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Mortgage Matters-December 11, 2024

Wed, 11 Dec 2024 14:39:55 GMT

This one is early but we wanted to address the Bank of Canada update today!

Market Insights

The Bank of Canada delivered a 0.50% rate drop on Prime Lending rate today! This was mainly due to the job numbers that came out last week as well lower growth numbers than what was expected.

This brings more relief to clients that have a variable rate mortgage loan or line of credit!

This did not affect fixed interest rates. The mortgage rates are based on bond yields. If yields over time show a downward trajectory it will be reflected in the mortgage rates. You can watch bond yields daily here . If you see the bond yields trending downwards over time that is a good indicator that fixed rates will come down.

Is it time for a mortgage review?

Is it time to chat about your current mortgage and see if there is anything we need to change in order to help you save money down the road?

Here are some scenarios where it might be worth a mortgage review call.:

You took a fixed rate mortgage in the last two years and want to see if it is worth it to break the mortgage term, pay the penalty and take a lower rate
Your mortgage is coming up for renewal in 2025 and you want to discuss your options
You may have accumulated debt want to consolidate it into your mortgage to lower payments as you have equity built up in your home
You have spent money renovating your home to increase th value and want to recoup the savings you used to do so.

As your mortgage brokers, we are here to ensure that we provide you with the advice and guidance now and into the future so that your mortgage is meeting your needs!

Christmas Gratitude-Update

Katie and I were so moved by the entries we have received that we have decided to give away a total of 4 prizes! $150 for you and $150 for you to give away. So please make sure you enter by following these instructions:

We are running a contest for a $150 Gift Card to a local business of your choice (grocery store, gas station, restaurant, store). Plus, you get a second gift card for $150 to give to someone that is important to you in your life, OR donate it to your favorite charity or organization!

Here is how you enter:

Reply back to this email with one thing you are grateful for plus the name and phone number of the person or charity you would like to give your second gift card to
Answer the Poll below

The random draw will be made December 15, 2024 which means the deadline to enter is December 14, 2025.

Eek! So exciting!

We Love Referrals and Reviews from Happy Clients!

The greatest gift we can receive is a referral from a happy client. If someone in your circle is talking about a mortgage, please pass on our name! And if you can take a couple of minutes to leave a review we would love that?

We are Happy to Help

Have Mortgage Questions? Email Us Anytime!

Mortgage Matters-November 28, 2024

Wed, 11 Dec 2024 14:21:33 GMT

Christmas is coming!

Are you excited? Are you a Christmas person? As always we are coming to your inbox every month to provide you with the information you need to know!

Market Insights

Inflation ticket up slightly in October to 2.0%, which led to speculation on whether we would see another prime rate drop on December 11, 2024.

In the November 26, 2024 press release by the Bank of Canada Deputy Governor , Rhys Mendes states:

"Since then, data for October were released showing inflation at 2%, in line with our expectations. Our preferred measures of core inflation ticked up to about 2½%. We still have more information to come before our next rate decision in December, including third quarter gross domestic product data and the November employment numbers. We’ll be looking closely at those indicators and reviewing any other information we receive.

If the economy evolves broadly in line with our forecast, then it’s reasonable to expect further cuts to our policy rate. That said, the timing and pace of further cuts will be guided by incoming information and our assessment of its implications for the inflation outlook. We will be taking our monetary policy decisions one at a time."

I wouldn't be surprised if they hold the rate in December to see how the rate cuts to date have effected the economy. However, as we all know, it is a guessing game on what the Bank of Canada will do.

Fixed interest rates did not drop as expected and actually bumped up a bit since the October rate announcement. They are now coming down but not as quickly as we would like. The mortgage rates are based on bond yields. If yields over time show a downward trajectory it will be reflected in the mortgage rates. You can watch bond yields daily here .

Christmas Gratitude

Christmas is one of our favorite times of the year, our dear client. It's not because of the presents but of the time that we get to spend with the important people in our lives.

It's the time over dinner and waking up Christmas morning with the tree lit up and a moment of peace before the kids wake up and rush to the tree to see what Santa has left.

We want to share our joy of the season and bring a little Christmas Joy to you and your family.

