26 Dec

Credit Card Debt

General

Posted by: Nick Kaaki

From GetSmartAboutMoney.ca

Putting a lot on your credit card these days?

Here’s a calculator to help put a payment plan in action. http://ow.ly/FOxKA

20 Nov

2014 CMHC First-Time Homebuyers Survey

General

Posted by: Nick Kaaki

Today’s generation of first-time homebuyers are increasingly using the Internet to their advantage when researching mortgages. CMHC’s recently released 2014 First-Time Homebuyers Survey backs that up.
 
The report found that 84% of first-time buyers went online to gather information about mortgage options and features. The figure was 76% for repeat mortgage consumers.
 
First-timers were also more active online compared to other mortgage shoppers. A full 80% of first-time buyers used an online mortgage calculator, for example, compared to 72% of other mortgage consumers.
 
Social media also factored into their online research in 2014, with 40% of new buyers using it when researching mortgage options – almost double that of other mortgagors. That’s up from 28% just a year ago.
 
Click here to read more from CanadianMortgageTrends.com.

FTH survey 2014

20 Nov

Steady as she goes for Canadian housing market in 2015, says CMHC

General

Posted by: Nick Kaaki

CMHC says it expects housing starts in 2015 to be about the same as they were this year, and in line with economic and demographic trends.
 
On an annual basis, CMHC expects housing starts to range between 186,300 and 191,700 units in 2014, with a point forecast of 189,000 units.
 
Next year, the agency says it expects housing starts to range between 172,800 and 204,000 units, with a point forecast of 189,500 units.
 
The national housing agency says “some moderation is expected” in 2016, predicting housing starts will range between 168,000 and 205,800 units, with a point forecast of 187,100 units.
 
Click here for more details form the Financial Post.

CMHC said Thursday it expects housing starts to range between 172,800 and 204,000 units, with a point forecast of 189,500 units.

16 Oct

We’re paying off mortgages faster than thought…

General

Posted by: Nick Kaaki

A new report suggests that Canadian homeowners are paying down their mortgages faster than they’re being given credit for.
 
CIBC Deputy Chief Economist Benjamin Tal says homeowners are taking advantage of record-low interest rates to accelerate their mortgage payments, and shorten their amortization periods.
 
The CIBC World Markets study says that homeowners are paying an additional $11 billion a year in principal that isn’t being officially recognized by the Bank of Canada.
 
It suggests that an estimated 30-40% of households with mortgages are accelerating their payments. As well, 40-50% of borrowers are estimated to have amortization periods of less than 20 years, rather than the standard 25 years.
 
Click here for full details from MoneySense.

iStock

16 Oct

Getting a divorce? Here are four things to consider before selling your real estate…

General

Posted by: Nick Kaaki

About 70,000 Canadian marriages end up in divorce every year. It’s an emotional decision that’s almost impossible to decouple from the financial implications that follow.
 
Financial planners often say divorce is one of the worst decisions you can make, at least from a personal finance point of view. We know that, in general, married couples are wealthier than their single counterparts. Running separate households is always going to cost more than running a single one.
 
But even if splitting is the only option, it doesn’t necessarily mean that you can’t handle the real estate break-up wisely.
 
Timing can be everything: Waiting a few months could result in thousands of dollars in savings. Fees can be reduced if you can control when you have to sell. And, ultimately, if you’re selling on your own terms – rather than in a rush – you’re more likely to yield a better price.
 
Click here for four things to consider before you sell courtesy of the Financial Post.

Ultimately, if you're selling on your own terms — rather than in a rush — you are more likely to yield a better price.

22 Sep

Is inflating income, lying on credit applications OK?

General

Posted by: Nick Kaaki

Ten percent of Canadians surveyed say it’s okay to inflate your income when applying for a mortgage, according to a new Equifax survey.
 
And 9% say they have lied on credit card or mortgage applications.
 
The numbers came as a shock to Equifax officials, given that the July survey of 1,500 Canadians was really aimed at gauging their concerns about protection of personal data.
 
“We hadn’t asked the question before,” says Tim Ashby, Vice President of personal solutions for Equifax Canada. “It’s a bad strategy,” he stressed, noting that lying on any credit applications is a form of fraud. “Obviously it’s not sustainable. It means that people are concerned about their ability to get a mortgage. We definitely want to counsel Canadians to work within their means and approach their debts with financial responsibility.”
 
The survey also disclosed that only 23% of Canadians know their credit score, and just 26% knew their credit rating at the time they applied for a mortgage. That’s despite the fact a good credit score can be a major negotiating tool in getting lower interest rate mortgages from financial institutions.
 
Click here for the full article in The Star.

Ten per cent of Canadians surveyed say it’s okay to inflate your income when applying for a mortage, according to a new survey by credit reporting agency Equifax.
DREAMSTIME

22 Sep

Breaking Down Debt: How 4 Different Loans Affect Your Mortgage-Worthiness

General

Posted by: Nick Kaaki

Want to get a new mortgage? Then, your credit score is a really big deal — it can make or break your mortgage payments, and ultimately determine whether or not you get the house you want.

But before we talk about credit scores, let’s talk about the debt that affects them. There are two types of debt: secured and unsecured. When you borrow money to buy a house, the bank can take back the house to recoup their money if you don’t pay the debt. That means the debt is secured — it’s being balanced against something that you want to keep, and gives the bank some measure of security that they’re going to be able to recover the money they’ve loaned you.

Click here to look at the impact of four key consumer loans, a mix of secured and unsecured debt, on your credit score – and, ultimately, your mortgage worthiness, courtesy of Forbes.

 

keep250k

20 Aug

Five-year mortgages holding firm, but just wait…

General

Posted by: Nick Kaaki

Five-year mortgages holding firm, but just wait…

Rewind seven months and economists were predicting that five-year fixed mortgage rates would creep up a bit this year. But they’ve done nothing but fall so far.

So what happened?

Click here for the full The Globe and Mail article.

Economists are still expecting five-year fixed mortgage rates to creep up, they just don’t know exactly when. (Christopher O Driscoll/iStockphoto)