Posts Tagged ‘Mortgage’

Residential Market Update

October 27th, 2015 No comments

Market Commentary

CMBondThe household debt to income ratio has hit an all time high – 165%. Yet the Bank of Canada seems to have gone strangely quiet on the subject.

Former bank governor Mark Carey routinely warned of the potential dangers brought by the lure of low interest rates, especially in the housing market.

Recently, though, new governor Stephen Poloz told a banking audience in Washington that it is not the Bank of Canada’s job to fix bad debt decisions made by consumers.

It is useful to note how the central bank views its own job. Poloz says lenders, and borrowers themselves, are the first line of defence against bad debt decisions. He says bank’s job is to manage inflation and the main tool for doing that is interest rates.

The Bank of Canada cannot separate the low interest rates meant to inspire business borrowing from the low rates that are fuelling the real estate boom.

Poloz does say, though, that the Bank of Canada is keeping a very close watch on those household debt levels.

From First National Financial LP


January 14th, 2015 Comments off

Oil price vs interest rateShort answer is Yes. Since oil is a major part of the Canadian economy, lower oil prices means less royalty money for the government.   Due to the lower oil price, the Alberta oil patch is likely to cut production which would mean job losses. When determining interest rates, unemployment is one of the key indicators the government watches.   Bad news in the economy tends to mean good news for interest rates, meaning it exerts pressure on the Bank of Canada to reduce the prime lending rate (which affects the variable rate) additionally. The impact on the GDP will hold down the government bond yields which affects the fixed mortgage costs.

For now it does not look like we will be facing rate increases for variable or fixed rate mortgages!

January 8th, 2015 – Designer Mortgages Inc. copyright.

Why use a Mortgage Broker!

October 30th, 2014 No comments
Probably one of the most frequent question that I get asked, is why use the services of a mortgage broker. To list a few:
They understand mortgages terms and conditions, some mortgages unbeknown to the client are registered in a certain way which restricts you moving your mortgage in the future. Some mortgages have got higher penalties.
I see my job as knowing these restrictions and steering my client away from these mortgages. Here is a video to further explain!

Call Now for help with your Mortgage!
Burlington 905 336-5997
Milton 905 878-5053


Teach kids early about money responsibilities

October 3rd, 2014 No comments

calculatorMany of us agree that it takes decades, if not a lifetime of trial-and-error to master sound money management – so let’s make it easier for our kids. November is Financial Literacy Month across the country and that presents an ideal opportunity for families to explore ‘teachable moments.’

“Attaining financial literacy is often one small step at a time, but each experience adds to our knowledge, skills, and confidence with day-to-day money decisions,” says Tony Garcia, president and CEO at ForestersTM, an international financial services provider known for its commitment to enhance family well-being. “Those skills are fundamental to the well-being of families – and of course, children do learn quickly by example.”

Since the average lifestyle today must deal with an increasing number of financial decisions at an ever-younger age, it is an eye-opener when Canadians admit to significant money challenges from reading financial statements, to managing credit cards, to planning for retirement.

Did you know, for instance, that 38 per cent of households say they do not follow a budget, according to an ABC Life Literacy survey conducted by Ipsos Reid1? This number won’t improve if children in those homes grow up to do the same.

“Parents are exacting on some things, like arranging for life insurance to replace lost income in the event of their death, but they may miss those little opportunities, like involving children in adding and subtracting household money,” Garcia continues. “The key to raising money-smart kids is to involve them in some of the day-to-day money decisions.”

Foresters, which provides its members with access to competitive scholarships and emergency assistance grants2, and is also known for building playgrounds and providing funding and volunteer opportunities for organizations like Ronald McDonald House Charities®, has posted some valuable tips (at for guiding children towards healthy financial habits, including:

  • Talk to young kids about the family grocery budget in the supermarket
  • Link their allowance to household chores so it shows the connection between money and work
  • Explain to teens the difference between needs and trendy ‘must-haves’
  • Ask for a contribution to their expenses (like cell phone bills and sports) if your teen has a part-time job
  • Demonstrate caution with a first credit card, explaining how interest is charged and the consequences of not paying the monthly balance
  • Show young adults how to manage their cash flow and stick to a monthly budget
  • Clearly define the repayment terms and conditions if you make them a loan.

Historically Low Interest Rates

February 2nd, 2012 No comments

Currently, mortgage rates are historically low, even though last week we saw the end of the competitive 2.99% for 5 years. After the Feds announcement in the U.S. to keep interest rates low until 2014, people are becoming hopeful that ours will also remain low until 2014. We are now getting used to the new norm. This is dangerous as interest rates will go up, but when, I would guess, nobody knows!

Over the weekend I watched an interesting CBC news report on the upcoming RRSP season. We are being told that we have to be more conservative when calculating our investment returns. Warren MacKenzie, of Weigh House Investor Services, said; “It would be unwise to assume an eight per cent average (return) over the next 15 to 20 years. I think we’re in for some tough times”. So where should our projections be at? According to PWL Capital’s Justin Bender: “Financial planners using more than a 4 per cent to 5 per cent rate of return for their projections (after fees) may be overstating the return that their clients can reasonable expect.”

I was taught to start saving for your retirement from your first pay cheque. I am hoping to hear how YOU are saving for your retirement. Let’s try and get some ideas flowing. I will share these ideas with everybody (names will be kept confidential). I guess you won’t be surprised to hear that I think purchasing a rental property is a good way to plan for my retirement income. I was thrown into this by accident. After renting an office in a plaza that held a major bank, the bank had my lease terminated as they believed I was effecting their mortgage sales. It’s a long story … I ended up purchasing a unit where I operate my office and also lease an apartment above. After the fact, I realized that the bank did me a huge favour!

I believe now is the time we all should be extremely aware of our own retirement planning particularly when we hear Prime Minister Harper say: “We’ve already taken steps to limit the growth of our health-care spending. … We must do the same for our retirement-income system.”

Let’s hear some thoughts