If you’re in the market for an insured mortgage, then you might want to get that mortgage before March 17.

Canada Mortgage and Housing Corporation (CMHC) is raising premiums for insuring mortgages on Canadian homes for the third time in three years. Canadian home-buyers are required to have mortgage insurance if they have less than a 20 per cent down-payment. The insurance provides protection for the lender in the case of a default.
How will it hit your wallet? The increase is not too significant for those making the minimum down-payment required. A home-buyer with a $250,000 mortgage and a 5 per cent down-payment will only pay about $5 per month more in insurance premiums.  I can calculate exactly how much the increase will mean to you if you get your mortgage approval on or after March 17.
The increases are actually more substantial for larger downpayments of 15 per cent or more. Those with 20 per cent or more down-payment aren’t required to have mortgage insurance, although it’s used by lenders that securitize their mortgages. As a result, any increased cost will likely be passed on to customers through higher rates. 
Premiums are also increasing for “non-traditional” insured mortgages i.e. home buyers with borrowed down-payments, a type of mortgage down-payment that could grow in popularity as home-buyers strive to gain entry in the housing market.
The premium change will come into effect on March 17. Home-buyers will be able to access the current lower rates if they have bought a home and are approved before the March 17 deadline, even if they have a later closing date.
If you are looking to buy, get in touch today!

90-day RRSP down payment boost for first-time buyers ends March 1!
If you’re buying your first home, the Federal Home Buyers’ Program (HBP) and a tax refund can boost the funds you have available. Make as big an RRSP contribution as you can before the March 1 contribution deadline for the 2016 tax year – up to your contribution limit or the maximum $25,000 per person. Use your down-payment savings if you can because you want as big a 2016 refund as possible. After 90 days you can redeem your contribution under the HBP program, giving you your original down-payment funds back PLUS a nice fat tax refund. You’ll need to pay the withdrawn funds back on a repayment plan, but this strategy can make a substantial difference in the affordability of home ownership.

Feeling the post-holiday financial squeeze? You’re not alone. January and February credit card bills are arriving to remind us how much we spent on the festive season. That's why this is the perfect time to make sure you have the financial control you need to achieve your goals. Here are some strategies that can help:

1. Kill high-interest debt. If you’re carrying large credit card balances or other high-interest debt and have enough home equity, you may be able to consolidate that debt into one low-rate mortgage. You’ll improve your cash flow, and simplify your life with one easy payment. Best of all, you can pay down your debt faster and save thousands in interest. No more running up credit cards and you’re golden.
2. Boost your credit rating. You can improve your rating pretty quickly with a few smart moves. Always pay your bills on time. Never let your credit card balance go past the 50% mark, i.e. if you have a $5,000 card, it should never go past $2,500. That goes for any lines of credit, too. And don’t apply for store cards when you’re asked at check-out. The better your credit rating, the better the rates you can negotiate on your next mortgage.
3. Step up your payments. If you are paying your mortgage monthly, consider changing to accelerated bi-weekly or weekly, increasing your payment amount, and putting a lump sum such as tax refund money on your mortgage principal. You can save significant interest over the life of your mortgage. Even small amounts add up.
4. Renovate, don’t relocate. Feeling like it’s time to trade up? Consider this: the right renovation might be all it takes to turn the house you’re in, into the home of your dreams. It is almost always less expensive to renovate than to relocate! I have some fantastic renovation financing options to help you improve the quality of your life while increasing the value of your home.
5. Choose low-interest debt.  According to a recent Mortgage Professionals Canada survey, in 2016, almost 10% of homeowners had enough home equity and turned to their mortgage for low-cost financing.  The average equity take out was $47,600, which was used for renovations (31%), debt consolidation (28%), investments including second homes and rental properties (22%), and purchases or education (9%).   
6. Do NOT sleepwalk through your mortgage renewal. Be sure to get in touch when you get a renewal notice. Your renewal is your golden moment to save thousands. I can help make sure you get the best possible deal!
   

If you’re feeling financially overwhelmed, or if there is a new purchase, refinance, or renewal in your financial future, get in touch so I can help make sure you get where you want to go.

Have a great day!!

Despite the latest frightening news about soaring Canadian house prices, there are good reasons for millennials to pursue home ownership.
For many, the hardest question is whether it remains possible at all. But for some under-35s, the issue is whether the financial risks of home ownership outweigh the benefits.
As Jacqueline Hansen reported yesterday based on data from the Bank of Montreal, more than half of Canadian millennials already own their own piece of real estate.
Not only that, but of the 49 per cent who don't own already, a large majority of them — a whopping 64 per cent — are saving with the intent of buying.
Affordability fallsSo despite a report from RBC just before Christmas that Canadian home ownership is less affordable than it has been in eight years, under-35s are still in the market.
Are they crazy? To find out I asked one.
As well as being a CBC business reporter, Hansen is a millennial who recently bought a condo in Toronto's pricey market.
"Buying was the only way I could find a place that I was proud of, that I could feel good coming home to," Hansen says.
CBC reporter Jacqueline Hansen, as well as reporting on millennials, is one herself. She recently decided to buy a condo in Toronto's pricey market. (CBC)


