Archive for the ‘Burn My Mortgage’ Category

More Canadians Are Now Debt Free

Friday, October 12th, 2012

Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney have been constantly warning Canadians about borrowing too much.  They have been repeating their warning during virtually every news conference for the past few years.

Vancouver Mortgage Rates

Pay down your debts? or save?

It  appears that Flaherty’s and Carney’s messages are finally getting through to Canadians

A new poll suggests more Canadians are living debt free this year compared to 2011.

The annual RBC survey found that 26 per cent of respondents had no personal debt — excluding mortgage debt — in 2012, up from 22 per cent last year.

In the scheme of things,  a 4% jump is pretty significant.  But the big caution is that the information is coming from a poll and polls can include “wishful thinking.”

The poll also found a majority of respondents — 51 per cent — said it’s more important right now to pay down debt rather than save and invest for the future.

Most financial advisers would encourage you to do both!  Pay your debt down AND save for the future.

More information on the Poll.

Please give me a call if you are planning on buying a new home, or have to renew your existing mortgage.  I will work with you to get the best mortgage possible, with the least amount of hassle.  Justin:  604-736-1855

 

Renovation Revival

Wednesday, September 12th, 2012

The other day the Vancouver Sun ran an article saying that the recent Vancouver Real Estate slowdown has sparked a revival in home renovations.

Canada Mortgage and Housing Corporation’s 3rd Quarter Housing Market Outlook reports that …

In B.C., spending on renovations in 2011 was $7.6 billion. Spending is expected to remain stable in 2012 and grow to $7.8 billion next year.

The Sun reports
With year-to-date resales down 18 per cent in Vancouver compared to a year ago, it’s no longer the smoking hot sellers’ market it was a year ago. In fact, the Real Estate Board of Greater Vancouver reported that July sales were the lowest since 2000, with sales 31.2 per cent below the 10-year July sales average.
Vancouver Housing Market Slowdown | Averbach Mortgages
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Some of the slowdown in the market place is being blamed on the New mortgage rules introduced by the federal government in July 2012.  We’re not convinced that this is responsible for the drastic drop in sales … but we do know that many of our clients are making their renovation plans and refinancing in order to take advantage of what are still amazingly low mortgage rates.
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If you are considering a renovation and would like some advise on your options … please give Justin a call at  604-736-1855.
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Good News – Bad News From The Bank of Canada

Wednesday, April 18th, 2012

Once again, Bank of Canada’s Mark Carney and Finance Minister Jim Flaherty were warning Canadians about their ever increasing debt burdens.

As of today, the Bank of Canada rate remains at one percent.  However there are signs that the economy is improving, which is the good news … the bad news is that when it improves, the Bank of Canada rate WILL go up, and mortgage rates will also increase.

“As expected, governor Mark Carney and the Bank of Canada again maintained interest rates at a stimulus-level one per cent Tuesday. But his upbeat assessment of the economy sent the clearest and most hawkish signal yet that rates will be moving higher – probably sooner, rather than later.”

Regina Leader Post

Jim Flaherty gave Canadians this stern warning:

“Interest rates are going to go up. There’s only one way they’re going to go. Get realistic about it and say, ‘will I be able to afford my mortgage at a higher interest rate or not?’ Do the arithmetic and figure it out”

There IS cause for concern:

In 2001 less than 1% of consumer spending was financed through home equity  … today 3% of everything Canadians spend is money that is borrowed against our homes.

Equity lines of credit have increased 800%,  from $8 billion in 2001 to a staggering $64 Billion in 2012.

What can YOU do about it? 

Averbach's Onlne CalgulatorUse our online calculators to figure out what your mortgage payments will be when rates increase.  Can you afford the increase in monthly fees?

Better yet … do the calculations above and increase your payment to the increased amount today. You will not only rest assured that you can make the extra payment, but you will be paying off your mortgage faster. When the time comes to renew (presumably at higher rates) you will already have paid down a chunk on the principal portion of your mortgage.  ** Call your mortgage lender to see if you are able to make increased monthly payments against your mortgage. Many mortgage loans allow extra monthly or yearly payments.