2010 Mortgage Consumer Survey

The CMHC recently completed a survey of  2,503 mortgage consumers to discover more about their perspectives, attitudes and behaviour.

One of the key findings from the 2010 Survey was that the Internet has become an important tool for mortgage consumers. Over half of first-time buyers visited specific mortgage lenders to seek information about mortgages.  69% of first-time buyers used online calculators to compare different payment options.

A significant proportion of consumers seek information on mortgage options prior to making a purchase decision and the Internet is becoming a prevalent source of information, according to the survey. This is particularly true of first-time buyers, with almost nine out of ten using the Internet to search for information on mortgage options.

Use of the internet to gather mortgage-related information is consistent in all regions of Canada.  As well, a majority of consumers in all age groups use the Internet, with the largest penetration among younger mortgage consumers.

Our mortgage calculator tools are amongst the most popular pages on our website. The tools can help you determine everything from the size of mortgage you qualify for to how you can pay off your mortgage sooner.

Mortgage Loan Calculator

This calculator generates an amortization schedule for your current mortgage.

Morgage Refinance Calculator

How much interest can you save if you refinance your mortgage?

Mortgage Qualifier Calculator

This calculator steps you through the process of finding out how much you can borrow.

Home Budget Analysis

Entering your income and monthly expenditures to find out where your money is being spent, and how much you have left to save, or purchase a new home.

Bi-weekly Mortgage Calculator

This calculator shows you the possible savings by
using an accelerated bi-weekly mortgage payment.

Mortgage Comparison Calculator

This calculator helps you sort through the monthly payments, fees and other costs associated with getting a new mortgage.

Mortgage Payoff Calculator

How much interest can you save by increasing your mortgage payment?

Rent vs. Buy Calculator

Should you continue to rent, or can you afford to get a new home? This calculator helps you weed through the fees, taxes, and monthly payments to help you make a good financial
decision.

2010 Mortgage Consumer Survey

Nice!  I was interviewed on the CBC National News last night.  The newscast was about the new mortgage qualification rules that are now in place.

A lot of  home buyers depend on rental income to help with their mortgage payments AND to help qualify for a mortgage.  The rules have changed, making it more difficult to qualify for a mortgage. The difference will edge some buyers out of the marketplace.

As soon as we get the CBC footage, we’ll upload it for you to see!

This month the average price for a detached home in Vancouver reached the $1 Million landmark.

According to the Vancouver’s real estate board

Local housing prices jumped 23 per cent in March compared to a year earlier.

Here’s more on Vancouver’s increasing home prices  from the CTV National News … and from the Real Estate Board of Greater Vancouver

.

With the Canadian Dollar in the news and hovering at par with the US dollar,  Mark Kerzner, President & Chief Operating Officer of The Mortgage Group Canada … made the prediction that the Bank of Canada will increase interest rates this summer.

Kerzner backed up his prediction with the following observations:

• A rising Canadian dollar actually curtails the need for the Bank of Canada to raise interest rates.

• The Bank of Canada (BoC) is in a classic Catch 22. On the one hand the dollar has increased in value because of the signal that the BoC has set that it will likely increase rates beginning this summer yet on the other hand as the dollar continues to increase it limits the ability for the BoC to increase rates.
• With the current increase in 5 year bond yields (above 3%) and corresponding increases in fixed term interest rates the bond yield has actually gotten steeper. The yield curve is likely to smooth out in the coming year as the Prime rate increases.
• Yes we have seen some recent inflation numbers though some of that can be directly attributed to the Olympics (a one time event) – tourism, hotel costs, etc.
• Canada seldom (1992 and 2002 as exceptions) moves ahead of the US in setting its PRIME rates. This year will likely be an exception to that as the BoC has already signaled. That said it will only go so far at it alone before it sees movement from the FED in the US.
• Rising interest rates (fixed and variable) may have the effect of dampening the housing market. For any value that is curtailed as a result of increased rates by reducing the refinance activity in Canada there will be a some negative impact on consumer spending. A reduction in consumer spending at a time when the Governments of Canada are also likely to start reducing their spending (to get some control over their deficits) could actually stall the economic recovery = keeping interest rates in check.

As thousands of Canadians flock across the border to save tens or hundreds of dollars on consumer goods, the question is … what are you doing NOW to save yourself thousands of dollars when the Mortgage rates increase.

Give us a call to discuss your options. 604-736-1855

We are in the news again! Derek Scott of the Canadian Press interviewed Mike regarding the New mortgage rules coming into effect on April 19th. The story – New rules for rental properties could squeeze first-time homebuyers -  has been picked up by numerous newspapers, publications and blogs.

The focus of the interview was on how the new rules will make it more difficult to quality for a mortgage.  In a nutshell … the old rules allowed 80% of rental income to be used when qualifying for a mortgage. The new rules have dropped the amount to 50%. Additionally, the rental income will not be allowed to offset the monthly mortgage payment, but will be added to one’s annual income. This means applicants must qualify for the total mortgage amount.

Here’s one version of the Canadian Press article.

How will this affect our customers?  Depending on the number crunch, some people may not be able to make the transition from condo to house … even with the rental income.

However, we do urge you NOT to give up and assume you will not qualify. It really is a combination of your income, the rental income and the amount of your down payment.  DO give us a call and let US do the number crunch for you. We will do our best to make it work under the new rules.

604-736-1855



Here is some interesting “Credit Score” information , just for Canadians:  The Canadian Credit Repair Ebook

You can get Part 1 of the Ebook for free.   Part Two … which is the part you REALLY NEED will cost you $20.00.   It will save you a whole lot more than that, so it’s a pretty good investment.

How to read, analyze and dispute your Equifax credit report is a good article to read.  It is American, but has information that pertains to your Canadian Credit Score.

Your Credit Score, Your Money & What’s at Stake By  Liz Pulliam Weston

This is a great book to read BEFORE you need to use your credit score.  It is American, but much of it applies to Canadians as well.  If you are thinking about buying a home some time in the future,  get your credit score right away and make sure it is squeaky clean before you need it.

IF you have, or think you might have a credit score challenge, get this book and start working on improving your Credit Score ASAP … it takes time to repair your credit score if you have a problem, so the sooner you start, the better.

Here is a synopsis of the chapters in the book.
1 – Why Your Credit Score Matters
2 – How Credit Scoring Works
3 – VantageScore – A Revolution or Just More of the Same?
4 – Improving Your Score – The Right Way
5 – Credit-Scoring Myths
6 – Coping with a Credit Crisis
7 – Rebuilding Your Score After a Credit Disaster
8 – Identify Theft and Your Credit
9 – Emergency! Fixing Your Credit Score Fast
10 – Insurance and Your Credit Score
11 – Keeping Your Score Healthy