, management, complex insurance policies, operating budged, outstanding loans on the condominium complex, percentage of renter and owner occupied condos, structural integrity.

Are you self employed? You cannot disclose your income? Low Documentation mortgages are designed for recent immigrants and self employed individuals who cannot or do not want to disclose their financial information. You will need good credit rating and some savings. Expect higher mortgage rates on No-Documentation loans.

How to figure out if you should refinance?

Calculate the break-even point. Break even point is the period it takes for lower interest rates to generate savings and pay for refinancing fees. To calculate it, divide the fees by interest rate savings.

For example, you save $100 with new interest rates. Refinancing fees are $2500, meaning that the break even point is 25 months, with $100 interest rates savings. If you are planning on living in your home for longer than 2 years – you’re going to save. If not, you’re better off sticking with your current mortgage. Consult with your new lenders, see if they can offer you interest rate lock for 5 + years, since this is the time when your refinance will start paying back.

Should I refinance with existing lender?

The answer is no. To get the best deal on the market it is better to shop and compare. When you find something you like, challenge your current lender to beat it, otherwise go for the new deal. Lenders have an objective of keeping existing customers without giving up too much, so a good deal from outside is usually hard to beat.

Refinancing with your current lender may cost less, since mortgage settlement costs will not be included. In that case you must calculate. If the rate is higher as opposed to a new lender, but there are no closing costs (apart from a small fee) with existing lender, how much will I save in the long run? Do a quick comparison. In most cases, if you’re not planning on moving out, new lenders offer better deals, while new closing costs pay for themselves with time.

How much can you afford?

• Consider your income after taxes. Your credit score.
• Other bills: credit cards, car loans, property taxes, insurance, monthly bills.
• Current market terms. Current interest rates, housing prices.
• The amount of down payment. If you have savings, it is a good idea to invest it now. Hard assets are safest types of investments.
• Number of people living on the property(kids, parents).

Aim for a range of prices. Shop a couple of homes with different pricing. Find the ones you like and estimate monthly payments. A good way of doing it is using mortgage calculators. Numbers are very rough, since they don’t include closing costs and other fees, but it will give you an idea of what to expect.

Mortgage Tips. Things to avoid on your first mortgage.

- Getting a mortgage offered to you over the phone(telemarketing) or in the newspaper. Those mortgages usually have low interest rates and desirable terms. The true intention is to get your interest, while the real mortgage is higher in interest and has tough terms.

- Prices vary due to market versatility. Provide information to your lender such as:

loan size, type of home,  income, down payment, credit rating, assets etc. If you do not, lenders will give calculations with a preset number of specifications which give the lowest pricing.

- Request written confirmation of locking into an interest rate. Brokers may state you’ve been locked, however the market continues to flow. Do not hesitate to ask for a written document, signed by the agent.

Fixed Rate Mortgage Tips.

Which Fixed Rate Mortgage suits you the best?

Go for 15 year term if you can afford it. If 15 year is little too expensive, you may want to opt in for 25-30 years. There isn’t much difference in payment between 25 or 30, but if want you to cut down a little, 25 years is a viable option.

20 Years is designed for those who can pay of a mortgage as fast as possible, but cannot afford 15 or 10 years.

The longer the term the more you pay in interest, but the overall monthly payments are lower. It all depends on your funds and priorities as there are a lot of choices . Choose what’s best for you in a long run with what you have today.

Should I choose fixed rate mortgage or adjustable rate mortgage?

Choose Fixed Rate mortgage if:

1. you’re going to live on your property for more than 8 years

2. need payment stability over long periods of time

Choose Adjustable Rate mortgage:

1. you need to save more in monthly payments

2. you will be selling your property in approximately 8 years

Going for Adjustable Rate mortgage is tricky. It is hard to envision payments in the future, once the fixed period expires. No one can predict future interest rates. Adjustable Rate mortgages offer faster mortgage pay down, but at the risk of increased interest rates. Fixed Rate mortgages are longer, but payments are fixated.

What is appraisal? Do I need an appraisal?

Appraisal refers to evaluation of a property in order to estimate it’s market value. Appraisal estimates cost of a property and also looks for defects and damages that can affect its market value.

Some lenders require appraisal before giving out a loan, to ensure that the property can be sold for the amount borrowed, at a later date. In most cases appraisal is necessary before refinancing or before getting a home equity loan.

