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Top Factors to Consider When Choosing a Mortgage Broker in Canada

pclappleton@gmail.com (james loewen) — Thu, 21 Nov 2024 08:15:57 GMT

Top Factors to Consider When Choosing a Mortgage Broker in Canada

In Canada, buying a house can be exciting yet daunting, especially when thinking of the best mortgage to choose. One of the best ways to make this process easier is by engaging an experienced mortgage broker in Canada. These are professionals who work by connecting you to lenders so that you can find the best loan option available for you. Their vast knowledge of the mortgage sector enables them to help you get the best offers possible. But how do you go about choosing the right mortgage broker from the many available?

Factors to Consider When Choosing Mortgage Brokers:

Looking to choose mortgage broker? Here are the factors to consider:

1. Experience and Expertise

In terms of mortgage broker factors , choosing a mortgage broker, the first important aspect to examine is their experience. This is because the Canadian mortgage sector is quite multifaceted with many laws, rules, and lender union characteristics. An experienced broker is likely well versed in these intricacies and will provide such advice depending on individual financial capabilities.

Ask for how long they have been in the business and how many clients they have successfully assisted. Also, a seasoned mortgage loan officer usually has established relationships with many lenders, which in turn will offer better options for you. Most of the time, even more useful information will be when a mortgage broker works in a particular niche. For example, first time home buyer Burlington or the local property market of Hamilton or Milton would be niches where the expertise will come in handy.

Need help to choose the best mortgage broker in Canada? Contact us at Loewen Group to get mortgage broker tips and services. Call (289) 337-4029 or start here .

2. Range of Lenders and Products

An adept mortgage brokerage firm must have access to several lenders as well as different mortgage options. It is because mortgage broker in Hamilton are on good terms not only with banks and credit unions but also with private lending firms, so they will definitely help in finding the most suitable loan according to the client’s needs as well as their financial capabilities.

Also, it is more likely that favorable terms for the loan and adequate interest rates are available when a broker has contacts with several lenders instead of one or two.

Ask the broker what type of lenders they work with. Brokers with a larger network tend to be able to provide more options than those who are limited to a few lenders. Be sure also to ask if they have such product capabilities or that they have worked with certain types of lenders.

3. Reputation and Reviews

Research and analyze the feedback on the best mortgage broker in Canada. Look for online appraisals on Google, social networks, and other further sites, as well as testimonies of their previous clients. An ideal mortgage broker will always have great reviews from clients who appreciate the broker’s skill and results.

If family members, friends, or coworkers have ever used the services of a specific broker and were pleased with the outcome, do not hesitate to request contacts. It is more likely that a trustworthy and reputable mortgage broker in Hamilton, Milton, or Burlington will provide great service and navigate you through the mortgage process seamlessly.

4. Knowledge of Government Programs and Incentives

Canada has many programs designed to help young starters, in particular first-time homebuyers. A good broker would know these plans and help you make use of those available to you. For instance, should you be purchasing in Burlington, Hamilton, or Milton, they may know of local initiatives in Ontario such as the Home Buyers’ Plan HBP or even the First-Time Home Buyer Incentive.

Ask the potential brokers if they are aware of the schemes and if they have helped clients to access them in the past. You can save on expenses and eschew difficulties in buying a home by engaging the services of a broker who is knowledgeable about government support programs.

5. Local Market Knowledge

Market research at the local level can considerably impact one’s decision on acquiring a property. Be it Burlington, Hamilton, Milton, or any other area, a mortgage broker Milton with extensive experience in the given region will be aware of the community features, range of the properties, and prevailing tendencies that affect the mortgage or home buying schedule. He or she probably has turned into contacts with banks, appraisers, and real estate agents, thus further shortening the time frame.

Conclusion

A crucial first step in the home-buying process is selecting the appropriate mortgage broker Burlington . You may discover a broker who meets your demands and will strive to get you the best mortgage by taking into account elements like experience, reputation, variety of lenders, customer service, and local knowledge.

Taking the time to do your homework and make an informed decision can make all the difference, whether you're a first-time purchaser in Burlington, searching for the finest mortgage broker tips, or considering your alternatives in Milton. A knowledgeable, experienced broker will help you comprehend your alternatives, walk you through the mortgage process, and make sure your mortgage fits your long-term financial objectives.

Canadian Mortgage Rates: Navigating the Rise

pclappleton@gmail.com (james loewen) — Fri, 25 Oct 2024 13:20:11 GMT

The Impact of Recent Interest Rate Hikes on Canadian Mortgages

Many interest rate hikes in Canada of late have turned out to have a significant impact on the housing market and, by extension, Canadian mortgages. Homeowners, potential buyers, and those looking to refinance a current loan need to be informed about this situation.

Understanding Why Interest Rates Are on the Rise

Increases in interest rates are mostly within the province of the Bank of Canada (BoC) owing to their role in regulation of economic growth and inflation levels. Such changes therefore imply that fluctuations in interest rates can greatly influence the mortgage payment plans and the payment affordability.

Impact on Canadian Mortgage Rates

The most immediate effect that the population incurs with an increase in the interest rates is an increase in the Canadian mortgage rates. Generally speaking, following a rate hike from the BoC, lenders also increase their prime rates and by default increase the mortgage rates they offer. Such development affects keenly new borrowers, and especially first time home buyer Hamilton and its neighborhoods.

For Example:

If it were possible for you to obtain a mortgage and pay interest only at a 3% annual percentage rate, an increase in that percentage to 4 would mean increased monthly outgoings affecting you financially.

Challenges in Mortgage Affordability

First-Time Home Buyers: Many Canadians find mortgage affordability to be a major issue as the mortgage rates increase. An increase in interest rates means that there is an increase in the size of the monthly mortgage payments, which may render the buying of houses impossible for buyers.
Current Homeowners: When it comes to the management of rising costs, the notion of owning a house may quickly turn into a nightmare for those who are new to the real estate market in Hamilton or any other Canadian region. For instance, a first home buyer at 3% interest could afford a house worth $500,000, but at 4% interest, the same buyer would not be able to purchase the same home anymore.

Refinancing in a Higher Rate Environment

Homeowners who took their first mortgage at a much cheaper rate can get access to cheaper rates when refinancing. Another reason for refinancing may be to obtain funds for house renovations or for purposes of paying off debt. This process may be made easier for the homeowners by mortgage broker Burlington , where they will be able to access fair rates.

Adjusting to Rising Mortgage Payments

Budgeting: Whenever there are rising mortgage payments, the first thing that renters do is review their budgets and more often than not relearn them. First thing, make sure that absolutely necessary expenses are taken care of and think about cutting down on the unnecessary ones to offset the increased monthly payments.
Building an Emergency Fund: An emergency fund is beneficial in reducing the impact of the financial shock that may arise due to unexpected events. So, trying to keep aside sufficient money to cover three to six months of regular income is helpful so as to cushion against unforeseen financial shocks.
Consulting a Mortgage Broker: Refinancing mortgage payments, advocacy and financial options that suit individual two homeowners are made possible through the lenses of a mortgage broker in Milton . In case you do find yourself in Burlington, Milton or Oakville, there are mortgage brokers who will help you understand the mortgage market better.

Exploring Private Mortgages

Some Canadians might find it difficult to rely on conventional mortgage options during a high-interest rate scenario. Private mortgages in Oakville make it possible to fill in that gap.

Private mortgages tend to be lending products available through private lenders with varying rules and, more often, different interest rates from conventional banks. They can work perfectly for people with special financial needs or for holders who do not meet the ordinary mortgage requirements. As much as private mortgages can facilitate faster access to cash, their drawbacks are that they usually attract high interest rates. It is important to look at the profits and the costs before taking this option and how it fits into one’s overall plans for what would be for the years ahead.

The Future of Canadian Mortgages

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Canadian Mortgage Rate Forecast: Trends for 2024 & 2025

pclappleton@gmail.com (james loewen) — Thu, 19 Sep 2024 08:44:36 GMT

Canadian Mortgage Rate Outlook for the Rest of 2024 and 2025

Canadian mortgage rates have hit their lowest level since February 2023, with the 30-year mortgage average rate dropping by 15 basis points to 6.2%. With rates continuing to trend downward, many wonder if this will finally make homeownership affordable. While some experts are skeptical, a potential rate cut by the Bank of Canada (BoC) could provide relief to first time home buyer Hamilton .

Recent Mortgage Rate Overview

Understanding Historical Mortgage Rate Trends

Examining historical rates helps predict future trends. In the late 20th century, Canadian mortgage rates spiked to over 20% in the 1980s. They saw significant reductions from 2020–2024, with rates between 1% and 2%. However, post-pandemic, the BoC increased rates to manage inflation.

Canadian Mortgage Rate History (1980s–Present)

Economic Indicators Impacting Mortgage Rates

Several economic indicators, such as inflation and labor market performance, significantly impact mortgage rates.

Key Economic Indicators and Their Impact on Mortgage Rates

Inflation:

With inflation at 3% throughout most of 2024, this stability supports potential BoC rate cuts. This pattern aligns with central banks' tendency to ease rates when inflation is under control, fostering economic growth.

Labor Market

The Canadian labor market has softened in 2024, with rising unemployment and stagnating wage growth. This reduction in inflationary pressure could support additional rate cuts.

Bank of Canada Rate Cuts: Predicted Timeline and Impact

Economists predict the BoC may begin rate cuts as early as October 2024. This initial reduction from the current 4.25% target rate to 4% may be held steady through 2025, with further cuts to 2.5% expected by late 2025. This gradual decline aligns with the BoC’s target of achieving a neutral rate that balances economic stability.

Projected Bank of Canada Rate Cuts

Strategies for Homebuyers to Secure the Best Mortgage Rates

Homebuyers can take advantage of potential future rate cuts with strategic mortgage planning. Here are several strategies to help first-time homebuyers secure favorable rates by mortgage broker Milton .

Mortgage Strategies for 2024–2025

Temporary Fixed Rates

If rates continue to fall, a short-term fixed-rate mortgage offers flexibility. With a 3-year term, homeowners can lock in a rate now and potentially refinance at a lower rate later.

Monitor Bond Yields

Fixed mortgage rates closely follow government bond yields, so keeping an eye on yields can help anticipate mortgage rate movements.

Variable-Rate Mortgages

A variable-rate mortgage, which adjusts along with the BoC’s changes, could save significantly as rates drop through 2024 and 2025.

Potential Risks and Uncertainties

While Canadian mortgage rates are currently on a downward trend, potential risks exist. External factors, such as supply chain issues or geopolitical conflicts, could disrupt this trajectory, impacting inflation and economic stability. Buyers should remain cautious of these risks, as they can alter the BoC’s path for rate adjustments.

Potential Risk Factors and Their Impact

Conclusion

Staying informed and adaptable is key to making the most of upcoming rate reductions. A knowledgeable mortgage broker Burlington can offer valuable insights tailored to the changing market, ensuring you’re positioned to benefit from potential rate cuts.

Being proactive by monitoring rates, considering mortgage options, and staying aware of economic indicators can help you save significantly. Whether you choose a short-term fixed-rate mortgage, keep an eye on bond yields, or go for a variable-rate option, each approach has potential in the evolving market. With expert guidance, you can make the most of the anticipated rate cuts and better position yourself for affordable homeownership.

Mortgage Renewal Tips & Tricks

pclappleton@gmail.com (james loewen) — Mon, 26 Aug 2024 07:31:01 GMT

Best Time to Renew Your Mortgage: A Step-by-Step Guide

Your agreement with a lender is in force for a predetermined amount of time when you obtain a mortgage. This is known as the mortgage term, and it may be as short as a few months or as long as five years. If you don't pay off the entire sum at the end of each term, you have to renew your mortgage . To fully repay your mortgage, you'll probably need more than one term.

It may surprise you when the letter telling you that it's time to renew your mortgage comes in the mail. Your bank says that if you sign now, you'll be okay for an extra five years.

How to prepare?

Here are some strategies to help you deal with potential rate increases:

Lock in Your Rate: If you want certainty and anticipate an increase in interest rates, consider switching to a fixed-rate mortgage at the time of renewal.
Compare Rates: Turn down the first renewal offer from your current lender. Looking around could help you find a better deal because different lenders might offer varying rates.
Lower the Principal Amount Owed on Your Mortgage : You want to consider paying off your mortgage entirely if at all possible. This suggests that you won't pay interest on as much of your money.