Here is how you enter:

Reply back to this email with one thing you are grateful for plus the name and phone number of the person or charity you would like to give your second gift card to
Answer the Poll below

The random draw will be made December 15, 2024 which means the deadline to enter is December 14, 2025.

Eek! So exciting!

We Love Referrals and Reviews from Happy Clients!

We are Happy to Help

Have Mortgage Questions? Email Us Anytime!

Mortgage Matters-October 23, 2024

Wed, 23 Oct 2024 14:44:48 GMT

We over here at Your Mortgage Needs have made a commitment to continue to provide you with pertinent updates on all things mortgage. That means that we will continue to show up in your inbox on a regular basis!

Market Insights

Amazing News announced today!

The Bank of Canada delivered a whopping 0.50% rate cut this morning, bring Prime Lending rate down to 5.95% from 6.45%!

This affects you if you are in a variable rate mortgage or have a variable rate loan product.

How much does this affect you and your payment? If you owe $200,000 for example, your payment would drop by about $60/month!

Keep in mind that it would reflect on your next month's payment, unless you have a fixed payment. In that case more would go to principal and less would go to interest.

If you are renewing your mortgage or getting a new mortgage that hasn't closed yet and have selected a fixed rate mortgage , this does not mean that your rate has dropped. Fixed rate mortgages are tied to the bond market, and in the last couple of days we have actually seen a slight increase in bond yields. When this happens we sometimes see that reflected in an increase in fixed rates.

I do suspect that we will continue to see fixed interest rates drop over time and go under 4%. In order for rates to drop under 2% we know what needs to happen-an economic crisis like the pandemic. I don't think any of us want that!

If you are unsure whether to take a fixed or variable rate mortgage, reach out to us. We can discuss what is right for you!

So Many Mortgage Rule Changes are Coming!

Recently, the Federal Government announced some pretty sweet changes to mortgage lending, my dear client. Here is a summary of those changes:

Effective November 21, 2024

When switching your mortgage to another lender at renewal, you no longer need to qualify at the Stress Test Rate and instead can qualify at the actual contract rate. This is huge as it allows borrowers to have a choice at renewal if another lender is offering a better rate than their current mortgage lender.

Effective December 15, 2024

First time home buyers and buyers of New Construction homes can now extend their payments over 30 years (previously 25 years). A first time home buyer has either:
Never purchased a home before.
Not owned or occupied a principal residence in the last four years.
Recently experienced a breakdown in a marriage or common-law relationship, in line with the Canada Revenue Agency’s approach to the Home Buyers’ Plan.
The cap for insured purchases has been increased from $1 million to $1.5 million

Effective January 15, 2025

Homeowners can access up to 90% of their home's value in order to refinance to build a secondary suite. This is to help combat the shortage of rental units in the country. Here is the Coles Notes on the rules (courtesy of Canadian Mortgage Trends ):
Maximum loan-to-value (LTV) : The LTV ratio can be up to 90% of the “as improved” property value, with the total property value capped at $2 million.
Amortization period : The maximum amortization for this refinancing is 30 years, allowing borrowers to spread payments over a longer term.
Number of units : Homeowners can add up to four units on their property, including the existing one.
Self-contained units : Each secondary suite must be a fully self-contained unit, meaning it has separate living facilities, such as a private entrance, kitchen, and bathroom. This ensures compliance with municipal zoning requirements.
No short-term rentals : The additional units must be long-term rentals and cannot be used for short-term rental purposes (e.g., Airbnb).

We are still waiting for communication from our lenders on how this will play out, but expect to have something soon. At that time we will communicate that to you. Either way, this is great news!

If you are intrigued by any of these changes, please reach out by email here !

It might be time to have a strategy session!

Are you a First-time Home Buyer looking to buy in 2025? Here are some neat strategies for you with regards to your down-payment!

As a First Time Home buyer, the government has some great programs to assist you, and you can use this to your advantage today. Here are some tips and tricks you can use to possibly put more money in your pocket when you are ready to buy!

Tip # 1

Invest your down-payment in the First Home Savings Account today. You are allowed to contribute $8000/year up to $40,000 and then withdraw it tax free when you are ready to buy a home.

The best part? Unlike the RRSP Home Buyers Plan, you can withdraw it a day after you contribute the funds and still get the tax benefit!