Appraisers are third parties, not affiliated with brokers, buyers or lenders. Appraisers generally look at: similar properties in the same neighborhood; property location; defects and damages; sale price of similar properties; footage.

1. Many buyers wait for the rates to go down, however rates may only go up. Keep a close eye on the market, read related sources and expert opinions to catch the interest rates before they go up.

2. Before signing documents and closing the mortgage, read through the papers carefully. Have a good look and request some time away from the broker or review the documents prior to the closing procedure.

3. Request Annual Percentage Rate(APR) from your lender before closing the mortgage. APR shows total monthly payments, with interest, insurance and other added costs. Mortgage brokers and lenders are required by Canadian law to provide Annual Percentage Rate to their customers.

Mortgage Pre-Approval Tips

Things to keep in mind when applying for a mortgage:

- Will the lender give you best interest rates for your credit score?

- What is the duration of pre-approval process?

- Will interest rates be locked?

- What will be the down payment and total monthly payment, including insurance, points and other fees?

- Will the lender provide written commitment upon approval?

- Are there any hidden costs? Check the inspection fees and documents detailing mortgage expenses.

- Will there be any penalties if you decide to pay more per month or have extra cash to invest?

Consider your financial status, long term and short terms goals, then make the decision based on it.

Mortgage Fees and Charges Tips.

When applying for a mortgage, apart from interest rate charges, there will be a number of service related fees, government taxes and commissions. A number of unethical mortgage brokers take advantage of people and overcharge them with fees which go into their pockets. To make sure this doesn’t happen to you, ask you mortgage company the following questions:

- Will commissions be a part of the mortgage?

- How much will be total closing costs? Can you explain all of them?

- Do the appraisal fees and credit report charges need to be paid at time of approval?

- If the rate goes down, are there any extra charges?

- Can the mortgage be converted to another type of a loan without extra fees? If not, how much will it cost?

- Can I pay more every month if I have extra cash and want to reduce the principal without any penalties?

Follow the quick tips to get the best mortgage deal in Canada!

Advice: Should you refinance your mortgage?

The answer depends on your priorities, nevertheless, interest rates are quite low, so refinancing your mortgage will definitely turn out in lower monthly payments.

When to refinance:

- It is wise to follow 1.5/2.0 % rule, that is, current market rates are lower by 1.5/2.0 % margin than the rate you have.

- You require extra cash for other expenses. Though catching 1.5/2.0 % is not always possible, refinancing at lower margin of around 1% will still give you a break on monthly payments. Make calculations of all the fees associated with refinancing to make sure you will not be paying more.

- If you are paying Private Mortgage Insurance(PMI) and you have 20% of the equity, refinancing will both get rid of the PMI and get you lower rates, since lenders love borrowers with equity.

What Do I Need to Get a Mortgage?

General requirements:

- Stable Income

- Good Credit Rating

- Some down payment

- Fill out a form

Generally banks require good credit, but if you’re having problems and your credit isn’t best of all, don’t worry. We have access to competitive lenders who lend regardless of credit score.

How Much Down Payment Do I Need?

Our lenders require minimum 5% down payment.

Where can I get down payment?

- Savings

- Existing Home Sale

- Family gifts

- Registered Retirement Savings Plan

You can get up to $20.000 from Federal government under Home Buyer’s Plan.

How Much Can I Qualify For?

There’s a number of factors that determine the amount. It can be: your income, down payment, assets and so on. Each lender has their own criteria so to find out how much you qualify for, fill out our application. We’ll be in touch and let you know!

What are The Costs Associated With a Mortgage?

- Legal fees

- Insurance

- Taxes

- Appraisal(not always)

It will come up to around 1%-2,5% of the mortgage. .

I am Looking for a Home to Buy. Can I Get Pre-approved for a Mortgage?

You definitely can. Pre-approval periods vary from lender to lender and the average is 60 – 160 days. If you have a brand new home under construction, we can definitely work out a longer period and in some cases freeze the interest rates.

How Long Does it Take to Get a Mortgage?

It takes around two weeks if all needed information is provided. Lenders require: income verification, down payment verification and property related details.

What is Mortgage Insurance and CMHC?