How to Get the Best Rates on Mortgage Renewals

To obtain the greatest mortgage renewal rates, one must be prepared, time their moves carefully, and use strategy and luck. Getting the best rates requires for first time home buyer Hamilton a quick start and aggressive negotiating. You can obtain the best bargains by using the following advice:

Boost Your Credit Score: If you are a more desirable borrower and have a higher credit score, you could be able to get lower interest rates.
Reduce Debt: Reducing your debt-to-income ratio can also make you a more appealing borrower and lower your interest rate.
Look Around: Don't accept the first offer you receive from your lender as is. Compare the rates being given by several lenders to make sure you're getting the best deal. Because they know you will haggle, lenders often start with a greater offer. Never be afraid to ask for a better offer or a lower cost.

Mistakes to Avoid When Getting a Longer Mortgage

Even though many homeowners refinance their mortgages on a regular basis, mistakes can still happen. The following common pitfalls should be avoided when renewing your mortgage:

Waiting Until the Last Minute: You may feel under pressure to accept an offer that isn't the greatest one that is accessible to you if you wait until the end of your term to renew. Instead, start the process as soon as you can to give yourself ample time to shop around, negotiate, and select the best mortgage for your needs.
Not Carrying Out Any Investigation: By completing your homework, you can compare offers from several lenders and perhaps receive a better deal.
Disregarding the Fine Print: Every mortgage has particular conditions and limitations. Verify that you have read and understood these terms.
Completely Pay off your mortgage: You can also choose not to renew your mortgage and, by just making the payments, become mortgage-free. You could require legal aid to complete the deal, and you might have to say goodbye to housing payments by paying your lender the discharge fee.

Why Do Mortgages Come Up for Renewal?

Mortgages are frequently designed with shorter durations, ranging from one to ten years, in contrast to some loans that continue until they are completely repaid. Every term has specific terms and conditions attached to it. Since your previous term, the market has probably altered, and the interest rates on offer now are significantly higher. Perhaps your family's needs have changed, your income has increased, or you have new financial objectives. Your decision to renew is influenced by all these circumstances, which might transform an ordinary event into one that could be strategically advantageous.

How to Approach Your Current Lender

Now that you have a clearer understanding of your objectives and the market for mortgage rates, it is time to get in touch with your existing lender's mortgage department.

The most important thing to find out from your present lender is what their lowest renewal rates are. Lenders frequently have a range of rates (floor to ceiling rates) that they can provide; they won't provide the lowest floor rate if they fear losing your business. This can be done with the help of mortgage broker Milton .

Considering this, inform your present lender of:

That you're looking for the greatest deal
That you are aware that there might be some optional pricing available; and inform them that this is their opportunity to win your business, not after you have already put in the effort to locate a better renewal deal elsewhere.
Talk to them in a kind and courteous manner, letting them know that you appreciate them so far and that you want to give them every chance to retain your business.

Conclusion

Keep in mind that it's time to renew your mortgage when your existing term is about to end. This is a strategic opportunity as well as a mere formality. You can safeguard your financial future by taking charge of the issue and being informed about your options.

Getting multiple quotes is advisable for any significant purchase. For quotes, it is therefore worthwhile to check with at least one, if not two, additional mortgage broker Burlington or lenders. This can be an excellent area to concentrate on because a broker that offers online mortgage renewals typically produces a highly competitive rate.

Refinance Your Mortgage & Save in Burlington and GTA (Canada)

pclappleton@gmail.com (james loewen) — Wed, 17 Jul 2024 11:34:15 GMT

The Ultimate Guide to Refinancing Your Mortgage

Refinancing your mortgage may be a smart financial move, post COVID-19 pandemic and global economic scenario. Refinancing your mortgage is beneficial in terms of reduction in interest rates, monthly payments, and consolidation of debts or help to access your home’s equity.

Read on further to understand everything you need to know about refinance mortgage services in Burlington , the Greater Toronto Area (GTA), and other parts of the country.

What is Mortgage Refinancing?

Let’s first get our basics right. Mortgage refinancing replaces your existing mortgage with a new one and newer terms. There could be various reasons for homeowners to opt for mortgage refinance. Read on to know more.

Debt consolidation mortgage

Debt consolidation mortgage is a single loan with a simplified repayment option. This mortgage combines your current debts into one loan.

Lower Mortgage Rates: Secure lower interest rates, and reduce your monthly equated payments and interest rates via mortgage refinancing.
Debt Consolidation: Refinancing helps you consolidate high-interest debts, especially ongoing personal loans into a single mortgage payment. You can pay lower Interest rates too.
Access Equity: You may use your home equity to finance medical bills and other large expenses.
Modify Loan Terms: Refinancing a mortgage allows you to adjust your mortgage terms. Through this adjustment, you can save on interest and even repay your mortgage faster.

Can I Refinance My Mortgage with Bad Credit?

Yes. It is possible to refinance your mortgage with bad credit. But, it is very challenging. Lenders prefer borrowers with good credit scores. However, there are some options for you if you have less than the desirable credit.

Improve Your Credit Score: You could pay down some of your debt, before you refinance. This will help you avoid new credit inquiries.
Get a Co-signer: If possible, get someone with a good credit score to co-sign the mortgage with you. You can get better terms this way.
Secure Government Backed Loans: Go for Government backed loans such as those by the Federal Housing Administration (FHA) tend to have lower credit requirements.
Consider All Your Options: With so many different types of lenders, offering loans at various terms, you need to weigh all your options. Ensure that you choose someone who is willing to work with your credit situation.

How Much Can I Save by Refinancing My Mortgage?

Several factors influence the savings on your mortgage refinance. These factors are:

Differences in Interest Rates: The difference of interest rates determines interest savings over the total mortgage period.
Monthly Payment Reduction: Difference in interest rates or mortgage term will also change the amount you repay every month.
Break Even Point: Refinancing involves closing costs. Consider those to determine if your monthly savings will help you recover those costs.

What Are the Closing Costs Associated with Refinancing?

Closing costs differ from lender to lender but typically range from 2% to 5% of the total loan amount. It includes:

Application fee: The fee charged by the lender to process your application.
Origination fee: The fee to process the new loan.
Appraisal fee: Cost to have your home appraised to determine its current market value.
Title Search and Insurance: The fee incurred for verifying the title and obtaining insurance.
Inspection Fee: Costs related to necessary home inspections.
Attorney Fees: You may incur a legal fee for review of your loan documents.
Prepayment Penalty: Some lenders levy a prepayment penalty for paying off your mortgage early.

When you are deciding to refinance, do factor in all of these costs because they can impact your overall savings.

Is It Better to Refinance or Get a Home Equity Loan

Deciding between refinancing or getting a home equity loan depends on your financial goals. Here’s what to consider:

Lowering Your Monthly Payments: Choose refinancing if your primary financial goal is to get a respite from your monthly payments.
Accessing Large Cache of Cash: Home equity loans are better in this respect, because you receive lump sum cash. However, your interest rates will be higher as compared with refinance.
Debt Consolidation: Both options are viable for consolidating debt, but refinancing is better if you want to lower your overall interest rate.
Loan Term: Refinancing allows you to lower your loan term, while home equity loan typically offers fixed terms and rates.

Working with a Mortgage Broker

Whether you are looking for a Burlington mortgage refinance or a GTA mortgage refinance, working with a reputed and knowledgeable broker is necessary. This option is also viable if you are exploring options with a mortgage broker in Hamilton .

Mortgage brokers like the ones at Loewen Group mortgage refinance have access to both a wide range of knowledge and lenders, allowing them to offer you personalized advice based on your specific needs.

Conclusion

Refinancing your mortgage can offer numerous benefits – from lowering your interest rates to accessing your property’s equity. By understanding the factors involved in making a selection and evaluating your financial goals, you can make an informed decision about whether refinancing is right for you.

Remember also to consider the closing costs and potential savings. Take advice from a reputable mortgage broker in Burlington or Hamilton in this regard.

With the right approach, you can also access equity despite bad credit and take advantage of mortgage refinance offers.

Tips for First-Time Home Buyers in Hamilton

pclappleton@gmail.com (james loewen) — Fri, 21 Jun 2024 07:40:06 GMT

Top Tips for First-Time Home Buyers in Hamilton in 2024

Are you considering buying a house in Hamilton in 2024? And if you are a first-time home buyer, the Hamilton real estate market can be quite exciting and challenging to navigate In this article, we have compiled some essential tips and advice that could help you prepare well for a successful home-buying experience in Hamilton.

Experts at Lowen Group share details related to some of Hamilton’s most popular neighborhoods, such as Strathcona, Westdale, Central Hamilton, and Landsdale offer a range of options from cosy condominiums to spacious family homes.

Popular Neighborhoods in Hamilton

Each neighborhood in Hamilton has its unique charm and characteristics. Researching these neighborhoods can help you find the perfect fit for your lifestyle and needs.

Locke Street is known for its trendy boutiques, restaurants, and cafes. It is located just west of Downtown Hamilton and is a good location to settle down.
King’s Forest is one of the most upscale and luxurious neighborhoods that Hamilton offers, and if you are one of those families looking for a quiet and peaceful place to settle down, then King’s Forest is apt for you.
Durand offers affordable, well-built historic homes and is located just south of downtown Hamilton.
Stoney Creek offers a mix of both urban and suburban living, with good access to nature and other amenities.

Understanding the Hamilton Real Estate Market Property Prices and Affordability

On reviewing, property market trends over the last few years, experts at Lowen Group observe that property prices have considerably risen and will continue to do is in 2024. The same trend applies to Hamilton’s real estate market. In such as scenario, buyers need to be aware of their budget and affordability.

Market Predictions in Hamilton for 2024

You can take efforts to understand the market prediction before you go ahead with purchasing a house in Hamilton.

Expected Price Movements

Housing prices have been fluctuating since 2021, as the market is volatile. Compared to other cities like Ontario, the prices of houses in Hamilton are quite affordable though. An analysis identifies Hamilton as a moderate-risk real estate market with affordable housing.

Staying informed about these trends will guide you to make a timely and informed decision.

Economic Factors Influencing the Housing Market

The main factors that impact the Hamilton real estate market are

Interest Rates
Supply And Demand
Employment Rates
Economic Growth

Major external factors influencing the Hamilton real estate market are

Government Policies
International Trade Agreements
Global Economic Trends

Hence, keeping an eye on these factors and trends will provide insights on how and when to buy a property in Hamilton.

Essential Tips for First-Time Home Buyers in Hamilton

To lay the groundwork for a successful home purchase, you need to be well prepared financially. Here are some essential tips to start with for first-time home buyers in Hamilton :

Saving for a Down Payment

Start by setting a realistic savings goal for your down payment. A larger down payment means lower monthly mortgage payments. You could open a dedicated savings account to keep your funds separate and keep track of your savings.

Understanding Mortgage Options

It is necessary to research different mortgage options available in Hamilton. The two mortgage options viz., fixed-rate and variable-rate mortgages their pros and cons. Consulting a mortgage advisor can help in understanding which option is best for your financial situation.

You should be aware of the additional costs, such as closing fees, property taxes, and maintenance expenses, and make provision for the same. Budgeting for these can prevent financial strain.

Finding the Right Neighborhood in Hamilton

Take your time to find the right property
Visit different neighborhoods at various times of the day to get a feel for the area.
Consider factors such as proximity to work, schools, public transportation, and amenities.
Talking to residents also provides valuable insights.
Avoid rushing to close the property deal as it can lead to regrettable decisions and missed opportunities.

Evaluating Property Values

To understand property values, you need to

Review and study recent sales data in your desired neighborhoods
Refer to various real estate websites for more accurate information and guidance

This information can help you determine if the property’s listing price is justified and guide you with an offer strategy.

Choosing a Real Estate Agent

A knowledgeable real estate agent can be a valuable asset. The real estate agent can offer market insights from them. They could help you find properties that meet your criteria and budget, and negotiate on your behalf.

Look for estate agents with experience in the Hamilton market and positive reviews from past clients.

Hiring a Home Inspector

It is important to hire a professional home inspector to assess the property's condition before finalizing the purchase. This step can uncover potential issue areas and save you from costly repairs down the line.