Tip # 2

As a First Time Home Buyer, you can withdraw up to $60,000 from your RRSP tax free when you are ready to buy. The catch? The funds must have been sitting in your RRSP for 90 days before you are able to withdraw the funds.

If you are looking to purchase in 2025, you could move your down-payment funds into your RRSP now and report the contribution on your 2024 income tax return which may result in a tax refund for you. Then, when you are ready, you can withdraw those funds tax free. Just make sure that you invest in an open, low risk RRSP if you decide to do this.

If you are getting a gift from family and they are able to give you the funds earlier, this strategy could work as well!

Remember, it is $60,000 per First time buyer, so if you are buying with a partner and they also qualify as a first time buyer that would equal $120,000 in eligible down-payment room!

Here are the links to the program details:

RRSP Home Buyers Plan

First Home Savings Account

Chart Below (Courtesy of this Globe and Mail article )

We Love Referrals and Reviews from Happy Clients!

Bank of Canada Rate Update

Mon, 09 Sep 2024 14:48:15 GMT

Dear our amazing client,

This is just a quick note to let you know the good news! The Bank of Canada dropped Prime lending rate by another 0.25% last week! We do hope that this is a trend that will continue. I think it will. It might not be as fast as we would like but at least it is coming down.

Fixed rates are also coming down. If you're in a variable rate mortgage you might be trying to make the decision to lock in to a lower fixed rate now.

For clients in a variable rate mortgage, the question we get the most is-should I wait a little longer? The best way to answer this question is to ask yourself-"If I lock in today and interest rates continue to come down, will I be ok knowing I cannot get that lower rate without a interest cost to break my term?".

If you are in a fixed rate mortgage and want to see what it would cost to break your term and take advantage of the lower rates, you can reach out to your bank directly to ask them what the early renewal cost would be as well as what their best rate would be to lock in. If you are with a non-bank mortgage lender we can get you their phone # if you don't have it.

As always we are here to help you with all things mortgage!

We Love Referrals and Reviews from Happy Clients!

Mortgage Matters-August 20, 2024

Tue, 20 Aug 2024 14:51:45 GMT

We over here at Your Mortgage Needs have made a commitment to continue to provide you with pertinent updates on all things mortgage. That means that we will continue to show up in your inbox on a regular basis!

Market Insights

Great news! Inflation for July has dropped to 2.5% down from 2.7% in June. This means that a rate cut by the Bank of Canada in September is quite likely. The inflation rate in the US also dropped in July to 2.9% from 3% in June. We are expecting the US Federal Reserve to drop their Prime lending rate when they meet mid September.

This affects you if you are in a variable rate mortgage or have a variable rate loan product.

How much does this affect you and your payment? If you owe $200,000 for example, your payment would drop by about $30/month for every 0.25% decrease in Prime lending rate.

Keep in mind that it would reflect on your next month's payment, unless you have a fixed payment. In that case more would go to principal and less would go to interest.

The good news is that we are seeing fixed rates come down as well, so if you want to lock in or are looking at a purchase or upcoming renewal, you are in luck!

Should you just sign your Mortgage Renewal Offer?

Short answer is NO, my dear client and for a few reasons:

-Your current lender might not be offering you the best interest rate

-You might need help deciding on what term to take. 5 years is not always the best decision if you are looking at an upcoming move or want to payout your mortgage early

-Sometimes those lower rates come with some big hidden costs if you decide to break your mortgage early

Let us help you make that decision. If it's a good deal we will be the first ones to tell you to take it. We will just want a shot to compete when your mortgage comes up for renewal again!

Update

As your mortgage broker for the past 21 years, my focus was always be on providing you with a top notch mortgage experience during the transaction and beyond.

As I evolved into an owner role over the last couple of years, I had a team working with you on your mortgage. I was and am in the background making sure that you continue to receive the service and expertise that you expected from me.

This transition has had it's bumps along the way and I appreciate you sticking with me while we smoothed things out.

I am so excited and happy to report that Katie Gawlicki is now my Senior Mortgage Broker and she works exclusively with our clients!

I keep saying she is a younger version of me. She has the same passion and dedication that I do and it shows in every client interaction. I have had glowing reviews time and time again from happy clients!

