There has been a lot of discussion recently about how variable-rate mortgage holders could face their “trigger point.” We’re going to explore what that means, and the implications for borrowers. Let’s first cover the basics. Most variable-rate mortgages have static monthly payments, which protect the borrower’s cash flow from fluctuations in the prime rate. Four of the Big Six banks offer fixed payments for variable-rate mortgages, and so do several credit... [read more]

The headlines are playing out in familiar patterns across Canada with the notion that homeownership is quickly slipping out of reach for many. At the same time, mortgage rates have continued to fall, with little indication that things will change significantly any time soon. “Affordability is an interesting conundrum,” says Craig Blanchard, broker-owner with Royal LePage Atlantic Homestead in St. John's, Newfoundland. “While home prices have risen sharply in some of... [read more]

They both start with the letter 'd', and they both require a large sum of money to secure the purchase of a home. However, a 'deposit' and 'down payment' are very different. “A lot of my first-time home buying clients ask me what the difference between a deposit and down payment is,” says Ray Ferris, president of the Ontario Real Estate Association (OREA). “Simply put: a deposit is associated with your offer to purchase a home, while the down payment... [read more]

In the fall of 2018, many economists predicted that the Bank of Canada would increase interest rates three or four times in 2019, but that's no longer the case. The global economy appears to be slowing and rarely do central banks increase rates when an economy is struggling. Any slowdown in rate hikes would be welcome news for those holding a mortgage or loan linked to the prime lending rate. If you are considering a fixed rate mortgage, there is good news for you as... [read more]

  by Neil Sharma24 Jan 2019             Cognizant of a looming election issue, the federal government says it intends to make housing more accessible to millennials, but how that will happen remains to be seen. Tom Storey, a Royal LePage Signature Realty sales agent based in Toronto, notes there’s a credit on the national land transfer tax and that retaining the former and eliminating the... [read more]