Negotiation Strategies

Before making a property offer, consider a home inspection or financing costs. Also, you may negotiate

When you're ready to make an offer, consider including contingencies that protect your interests, such as a home inspection or financing clause. Be prepared to negotiate on price, closing costs, and other terms.

Understanding the Offer Process

Your real estate agent will help you draft the offer and submit it to the seller. The response and negotiations can take some time. Hence, you need to be patient during that period.

Closing the Deal

Once your offer is accepted, the closing phase begins. During this period under the guidance of real estate agent and lawyer, you will

Finalize your Mortgage,
Complete Aa Home Inspection
Signing the Property’s legal documents.

Finalizing Your Mortgage

Work closely with your lender to complete all the paperwork and the funds are available for the closing date. You could also

Get a pre-approved amount for a mortgage, before you start house hunting,
This indicates that you're a serious buyer and gives both parties, a clear idea of the budget.
Keep in touch with your mortgage advisor to address any last-minute issues.

Moving into Your New Home

Start planning your move early. You should create a checklist of tasks, such as hiring movers, packing, and setting up utilities. Weekday moves are affordable while weekend moves come with surcharges. So, plan your moves accordingly.

Settling In

After settling in your new home, explore your new neighbourhood and meet your neighbours. Get familiar with grocery stores, schools, healthcare providers, recreational facilities, and other service providers.

Conclusion

Buying a house in Hamilton in 2024 is an exciting milestone. If you are a smart first-time home buyer, you will prepare yourself with the following steps to make an informed house-buying decision:-

Understanding the real estate market
Financial preparedness
Seek professional advice

Feel free to reach out if you have any questions or need further assistance. Happy house hunting!

Contact Lowengroup

Lowengroup is all set to help you purchase your new home. We can also help you with consolidation and other financial services related to your property purchase. Please get in touch for assistance at

Call: (289) 337-4029 , Email: tori@loewengroup.ca

Pre-Qual vs Pre-Approval: Know Before You Buy

pclappleton@gmail.com (james loewen) — Tue, 07 May 2024 10:45:29 GMT

Understanding Pre-Approval vs. Pre-Qualification for a Mortgage

Congratulations! You have taken the first step towards owning a house. If you are purchasing a house for the first time in Burlington or considering a second residence in Hamilton, you need to know the available mortgage options for you.

Are you confused by Pre-Approval and Pre-Qualification procedures for a Mortgage? Though they sound similar, they are different, and so are their implications

Seeking the services of a mortgage professional helps First time homebuyers through the entire purchase process. They will help them through the intricacies of the mortgage process and solve their doubts while ensuring a seamless purchase process.

Let us learn the differences while you finalize your preferred house.

Mortgage Pre-Qualification: A Starting Point

Mortgage Pre-Qualification assesses your initial borrowing capacity and provides a rough estimate of the mortgage amount you are eligible for, depending on your basic financial status. It is a quick and easy process . Most lenders or Mortgage Brokers in Burlington conduct it online or over the phone.

What to expect during an online or telephonic pre-qualification round

You will be required to share details of your income, work status, and loans
You will be required to share assets and your approximate monthly expenses.
The mortgage provider may perform a soft credit check

Upon the completion of the Mortgage Pre-Qualification, you will get a fair idea of the loan amount you are eligible for. Also, you need to remember that the pre-qualification is an estimate and does not guarantee that you will receive the estimated amount as a loan for buying a home.

Mortgage Pre-Approval: Taking it a Step Further

A pre-approval procedure takes the mortgage process ahead. It offers an in-depth assessment of your borrowing capacity. The pre-approval procedure provides a lender’s conditional commitment for a specific loan amount. This is a step ahead of the mortgage qualification process.

What to expect during the pre-approval process

Submission of documents certifying your assets, income, employment, and liabilities, such as pay stubs, tax returns, bank statements, and investment certificates

The lenders may conduct a hard credit check, affecting your credit score. They will analyze your financial condition to determine the mortgage amount and eligibility. On approval, you will receive a pre-approval letter mentioning the loan amount, interest rate, and loan terms you are eligible for.

Let us understand why both pre-qualification and pre-approval are essential.

First, we need to understand the benefits of the pre-qualification process, which are

Purchasing Capacity and Budget: Once you know your estimated borrowing capacity, you can look around for houses within that price range or budget.

Provides support to your purchasing decision : Having a pre-qualified letter demonstrates your seriousness in purchasing a house. It shows your strong intent to buy a house.

Comparison of Lenders : You can compare lending rates and terms received from various lenders to get a clear picture of your borrowing capacity and the best possible mortgage deal.

You can always seek the services of a Mortgage Broker in Hamilton to help you during the pre-qualification rounds. They are always ready to guide you through the process, help you contact various lenders, and help you understand the mortgage options available.

Now, let us understand the importance of pre-approval process

Importance of Pre-Approval Process for Mortgage

The benefits of Pre-approval during the home-purchasing journey are

Better Negotiating Power - A pre-approval letter relates to your purchasing capacity to purchase the house. You can show your firm determination or intent to buy the property competitively.
Seamless Closure of the Purchase Deal: With the financial details and papers related to buying a home, you can close the deal much faster and smoother.
Confidence: As you are aware of your borrowing capacity and limits, you can confidently embark upon house hunting and locate a house of your liking that fits your budget, too.

Choosing Between Pre-Qualification and Pre-Approval processes

For a sound mortgage process, it is necessary to go for both pre-qualification and pre-approval procedures. It would be best if you remembered they are distinctly apart but valuable in their way

Pre-Qualification: This process is a must if you wish to get a general idea of what type of house you can buy considering your financial status. Moreover, it is quick and easy. Also, it does not impact your credit score.
Pre-Approval: This process is a must when you are very keen or serious about purchasing a home and need to make offers to property sellers. A pre-approval letter strengthens your offer and clarifies your purchasing power.

If you are considering going ahead with private and second mortgages for your purchasing your second property, then you need to understand the relevant terms and conditions before going ahead.

Conclusion

Consulting a qualified Mortgage Broker in Burlington or Hamilton can be incredibly beneficial throughout the mortgage process. They are some of the best people who can guide you through pre-qualification and pre-approval. They will patiently answer your questions and help you secure the best possible mortgage for your home purchase.

First-Time Homebuyer Mortgage Guide: Approval to Closing

pclappleton@gmail.com (james loewen) — Fri, 26 Apr 2024 07:32:38 GMT

What's the Timeline for Mortgage Approval Before Closing?

Understanding the timeline for mortgage approval before closing is crucial for first-time homebuyers working with a mortgage broker.

Here's a breakdown of what to expect

Pre-Closing Mortgage Approval:

Typically, the mortgage approval process takes 30 to 45 days, but this can vary based on factors like lender procedures and your financial situation.

Property Appraisal:

An appraisal of the property will be conducted to ensure it meets the lender's standards.

Private and Second Mortgages Considerations

Different Timelines:

Private lenders may have different requirements and timelines for approval, so communication with your mortgage broker is key.

First-Time Homebuying Tips

Proactive Approach:

Stay proactive by providing all necessary documents promptly and responding to requests from your lender or broker promptly to avoid delays.

Closing Process Overview

Final Paperwork:

During closing, you'll sign the final paperwork, including the mortgage agreement and any other documents required by the lender.

The closing date marks a pivotal moment in the homebuying process, signaling the final steps toward property ownership. However, it's important to note that the closing date does not automatically guarantee that the loan is approved. Instead, it signifies the culmination of various administrative tasks necessary for the smooth transfer of property ownership.

On the closing date, both the buyer and seller, along with their respective legal representatives, convene to review and sign the essential paperwork related to the mortgage loan, down payment, closing costs, purchase price, and property title. This meeting serves as a critical juncture where all parties ensure that the transaction aligns with the terms outlined in the purchase agreement.

The closing day usually goes like this

Payment Processing:

The buyer provides the necessary funds to "close" on the property, typically in the form of a bank draft, covering the remaining down payment and closing costs.

Seller Proceeds:

Finally, the seller receives the proceeds from the sale, once any outstanding mortgage balances and closing costs are settled

Potential Mortgage Denial After Closing

While closing marks a significant milestone, it's essential to recognize that mortgage approval timing is not guaranteed even after the closing date. Mortgage lenders retain the legal right to reassess and potentially deny mortgage applications, citing various reasons such as:

Inaccurate Information : Errors or inconsistencies in the mortgage application can lead to reassessment and potential denial.

Employment Changes: Significant changes in employment status, such as job loss or a new job, may prompt lenders to reconsider the mortgage approval.

Financial Alterations: Changes in financial circumstances, such as increased debt or additional loans, could impact the lender's decision.

Credit Report Revisions: New negative findings on a credit report may raise concerns for lenders and jeopardize mortgage approval lead time.

Property Issues: Issues with property appraisal reports or changes in the property's physical condition could affect the lender's confidence in the investment.

Legal Complications: Title issues or other legal matters pertaining to the property may lead to mortgage denial .

External Factors: External factors such as policy changes in banks or government regulations, or unforeseen events like pandemics, can influence mortgage decisions.

To mitigate the risk of post-closing mortgage denial, it's crucial to maintain financial stability and avoid significant changes that could impact your financial standing.

Navigating Mortgage Challenges on Closing Day for Private & Second Mortgages

Encountering a failed mortgage on the closing day can be a devastating setback for homebuyers, jeopardizing their dream of homeownership. These lenders cater to borrowers with unfavorable credit histories or challenging financial situations, offering a lifeline when traditional lenders such as banks and credit unions decline loan applications.

Private mortgage lenders provide a temporary solution, albeit at a higher cost, with interest rates ranging from 7% to 12% and fees between 4% to 6%. While these rates may seem steep, they serve as a bridge until borrowers can qualify for long-term loans with lower interest rates from traditional lenders.

Understanding Mortgage Closing Timeline For Mortgage Approval

The timeline for closing a mortgage typically spans between 45 to 60 days from the initial loan application to receiving funds on closing day.

Here's an approximate breakdown of the mortgage approval timeframe, for purchasing a home, assuming a property has already been identified:

Negotiating the offer: 1-5 days
Escrow deposit: 5-10 days
Title Search and Insurance: 1-2 weeks
Home Inspection: 1 day
Finalizing purchase agreement: 1-3 days
Mortgage application completion: 1 day

To expedite the closing process, obtaining pre-closing mortgage approval for a mortgage loan early in the home search phase is recommended. Pre-qualification provides insight into one's borrowing capacity, streamlining the homebuying journey.

Alternatively, for those exploring options with private mortgage lenders, the closing timeline is significantly shorter. With less emphasis on credit history and a focus on property value, approval can be secured in less than a day. This can lead to a swift resolution to financing challenges. It is always a good idea to reach out to the mortgage broker in Burlington . They are experienced and can be of great help.

Conclusion

The timeline for days before closing for mortgage approval can vary. It depends on various factors such as loan type, credit profile, and property appraisal. Typically spanning between 45 to 60 days, this process involves negotiating the offer, completing the mortgage application, and undergoing home appraisal.

To ensure a smooth and timely approval process, it's essential to stay organized, maintain clear communication with lenders, and address any potential issues promptly. By understanding the steps involved and proactively managing the process, borrowers can navigate the mortgage approval timeline with confidence. They can move closer to achieving their homeownership goals.

Sell Your Ontario Property Fast & Safe: A Guide

pclappleton@gmail.com (james loewen) — Wed, 27 Mar 2024 06:18:42 GMT

Quick and Safe Home Selling To Cash House Buyers in Ontario

In the ever-changing fast-paced world of real estate, there has been a surge in the sale of properties for fast but safe cash house buyers in Ontario. This kind of transaction comes with many benefits as buyers are not interested in going through the lengthy drawn-out process of buying a home through property owners. They want deals that are quick and easy but also safe and secure. At the same time property owners do not want to risk anything while finalising a deal.

Want to liquidate your property for fast and safe cash with the help of reputed professionals? Then these are some of the initial but crucial steps that property owners need to take to help them navigate through the entire deal smoothly and effortlessly.

Understand Cash House Buyers

Cash House Buyers are a group of people or companies who buy properties directly from the property owner without going through the hassles of mortgaging or financing approvals and their transactions are usually quick and easy.

Set a Competitive Price

Before you set your house up for sale ensure that you set not only a competitive price but also a higher rate than whom you previously bought it from. But make sure that you are aware of the real estate prices in the area of Ontario where you live and that the price that you have quoted is right.