Reach out to Katie at 587-287-1618 or clientcare@yourmortgageneeds.ca

She would be happy to chat about anything mortgage!

We Love Referrals and Reviews from Happy Clients!

Monthly Mortgage Matters-June 5, 2024

Wed, 05 Jun 2024 14:56:54 GMT

We over here at Your Mortgage Needs have made a commitment to continue to provide you with pertinent updates on all things mortgage. That means that we will continue to show up in your inbox on a regular basis!

Market Insights

Holy smokes it actually happened! The Bank of Canada finally lowered Prime lending rate! This affects you if you are in a variable rate mortgage or have a variable rate loan product.

I've recorded a video sharing my thoughts. Please feel free to take a look!

Real Estate and Income Taxes

As you may know, the Federal Government has made changes on how the profit on the sale of a non-primary residence is treated. It used to be that you paid a capital gains tax on 50% of the profit. It is now treated as business income, which, if you are in a higher tax bracket, can affect how much income tax you pay.

If this affects you, you are going to want to reach out to your accountant to ensure that income is minimized.

One way do help increases expenses on your rental property and thus reduce the profit is to carry a mortgage of home equity line of credit on your income producing properties and reduce the debt on your primary residence, which, in most cases, does not have any tax benefits.

If you are looking to start your journey of owning a rental property, one of the best and easiest ways to do that is to purchase a new primary residence with as little as 5% down and convert your existing residence into a rental.

We would love to discuss this further with you if this is something that applies to you now or in the future!

Our Mission

At Your Mortgage Needs, our mission is to transform the home buying process by providing unparalleled personal service, expert guidance and a seamless experience with every client that works with us. We are dedicated to building lasting relationships with our clients, treating each one as part of our extended family.

We are 100% committed to ensuring that every single person that works with any mortgage broker at Your Mortgage Needs is treated with kindness, respect and compassion.

I was important for us to communicate this with you, our dear client so that you know what to expect from us. If you refer a friend, coworker or family member to us we need to ensure that we deliver on our promise.

I hold everyone in our organization to this standard and want you to know that. If we don't deliver I want to know. We are humans and are not perfect, but that doesn't mean we can't improve.

We Love Referrals and Reviews from Happy Clients!

The Home Buying Process... Simplified!

Thu, 04 Apr 2024 15:31:48 GMT

Moving Checklist!

Thu, 04 Apr 2024 15:31:46 GMT

Renovation Mortgages Simplified!

Thu, 04 Apr 2024 15:26:12 GMT

Should You Lock In Now?

Thu, 04 Apr 2024 15:26:09 GMT

Bank of Canada Rate Announcement

Thu, 04 Apr 2024 15:26:08 GMT

What Does Bank of Canada Increase Mean for You?

Thu, 04 Apr 2024 14:40:32 GMT

Trigger Point on a Variable Rate Mortgage

Thu, 04 Apr 2024 14:40:30 GMT

Bank of Canada Increases Rates... Now What?

Thu, 04 Apr 2024 14:40:25 GMT

Is It Time For A Strategy Call?

Thu, 04 Apr 2024 14:40:22 GMT

*The average mortgage amount is pulled from my own database as were the rates that my clients received at the time.

Average hourly wage source: https://www150.statcan.gc.ca/n1/pub/14-28-0001/2020001/article/00006-eng.htm

Average house price source: https://wowa.ca/reports/canada-housing-market

As mentioned, please reach out to me and my team if you want to chat.

Renee Stribbell, Shelly Shapiro and Mary Juneau

Inflation Numbers...

Tue, 02 Apr 2024 15:46:43 GMT

Bank of Canada Raised Prime Lending Rate

Tue, 02 Apr 2024 15:46:42 GMT

Do You Need a Lawyer to Close a Real Estate Transaction and Why?

Tue, 02 Apr 2024 15:46:35 GMT

Bank of Canada Update...

Tue, 02 Apr 2024 15:46:34 GMT

Monthly Mortgage Matters

Wed, 28 Feb 2024 15:04:22 GMT

We over here at Your Mortgage Needs have made a commitment to continue to provide you with pertinent updates on all things mortgage. That means that we will continue to show up in your inbox on a monthly basis!

