29 May

SPRING HOUSING MARKET…IN FULL BLOOM!

General

Posted by: Ron Price


Finally great spring weather has arrived and with it a ‘Bloom’ in home listings giving prospective buyers much more to choose from.
Once again it is a great time to buy a new home. With a more plentiful supply of listings things have started shifting back to a more balanced market between Buyers and Sellers. And this is healthy.
With all time low interest rates and the expectation of real estate ‘appreciation’ this year of 4 – 5% makes it an especially good time to make a move.
We are even seeing people selling and buying again at 5% down to be able to ‘pull’ out equity for other purposes and take advantage of our ultra low rates. In many cases they can pay off their high interest existing credit cards, and high payment lines of credit while buying at the same price point and ending up savings thousands of dollars per month in payments. This is because refinancing is now restricted to 80% of value meaning that up to 15% of equity can be accessed to do any number of beneficial things for home owners.
Not a bad strategy to get ahead in the game of finances don’t you think?
In addition, many are also taking advantage of our CHRP – CANADIAN HOME IMPROVEMENT PLAN to be able to improve/upgrade etc., the newly purchased property to their liking. Call us today for more details on this wonderful program which is part of your new mortgage.
Make your next home, your ‘Dream’ home with CHRP.
The current 5 year fixed bank rate is 4.79%. Our best rate is still 2.89%. Amazing. Certain conditions apply, OAC.
The bank variable prime rate is 3.0%. Our best variable is 2.45%. Conditions apply.
When we get you a mortgage, you avoid the dreaded bank collateral mortgage and you also avoid high penalties if you break your mortgage during the term. Did you know the vast majority of home buyers say they will be in their new home for at least 5 years and they are not concerned about the penalty? This is in the face of the fact that Canadians move on average every 3.5 years. Ouch! Yes this is true. So will our stellar advice and service, you will save big, and we protect you too. Bank penalties can be as much as 5 times any penalty associated with a mortgage through us.
For your next mortgage, the choice should be clear. Choose us first. You’ll be so glad you do!
7 May

IT’S NOW OR NEVER FOR VACATION-SECOND HOME FINANCING WITH 5% DOWN

General

Posted by: Ron Price

IT’S NOW OR NEVER FOR VACATION/SECOND HOME FINANCING WITH 5% DOWN!
CMHC recently announced it is eliminating vacation and second home financing at the end of May, shutting down access to buying a second home, cottage or homes/condos for children attending post-secondary institutions in other cities.
Starting June 1st, a minimum 20% down payment will be required to purchase such properties.
This program has provided a tremendous opportunity over the years for home owners to purchase a second property that eventually can become a rental/investment/income property, since after one year of occupancy the owner/borrower can do whatever they want. In other words it can be turned into a rental property for arm’s length/third party use, thus adding to one’s real estate portfolio.
It represents the last ‘Easy’ way to acquire a second property with a minimal down payment AND AT THE LOWEST RATES available, not the surcharged rates that apply to ‘rental’ properties when 20% down is required.
If you have any thought of buying a cottage or purchasing a property for your children to live in (to defray educational costs) while they attending college or university, ‘IT’S NOW OR NEVER’ folks, to be able to do so with minimum down AND AT DEEP DISCOUNTED RATES.
The mortgage payment for example of a property purchased at $250,000 with 5% down or $12,500 at 2.99% today is $1,123 per month whereas after May 31st with 20% down or $50,000 down with the full market (surcharged) rate of 3.49% is $997 per month. While the payment is $126 less you must invest an additional $37,500 of your own money versus $12,500.
Get this. The total amount of interest paid over the amortization for the 5% down vs 20% down scenario is $99,322 versus $99,245 or almost identical. So you pay the same total interest either way but the return on your investment will be much higher with the 5% down scenario. For example if the property value increases say $75,000 divided by your investment of $12,500 the ROI return is 600% whereas the same $75,000 divided by your investment of $50,000 is only 150% while paying the same total interest. This is the power of ‘leveraging’ which will disappear by June 1st.
So act now and call us today to take advantage of this last great mortgage financing loop hole and create wealth for your future.