Clean Your Home and Declutter

Now that you have decided to sell your property to a cash house buyer ensure that you get it thoroughly cleaned, repaired if necessary and well painted. Ensure that there are no leakages and breakages that have not been attended to. Fix everything and maybe even spruce up your garden and give it the shine and sparkle it deserves and you are ready to go!

Transparency

Provide accurate information about the home’s condition and all the repairs and renovation work carried out by you as long as you have lived on the property.

Hire a Professional Photographer

A professional real estate photographer will do wonders for your property’s resume. With a little bit of help, these photos can be posted on social media handles and other property websites and apps in Ontario where they would get the right exposure and response that the property truly deserves. Highlight the best corners and areas of your house to attract potential buyers.

Your Network is Your Real Networth

Network with real estate investors and other professionals who are in the same business to learn more about cash house buyers. This will lead to more leads in the future thereby generating wealth and income opportunities for you as well as other real estate professionals.

The Online Magic

Post advertisements on real estate websites and real estate platforms mentioning your willingness to sell your property for cash.

Highlight the Benefits

If you are in a first-time home-buying experience, you can approach a reputed mortgage broker in Burlington who will help with the smooth transition of your property into liquid assets and the transfer of funds legally into your bank account. Highlight as well as showcase the benefits of buying a property in your area and the return on investment (ROI) that it can bring in the years to come.

Negotiate Professionally

Once you have zeroed in on your prospective client pay close attention to how you finally negotiate and close the deal. Negotiate professionally and make your clients feel that your house truly belongs to them.

Be Flexible

As clients will continue to come and take a look at your property learn to be flexible with their timings. Be ready and available any time of the day to show your property. If not available during the week then fix a time during weekends that suits them best.

Interlinking Services

As a cash house buyer, you may require financial services such as securing a mortgage or exploring private or second mortgages . Get help from reputed mortgage brokers in Burlington who will offer valuable insights and assistance which cater to your specific needs, whether it is your first-time home buying experience or you are a seasoned property seller seriously consider these interlinking services.

Check Clear Title

Ensure that the property title is clear and that there are no title issues or liens on the property that could hinder the process of the sale.

Seek Legal Counsel

Get legal help from a real estate attorney to ensure all real estate laws and compliances of Ontario are in place, irrespective of the homebuyer or seller's payment method. This will help to ensure a smooth and legally compliant sale process.

Your house is your best asset only if you ensure that all the legal as well as general processes are followed keeping in mind the interests of both the parties- the buyer and the seller. In the end, you want a deal that transitioned smoothly and to the benefit of both parties.

Top 10 Tips for First-Time Home Buyers in Canada

pclappleton@gmail.com (james loewen) — Tue, 27 Feb 2024 08:06:39 GMT

Top 10 Tips for First-Time Home Buyers in Canada

While looking for houses, a family uses first-time home buyer advice. Purchasing a new house is both thrilling and intimidating. Since it will be your primary residence, it must suit your lifestyle as it is likely to be the largest buy of your life. In Canada, purchasing a home involves several processes, and it could be confusing to know where to begin.

Here are 10 tips from experts a Loewen Group, a leading mortgage broker in Hamilton. These tips can help you make better decisions as first time home buyers .

Know what you want

Are you trying to find your dream house? Alternatively, do you want your first house to serve as a springboard into the real estate market, building equity as you go towards your dream house? You should think about several factors, including practical aspects like your commute time, shopping, school, leisure activities, and other important things in your life.

Decide your budget

Establishing your budget is essential before you even begin to look at properties. This will assist you in focusing on properties that fall into your budget and help you narrow down your search. Remember that your budget needs to account for closing costs, legal fees, and any other related charges in addition to the purchase price of the property. If your budget includes a loan or a mortgage broker in Burlington can assist in deciding the right amount you need.

Check your credit score

A decent credit score begins at roughly 660. It is generally considered the standard for obtaining a mortgage, while lenders have their criteria for assessing risk. However, the Canada and Mortgage Housing Corporation states that you might be able to qualify with a credit score of 600 for a high-ratio mortgage, which is an insured mortgage with less than 20% down payment.

Know the borrowing limit

If you're a first-time home buyer, you might be shocked to hear that there's sometimes a difference between what you can afford and what a lender would allow. The amount of money that banks and other mortgage lenders are ready to offer you for the purchase of a property is determined by several criteria. A mortgage broker in Hamilton can help you make the right decision about what you can borrow.

Understand mortgage types

Selecting the appropriate mortgage is crucial. Homebuyers must be aware of the distinctions between fixed and variable rates given the present trend of rising interest rates. First-time borrowers can take advantage of attractive rates offered by Northern Birch on both conventional and high-ratio insured mortgages.

Save for a down payment

A vital stage in the home-buying process is setting aside money for a down payment. 20% of the purchase price is often required down, while high-ratio mortgages lower that amount. Closing fees are normally between 2% and 5% of the purchase price of the home, so be sure to factor them into your budget. A mortgage broker in milton can help you figure out how much down payment you need along with the mortgage.

Get pre-approval for mortgage

You may get a decent sense of how much you can borrow and how high your monthly payments will be by getting pre-approved for a mortgage. Knowing that you have the finances in place to finish the acquisition will also make you a more appealing buyer to sellers. Making an appointment with your bank or a mortgage broker, Burlington might be as simple as that.

Find a real estate agent

A competent real estate agent will search the market for properties that fit your requirements and will assist you with the closing and negotiation procedures. Ask other recent house buyers for recommendations on agents. Request references and do at least a few interviews with agents.

Check the long-term potential

When buying a house, it's critical to consider the property's long-term potential. Is it situated in a neighborhood where values will likely rise over time? We can assist in providing the solutions to these queries because we have years of experience observing the market!

Negotiate with the seller

Asking the seller to pay for repairs upfront or lowering the price to cover the cost of repairs you'll need to do later may allow you to save money. Asking the seller to cover a portion of the closing costs is another option. However, be aware that the seller's ability to pay a portion of the closing fees may be restricted by lenders.

The Bottom Line

A lot of work goes into purchasing a house, but keep in mind that it's generally advised to remain in a place for at least five years. It's referred to as the "Five-Year Rule." If not, you'll suffer financial setbacks due to closing expenses and the fact that interest makes up the majority of your mortgage payment for the first five years.

Furthermore, acquiring your first home is about starting a new life in a location you can call home, not only about generating equity.

Proactive Renewal Timing Strategies

pclappleton@gmail.com (james loewen) — Wed, 17 Jan 2024 10:05:05 GMT

Mastering Mortgage Renewal: Timing, Tips, and Expert Guidance

When it comes to finances, people do think or assume they are the masters in the subject. However, a mortgage is a concept that not everyone understands really well, and having a grip on concepts like mortgage renewal and the process around it is the need of the hour. The financial situation of an individual is greatly influenced by their mortgage renewal process. Hence, it is essential to know the intricate details.

The process involves:

Renegotiating the terms of an existing mortgage.
Providing an opportunity to optimize terms.
Interest rates.
Overall financial stability.

In order to successfully navigate this challenging terrain, homeowners must understand the nuances of when and how to begin the mortgage up for renewal process.

Understanding Canada Mortgage Renewal

To start on a successful mortgage renewal Canada journey, a nuanced understanding of optimal timing is essential. The interplay of market conditions, interest rate trends, and strategic considerations tied to economic cycles dictates the opportune moment for renewal.

Market Conditions and Interest Rate Trends: Constant vigilance on evolving interest rate trends is crucial. This information, together with knowing when your current mortgage term ends, helps you make wise decisions.
Strategic Considerations for Economic Cycles: Synchronizing your renewal with broader economic cycles can enhance your ability to capitalize on favorable conditions.

Early Mortgage Renewal

Once you understand what is mortgage renewal, it's vital to know that commencing the renewal process ahead of schedule is a prudent step. This early start provides you with the luxury of time – time to assess your financial goals, time to explore the prevailing market conditions, and time to make well-informed decisions. The financial market is dynamic, and early initiation allows you to position yourself strategically, taking into account the ever-changing interest rate trends.

Lender Discussions: Communication is critical, especially when it comes to mortgage renewal options. Initiating discussions with your lender early on establishes a channel for understanding your specific circumstances and financial objectives.
Early Renewal Options: One of the advantages of early initiation is the availability of early renewal options. In essence, initiating the renewal process early is not just a logistical step; it's a forward-thinking strategy that empowers you to navigate the renewal landscape with confidence and financial acumen. Hence a mortgage broker Burlington can help with the entire process of early renewal options.

So, start early, engage with your lender, know about the mortgage renewal tip and leverage the early renewal options available to pave the way for a renewed financial future.

Spotting Warning Signs for Last-Minute Decisions

Delaying renewal decisions until the last minute introduces avoidable risks. Obtaining the necessary paperwork after the deadline can result in a hasty decision-making process that prevents you from thoroughly researching the market and considering other possibilities.

Recognizing warning signs, such as limited time for comprehensive market research and rushed decision-making, prompts a reevaluation of your approach.

Late Document Gathering: Late collection of required documents can lead to rushed decisions.
Limited Time for Research: Limited time for comprehensive market research hampers decision-making.
Rushed Decision-Making: Rushed decisions without considering alternatives.

Benefits of Early Renewal Planning

The advantages of early planning extend beyond mere timeliness, offering a spectrum of choices and reduced stress during decision-making.

Access to a Range of Options: When you hire the right mortgage broker Hamilton , you can get plenty of options to explore.
Reduced Stress: Adequate time reduces stress during the decision-making phase.
Increased Negotiating Power: More time enhances negotiating power with lenders.

Avoiding Pitfalls with Timely Action: Timely action in the renewal process serves as a safeguard against common pitfalls. Proactively preventing potential interest rate increases and ensuring sufficient time for comprehensive market research mitigates the risk of making decisions in haste.

Preventing Rate Increases: Timely action prevents potential interest rate increases.
Comprehensive Market Research: Sufficient time ensures comprehensive market research.
Mitigating Deadline Risks: Timely action mitigates the risk of missing renewal deadlines.

Strategies for Proactive Renewal Timing: Proactivity is the cornerstone of successful renewal timing, involving strategic reminders, real-time monitoring, and seeking professional advice.

Setting Calendar Reminders: Strategically set reminders for crucial renewal milestones.
Regular Monitoring: Stay informed by regularly monitoring interest rate movements.
Seeking Professional Advice: Engage with mortgage brokers for local insights and expertise. It is always a good idea to get mortgage renewal advice from the experts.

Conclusion

Understanding market conditions, starting the process early, and avoiding typical errors are all crucial to mastering the art of mortgage renewal scheduling. You create the conditions for a rejuvenation journey that is in line with your financial goals by taking proactive measures and utilizing expert counsel.

When you speak to private mortgage Oakville brokers, you can get the best tips and assistance.

Debt Consolidation vs. Debt Management : Comparing Strategies

pclappleton@gmail.com (james loewen) — Fri, 29 Dec 2023 06:28:13 GMT

Debt Consolidation Loans vs. Debt Management Plans: Which Option is Right for You?

There are several ways to reduce credit card debt, but the decision frequently boils down to debt consolidation vs debt management. Though they employ rather different strategies, both are workable and effective ways to escape the weight of excessive debt. The requirement for a monthly payment is the only commonality between the two programs, but that is where the parallels end.

Debt Management Plan

A debt management plan reduces the interest rate on many credit card accounts by compiling them into a single monthly payment. It is similar to debt consolidation management but with a couple of modifications.

During the three to five years that make up the repayment plan, you are normally not allowed to use credit cards or open new credit lines. Credit card debt is the primary focus of the plans; personal loans, medical debts, or educational loans are not covered.

Benefits of a Debt Management Plan

To assist customers in making a manageable monthly payment, credit card firms offer credit counseling organizations lowered interest rates and relaxed fees.
Based on your present income, agencies collaborate with you to create a spending plan that includes a manageable monthly payment.
A DMP differs from a loan. Debt consolidation is possible for the customer without establishing a new credit line.
Credit score is not a prerequisite.
Credit counselors are mandated to give clients financial education and tools to help them avoid financial difficulties in the future.
You are free to end your agreement at any time.

