Category: Blog

Not all insurance products are created equal. One of the most common mistakes homeowners and potential homeowners make is that they hear the word “insurance” and just assume they have it! Well, you might have one kind of insurance, but you might be missing coverage elsewhere. It is important to understand all the different insurance products to ensure you have proper coverage. To help you get a better understanding of the insurance, below are the four main insurance product options you will encounter and what they mean: Default Insurance: This insurance is mandatory for homes where the buyer puts less… Continue reading Understanding Insurance related to House and Mortgage

As everyone know, The Bank Of Canada Raised its Key Interest Rate by 0.25% Today as it was expected! What does it mean to you as a client? If your Mortgage is FIXED, there is no change for you! If your Mortgage is VARIABLE, Don’t Panic! Please see the illustration below for 25 years amortization with semi-annual compounding period. The monthly payments on a $500,000 mortgage with Variable Rate at 1.50% was previously $1,998.59 per month. A 0.25% increase in rate to 1.75% increases your payments to $2,057.43, which is a difference of only $58.84 per month. If you have… Continue reading The Bank of Canada Raised its Key Interest Rate by 0.25% Today!

Today’s budget announced a $10 billion package of proposals intended to reduce the cost of housing in Canada (see box below). The fundamental problem is insufficient supply to meet the demands of a rapidly growing population base. Thanks to the federal government’s policy to rapidly increase immigration since 2015, new household formation has risen far faster than housing completions, both for rent and purchase. This excess demand has markedly pushed home prices to levels beyond average-income Canadians’ means. The measures announced in today’s budget to increase housing construction, though welcome, are underwhelming. The Feds can control the construction of lower-cost housing through… Continue reading Housing A Major Theme Today’s Federal Budget. Affordable Housing Is A Key Theme In Federal Budget 2022

The Governing Council of the Bank of Canada raised the overnight policy rate by a full 50 basis points for the first time in 22 years. This was a widely telegraphed action that will be followed by the US Federal Reserve next month. While the BoC was the first G-7 central bank to take such aggressive action, the Bank of New Zealand also hiked rates today by half a percentage point. Considering the surge in inflation and the strength of the Canadian economy, another jumbo rate hike may well be in the cards. The Governing Council of the Bank of… Continue reading Bank of Canada Hikes Rates by 50 BPs, Signalling More To Come

BRACE! BRACE! BRACE! – The Bank Of Canada is expected to raise interest rates tomorrow (June 1, 2022). Don’t panic. The expected rate increase is to be 0.5%. The Big Banks will respond by increasing their Prime Lending Rate. The increase in Prime will affect current mortgage clients that have a variable rate. Depending upon the variable product the client has an increase in Prime rate will increase their mortgage payment. This is called an adjustable-rate mortgage (ARM) Example of Adjustable-Rate Mortgage Prime: 3.20% $350,000 Mortgage 25 Year amortization Current Rate: 2.30% (Prime minus .90%) Current Payment: $1533.24/month Prime increases… Continue reading The Bank Of Canada is expected to raise Interest Rates tomorrow (June 1, 2022). Don’t Panic!