You need mortgage insurance if your down payment is less than 25%. Canada Mortgage and Housing Corporation (CMHC) provides mortgage insurance to all lenders who give mortgages to people with less than 25% down payment. Mortgage insurance protects lenders in case borrowers do not pay for their mortgage.

Canada Mortgage and Housing Corporation(CMHC) is run by Canadian Government and its primary purpose is to provide mortgage insurance. GE Capital is an alternative to CMHC. Read more about mortgage insurance.

What’s the Difference Between Fixed Rate Mortgage and Adjustable(Variable) Rate Mortgage?

In a fixed rate mortgage interest rates stay fixed for long periods of time(5-15 years). In an adjustable rate mortgage interest rates change every month or every 6 months.

Which mortgage is better?

With fixed rate mortgage, rates stay locked for long periods of time. The price of security is in slightly higher interest rates, since lenders take a gamble of leaving interest rates the same, even if they go up with time.

In an adjustable mortgage – you take the gamble. If interest rates go up with time, so will the payments. If interest rates go down – so will the payments.

Why Do I need a Mortgage Broker?

For the benefit of choice. Big banks only show you one side of the coin. There are dozens of smaller, unknown lenders, who do not advertise and do not have local branches. To stay competitive they offer lower rates and better mortgage packages. We find those lenders and pass the savings to you.

There must be hidden fees?

There are none. We show you everything on paper. Costs are the same if you used a bank and lower!

Who Does Canada Mortgages Work For?

For you. This is why we went into the trouble of compiling and sourcing all possible banks and lenders throughout Canada, to give a choice to our clients.

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We won’t sell your information to anyone. We respect privacy of our clients and only share information with lenders for approval purposes. You can check our privacy policy.

I Have Some More Questions? Where Do I Go?

Contact by email! or call at 514 - 397 - 68 32

Canadian Mortgage Organizations and Institutions

Here you can explore Canadian agencies governing mortgage industry in each province and territory.

British Columbia

- Registar of Mortgage Brokers

Alberta

- RECA

Saskatchewan

- Saskatchewan Financial Services Commission .

Manitoba

No governing agency

Ontario

- Financial Services Commission of Ontario

Quebec

- ACAIQ

Nova Scotia

- Service Nova Scotia and Municipal Relations

New Brunswick

- Department of Justice and Attorney General Consumer Affairs Branch New Brunswick

Prince Edwards Island

- PEI Provincial Affairs and Attorney General

Newfoundland & Labrador

- Financial Services Regulation Division Department of Government Services

Northwest Territories

- Department of Justice

- Government of Northwest Territories

Yukon

- Land Title Office

- Department of Justice

Nunavut

- Nunavut Legal Registries

National Mortgage Organizations

Canadian Institute of Mortgage Brokers and Lenders (CIMBL)

Canadian Institute of Mortgage Brokers and Lenders is a national mortgage industry association founded in 1994. CIMBL holds leadership position in the industry with over 11,000 members and growing. It brings together all key players from Canadian mortgage industry, including Banks, Trusts, Insurance Companies and Credit Unions.

CIMBL Foundation is(part of CIMBL) was founded in 2000 to support research and education of Canadian mortgage industry professionals.

CIMBL also:

- Represents regulators and members of governments.

- Sends monthly newsletters and journal publications.

- Hosting of Canada’s national Mortgage Conference and Expo

Independent Mortgage Brokers Association of Ontario

The Independent Mortgage Brokers Association of Ontario (IMBA) is an organization of mortgage financing professionals. IMBA exists to advance the mortgage brokerage industry on behalf of its Members through public advocacy; to participate in consultative processes with regulators and other industry participants; and to generally assist its Members with their businesses. Members of the Association are required to meet professional standards as a condition of membership.

No Cost Mortgages

No cost mortgages do not eliminate mortgage closing costs. With no cost mortgage closing costs are added to the total amount you borrow with interest rate.

You pay higher interest rates on no cost mortgages, since lenders want to get back whatever they are investing.

For example:  $100,000 mortgage at 6.5% interest rate has 1500 closing costs. A no cost mortgage will calculate extra $1500 into interest, to ensure that lender gets back the money. Intstead of 6.5% lender will charge 6.55%.

In most cases, lenders will add the costs on top of the mortgage AND charge extra interest on it.