Interest Rates

Debt management programs do not take credit ratings into account. Actually, DMP clients often have credit scores of around 555. Rather, to determine interest rates based on the consumer's ability to pay, credit counseling organizations collaborate with creditors. For hardship instances (credit scores of 550 or lower), the range might be as low as zero to 6%; for most debt management program clients, it could be an average of 8%.

Debt Consolidation

Using a fresh loan to settle all of your outstanding balances, debt consolidation debt management reduces your number of loans and payments to one. Depending on your credit score and the sort of consolidation loan you choose, you may be able to earn a reduced interest rate by consolidating your debt.

Debt reduction and simplification can be achieved through debt consolidation loans. With this kind of loan, you take out a large loan to pay off several debtors at once. It's simpler for you to maintain your budgetary objectives and keep on top of repayments when you have less debt to worry about. You might even end up with a lower interest rate than you had previously, relying on the lender, which would ultimately save you money.

Make sure you have taken action to manage your expenditure and that you've got a plan in place for responsible and on-time repayment of the loan before contemplating one of these.

Benefits of Debt Consolidation

You'll have enough money to settle all of your debts.
The consolidation loan's interest rate ought to be less than the interest rates you currently pay on your credit cards.
Although it reduces your debt to a single payment, issues could still arise if your credit lines are open and active.
As you pay back the loan, you can continue using your credit cards.

How debt consolidation works

Taking out a new loan, such as an individual loan or balance transfer credit card, and using the money to pay down your debt is the process of consolidating debt. This implies that you will only have to make one monthly payment towards your consolidation loan when your original creditors have all been fully settled.

The payback period and interest rate on this fresh loan will be different. If you take out a personal loan, for instance, to pay off credit card debt, you will have to make set monthly payments for a period of one to seven years, according to the lender.

Conclusion

Choosing between debt consolidation vs debt management is a personal choice. It depends on how you want to budget your spending and manage your debts. Debt consolidation management ultimately reduces your number of loans. Having a debt management plan reduces interest rates by compiling all payments into one. Consider both options carefully for debt relief before making the final decision.

The Benefits of Private Mortgages for First-Time Home Buyers in Hamilton

pclappleton@gmail.com (james loewen) — Thu, 30 Nov 2023 12:23:52 GMT

You could be thinking about a private mortgage if you have trouble getting a conventional mortgage because of bad credit, low scores, or your intention to purchase a run-down house and resell it. Before making this choice, it's important to comprehend the words, origins, and hazards related to private mortgages . You will receive a thorough explanation of private mortgages in this blog.

What Are Private Mortgages?

A private mortgage is an agreement in which a private lender extends credit to a borrower for the purpose of buying a property. In order to earn on interest investments, lenders frequently provide private mortgages to friends, relatives, and other individuals with whom they have personal ties. Some people go this route because they can't get approved for a conventional mortgage or want to avoid bureaucracy. With the lender retaining a lien on the borrower's property, which may be foreclosed upon in the event of default, the loan functions similarly to a conventional mortgage.

Advantages of Private Mortgages

Bank-provided conventional mortgages have been the main source of funding for real estate and investment property buyers. But as a substitute for traditional financing, private mortgages—also called private lending or private money loans—are becoming increasingly well-liked. Let's discuss in detail:

Ease of Approval

Because their approval procedure is more flexible than traditional lenders, private mortgages provide a number of advantages. In addition to credit scores, they take into account other variables, including income, property worth, and financial status. This lowers the bar for qualifying for loans by increasing the likelihood of acceptance for applicants who might not fulfill traditional lending requirements.

Time-saving

Private mortgages provide quicker access to cash than traditional lenders since they speed up the funding process, enabling borrowers to finalize agreements more swiftly. This is particularly advantageous in competitive real estate markets or investment possibilities with a short time horizon since quick decisions can have a big influence on the final result.

Credit requirement leniency

For those with less-than-perfect credit, private mortgages provide hope. Traditional lenders prioritize credit rating, which may disadvantage those with a history of financial difficulties. Private lenders are a desirable choice for borrowers with bad credit since they place a premium on the value of the borrower's property and their capacity to repay the loan.

Customization of Loan

Private mortgages provide more loan customization options than traditional lenders, enabling consumers to design loans specifically suited to their needs. This flexibility improves financial planning and raises the chance of successful payback by allowing for the modification of interest rates, repayment terms, and the availability of interest-only payments.

Diverse investment opportunities

Unlike the stringent requirements of traditional lenders, private mortgages provide access to a greater array of real estate investment alternatives. They can provide funding for non-traditional real estate, such as land acquisitions, distressed properties, fixer-uppers, and commercial real estate, giving buyers and investors more alternatives with better returns. This broadens the range of potential investments.

High return

Due to their circumvention of banking restrictions and greater interest rates than regular lenders, private mortgages present investors with tempting profits. Higher yields and portfolio diversification may result from this, increasing the possibility of profit. Private mortgages are an alternate means of increasing money and diversifying investment portfolios.

Eligibility Criteria for Private Mortgages

To be eligible for CMHC mortgage insurance, one must have a credit score of at least 600. Since the majority of B Lenders work with insured mortgages, you won't be able to get into many B Lenders if you can't get approved for a CMHC-guaranteed mortgage. Lenders may also require mortgage insurance, even when you put down an amount bigger than 20%.

The Process of Obtaining a Private Mortgage

Mortgage investment firms, syndicates, and individual lenders all offer private mortgages. You must provide evidence of income, make a 15% down payment on the purchase price, and have a property that may be sold to be eligible. This might be difficult for self-employed people because more paperwork could be needed.

You can look for a private lender on your own, or a mortgage broker can put you in touch with one. Meeting the qualifying standards is still required, even with the quicker and more straightforward process. The lender could wish to take control of the property to recover their investment if you don't make your payments as agreed.

Hamilton First-Time Home Buyer Programs

Purchasing your first house is an exciting experience. However, it can also be perplexing if you don't have a knowledgeable mortgage lender to help you along the way. Nonetheless, the government has unveiled a few convenient programs, such as the First-Time Home Buyers Tax Credit (HBTC). The Canadian government launched this award in 2009. It is to assist first time homebuyers in recovering some of the costs associated with the purchase of their property, including land transfer and legal fees. The non-refundable credit is valued at around $750 at the current tax rate.

Conclusion

It may not be easy to navigate Hamilton's property market, particularly for first-time buyers. There may be inquiries regarding mortgage trusts, rebates, and saving money for a down payment. Private mortgages provide advantages such as flexibility, prompt funding, forgiving credit standards, and customizable loans. They also offer a range of investment options and the possibility of greater profits under such circumstances. They provide a respectable substitute for conventional loan choices.

Is Canada’s Mortgage Debt a Ticking Time Bomb?

pclappleton@gmail.com (james loewen) — Tue, 29 Aug 2023 20:33:35 GMT

New Title

Written by Andrew Button at The Motley Fool Canada

Recently, the Globe and Mail ran a story claiming that Canada’s mortgage debt is a “ticking time bomb.” Citing a Desjardin economist, the story claimed that the pain for the housing market had barely started. Canada’s homeowners were put through a trial last year, as the prices of their homes went down as interest rates went up. More recently, house prices went up , but the jump was relatively small. If the Bank of Canada chooses to resume interest rate hikes at its next meeting, then the housing market might start falling again.

Indeed, the Bank may have to do so. Despite raising rates at an aggressive pace last year, the Bank is dealing with persistently high inflation. In April, the inflation rate increased, jumping to 4.4% from 4.3%. It was an unexpected jump, and it got investors worried. In this article, I will explore the phenomenon of rising interest rates and how they could affect Canadian homeowners.

Economists agree mortgage debt is an issue

Broadly, economists agree that mortgage debt is a problem for Canada. The Bank of Canada itself holds this opinion, as do many academic economists, including those working at the commercial banks. The reason mortgage debt is a problem is because it’s so high compared to Canadians’ incomes. If your loan-to-income ratio is high, you’re more likely to default, especially if interest rates rise. So, Canadians’ debt is an issue for them.

Is this a clear and presentWe can gauge the risk in Canada’s housing market today by comparing the current market to one where mortgage debt did, in fact, cause problems:

In the U.S. in 2008.

That year, countless Americans defaulted on “sub-prime” mortgages. Sub-prime mortgages are high-interest mortgages issued to people who aren’t creditworthy. They help people who aren’t normally able to get loans buy houses, but they’re also extremely risky for the people who own them. In 2008, there were a lot of sub-prime mortgages floating around the U.S. market, and Americans had a high level of mortgage debt compared to average income. The situation in Canada right now is a little different. The level of mortgage debt to income is even higher than in the Great Financial Crisis, but on the other hand, the borrowers are creditworthy. It’s a mixed picture, one investors would be wise to take a long hard look at.

The risk of defaults in Canada’s housing market isn’t just an issue for real estate investors, it’s also a risk for stock market investors. Canada’s banks make a lot of money issuing mortgages to Canadians; the worse the housing market does, the more troublesome those loans become.

If you’re looking for Canadian banks to buy now, you might want to consider a U.S.-oriented one like the Toronto-Dominion Bank ( TSX:TD ). TD is one of the most “American” of Canadian banks, and house prices in the U.S. are much more modest than in Canada. Currently, the average Canadian house costs about 1.5 times the average American house! If you’re buying Canadian bank stocks, you will want to look at ones like TD that are geographically diversified, because mortgages are such an issue right now. That’s not to say that U.S. banks are safe: they’re even riskier, because they are not very well regulated by the U.S. government. But Canadian banks that own U.S. assets are probably safer than fully domestic Canadian banks.

How to buy your first home

pclappleton@gmail.com (james loewen) — Thu, 24 Aug 2023 23:09:42 GMT

This is a subtitle for your new post

Buying your first home is a significant and exciting step in your life. It can also be a complex process, but with careful planning and research, you can make it a smooth experience. Here's a step-by-step guide on how to buy your first home:

Determine Your Budget:

Assess your financial situation, including your income, savings, and monthly expenses.
Use online calculators to estimate how much home you can afford based on your financial situation and local housing market conditions.

Save for a Down Payment:

Most lenders require a down payment, typically between 3% and 20% of the home's purchase price.
Create a dedicated savings plan to accumulate the necessary funds for your down payment.

Check Your Credit Score:

A good credit score improves your chances of getting a mortgage with favorable terms.
Review your credit report, correct any errors, and work on improving your credit score if needed.

Get Preapproved for a Mortgage:

Contact multiple lenders to compare mortgage rates and terms.
Preapproval will give you a clear idea of how much you can borrow and helps in negotiating with sellers.

Define Your Priorities:

Make a list of your must-haves and nice-to-haves in a home. Consider factors like location, size, type of property, and amenities.

Start House Hunting:

Work with a real estate agent to help you find homes that match your criteria.
Attend open houses and view properties to get a feel for what's available in your budget.

Make an Offer:

Once you find a home you like, your agent will help you draft an offer to purchase.
Negotiate with the seller on the price, contingencies, and other terms of the contract.

Home Inspection:

After your offer is accepted, hire a professional home inspector to assess the property's condition.
The inspection report will help you identify any potential issues or needed repairs.

Secure Financing:

Finalize your mortgage application with the lender you selected during preapproval.
Provide all required documentation, and follow up on any additional information requested by the lender.

Close the Deal:

Review all closing documents carefully and understand the terms.
Pay your closing costs, which can include lender fees, appraisal fees, and more.
Sign the necessary paperwork, and the home is officially yours.

Move In:

Plan your move and hire movers if necessary.
Set up utilities, change your address, and handle other logistical tasks.

Maintain Your Home:

Regularly maintain your new home to keep it in good condition.
Budget for ongoing expenses such as property taxes, insurance, and maintenance.

Remember that buying a home is a long-term commitment, so take your time, do thorough research, and seek professional advice when needed. It's also wise to have a financial cushion for unexpected expenses that may arise during the process or after you move in.

LETS FURNISH THAT NEW HOME!

