|EQUITY REFINANCE MORTGAGE LOANS CANADA BLOG|
|New down payment rules will go into effective February 15, 2016.|
“The Government’s role in housing is to set and maintain a framework that is equitable, stable and sustainable. The actions taken today prudently address emerging vulnerabilities in certain housing markets, while not overburdening other regions,” Finance Minister Bill Morneau said in a release. “They also rebalance government support for the housing sector to promote long-term stability and balanced economic growth.”
|It’s a tough segment, but one that can prove fruitful for brokers willing to put the time into mastering it. But there is one pitfall all eager commercial newbies should avoid, according to one veteran.|
“A lot of brokers’ first commercial deal is a storefront with an extra apartment, and most have no trouble with those,” Dale Bilton, president of Dominion Lending Centres Commercial and Residential Mortgages Ltd., tells MortgageBrokerNews.ca. “After that they think they’ve got the philosophy figured out.”
|Construction of multiple units as a share of total new housing starts is at the highest level since 1971, data from Canada Mortgage & Housing Corp. show, as builders in Toronto and Vancouver press ahead with new development.|
The condo boom -- fueled in part by affordability issues in Canada’s two priciest markets -- is helping offset a slump in construction of single detached homes across the country.
|Federal Finance Minister Bill Morneau announced that the Liberal government will roll back the annual contribution limit to $5,500, reversing a move by Conservatives that set the limit at $10,000 in the 2015 budget.|
Morneau said that the reduction will take effect on January 1, 2016, and that TFSA contributions will be indexed to take into account inflation moving forward, giving investment income some space to grow tax-free.
|New currency, commodities, jobs and trade reports and figures released last week have shown signs of an impending major bifurcation between the U.S. and Canadian economies, analysts said.|
In the event of such a divergence, experts warned, Canada will bear the brunt of the effects as the smaller partner – a stark contrast to the situation around six years ago, when the U.S. economy was reeling from the recession and it had to lean on Canada to fulfill its demand for oil, iron, and copper.
|While the transition is still ongoing, one industry veteran – and a CFF Centre operator – is optimistic about the future of the bank following its purchase by Home Trust.|
“On the mortgage-side, we have benefitted already,” Brian Matthey, broker owner of Verico The Mortgage Professionals and a CFF Centre operator, told MortgageBrokerNews.ca. “Home Trust has always supported the industry and whatever Gerry (Soloway) says he will do, he will do; he has an excellent track record.”
|Vancouver-based banks reported more suspicious applications coming from mainland China than any other country.|
Banks are required to report any suspicious activity to the Financial Transactions and Reports Analysis Centre of Canada (FinTRAC), and the Globe and Mail received that data through an access of information act. It shows that Vancouver banks reported suspicious transactions originating from mainland China 17 times more often than transactions originating from any other country.
|The number of U.K. first-time homebuyers who step on to the housing ladder mortgage-free has tripled since the financial crisis, largely thanks to wealthy parents paying the entire cost of a home.|
Some 19,000 people bought their first homes outright in the past year, according to research by Hamptons, the estate agent, illustrating the growing reliance on outside help in enabling people to become homeowners.
|Jason Zweig recently suggested that homeowners make far less money selling their houses than they believe. He cites Yale University economist Robert Shiller's data, which finds that “real estate generally keeps pace with inflation but seldom offers any return premium above that.”|
Homes have done a bit better than that, but not by much. The S&P/Case-Shiller U.S. National Home Price Index, which measures the changes in value of single-family homes, has grown at a real rate of 1.1 percent annually since 1975. In reality, even this pittance overstates homeowners’ fortunes since it doesn’t account for the myriad expenses that also accompany homeownership and eat away at returns.
|The Canada Mortgage and Housing Corporation said last month that the Toronto, Regina, Saskatoon, and Winnipeg markets were showing signs of “problematic conditions”.|
The statement echoed a report by the Organisation for Economic Co-operation and Development earlier this year, which noted that Toronto housing and Vancouver real estate are at risk of a sharp decline.
|It’s rare for any professional to love every aspect of their job, but just because you don’t like something doesn’t stop it from needing to be done.|
Jon Dale, director of Small Fish Business Coaching, takes a no-nonsense approach to confronting your excuses for what they are. Often the tasks professionals enjoy doing involve dealing with their existing clients, whereas jobs such as marketing and prospecting new clients can often be postponed.
|It seems to be top of mind for brokers across the country – but just how worried is the industry about a proposed rule that would force them to disclose to clients how much commission they make on deals?|
|Adina Harms Barbour was found guilty of mortgage fraud for allegedly falsifying documents and cheques to acquire mortgages from CIBC.|
“You never know what’s going to happen, and I never pretend to know what’s going to happen,” Crown prosecutor Steven Johnston said, according to Global News. “But, obviously, the Crown is satisfied with the decision.”
|“The housing market is on shaky ground here in Canada,” says Dr. Sherry Cooper, chief economist for Dominion Lending Centres. “Actually, I believe the BoC would cut the rate if they could. The bank is concerned about the economic outlook for Canada.”|
The Bank of Canada kept its key interest rate unchanged and said the economic recovery is unfolding as expected, with momentum from non-energy exports and the weaker currency helping to contain the damage from lower oil prices.
|Policy makers still have firepower to spur growth even with borrowing costs near zero, Bank of Canada Governor Stephen Poloz said, citing unconventional policies and fiscal stimulus.|
While the central bank doesn’t expect another crisis that will force it to resort to such policies, a number of tools are still available, including charging banks for deposits, forward guidance and asset purchases, Poloz said. Fiscal stimulus could be even more effective than monetary policy in extreme circumstances, he said.
|It’s already been the best year on record for this one booming market, but have brokers benefited?|
|We asked one recent inductee to the Mortgage Hall of Fame where the mortgage channel was headed – and the dangers of not keeping pace |
|A comprehensive industry survey suggests lenders are still bullish on the Canadian real estate market|
|Mortgages fueled Canada’s household credit growth for the month of October, according to a report by the Royal Bank|
He may have a large platform, but Kevin O’Leary’s track record when it comes to speculating the housing and mortgage markets isn’t exactly sterling
|Ottawa-based real estate lawyer Luigi Savone had the Law Society’s 2014 findings overturned. The Law Society alleges Savone played a role in 12 alleged fraudulent real estate purchases between 2000 and 2003.|
Savone’s attorney has accused the Law Society of unfairly treating his client, according to Canadian Lawyer Magazine, when it would not consider lender documents presented by Savone before stripping him of his license.
|Getting back to basics and taking advantage of three trusty referral sources is the key to growing your business. Though each has tricks of the trade that should be kept in mind.|
|One broker held a Black Friday mortgage special; were clients rushing to take advantage? |
|With brokers increasingly hungry for alternative revenue streams, one industry veteran is warning colleagues about the due diligence required in presenting clients with investment opportunities.|
|Have you wondered why some brokers close more deals than others? Here are five tips to try|
|Oil at $35 a barrel for a period of five years would trigger a 26 percent collapse in Canadian home prices, according to stress tests run by Canada’s housing agency|
|Real estate agents in this once red-hot market are leaving in droves, but will that trend extend to mortgage brokers? |
|The Crown corporation released its quarterly results Friday, drawing attention to its low arrears rates and commitment to portfolio stress testing|
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