2017 is off and running and it is the start of a “new lending reality”. The fourth quarter of 2016 saw further big changes to the mortgage lending landscape. The Federal Government, along with OSFI (the Wizard of Oz of the Canadian financial institutions) continue to make regulatory changes that impact Canadians.
The Department of Finance Announces Sweeping Changes to the Mortgage Lending Landscape.
In an attempt to cool hot real estate markets in Vancouver and Toronto, on Monday, October 3, 2016 the Department of Finance once again announced sweeping changes to the mortgage lending landscape. The full release can be read here.
We were quick to send out the news on our social media but have waited to send out a Mortgage Update until now while we gathered some further insight and ran some numbers (we’re always doing math!)
2016 is off and running (although slower than most would hope for!) This newsletter will provide you with some helpful insight on how to use your mortgage during this downturn, along with mortgage and housing updates.
An increase in closing costs:
With the Alberta provincial budget announced, there are some major changes to land titles registration fees. In short, the fees associated with buying and selling real estate in the province is about to see a major increase. Closing costs are still relatively inexpensive compared to other provinces with transfer taxes, but the changes are a big jump and come into effect July 1st, 2015. The increase is somewhere between 4-6 times current levels depending on price point and mortgage amount. For example, a 500,000 dollar purchase with 400,000 dollar mortgage will see registration fees move from 290 dollars, to 1230 dollars.
These increases will be avoided by closing a mortgage or purchase prior to July 1st. However, the deadline may create registration backlog, so if you can close earlier than the end of June, that may be a capital idea.
A big bank increases rates and they get a lot of press. Our last communication in October predicted this, so we are not surprised (and it is great to give insight that turns out correct, because looking through the rate crystal ball is never easy). So why the increases, what do they mean, and is it time to panic?
Some helpful information regarding the First Time Home Buyers Tax Credit in Canada
Buying a new home can be an exciting, if not busy time of your life. We know you already have a million things on your mind as you work towards buying your first home, but when it comes to this hint, it's worth adding one more item on your list. (tip: it involves extra money for you!)
The year is drawing to a close and what a crazy year 2015 has been. Oil falling, markets falling, the dollar falling, rates falling (and now rising), house prices falling. A complete 180 from 2014. The purpose of the newsletter this month is to take a look at a few key areas in the markets and to provide some insight and a bit of a forecast on what may happen going forward and how best you can prepare.
The past 12 months has been a wild market ride, low rates, increased demand and rising prices in the housing market, sure kept us busy (but we are never too busy to help your referrals). As 2014 draws to a close, we want to thank you, our valued clients, for another great year. As always, we feel very blessed to be your trusted advisor with your biggest investment-your home. Part of the ongoing commitment at Mortgage Connection is to give back to the communities in which we serve. We are happy to launch our 5th Annual Charity Campaign over the Christmas and holiday season. How it works is that MCI donates 3000 dollars each to five deserving organizations, as nominated by our clients. We do this "on behalf of the clients of Mortgage Connection" To date this campaign has contributed 60,000 dollars. So, here is your chance to nominate a deserving cause. Simply reply to this email and let us know where you would like Mortgage Connection to help.