Furnishing your home is an exciting and creative process that allows you to personalize your space to reflect your style and needs. Here's a step-by-step guide to help you furnish your home:

Set a Budget: Determine how much you're willing to spend on furnishing your home. This will help you make informed decisions and prioritize your purchases.
Create a Floor Plan: Measure the rooms in your home and create a floor plan. This will help you visualize the space and plan where your furniture will go. There are many online tools and apps available for this purpose.
Define Your Style: Consider the style and theme you want for each room. Whether it's modern, traditional, minimalist, or eclectic, having a clear vision of your desired aesthetic will guide your furniture choices.
Prioritize Essential Furniture: Start with the essential pieces of furniture for each room, such as a bed for the bedroom, a sofa for the living room, and a dining table and chairs for the dining room. These are the foundational pieces around which you can build your décor.
Quality over Quantity: Invest in quality furniture that will last. While it may be tempting to buy cheaper, lower-quality items, it's often more cost-effective in the long run to invest in well-made pieces.
Consider Functionality: Think about how you will use each room. Furniture should not only look good but also serve a functional purpose. For example, consider storage solutions like dressers, cabinets, or bookshelves to keep your space organized.
Mix and Match: Don't feel compelled to buy entire matching furniture sets. Mixing and matching different pieces can create a more interesting and personalized look. Just make sure the elements still harmonize in terms of style and color.
Color Palette: Choose a color palette for each room and stick to it. This will help create a cohesive and visually appealing space. You can use color in your furniture, walls, accessories, and décor.
Texture and Materials: Incorporate a variety of textures and materials for depth and visual interest. For example, mix wood, metal, glass, and textiles to add dimension to your space.
Lighting: Lighting is crucial for setting the mood and functionality of a room. Invest in a mix of ambient, task, and accent lighting to create the right atmosphere.
Accessorize: Personalize your space with accessories like artwork, rugs, curtains, cushions, and decorative items. These finishing touches can tie the room together and reflect your personality.
Consider Sustainability: If possible, choose sustainable and eco-friendly furniture options. Look for pieces made from recycled materials or those that are certified by sustainability organizations.
Furniture Placement: Arrange your furniture thoughtfully, taking into account traffic flow and creating conversation areas. Be mindful of not overcrowding or under-furnishing a space.
Test Before Buying: Whenever possible, try out furniture in person. Sit on sofas, test the comfort of chairs, and inspect the quality before making a purchase.
Take Your Time: Furnishing your home is a process that may take time. Don't rush into buying everything at once. Allow your style and needs to evolve as you live in the space.
Maintenance: Once your home is furnished, remember to maintain your furniture by following care instructions and cleaning regularly.
Personal Touch: Add personal items and décor that have sentimental value. These items can make your home feel warm and inviting.
Ask for Help: If you're uncertain about your choices or need design assistance, consider consulting with an interior designer or seeking inspiration from design magazines, blogs, or social media platforms like Pinterest.

Remember that furnishing your home is a creative process, and it's important to enjoy it. Take your time, be patient, and have fun making your home a comfortable and beautiful reflection of your style and personality.

What is the down payment minimums for Canadian mortgages?

pclappleton@gmail.com (james loewen) — Wed, 23 Aug 2023 18:14:36 GMT

In Canada, the down payment required for a mortgage depends on the purchase price of the home you are buying and the type of mortgage you are applying for. As of my last knowledge update in September 2021, the down payment requirements were as follows:

Minimum Down Payment: The minimum down payment required for a home purchase in Canada is as follows:

For homes with a purchase price of $500,000 or less, the minimum down payment is 5% of the purchase price.
For homes with a purchase price between $500,000 and $999,999, the minimum down payment is 5% of the first $500,000 plus 10% of the portion above $500,000.
For homes with a purchase price of $1 million or more, the minimum down payment is 20%.

2. Mortgage Default Insurance: If your down payment is less than 20% of the purchase price, you will generally be required to obtain mortgage default insurance, often through the Canada Mortgage and Housing Corporation (CMHC) or other mortgage insurance providers. The cost of this insurance can be added to your mortgage payments.

Conventional Mortgage: If you can make a down payment of 20% or more of the purchase price, you can apply for a conventional mortgage. This means you won't need mortgage default insurance, but you'll still need to meet other lender requirements.

It's important to note that these requirements can change, and mortgage regulations can be updated. Therefore, I recommend checking with a mortgage broker or lender for the most up-to-date information on down payment requirements and mortgage options in Canada, especially if you're planning to buy a home in the near future. Additionally, the specific requirements may vary slightly by province or territory, so it's essential to be aware of any regional variations.

what is a mortgage

pclappleton@gmail.com (james loewen) — Mon, 21 Aug 2023 16:44:33 GMT

Did you know there are at least 10 different types of mortgages?

Mortgages are loans used to finance the purchase of real estate. There are several types of mortgages available, each with its own features and benefits. Here are some of the most common types of mortgages:

Fixed-Rate Mortgage (FRM):

This is the most traditional type of mortgage.
The interest rate remains constant throughout the life of the loan.
Monthly payments stay the same, providing predictability and stability.
Typically available in 15-year and 30-year terms.

2. Adjustable-Rate Mortgage (ARM):

The interest rate is initially fixed for a specific period, typically 3, 5, 7, or 10 years.
After the initial fixed period, the interest rate adjusts periodically (usually annually) based on a specific index and margin.
Monthly payments can fluctuate, making it riskier but potentially more affordable initially.

3. Interest-Only Mortgage:

Borrowers pay only the interest for a specified initial period (usually 5-10 years).
After the interest-only period, payments include both principal and interest.
Can provide lower initial monthly payments but may lead to a higher balance due later.

4. Balloon Mortgage:

Features lower monthly payments for a fixed period (e.g., 5-7 years).
At the end of the term, the remaining balance must be paid in a lump sum or refinanced.
Typically used by homeowners who plan to sell the property or refinance before the balloon payment is due.

5. FHA Loan:

Insured by the Federal Housing Administration (FHA).
Designed for low-to-moderate-income borrowers.
Requires a lower down payment (usually 3.5%) and has more flexible qualification criteria.

6. VA Loan:

Available to eligible veterans, active-duty service members, and certain members of the National Guard and Reserves.
Offers favorable terms, including no down payment requirements and competitive interest rates.

7. Department of Agriculture Loan:

Backed by the Department of Agriculture (USDA).
Designed for rural and suburban homebuyers with low-to-moderate income.
Requires no down payment in many cases.

8. Jumbo Loan:

Used for high-value properties that exceed conforming loan limits.
Typically requires a larger down payment and may have stricter credit requirements.

9. Reverse Mortgage:

Available to homeowners aged 62 and older.
Allows homeowners to convert home equity into cash without selling the property.
Repayment is typically not required until the homeowner moves out or passes away.

10. Interest-First Mortgage:

Allows borrowers to pay only the interest for a set period.
Useful for those who expect their income to increase significantly in the future.

11. Bi-Weekly Mortgage:

Borrowers make half the monthly mortgage payment every two weeks, resulting in an extra payment each year.
This can help reduce the loan term and interest paid over time.

It's crucial to carefully consider your financial situation, future plans, and risk tolerance when choosing a mortgage type. Additionally, mortgage terms and availability can vary by location and lender, so it's advisable to consult with a mortgage professional to find the best mortgage option for your needs.

Solving the Deposit Dilemma: Introducing Deposit Lending with James Loewen

Mon, 24 Jul 2023 18:08:18 GMT

Hey there, welcome back! Today, I want to address a common issue that many homebuyers face: deposit lending. My name is James Loewen, and together, we'll make this process a breeze. Let's dive into the world of deposit lending on this edition of Smarter, Not Harder.

Understanding Deposit Lending:

Picture this scenario: you've found your dream home, and your offer has been accepted. The clock is ticking, and you have 24 hours to come up with the required deposit, which can be a substantial sum ranging from $50,000 to even more than $100,000. But what if you don't have that kind of cash sitting in your bank account?

Don't worry; we've got your back!

Deposit lending differs from bridge lending, which involves buying a new home before the sale of your existing one is finalized. In deposit lending, you're purchasing a new home but haven't sold your current one yet, leaving you without access to your down payment at the crucial moment when you need it most.

Say Goodbye to Stressful Options

Common options for securing the deposit can be less than ideal. Cashing in your RSPs incurs significant taxation, while using all your TFSAs means you can't reinvest until the following year. Borrowing from friends or family can be awkward, and searching for loose change in your couch cushions is hardly a reliable solution. Thankfully, if none of these options work for you, we have the perfect alternative.

Introducing Deposit Lending with Loewen Group

We've designed a seamless deposit lending process that can be your saving grace. Here's how it works: we'll send you a document via DocuSign, and upon confirmation of receipt from your lawyer, the money will be wired into either your account or the seller's trust account within 24 hours or less. When the time comes for the sale of your house to close, your lawyer will simply repay us the borrowed amount, and this deposit will be counted towards your total down payment.

Why Choose Deposit Lending?

The beauty of deposit lending is that it offers a hassle-free and timely solution to your deposit needs. We incorporate deposit lending into every pre-approval process with our clients, ensuring that you have a safety net during your home-buying journey.

Get in Touch!

If you're wondering what's trending in the real estate market, it's deposit lending! Don't hesitate to reach out if you need guidance or want to explore this option further. I'm James Loewen, and together, let's make your home-buying experience Smarter, Not Harder.

Bank of Canada Rate Announcement Jul 12th, 2023

Wed, 12 Jul 2023 14:08:16 GMT

Bank of Canada raises policy rate 25 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

July 12, 2023

The Bank of Canada today increased its target for the overnight rate to 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is also continuing its policy of quantitative tightening.

Global inflation is easing, with lower energy prices and a decline in goods price inflation. However, robust demand and tight labour markets are causing persistent inflationary pressures in services. Economic growth has been stronger than expected, especially in the United States, where consumer and business spending has been surprisingly resilient. After a surge in early 2023, China’s economic growth is softening, with slowing exports and ongoing weakness in its property sector. Growth in the euro area is effectively stalled: while the service sector continues to grow, manufacturing is contracting. Global financial conditions have tightened, with bond yields up in North America and Europe as major central banks signal further interest rate increases may be needed to combat inflation.

The Bank’s July Monetary Policy Report (MPR) projects the global economy will grow by around 2.8% this year and 2.4% in 2024, followed by 2.7% growth in 2025.

Canada’s economy has been stronger than expected, with more momentum in demand. Consumption growth has been surprisingly strong at 5.8% in the first quarter. While the Bank expects consumer spending to slow in response to the cumulative increase in interest rates, recent retail trade and other data suggest more persistent excess demand in the economy. In addition, the housing market has seen some pickup. New construction and real estate listings are lagging demand, which is adding pressure to prices. In the labour market, there are signs of more availability of workers, but conditions remain tight, and wage growth has been around 4-5%. Strong population growth from immigration is adding both demand and supply to the economy: newcomers are helping to ease the shortage of workers while also boosting consumer spending and adding to demand for housing.

As higher interest rates continue to work their way through the economy, the Bank expects economic growth to slow, averaging around 1% through the second half of this year and the first half of next year. This implies real GDP growth of 1.8% in 2023 and 1.2% in 2024. The economy will move into modest excess supply early next year before growth picks up to 2.4% in 2025.

Inflation in Canada eased to 3.4% in May, a substantial and welcome drop from its peak of 8.1% last summer. While CPI inflation has come down largely as expected so far this year, the downward momentum has come more from lower energy prices, and less from easing underlying inflation. With the large price increases of last year out of the annual data, there will be less near-term downward momentum in CPI inflation. Moreover, with three-month rates of core inflation running around 3½-4% since last September, underlying price pressures appear to be more persistent than anticipated. This is reinforced by the Bank’s business surveys, which find businesses are still increasing their prices more frequently than normal.

In the July MPR projection, CPI inflation is forecast to hover around 3% for the next year before gradually declining to 2% in the middle of 2025. This is a slower return to target than was forecast in the January and April projections. Governing Council remains concerned that progress towards the 2% target could stall, jeopardizing the return to price stability.

In light of the accumulation of evidence that excess demand and elevated core inflation are both proving more persistent, and taking into account its revised outlook for economic activity and inflation, Governing Council decided to increase the policy interest rate to 5%. Quantitative tightening is complementing the restrictive stance of monetary policy and normalizing the Bank’s balance sheet. Governing Council will continue to assess the dynamics of core inflation and the outlook for CPI inflation. In particular, we will be evaluating whether the evolution of excess demand, inflation expectations, wage growth and corporate pricing behaviour are consistent with achieving the 2% inflation target. The Bank remains resolute in its commitment to restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is September 6, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report on October 25, 2023.

