Hysteria over Rate Increases

I have received several calls over the last few weeks from people wondering if they should lock in their mortgage. I have two opinions on this. My first thought is that locking in is a personal choice that a home owner must make about their comfort with the market. My second opinion is that I will not be locking in my personal mortgage. I currently have a variable rate on my primary residence mortgage and I do not believe that the increase in rate to lock in is worth it even when considering the pending increases to the prime rate next year. I always encourage my clients to overpay their mortgages, at least a little bit, and having a low variable rate means that you can pay down your mortgage faster and easier. If you look at the history between variable and fixed rates, people with variable rates have saved more money than those who are locked in. The choice is yours and I am happy to help you make a decision. Call me today for a complimentary review!

Role of a Realtor

When selling a home in a competitive market, it makes sense to hire a realtor. But did you know that working a realtor when buying a home is just as important? When a realtor is hired to sell a home, they are hired to get their sellers the best price for their home and protect the sellers' interests. This is why the buyers should also have their own independent representation to ensure that a professional is negotiating on their behalf. Need a referral to a great realtor? I'll be happy to introduce you to some of the best realtors in the business!

Pass the Buck

It has been one year since mortgage lending guidelines were tightened in Canada and it appears that the real estate market is still going strong. The new rules last year shortened amortizations to 25 years and restricted refinances to homes with over 20% equity in them. At the end of the day, everyone needs somewhere to live and if you can pay your own mortgage, rather than someone else's, you are bound to get ahead more quickly. Getting pre-approved takes only moments and you may be surprised at what you qualify for. "Real estate is at the core of almost every business, and it's certainly at the core of most people's wealth. In order to build your wealth and improve your business smarts, you need to know about real estate." DONALD TRUMP, Think Like a Billionaire If you have mortgage questions, please call me. My services are complimentary and I am happy to help!

Family Program

Did you know that as a home buyer you can purchase a home for your child or parent and put as little as 5% down on it? If your child is attending post-secondary education or you have a parent on a fixed income and you would like to purchase a home for them to live in, you can do this with a minimum down payment. Qualification are similar to buying a second home and you can even use Purchase Plus Improvements with the program. Ask me today if this program could be a good fit for your family!

Take the Hint

Despite all the changes to mortgage lending guidelines and interest rates bouncing around lately, the housing market does not seem to be taking the hint to slow down. July recorded the highest number of home sales in the last 8 years. This is great news for buyers as sellers are willing to negotiate. I have had several clients over the last weeks get good prices for new homes. As we approach the Fall, kids are heading back to school and household schedules are about to readjust. This means that sometimes things get lost in the mix. If you have been considering a mortgage review, this is a great time to do it. I can help you to identify if your mortgage is working for you or against you and help you to realize your financial goals for 2013 and beyond. Call me today for a complimentary review!