What No Cost Mortgages Cover

- Appraisal Fee

- Home Inspection Fee

- Legal and Attorney Fees

- Land Survey

- Water Tests

And other mortgage closing costs.

What No Cost Mortgages Don’t Cover

- Escrow costs for insurance and property taxes. Escrow costs must be deposited by the borrower.

- Mortgage insurance for borrowers with less than 25% is not covered

- Homeowners insurance is not covered

- Land Transfer Taxes

Other fees are covered by lender.

No cost is a good solution for short term borrowers

If you plan to sell your property within 5-8 years, no cost mortgage is a best way to go. You can save on closing costs and move out(assuming you’re sure of it) within a period before lender starts making money from the privilege. You don’t pay extra – in fact you save on closing costs.

If you plan to stay in your home long term, no cost mortgage will cost you more in interest and monthly payments. If you can, pay the fees upfront.

No cost Mortgage Lower Broker Fees and Help You From Being Overcharged

Since closing costs include mortgage broker fees, no-cost mortgages lower it to the bare minimum. Mortgage lenders provide brokers with wholesale mortgage interest rates. The difference in the rate offered to borrowers and interest rate offered to mortgage brokers is their commission. Since no cost mortgages have higher interest rate, brokers are forced to keep it as low as they can to be competitive on the market. This results in lower incentives.

If you get no-cost mortgage directly from lenders, you still end up paying less in closing costs then other people. Lenders spike up closing costs to make an extra buck or to refer borrowers to their partners. With no-cost mortgages lenders pay fees themselves, hence they ensure they pay minimum.

Protect yourself from foreclosure mortgage fraud.

No Down Mortgage Payment

FInd out more about No Money Down Mortgage

No down payment mortgage also referred to as zero down mortgage or no money down mortgage is fairly new type of home loan. Traditionally minimum down payment was 20% of the price. More recently lenders started to offer no down payment mortgages, since by the nature of real estate market, home equity(overall value of a house) goes up with time.

No down payment mortgages are ideal for: new families, first time home buyers, individuals with strong income but no savings, college students and graduates, people affected by natural disasters(hurricanes, floods), people coming out of financial crisis and individuals who prefer to invest in other assets.

Though no money down mortgage payments are marketed as “no money down at all” it is not always the case. It is true if are to speak only about no down mortgage itself, however, you must keep in mind other, non-mortgage related expenses. Legal fees, closing costs, land transfer taxes, real estate fees, hydro and water fees, moving expense and other costs must be covered by buyer. Expenses usually add up to 2-3% of the value of the house, so be prepared to pay anywhere from $2000 to $4000 upon purchase.

Every loan with a down payment lower then 20%, including no down mortgage payments, requires private mortgage insurance, also known as PMI. Insurance protects payments on a mortgage in case a borrower is unable to pay monthly duties to the lender. Financial institutions that provide no money down mortgages or mortgages with less then 20% down payments, are obliged by law to cancel private mortgage insurance as soon as 22% of the principal(overall mortgage) is paid out. If borrower wants to save money and cancel it earlier, he can do so, as soon as the principal is paid out by 20%.

No down mortgage payments are usually harder to get, since lenders need to be sure that borrowers can pay out money borrowed. Banks and other lenders primarily look at credit history, income, work stability and assets such as a car. To stand a better chance of getting no money down mortgage payment, gather all of your credit card statements, banks statements, insurance, car loan statements – gather anything that can paint more value in the eyes of a lender.

Zero down mortgages allow borrowers to purchase their homes sooner and allow to spend money on other assets such as furniture and means of transportation.

Lenders usually have two types of no down mortgage payments, which are:

• 100% mortgages
• 80/20% mortgages

80/20% no down mortgage payments split a home loan into two separate mortgages, which free the borrower from paying private mortgage insurance(PMI) every month.

FInd out more about No Money Down Mortgage

Mortgages in Canada, Low Interest Rates on Loans and Mortgages.

Mortgages Canada provides Home mortgages, Fixed Rate Mortgages, Adjustable Rate Mortgages, Home Equity Loans and variety of other customizable mortgages.

What are you looking for in a Mortgage?

Having established a network of mortgage brokers, banks and private mortgage lenders, Canada Mortgages can find loan that suits your unique requirements. No two buyers are equal. The unique financial situation and long term goals are the criteria by which we look for mortgages.