Read the July 12th, 2023 Monetary Policy Report

Discover the Mortgage Assurance Approval Program (MAAP)

Tue, 27 Jun 2023 19:32:13 GMT

Welcome back to another exciting edition of "Smarter, Not Harder"! I'm James Loewen, and today we have a game-changing strategy that will give you a significant advantage when making an offer on your dream home. Get ready to discover the Mortgage Assurance Approval Program (MAAP) and how it can help you secure your dream home with ease.

What is the MAAP?

MAAP, is short for Mortgage Assurance Approval Program, is an innovative technique specifically designed to strengthen your offer and increase the likelihood of its acceptance by sellers. By leveraging the MAAP, you gain a powerful tool that sets your offer apart from the competition.

The Customized Report:

As part of the MAAP, we provide you and your realtor with a comprehensive, customized report that accompanies your purchase and sale agreement offer. This report acts as a powerful demonstration of your strong financial position and unwavering commitment to the purchase.

Credit Confirmation:

Rest assured, we confirm your excellent credit score without disclosing any specific details. This reassures sellers that you are among the most reliable buyers in the market, boosting their confidence in your offer.

Employment Verification:

We go the extra mile by verifying your employment status, providing sellers with peace of mind that you have a stable income to support the purchase. This further strengthens your credibility as a serious buyer.

Down Payment Verification:

Our report confirms that you have completed the necessary down payment verifications, indicating your financial preparedness and commitment to the purchase. This reassures sellers that you have the necessary funds readily available to proceed with the transaction.

Pre-Approved Banks:

We outline the reputable financial institutions for which you have been pre-approved. By demonstrating the confidence of well-known banks in financing your purchase, we enhance the seller's trust in your offer.

The $5,000 Guarantee:

As an additional measure to instill confidence in sellers, we offer a unique $5,000 guarantee. In the unlikely event that financing falls through on your offer due to unforeseen circumstances, we will personally pay $5,000 to the seller. This guarantee serves as a safety net, giving sellers peace of mind during the transaction.

With the MAAP technique, you can revolutionize the way you make offers on homes. By presenting a comprehensive report highlighting your strong financial position, verified credit, employment, and down payment, your offer becomes significantly stronger than others. The $5,000 guarantee further solidifies your commitment to the purchase, ensuring a smoother transaction for all parties involved.

Thank you for joining us on "Smarter, Not Harder." If you have any suggestions or topics you'd like us to cover in future episodes, please let us know. Remember to share, comment, and tag us. Wishing you the best of luck on your home buying journey!

Don't Make This Mistake When Locking Into a Fixed Mortgage

Tue, 20 Jun 2023 20:17:04 GMT

Today, I want to have an open conversation about an important topic that has been weighing on my mind: mistakes. Before we delve into it, let me start by expressing my appreciation for the government. However, it's crucial to acknowledge that, like any entity, they have made their fair share of mistakes. They have misled us, plain and simple, with false promises about interest rate increases and their timing. However , I want to ensure that their mistakes don't lead you into making a costly error when it comes to your mortgage. Together, let's avoid this common pitfall and adopt a smarter, not harder approach.

I'm James Loewen, and today we will equip you with the knowledge you need to make informed decisions about your mortgage. First and foremost, let's set the record straight . I still believe that a variable rate strategy can be a viable option, and I maintain my belief that rates will eventually decline. However, if you find yourself uncertain or uncomfortable and desire more stability in your life, such as locking into a fixed rate, that's perfectly alright. This blog post is dedicated to you. What I urge you to do is start thinking strategically.

Undoubtedly, the government has implemented some significant increases that have had a staggering impact, resulting in a loss of trillions of dollars in real estate and wealth across Canada. It's a clear indication that we may be headed towards a recession. So, let's discuss strategy . Do we truly want to commit ourselves to high rates for four or five years? Or should we consider a different approach?

Believe it or not, there are more options available than you may realize. While most people are aware of the 5-year fixed and variable terms, there are also 1, 2, 3, 4, 7, and even 10-year terms. In an uncertain market like the one we're currently facing, adopting a shorter-term approach might be the smarter strategy.

Here's my suggestion: reach out to your existing lender and request the renewal options to convert or lock in to a 1 or 2-year term. Unfortunately, lenders won't provide us with all the necessary information, so email those options to us at the Loewen Group. We work with 34 other lenders, and we will thoroughly review their offerings as well as explore alternative solutions. Our goal is simple: your best interests are our top priority. From there, we will assist you in deciding whether to stick with a variable rate, lock in with your current lender, or explore other possibilities.

Rest assured , regardless of the path you choose, you will be armed with better options than before. You'll be prepared and empowered to tackle your mortgage with confidence.

So, my friends, remember that your interest rate doesn't have to keep climbing. Together, let's work smarter, not harder. Reach out to the Loewen Group, and allow us to guide you through the maze of mortgage choices. We are here to help you make informed decisions and secure your financial future.

This is James Loewen signing off, reminding you that it's time to be smarter, not harder.

Bank of Canada Rate Announcement Jun 7th, 2023

Wed, 07 Jun 2023 14:03:00 GMT

Bank of Canada raises policy rate 25 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

June 7, 2023

The Bank of Canada today increased its target for the overnight rate to 4¾%, with the Bank Rate at 5% and the deposit rate at 4¾%. The Bank is also continuing its policy of quantitative tightening.

Globally, consumer price inflation is coming down, largely reflecting lower energy prices compared to a year ago, but underlying inflation remains stubbornly high. While economic growth around the world is softening in the face of higher interest rates, major central banks are signalling that interest rates may have to rise further to restore price stability. In the United States, the economy is slowing, although consumer spending remains surprisingly resilient and the labour market is still tight. Economic growth has essentially stalled in Europe but upward pressure on core prices is persisting. Growth in China is expected to slow after surging in the first quarter. Financial conditions have tightened back to those seen before the bank failures in the United States and Switzerland.

Canada’s economy was stronger than expected in the first quarter of 2023, with GDP growth of 3.1%. Consumption growth was surprisingly strong and broad-based, even after accounting for the boost from population gains. Demand for services continued to rebound. In addition, spending on interest-sensitive goods increased and, more recently, housing market activity has picked up. The labour market remains tight: higher immigration and participation rates are expanding the supply of workers but new workers have been quickly hired, reflecting continued strong demand for labour. Overall, excess demand in the economy looks to be more persistent than anticipated.

CPI inflation ticked up in April to 4.4%, the first increase in 10 months, with prices for a broad range of goods and services coming in higher than expected. Goods price inflation increased, despite lower energy costs. Services price inflation remained elevated, reflecting strong demand and a tight labour market. The Bank continues to expect CPI inflation to ease to around 3% in the summer, as lower energy prices feed through and last year’s large price gains fall out of the yearly data. However, with three-month measures of core inflation running in the 3½-4% range for several months and excess demand persisting, concerns have increased that CPI inflation could get stuck materially above the 2% target.

Based on the accumulation of evidence, Governing Council decided to increase the policy interest rate, reflecting our view that monetary policy was not sufficiently restrictive to bring supply and demand back into balance and return inflation sustainably to the 2% target. Quantitative tightening is complementing the restrictive stance of monetary policy and normalizing the Bank’s balance sheet. Governing Council will continue to assess the dynamics of core inflation and the outlook for CPI inflation. In particular, we will be evaluating whether the evolution of excess demand, inflation expectations, wage growth and corporate pricing behaviour are consistent with achieving the inflation target. The Bank remains resolute in its commitment to restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is July 12, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report at the same time.

Bank of Canada Rate Announcement Apr 12th, 2023

Wed, 12 Apr 2023 14:09:00 GMT

Bank of Canada maintains policy rate, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

April 12, 2023

The Bank of Canada today held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.

Inflation in many countries is easing in the face of lower energy prices, normalizing global supply chains, and tighter monetary policy. At the same time, labour markets remain tight and measures of core inflation in many advanced economies suggest persistent price pressures, especially for services.

Global economic growth has been stronger than anticipated. Growth in the United States and Europe has surprised on the upside, but is expected to weaken as tighter monetary policy continues to feed through those economies. In the United States, recent stress in the banking sector has tightened credit conditions further. US growth is expected to slow considerably in the coming months, with particular weakness in sectors that are important for Canadian exports. Meanwhile, activity in China’s economy has rebounded, particularly in services. Overall, commodity prices are close to their January levels. The Bank’s April Monetary Policy Report (MPR) projects global growth of 2.6% this year, 2.1% in 2024, and 2.8% in 2025.

In Canada, demand is still exceeding supply and the labour market remains tight. Economic growth in the first quarter looks to be stronger than was projected in January, with a bounce in exports and solid consumption growth. While the Bank’s Business Outlook Survey suggests acute labour shortages are starting to ease, wage growth is still elevated relative to productivity growth. Strong population gains are adding to labour supply and supporting employment growth while also boosting aggregate consumption. Housing market activity remains subdued.

As more households renew their mortgages at higher rates and restrictive monetary policy works its way through the economy more broadly, consumption is expected to moderate this year. Softening foreign demand is expected to restrain exports and business investment. Overall, GDP growth is projected to be weak through the remainder of this year before strengthening gradually next year. This implies the economy will move into excess supply in the second half of this year. The Bank now projects Canada’s economy to grow by 1.4% this year and 1.3% in 2024 before picking up to 2.5% in 2025.

CPI inflation eased to 5.2% in February, and the Bank’s preferred measures of core inflation were just under 5%. The Bank expects CPI inflation to fall quickly to around 3% in the middle of this year and then decline more gradually to the 2% target by the end of 2024. Recent data is reinforcing Governing Council’s confidence that inflation will continue to decline in the next few months. However, getting inflation the rest of the way back to 2% could prove to be more difficult because inflation expectations are coming down slowly, service price inflation and wage growth remain elevated, and corporate pricing behaviour has yet to normalize. As it sets monetary policy, Governing Council will be particularly focused on these indicators, and the evolution of core inflation, to gauge the progress of CPI inflation back to target.

In light of its outlook for growth and inflation, Governing Council decided to maintain the policy rate at 4½%. Quantitative tightening continues to complement this restrictive stance. Governing Council continues to assess whether monetary policy is sufficiently restrictive to relieve price pressures and remains prepared to raise the policy rate further if needed to return inflation to the 2% target. The Bank remains resolute in its commitment to restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is June 7, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 12, 2023.

Read the April 12th, 2023 Monetary Policy Report.

Bank of Canada Rate Announcement Mar 8th, 2023

Wed, 08 Mar 2023 15:04:00 GMT

Bank of Canada maintains policy rate, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

March 8, 2023

The Bank of Canada today held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.

Global economic developments have evolved broadly in line with the outlook in the January Monetary Policy Report (MPR). Global growth continues to slow, and inflation, while still too high, is coming down due primarily to lower energy prices. In the United States and Europe, near-term outlooks for growth and inflation are both somewhat higher than expected in January. In particular, labour markets remain tight, and elevated core inflation is persisting. Growth in China is rebounding in the first quarter. Commodity prices have evolved roughly in line with the Bank’s expectations, but the strength of China’s recovery and the impact of Russia’s war in Ukraine remain key sources of upside risk. Financial conditions have tightened since January, and the US dollar has strengthened.

In Canada, economic growth came in flat in the fourth quarter of 2022, lower than the Bank projected. With consumption, government spending and net exports all increasing, the weaker-than-expected GDP was largely because of a sizeable slowdown in inventory investment. Restrictive monetary policy continues to weigh on household spending, and business investment has weakened alongside slowing domestic and foreign demand.

The labour market remains very tight. Employment growth has been surprisingly strong, the unemployment rate remains near historic lows, and job vacancies are elevated. Wages continue to grow at 4% to 5%, while productivity has declined in recent quarters.

Inflation eased to 5.9% in January, reflecting lower price increases for energy, durable goods and some services. Price increases for food and shelter remain high, causing continued hardship for Canadians. With weak economic growth for the next couple of quarters, pressures in product and labour markets are expected to ease. This should moderate wage growth and also increase competitive pressures, making it more difficult for businesses to pass on higher costs to consumers.

Overall, the latest data remains in line with the Bank’s expectation that CPI inflation will come down to around 3% in the middle of this year. Year-over-year measures of core inflation ticked down to about 5%, and 3-month measures are around 3½%. Both will need to come down further, as will short-term inflation expectations, to return inflation to the 2% target.