Market Insights

January inflation numbers came in and it's good news! The inflation rate dropped to 2.9%, which was more of a drop than the Bank of Canada was expecting. This is good new for Prime lending rate, as that means we won't see it going up any time soon.

Will it go down next Wednesday when the Bank of Canada meets? I would be surprised if it did, but the BOC is full up surprises aren't they?

In this article , Taylor Schleich, a rates strategist at National Bank of Canada Financial Markets, states that “Statistics Canada reported on Feb. 20 that growth of the consumer price index slowed more than expected to 2.9 per cent — the first time it has fallen into the Bank of Canada’s target range of one to three per cent since mid-2021. The central bank sets interest rates to try to keep inflation at two per cent, the goal of the recent round of 10 interest rate hikes after the CPI spiked to 8.1 per cent in June 2022”

What does this mean for you? There is hope that we will see an easing on variable rate mortgages going forward.

Fixed interest rates have levelled out and we are seeing new purchase rates under 5%, which we haven't seen in quite some time.

Should you hold off on buying a new home? Check out my thoughts in my Blog !

Importance of Mortgage Insurance: Protecting your Family's Future

We believe it's crucial to highlight the significant benefits that mortgage insurance provides to you and your family. If you have insurance set up already, that is awesome. If not, it might be time to see what options are available to you.

Life is unpredictable, and none of us can foresee the future. However, by opting for mortgage insurance coverage, you are taking proactive steps to safeguard your loved ones' financial well-being in case of unforeseen circumstances.

Here's why mortgage insurance is so valuable:

Protecting Your Family's Home: In the event of your untimely passing, mortgage insurance ensures that your outstanding mortgage balance is paid off, relieving your family of the burden of mortgage payments during an already difficult time. This security allows them to remain in the family home without the added stress of financial strain.

Critical Illness Coverage : Additionally, considering critical illness coverage as part of your insurance plan can provide financial support if you're diagnosed with a serious illness. With Simplinsur, your mortgage balance is paid in full so that you can focus on your health instead of worrying about how you are going to pay your mortgage payments.

Disability Coverage : Disability insurance is equally important as it will pay your monthly mortgage loan for up to two years if you become disabled and are unable to work. This ensures that you can continue to meet your financial obligations, including mortgage payments, while focusing on your recovery.

We understand that insurance decisions can be complex, but we're here to help you navigate through them. Our team is available to provide further information, answer any questions you may have, and assist you in finding the right insurance coverage tailored to your needs and budget.

Your peace of mind and your family's financial security are our top priorities. We encourage you to reconsider the importance of mortgage insurance and the added benefits of critical illness and disability coverage.

Please don't hesitate to reach out to us to discuss your insurance options further.

Exciting News!

On February 14, 2022 I opened my own Mortgage Brokerage! I now have a team of 4 mortgage brokers that work for me with plans to continue to grow!

I have hand selected two amazing Senior Mortgage Brokers that are as dedicated to my clients as I am.

You may have chatted with them already. Their names are Katie Gawlicki and Mary Juneau. If you haven't feel free to say hello!

You can expect the same dedication, professional advice, kindness and respect to Your Mortgage Needs as you have received from me over the years.

I am still here and chat with them every day. Rest assured you are being taken care of!

We Love Referrals and Reviews from Happy Clients!

So, What's Up with the Market? And Interest Rates—What's the Deal?

Tue, 13 Feb 2024 18:08:47 GMT

We get this question daily and here is our response—forecasting is basically a fancy way of saying "guessing the future." And if there's one thing I've learned in my 26 years in the financial world, it's this: Predicting the future of interest rates and market trends is a gamble where the house always wins.

Worried about your upcoming mortgage renewal? Before you sign ANYTHING, read this...

Tue, 23 Jan 2024 18:12:43 GMT

In November, Royal Lepage released their 2023 Mortgage Renewal Survey. Here is a staggering highlight: "31% of all mortgagees in Canada say their lending agreement is set to renew within the next 18 months, meaning that 3.4 million Canadians have a mortgage set to renew by March 2025."

The Importance of YOU Time!

Tue, 22 Aug 2023 18:15:16 GMT

This week I was struggling with feeling completely overwhelmed and exhausted. I was stressed and wasn't sleeping well. Between business and my personal life I had a few weeks of non stop events. I was never home and I was always surrounded by people.