Are you looking for:

- Low mortgage interest rates?

- Long term mortgage security?

- Mortgages that adjust?

- Extra funds each month?

Let Mortgages Canada know. Having access to various mortgage lenders across Canada we can shop and let you know what we find. Canada Mortgages has compiled a comprehensive mortgage glossary and mortgage calculatiors to assist your shopping for mortgages. Each calculator is specially designed for specific mortgages, ensuring that you can foresee precise payment estimates, interest rates and terms.

Mortgages from independent lenders and loans from a variety of mortgage brokers is the flexibility that gets our client lowest interest rates in Canada!

Please Explore Our Mortgages:

First Mortgage

Are you a first time buyer? Not sure which mortgage to choose? Let us help.

Refinance

Looking for lower rates? Markets are just right, let Canada Mortgages assist.

Fixed Rate Mortgages

Fixed rates, for as long as you prefer. Have piece of mind knowing interest rates will never change.

Adjustable Rate Mortgages

Have your interest rates adjust. Pay lower interest than on other mortgages.

Home Equity Loans

Would you like extra cash for renovations, new car or a vacation?

Reverse Mortgages

Are you over 60? We can provide cash to help your kids or to give you more financial freedom.

Mortgages for Self Employed

Entrepreneurs and freelancers. Good Credit, Bad Credit, Savings but no recordable income. We do it all.

Looking for something else?

Explore more mortgages

Our website provides up to date, daily interest rate updates on mortgages, as we gather information from numerous financial institutions and give precise numbers on current interest rates.

Markets change, so do mortgages. If you require assistance or have questions - we will be there for you to address them, at no charge. Enjoy world class mortgage services with Mortgages Canada Company.

Everyone has got their own needs and strengths. Mortgage Canada works with you to satisfy your needs while taking advantages of the strengths. Banks only have that much in store in terms of mortgages and packages. Having access to numerous mortgage providers(including banks) we make sure you get mortgages that suite the criteria in all the aspects, such as: down payment, credit, rate, terms, opt-out, caps, benefits and more.

With so many options on the market, choosing the right mortgages can be tricky.

Buying a home is one the biggest investments in our lives. Thanks to many mortgages and various loans we have the ability to purchase our homes. Mortgages constitute the backbone of all real estate industry and as a Canadian Mortgage provider we take extreme care in finding mortgages with lowest interest rates possible. Fixed Rate Mortgages, Adjustable Rate Mortgages, Refinance Mortgages, Home Equity Loans and others. Canada Mortgages has the ability and the honor of working for everyday, regular people, looking to build their lives and homes. Let our qualified mortgage professionals can assist you in this big step.

Apply for a mortgage with Canada Mortgages

We offer mortgages in Ontario, Quebec, British Columbia, Alberta, Nova Scotia, Manitoba, New Brunswick, Prince Edward Island, Northwest Territories, Nunavut, Saskatchewan, Newfoundland and Labrador and Yukon Territory.

We hope that enjoy your Stay at Canada Mortgages and find a mortgage you are looking for!

Here you will find lineup of useful mortgage resources that will assist you in the mortgage buying process, educate on mortgage issues and show what to look out for when getting a mortgage loan.

Mortgage Professor

He is not a web designer, but one thing I’m confident about - he knows a lot about mortgages. A very simple website with wealth of mortgage resources, including glossary and over 200 unique home loan articles.

Searchlight Crusade

Run by a mortgage broker Dan Melson, this mortgage blog talks in detail on how to shop for the right mortgage, what to look for in a home loan, what to stay away from and what questions to ask lenders and mortgage brokers.

Mortgage Lift

Mortgage Lift is a community of dedicated mortgage brokers that provide help to anyone with any related mortgage questions. As a home buyer you can choose from 9 different sections:

• Mortgage Know-How
• Loan Talk for First Time Home Buyers
• Looking for Mortgage again
• About Mortgage Companies
• Mortgage Problems and Solutions
• Credit Problems and Repair
• Deeds, Property Transfer and Estate Planning
• Property Appraisal
• Budgeting and Personal Finance
• Announcements Feedback and Our Pub

BankRate

At Bank Rate you can learn mortgage basics and home equity basics. It also has a line up of very useful mortgage and credit card calculators.