Like many other young people, the CBC reporter didn't jump into it. Just like the people she interviewed for her own report, when she moved to Toronto she lived in what she describes as small and unpleasant rental bachelor apartments while taking a series of short-term contract jobs.
Getting a mortgage when you're engaged in contract work is much more difficult.
The finance minister says people must learn to live with "job churn," but it appears many mortgage lenders did not get the memo.
It was only after settling into a full-time job that Hansen took the plunge.
Putting down rootsTemporary or part-time work makes it hard to know whether you'll stay or move someplace with better opportunities. 
"Now that I own a place, I feel that I have roots here," Hansen says.
A dissatisfaction with rented accommodation is more than just a millennial affectation, according to real estate specialist Tsur Somerville, it's part of the Canadian market reality.
Relative to other parts of the world — an exception being the city of Montreal — a high level of home ownership is "the cultural norm" in Canada, says Somerville, professor at the Sauder School of Business at the University of British Columbia.
"Because we are a relatively high home-ownership society, if you want to remain a renter, your choices end up being somewhat limited," says Somerville.
Condo developments such as this one in Hamilton are available to buy in many different price ranges, but in the Canadian market rental properties don't provide as much choice. (Vernon Shaw)
Our cultural preference for ownership means most of the nicest homes and the nicest neighbourhoods are places where people own, not rent.
Unlike places such as South Korea or parts of Europe where it's assumed people will stay in a single rented flat for decades, in Canada it's much harder to find a place where renters can be confident they will be able to stay and settle into a neighbourhood. 
Hansen is confident that if she could rent a place as nice as her current home, it would cost more than paying for her condo. She bought about a year ago and every time prices rise the deal gets better.
Market uncertaintySomerville says the real estate boom we've seen in Toronto adds an extra challenge for young buyers.
As prices shoot higher, buyers must decide whether to move quickly while they can afford it. Alternatively, they must worry about what will happen if interest rates suddenly rise or prices tumble.
Average home prices are roughly twice the price relative to incomes as they were in 1984. But mortgage rates then were double digit. The secret then as it is now is not to get in over your head. 
Scraping together a down payment wasn't easy a generation ago either. And while Toronto and Vancouver single-family homes may be outside the reach of first-time buyers, the price of condos makes entering the property market, with the idea of moving up in future, as attainable as it has ever been.
Coal Harbour condo towers in Vancouver where single family homes are well out of the price range of most first time buyers. (David Horemans/CBC)

 Just as it was for their parents, home ownership for millennials is a mark of success. It's a sign that you've got a steady income, that you are ready to settle in for a while and put down roots, that you've put student debts and parental influence behind you.
But does it pay?From a strictly financial point of view, Somerville's research shows that buying a home is no guarantee you will be better off. 
"In the long run, over most markets, you can do as well renting as you can owning," he says. "If you are a disciplined saver, you don't come out any better."
That caveat about "disciplined" makes a big difference. For many people, getting a mortgage and paying it down serves as a big forced-savings plan.
"Like for people like myself," says Somerville. "If I was renting I would never have saved as much as I have through home equity, because I'm not that disciplined."

Yes new mortgage rules have made it harder to qualify for a mortgage, whether you are a first-time buyer or looking to renew or refinance your mortgage with a new lender. That’s why you should get yourself mortgage ready well in advance.  Here are 5 tips to help you do just that:

1. Get your credit report.  Getting a copy of your credit report will let you know how you will be viewed by lenders. You can order yours for free through the mail or for a small fee online at www.equifax.ca. If you spot a problem, contact Equifax to resolve the issue.

2. Polish your credit. You can boost your score by several points fairly quickly with continual good credit habits. Most importantly, pay your bills on time, every time. Don’t let your credit accounts exceed 50% of the credit available. Before you cancel any credit cards, get advice. And don’t apply for a store card just to save on your purchase that day. Make a habit of checking your credit score each year, and watch how those good credit habits push your credit score skywards!

3. Cash is king. Plan to go into homeownership with the maximum downpayment possible. If you are in the "saving up" stage of preparing for homeownership, now is the time to meet. There are several downpayment savings strategies available that we can put to work for you.

4. Get a boost from family. Parents and grandparents have enjoyed the personal and financial benefits of home ownership themselves, and see how hard it is today to make that important first step into the market. Check to see if they are willing to help by gifting or loaning some or all of the downpayment, or by helping you with other debts.

5.  Start a dialogue early. Get in touch early to talk about your purchase, refinance or renewal plans. I can help you be fully prepared to get you where you want to go, and to make sure you can take advantage of any opportunities that come your way.
Also remember, history has proven that it is almost impossible to perfectly time the market.  Home ownership has proven to be a very solid investment over the long term, so focus on buying a home when you are financially ready and when it fits your lifestyle;  

Donald Trump has “blown up” the bond market. That’s CNBC’s depiction after the president elect’s victory wiped out $1+ trillion of its value in the last week.

