Why variable mortgages are the way to go this spring

Video

Rob Carrick, Globe & Mail talks to David Larock, a mortgage broker with Integrated Mortgage Planners, about why homeowners may want to consider variate-rate mortgages as we head into the spring buying season. http://fw.to/UEHEk9c 

Reposted by Steven Porter, REMAX Aboutowne Realty Corp.

5 Questions to ask before ever breaking your mortgage.

  So you're looking to "trade-up" or break your mortgage to enjoy these record low interest rates.? Not so fast, it could cost you  $1,000's more than any anticipated savings.

The KEY question is: How much will it cost YOU?

Get the answers to these questions from your current lender before you ever commit to trading up to a new home or breaking your mortgage:

1. You need to know what the penalties will be if you break or port your mortgage to another home. Know this before you ever sign a mortgage.
2. Can I port the mortgage to another home? Let’s say you have to sell your home, can that mortgage be transferred to the next property you buy?
3. Are you tied to the lender you signed your mortgage with forever? Some mortgages cannot be broken unless you sell your home.
4. What are the prepayment privileges on your mortgage? Large prepayment privileges will allow you to mitigate large penalties by making lump sum payments thereby lowering any penalty for breaking the mortgage prior to the end of its term.
5. How is the interest rate differential penalty calculated? This may be the most important factor. If the bank uses the qualifying rate or posted rate to calculate any penalty, it could cost you a bundle.

Steven Porter - REMAX Aboutowne Realty Corp.

HOME PRICES FLAT IN MARCH

  In March the Teranet-National Bank National Composite House Price Index™ was essentially unchanged from the previous month. Except for the recession year 2009, this is the first time in 15 years of index data collection that home prices for Canada as a whole have failed to advance in March. However, the story varied widely from east to west. In all five metropolitan markets west of Ontario, prices were up from the month before: Calgary (1.4%), Vancouver (0.6%), Edmonton and Victoria (0.4%) and Winnipeg (0.2%). Prices were also up in Halifax (0.8%), though not enough to make up the pronounced declines of the previous three months. In Toronto and Quebec City prices were flat. In the remaining markets prices were down from February: 1.8% in Montreal, 0.7% in Hamilton and 0.6% in Ottawa-Gatineau. For this last market it was the seventh consecutive monthly decrease, for a cumulative decline of 3.5%. Prices have fallen in four of the last six months in Hamilton (cumulative decline of 2.0% over the period) and in six of the last eight months in Montreal (cumulative decline 3.0%) and Quebec City (cumulative decline 3.4%). Halifax home prices were down 4.9% from nine months ago.

Since in March 2013 the index was up from the month before, the flat reading of March 2014 resulted in a deceleration of 12 month home price inflation, to 4.6% from 5.0%. It was the first time in nine months that 12-month inflation has slowed. The gain from a year earlier was higher than the cross-country average in Calgary (9.7%), Vancouver (7.6%), Toronto (5.8%), Hamilton (5.2%) and Edmonton (4.7%). It was below the average in Winnipeg (3.4%) and Victoria (0.2%). For Victoria it was the first time in 13 months that home prices were up from a year earlier. Meanwhile, all the markets east of Toronto surveyed for the index were down from a year earlier, Montreal (−0.7%) for the first time since November 1996, Quebec City (−2.4%) for a second straight month, and Ottawa-Gatineau (−1.2%) and Halifax (−4.2%) for a third straight month.
Source - Teranet – National Bank House Price Index™

Posted by - Steven Porter, REMAX Aboutowne Realty Corp.

Time for law changes, says landlords

  Landlords across the country are calling for a bad tenant registry and changes in legislation to protect them against rogue renters
More renters are taking advantage of legal loopholes and tenant-friendly municipalities, and leaving landlords with unpaid bills and lost revenue.
A B.C. couple made national headlines this week for failing to pay for rent for almost two years, and cheating six landlords out of rent.
Landlords in the province are calling on the Residential Tenancy Branch to keep a record of all bad tenants and to provide this information to potential landlords, but they are arguing that privacy laws make this registry an impossible task.
Speaking to CREW, Kalya Andrade from Ontario Landlords Watch says every legislative act should be reviewed as, at the moment, it is lies very much in favour of the tenant.
“There are a lot more tenants who are targeting landlords that they can take advantage and use the legal loopholes to get away with it. We are coming across more and more cases like this and something needs to be done. Unfortunately, the politicians simply do not want to help the landlords,” says Andrade.
As reported by CREW this week, condo tenants are calling for help against demanding management boards and landlords.
Canadian Real Estate Wealth - Jamie Henry

Posted by Steven Porter - REMAX Aboutowne Realty Corp.

Reverse Mortgages – A mortgage option for Retirees

 What exactly is a Reverse Mortgage?

A Reverse Mortgage is a loan available only to homeowners 55 or older. The amount you can borrow is based upon several factors including your age and the value of your home.

What's the difference between a Reverse Mortgage and a traditional loan?

There are two main differences. First, unlike a traditional loan, you can get a Reverse Mortgage regardless of your income or credit rating.

Second, you are not required to make any payments on a Reverse Mortgage until you choose to move or sell your home. (However, you can make payments on the loan if you choose to do so. You’ll even get a discount on the interest rate if you do.)

When you do decide to move or sell, the loan is repaid from the proceeds of the sale of the home. After the loan is repaid, all remaining money belongs to you and your estate.

How much equity (money) will be left in my home after I repay the loan?

On average, homeowners have well over 50% of the value of their home left to enjoy after repaying the loan. This money belongs to you. The exact amount will depend upon several factors, including: the amount of your loan, the value of your home, and the amount of time passed since you took out the loan.

Repost by Steven Porter, REMAX Aboutowne Realty Corp.

A Quote:

   "Are you working to help your clients, patrons, customers and colleagues find what they already know, what they want? Or teaching and encouraging them to find something they didn't know they needed?" - Seth Godin
Posted by Steven Porter