Google News

At Google News you can check for latest interest rate adjustments by Canadian Banks, rate cut by the Bank of Canada and other mortgage related news. Google combines all leading news sources from Canada into one convenient location, so you do not have to search through myriad number of publications to get the latest mortgage news.

Fixed Rate vs Variable (Adjustable) Rate Mortgages

The choice is between fixed and variable mortgage is one that many Canadians face.

Fixed Rate Mortgages - provide security of equal monthly payments.

Variable Rate Mortgages - can save money, but payments fluctuate based on changing interest rates

A Canadian Professor York University’s Dr. Moshe Milevsky, conduced a study in 2001 where he argues that Canadians save money 88.6% of time by choosing variable rate mortgages. In 2004 he issued an update for the report, reaffirming himself.

Dr. Moshe Milevsky recently updated the report where he states that:

- Based on 1950 to 2007 data Canadians could save on variable rate mortgages 90.1% of the time by $20,630 over 15 years per $100,000 borrowed.

- Adjustable rate mortgages allows people to reduce their mortgage life by an average of 1 year.

You can find his Papers:

2001 Original Report

2004 Update

2008 Update

Mortgages Canada offers assumable Edmonton mortgages. Apply for assumable Edmonton mortgage.

What is Assumable Mortgage?

It is the mortgage that can be transferred to another owner upon sale. The mortgage provision will usually contain:

“Should the Mortgagor transfer the property to a new owner the Mortgagee has the right to require the new owner to qualify and has the right to declare the mortgage due in full.” - Edmonton Real Estate Blog

The benefit of getting an assumable mortgage from the seller are lower interest rates. Assumable mortgages in Edmonton and elsewhere, also usually have lower payments, speeding up the repayment process and saving money on interest. Getting an assumable mortgage in Edmonton is beneficial if you’re planning on selling the property to the your friends/relatives or looking forward to making a little surprise to the future buyer.

Another type of Edmonton mortgage is Retainable mortgage. It is the mortgage that you can transfer to another property. Scenario:

You sold your Edmonton house and purchased another one. If you had retainable Edmonton mortgage it would transfer to the new Edmonton property, keeping the same rates, balance and charges.

Retainable Edmonton mortgages are quite beneficial as they can save a great deal in interest rates. You are still required to pay for the transfer though.

Assumable and Retainable Edmonton Mortgage

This type of mortgage is extremely practical and beneficial, both to buyer and seller. As a buyer you can carry on the same rate and the exact mortgage, over to different properties, saving on interest rates and monthly loan payments. As a seller you can score a better deal since people will be willing to pay more for the house if they can get lower interest rates and save money in the long run. Assumability and retain options are win-win for Edmonton home buyers.

Assumable mortgages in Edmonton and throughout Canada have undergone some changes. For the buyer to qualify for the assumable loan, he must be approved by the lender or seller must maintain liability. Sometimes lenders will raise the rates a notch if buyer does not have best purchase power.

It hard to be in the mortgage business and ignore the economy, in fact it is impossible. As a good and responsible company we are going to shoot our own say at the falling US dollar.

So here it is:

The Recession isn’t Coming it is Already Here

We are not alone on this.

Reuters did a CFO(Cheif Financial Officer) survey and found that 54% said US is in a recession.

We cannot argue, as it is quite obvious, even to a blind eye. US is in a recession and a big one. The Dollar has devaluated more then 50% since 2001, oil hit $110 and gold is approaching a $1000 mark.

Those are all clear indicators of currency’s buying power. The problem is that gold and oil stood still and never went up. In fact they can’t. US buck just took a deep dive that’s all. Now it’s drowning. Will it drown or will it be brought back to life?

This brings another question - que bono? Who benefits. As Lincoln put it: “In politics, nothing happens by accident.” and economy is a form of sophisticated politics or at least a political tool. The answer may bring us out of the league of this blog, so we’ll leave that one for you to think about.

Another One is Mortgage Meltdown

The brother to the south had problem known in circles as sub prime or exotic mortgage. Those are the loans that buy biggest houses for people who can’t buy them. Only interest mortgages and others, where interest rates are friendly for a couple of years and start biting as time passes. This could be expected, after all, what are people thinking when getting a mortgage, they cant afford, at rates that will double and triple with time. Some common sense an responsibility here.