Trumponomics, Trumpflation, the Trump Thump, Trumpulus, or whatever you want to call it, has incited fear in bondland. Traders envision 4%+ GDP growth, inflation, massive deficits, a potential U.S. credit rating downgrade and unravelling of the greatest bond bull market of all time.

All of this is conspiring to reshape investors’ mindsets…radically. It’s raising the implied odds that 2016’s bottom in rates won’t be broken for several quarters, at a minimum.
And if the bond market is somehow mispricing Canada’s economics prospects—and yields do fall 55+ bps to new lows—imagine what hideous fate that would portend for Canada. It’s a fate that, given a soon-to-be-robust U.S. economy (the destination for 73% of our exports), now seems Less probable










But make no mistake, we’re staring at much uncertainty through 2018, not the least of which is:

• How much will a resurgent U.S. economy boost Canadian exports?
• What kind of trade deal do we get post-NAFTA 1.0?
• Where does oil go next?
• How much does a cheaper loonie absorb any trade shock?
• Will Ottawa keep Canada’s business environment (tax regime) competitive with the U.S.?

These questions and others will have econo-gurus debating interest rate direction for months. Our clients will see their headlines and ask the perennial question: “Should I lock in?” And the answer will be as clear as ever: There is no clear answer.
But here’s something we can tell clients with confidence. The rate paradigm as we knew it on November 7th was transformed on November 8th. In 2017, the economy that we sell three-quarters of our goods and services to will be firing on two more cylinders, and net net, that could help Canadian business, boost Canadian inflation and be rate bullish.
And if we’re wrong, borrowers will have far bigger problems to contemplate than not picking the bottom in interest rates.

The governor of the Bank of Canada spoke of the risk to the economy from the high level of household debts and the rising cost of homes when he announced a hold-steady on interest rates Wednesday.

Stephen Poloz said that the bank came close to making a further cut in interest rates but decided that additional stimulus was not required right now with other macroeconomic measures in play.

He referenced the federal government’s newly introduced rules on mortgages which he called a “welcome development” that should “mitigate financial vulnerabilities over time.”

The governor said that housing sales are expected to be reduced in the near term due to the new rules and that it may spur construction of smaller homes.

Although he did not rule out a further cut in interest rates down the line, especially as the bank’s outlook for the economy has been revised down for the coming two years; but he said that the balance of risk is still within the scope of current monetary policy.
  Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage.

Thanksgiving is here, so our minds have turned
To what time has taught us, to what we've learned:
We often focus all our thought
On shiny things we've shopped and bought.
We take our pleasure in material things,
Forgetting the pleasure that friendship brings.
If a lot of our stuff just vanished today,
We'd see the foundation of each happy day
Is special relationships, constant and true,
And that's when our thoughts go directly to you.
We wish you a Thanksgiving you'll never forget,
Full of love and joy—your best one yet!

Fear was no match for adrenaline Saturday as 20 people rappelled down New Brunswick’s tallest office building in support of the Make-A-Wish Foundation.

​The organization’s Rope for Hope Challenge offered fundraisers the chance to rappel down the 20-storey Assumption Place for a good cause.

“In order to go down you have to raise $1,500,” explains Tracy Durkee-Jones of Make-A-Wish.

For some, raising the money was the easy part. Rappelling down the building was another story.“You have to be really brave to go over the edge and our Wish Kids are brave every day, so what we tell people is you can be brave for 15 minutes. Our Wish Kids are brave their entire lives,” says Durkee-Jones.

All the money raised will go toward granting wishes to children with life-threatening medical conditions in Atlantic Canada.

“I’ve been involved with Make-A-Wish for several years now and understand what the Wish Kids go through, so to work up the courage to get off the roof, it’s a challenge, but well worth it,” says participant Owen MacNeil.

At the age of 14, Grant McGuire was the youngest participant to make the trek down Assumption Place. He was also a Wish Kid in 2012.

“We went to Lego Land and a whole bunch of other parks,” says McGuire. “Going down is kind of scary because you’re on a frigging 20-storey building, kind of nerve-wracking.”
Ready to face their fears, some donned superhero costumes for the occasion.
“We put a team together. We called it the Wish League and we all chose a superhero,” says participant Danielle Boucher.
But participants say, despite donning a costume and a brave face, taking the first step is no easy feat.
“You’re essentially hung in the air like a basket until you start walking down a wall,” says Boucher.
“You’re looking over the top of the whole city. You can see up and down the Petitcodiac River, the roofs of all the building tops all the way around,” says MacNeil. “The first 100 feet is just making sure you’re mentally still OK once you’re off the edge, and after that your brain settles in a little bit and look around and it’s awesome.”
The Halifax chapter hosted its Rope for Hope event in June but this is the first time it’s been held in New Brunswick.
Organizers say they plan to host the event in Moncton again next year.

​More details....