The sub prime is gone, now the prime is being under attack. As economy stiffens it’s getting harder to pay the bills, especially the ones with interest rates. People who can make money are also loosing. On top of prime there’s the home equity which are being under bombardment. Its a frontal assault and no one is escaping the big boot which is about to step on America.

The recession is here. The fear is the crisis and collapse. The point when gold goes to $5000 and dollar becomes… well… that kind of paper.

The Fed took desperate steps to cut the rates, however, it’s no help. What is the role of Fed in first place? That’s another discussion, as those guys aren’t swimming in holy water. The rep from the fed even said: “I’m not going to get fired because of answering your questions.” Question was about the dollar.

So all it all, as the US dives even further, what are your bets here in Canada?

We’d recommend getting a sound mortgage. Something that you can count on, long term, way past the economic crisis. Give yourself some piece of mind. It might cost more, but it may as well cost less in the long run.

It is not hard to see that the banking mortgage industry controls real estate markets. Banks, for the most part, finance real estate projects. Those include private houses, communities, condos and commercial construction. Once construction is finished, another capital swaps the mortgage, which becomes a long term investment. Usually another bank or lender participates.

The task of the owner of the new project is to sell the new space. Be it private homes, condominiums or commercial property - it must be sold. How to people buy?

Mortgages

People buy through mortgages and financial institutions issue mortgages. As you look, overall picture resembles a circle.

- Construction firms get loans from lenders.

- Buyers get loans from lenders.

Both depend on outside funders. As banks tighten lending rules, it can get harder getting a mortgage, as they let it loose, more home are bought. The big names sitting on central bench wield the power of national real estate market, as they can choose to ignore or to fund project and then allow private mortgages.

As there are a number independent lenders, picture may get better, however private names such as Bank of Canada, or Federal Reserve, for the most part, can rule real estate markets and more.

For a general home buyer, getting a loan through a mortgage broker is more beneficial as going to the big bank as options will be very limited. Shop around.

Mortgage News

Desjardins Group Lowers Interest Rates - Canada Mortgages

    <<

    -----------------------------------------

       Terms                  Rates

    -----

    -----------------------------------------

    6 months open        8,90 %   unchanged

    -----------------------------------------

    6 months closed      7,05 %   unchanged

    -----------------------------------------

    1 year open          9,40 %   - 0,10 %

    -----------------------------------------

    1 year closed        7,10 %   - 0,05 %

    -----------------------------------------

    2 years              7,30 %   - 0,10 %

    -----------------------------------------

    3 years              7,30 %   - 0,10 %

    -----------------------------------------

    4 years              7,20 %   - 0,15 %

    -----------------------------------------

    5 years              7,25 %   - 0,15 %

    -----------------------------------------

    7 years              7,65 %   - 0,05 %

    -----------------------------------------

    10 years             8,00 %   - 0,05 %

    -----------------------------------------

Laurentian Bank lowers its mortgage rates - Canada Mortgages

    <<

    TERM                     RATE    VARIATION

6 month open:        8.90% to 8.90%  0.00%

    6 month close:       7.05% to 7.05%  0.00%

    6 month convertible: 7.10% to 7.10%  0.00%

    1 year open:         9.50% to 9.40% -0.10%

    1 year close:        7.25% to 7.10% -0.15%

    18 month close:      7.35% to 7.25% -0.10%

    2 year:              7.40% to 7.30% -0.10%

    3 year:              7.40% to 7.30% -0.10%

    4 year:              7.35% to 7.20% -0.15%

    5 year:              7.40% to 7.25% -0.15%

    6 year:              7.60% to 7.55% -0.05%

    7 year:              7.70% to 7.65% -0.05%

    8 year:              8.00% to 7.95% -0.05%

    9 year:              8.00% to 7.95% -0.05%

    10 year:             8.05% to 8.00% -0.05%

    >>

National Bank (TSX:NA) has adjusted its rates for residential mortgages -
Canada Mortgages

TERM                   CURRENT NEW  CHANGE
                        (%)    (%)
——————————————-
——————————————-
FIXED-RATE OPEN TERM
6 months open          8.900  8,900  0.000
1 year open            9.500  9,500  0.000

FIXED-RATE CLOSED
TERM
3 months closed        7.100  7.100  0.000
6 months closed        7.100  7.100  0.000
1 year closed          7.250  7.100 -0.150
2 years closed         7.400  7.300 -0.100
3 years closed         7.400  7.300  0.100
4 years closed         7.350  7.200 -0.150
5 years closed         7.400  7.250 -0.150
7 years closed         7.700  7.650  0.050
10 years closed        8.050  8.000 -0.050
VARIABLE-RATE CLOSED
TERM
5 years Variable rate
(discount included)    5.500  5.500  0.000
5 years Saver          6.750  6.750  0.000
5 years Capped rate    5.750  5.750  0.000

Scotiabank changes mortgage rates - CNW Group

<<

-one-year open      9.35 per cent

(decreases by 0.10 per cent)

-one-year closed    7.20 per cent

(decreases by 0.10 per cent)

-two-year closed    7.30 per cent  

(decreases by 0.10 per cent)

-three-year closed  7.30 per cent     

(decreases by 0.10 per cent)

-four-year closed   7.20 per cent  

(decreases by 0.15 per cent)

-five-year closed   7.29 per cent   

(decreases by 0.10 per cent)

-seven-year closed  7.65 per cent   

(decreases by 0.05 per cent)

>>

Commercial mortgages may be TD’s weak spot - Financial Post

Executives at Toronto-Dominion Bank have accepted deserved plaudits for avoiding the sort of subprime-related writedowns that have beset rival banks. But if pride comes before a fall, TD’s senior management will likely be growing more wary about the bank’s exposure to other areas of the faltering U.S. economy, and in particular the deteriorating commercial real-estate sector. Defaults on residential mortgages have rightly grabbed most of the negative headlines out of the U.S. financial sector, but higher defaults on commercial real-estate loans look more likely too.

Stocks lower as Fed chief Bernanke says conditions worsening - Canada East Online

TORONTO - Stock markets closed lower Thursday with investors opting to take profits after U.S. Federal Reserve Board chairman Ben Bernanke delivered a discouraging litany of what’s wrong with the American economy. In fact, he told the Senate banking committee that business prospects have worsened and predicted the economy will grow at a “sluggish” pace before recovering later in the year and that banks’ mortgage investments could lose more value. That took some of the shine from big stock-market advances Wednesday which had followed a better-than-expected reading on U.S. retail sales and New York’s Dow Jones industrials gave back almost all of Wednesday’s 179-point runup, losing 175.26 points to 12,376.98.

Real Estate News

Buying a Home - The Vancouver Sun

Buying a home is one of the biggest decisions you’ll ever make. So when it comes time to signing on the dotted line, make sure you don’t make that decision alone.

To help you put together the right team of professionals, Canada Mortgage and Housing Corporation (CMHC) offers the following whose-who list of experts and what they should bring to the table: Real estate agent. Among other services, your real estate agent will help you find a home, write an Offer of Purchase, negotiate a purchase on your behalf and save you a considerable amount of time, trouble and headaches. When choosing the agent you want to work with, don’t be afraid to ask questions or call your local real estate association for advice.

Condos are a viable option - The Daily Press

Home ownership is a Canadian dream for many people. For those with limited funds, or for empty-nesters wanting to downsize, buying a condominium is often a good option.

Condos are hot lately. Some cities in Canada are going through a major condo boom with lineups when new units are released. Building of new condos is one-third of all new home construction, up from one-fifth a decade ago. When you buy a condo, you are personally buying your unit. That unit could be an apartment-type building, townhouse, semi or even a detached home.

Is Your Agent a Double Agent? - Real Estate Intelligence

Let’s say you walk into an open house and you’re approached by the friendly real estate agent sitting at the dining room table. You’re very interested in the house and she says that she can represent you in its purchase. If you agree, you could be giving up your right to an advocate who solely represents your interests by signing up with a dual agent — multiple representation in real estate parlance.

Calgary real estate market healthy despite U.S. turmoil - Calgary Herald

CALGARY - Canada’s real estate market remains healthy despite the current credit situation that is reverberating out of the United States and the Calgary market continues to be an attractive one for potential investors, says a global report released today.mDTZ Barnicke’s “Global Views 2008″ real estate report said 2007 was another strong year for investment activity as “investors, both foreign and domestic, continued to view Canada in a positive light.