At its January decision, the Governing Council indicated that it expected to hold the policy interest rate at its current level, conditional on economic developments evolving broadly in line with the MPR outlook. Based on its assessment of recent data, Governing Council decided to maintain the policy rate at 4½%. Quantitative tightening is complementing this restrictive stance. Governing Council will continue to assess economic developments and the impact of past interest rate increases, and is prepared to increase the policy rate further if needed to return inflation to the 2% target. The Bank remains resolute in its commitment to restoring price stability for Canadians.

Information Note

The next scheduled date for announcing the overnight rate target is April 12, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report at the same time.

Bank of Canada Rate Announcement Jan 25th, 2023

Wed, 25 Jan 2023 15:08:00 GMT

Bank of Canada increases policy interest rate by 25 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

January 25, 2023

The Bank of Canada today increased its target for the overnight rate to 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.

Global inflation remains high and broad-based. Inflation is coming down in many countries, largely reflecting lower energy prices as well as improvements in global supply chains. In the United States and Europe, economies are slowing but proving more resilient than was expected at the time of the Bank’s October Monetary Policy Report (MPR). China’s abrupt lifting of COVID-19 restrictions has prompted an upward revision to the growth forecast for China and poses an upside risk to commodity prices. Russia’s war on Ukraine remains a significant source of uncertainty. Financial conditions remain restrictive but have eased since October, and the Canadian dollar has been relatively stable against the US dollar.

The Bank estimates the global economy grew by about 3½% in 2022, and will slow to about 2% in 2023 and 2½% in 2024. This projection is slightly higher than October’s.

In Canada, recent economic growth has been stronger than expected and the economy remains in excess demand. Labour markets are still tight: the unemployment rate is near historic lows and businesses are reporting ongoing difficulty finding workers. However, there is growing evidence that restrictive monetary policy is slowing activity, especially household spending. Consumption growth has moderated from the first half of 2022 and housing market activity has declined substantially. As the effects of interest rate increases continue to work through the economy, spending on consumer services and business investment are expected to slow. Meanwhile, weaker foreign demand will likely weigh on exports. This overall slowdown in activity will allow supply to catch up with demand.

The Bank estimates Canada’s economy grew by 3.6% in 2022, slightly stronger than was projected in October. Growth is expected to stall through the middle of 2023, picking up later in the year. The Bank expects GDP growth of about 1% in 2023 and about 2% in 2024, little changed from the October outlook.

Inflation has declined from 8.1% in June to 6.3% in December, reflecting lower gasoline prices and, more recently, moderating prices for durable goods. Despite this progress, Canadians are still feeling the hardship of high inflation in their essential household expenses, with persistent price increases for food and shelter. Short-term inflation expectations remain elevated. Year-over-year measures of core inflation are still around 5%, but 3-month measures of core inflation have come down, suggesting that core inflation has peaked.

Inflation is projected to come down significantly this year. Lower energy prices, improvements in global supply conditions, and the effects of higher interest rates on demand are expected to bring CPI inflation down to around 3% in the middle of this year and back to the 2% target in 2024.

With persistent excess demand putting continued upward pressure on many prices, Governing Council decided to increase the policy interest rate by a further 25 basis points. The Bank’s ongoing program of quantitative tightening is complementing the restrictive stance of the policy rate. If economic developments evolve broadly in line with the MPR outlook, Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases. Governing Council is prepared to increase the policy rate further if needed to return inflation to the 2% target, and remains resolute in its commitment to restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is March 8, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on April 12, 2023.

Read the January 25th, 2023 Monetary Policy Report.

Bank of Canada Rate Announcement Dec 7th, 2022

Wed, 07 Dec 2022 15:08:00 GMT

Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

December 7, 2022

The Bank of Canada today increased its target for the overnight rate to 4¼%, with the Bank Rate at 4½% and the deposit rate at 4¼%. The Bank is also continuing its policy of quantitative tightening.

Inflation around the world remains high and broadly based. Global economic growth is slowing, although it is proving more resilient than was expected at the time of the October Monetary Policy Report (MPR). In the United States, the economy is weakening but consumption continues to be solid and the labour market remains overheated. The gradual easing of global supply bottlenecks continues, although further progress could be disrupted by geopolitical events.

In Canada, GDP growth in the third quarter was stronger than expected, and the economy continued to operate in excess demand. Canada’s labour market remains tight, with unemployment near historic lows. While commodity exports have been strong, there is growing evidence that tighter monetary policy is restraining domestic demand: consumption moderated in the third quarter, and housing market activity continues to decline. Overall, the data since the October MPR support the Bank’s outlook that growth will essentially stall through the end of this year and the first half of next year.

CPI inflation remained at 6.9% in October, with many of the goods and services Canadians regularly buy showing large price increases. Measures of core inflation remain around 5%. Three-month rates of change in core inflation have come down, an early indicator that price pressures may be losing momentum. However, inflation is still too high and short-term inflation expectations remain elevated. The longer that consumers and businesses expect inflation to be above the target, the greater the risk that elevated inflation becomes entrenched.

Looking ahead, Governing Council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target. Governing Council continues to assess how tighter monetary policy is working to slow demand, how supply challenges are resolving, and how inflation and inflation expectations are responding. Quantitative tightening is complementing increases in the policy rate. We are resolute in our commitment to achieving the 2% inflation target and restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is January 25, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.

The next scheduled date for announcing the overnight rate target is January 25, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.

Bank of Canada Rate Announcement Oct 26th, 2022

Wed, 26 Oct 2022 14:17:00 GMT

Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

October 26, 2022

The Bank of Canada today increased its target for the overnight rate to 3¾%, with the Bank Rate at 4% and the deposit rate at 3¾%. The Bank is also continuing its policy of quantitative tightening.

Inflation around the world remains high and broadly based. This reflects the strength of the global recovery from the pandemic, a series of global supply disruptions, and elevated commodity prices, particularly for energy, which have been pushed up by Russia’s attack on Ukraine. The strength of the US dollar is adding to inflationary pressures in many countries. Tighter monetary policies aimed at controlling inflation are weighing on economic activity around the world. As economies slow and supply disruptions ease, global inflation is expected to come down.

In the United States, labour markets remain very tight even as restrictive financial conditions are slowing economic activity. The Bank projects no growth in the US economy through most of next year. In the euro area, the economy is forecast to contract in the quarters ahead, largely due to acute energy shortages. China’s economy appears to have picked up after the recent round of pandemic lockdowns, although ongoing challenges related to its property market will continue to weigh on growth. Overall, the Bank projects that global growth will slow from 3% in 2022 to about 1½% in 2023, and then pick back up to roughly 2½% in 2024. This is a slower pace of growth than was projected in the Bank’s July Monetary Policy Report (MPR).

In Canada, the economy continues to operate in excess demand and labour markets remain tight. The demand for goods and services is still running ahead of the economy’s ability to supply them, putting upward pressure on domestic inflation. Businesses continue to report widespread labour shortages and, with the full reopening of the economy, strong demand has led to a sharp rise in the price of services.

The effects of recent policy rate increases by the Bank are becoming evident in interest-sensitive areas of the economy: housing activity has retreated sharply, and spending by households and businesses is softening. Also, the slowdown in international demand is beginning to weigh on exports. Economic growth is expected to stall through the end of this year and the first half of next year as the effects of higher interest rates spread through the economy. The Bank projects GDP growth will slow from 3¼% this year to just under 1% next year and 2% in 2024.

In the last three months, CPI inflation has declined from 8.1% to 6.9%, primarily due to a fall in gasoline prices. However, price pressures remain broadly based, with two-thirds of CPI components increasing more than 5% over the past year. The Bank’s preferred measures of core inflation are not yet showing meaningful evidence that underlying price pressures are easing. Near-term inflation expectations remain high, increasing the risk that elevated inflation becomes entrenched.

The Bank expects CPI inflation to ease as higher interest rates help rebalance demand and supply, price pressures from global supply disruptions fade, and the past effects of higher commodity prices dissipate. CPI inflation is projected to move down to about 3% by the end of 2023, and then return to the 2% target by the end of 2024.

Given elevated inflation and inflation expectations, as well as ongoing demand pressures in the economy, the Governing Council expects that the policy interest rate will need to rise further. Future rate increases will be influenced by our assessments of how tighter monetary policy is working to slow demand, how supply challenges are resolving, and how inflation and inflation expectations are responding. Quantitative tightening is complementing increases in the policy rate. We are resolute in our commitment to restore price stability for Canadians and will continue to take action as required to achieve the 2% inflation target.

Information note

The next scheduled date for announcing the overnight rate target is December 7, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on January 25, 2023.

View the October 2022 Monetary Policy Report

The next scheduled date for announcing the overnight rate target is December 7, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on January 25, 2023.

View the October 2022 Monetary Policy Report

Bank of Canada Rate Announcement Sept 7th, 2022

Wed, 07 Sep 2022 14:49:00 GMT

Bank of Canada increases policy interest rate by 75 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

September 7, 2022

The Bank of Canada today increased its target for the overnight rate to 3¼%, with the Bank Rate at 3½% and the deposit rate at 3¼%. The Bank is also continuing its policy of quantitative tightening.

The global and Canadian economies are evolving broadly in line with the Bank’s July projection. The effects of COVID-19 outbreaks, ongoing supply disruptions, and the war in Ukraine continue to dampen growth and boost prices.

Global inflation remains high and measures of core inflation are moving up in most countries. In response, central banks around the world continue to tighten monetary policy. Economic activity in the United States has moderated, although the US labour market remains tight. China is facing ongoing challenges from COVID shutdowns. Commodity prices have been volatile: oil, wheat and lumber prices have moderated while natural gas prices have risen.

In Canada, CPI inflation eased in July to 7.6% from 8.1% because of a drop in gasoline prices. However, inflation excluding gasoline increased and data indicate a further broadening of price pressures, particularly in services. The Bank’s core measures of inflation continued to move up, ranging from 5% to 5.5% in July. Surveys suggest that short-term inflation expectations remain high. The longer this continues, the greater the risk that elevated inflation becomes entrenched.

The Canadian economy continues to operate in excess demand and labour markets remain tight. Canada’s GDP grew by 3.3% in the second quarter. While this was somewhat weaker than the Bank had projected, indicators of domestic demand were very strong – consumption grew by about 9½% and business investment was up by close to 12%. With higher mortgage rates, the housing market is pulling back as anticipated, following unsustainable growth during the pandemic. The Bank continues to expect the economy to moderate in the second half of this year, as global demand weakens and tighter monetary policy here in Canada begins to bring demand more in line with supply.

Given the outlook for inflation, the Governing Council still judges that the policy interest rate will need to rise further. Quantitative tightening is complementing increases in the policy rate. As the effects of tighter monetary policy work through the economy, we will be assessing how much higher interest rates need to go to return inflation to target. The Governing Council remains resolute in its commitment to price stability and will continue to take action as required to achieve the 2% inflation target.

INFORMATION NOTE

The next scheduled date for announcing the overnight rate target is October 26, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.

Bank of Canada Rate Announcement Jul 13th, 2022

Wed, 13 Jul 2022 14:29:00 GMT

Bank of Canada increases policy interest rate by 100 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

July 13, 2022

The Bank of Canada today increased its target for the overnight rate to 2½%, with the Bank Rate at 2¾% and the deposit rate at 2½%. The Bank is also continuing its policy of quantitative tightening (QT).

Inflation in Canada is higher and more persistent than the Bank expected in its April Monetary Policy Report (MPR), and will likely remain around 8% in the next few months. While global factors such as the war in Ukraine and ongoing supply disruptions have been the biggest drivers, domestic price pressures from excess demand are becoming more prominent. More than half of the components that make up the CPI are now rising by more than 5%. With this broadening of price pressures, the Bank’s core measures of inflation have moved up to between 3.9% and 5.4%. Also, surveys indicate more consumers and businesses are expecting inflation to be higher for longer, raising the risk that elevated inflation becomes entrenched in price- and wage-setting. If that occurs, the economic cost of restoring price stability will be higher.

Global inflation is higher, reflecting the impact of the Russian invasion of Ukraine, ongoing supply constraints, and strong demand. Many central banks are tightening monetary policy to combat inflation, and the resulting tighter financial conditions are moderating economic growth. In the United States, high inflation and rising interest rates are contributing to a slowdown in domestic demand. China’s economy is being held back by waves of restrictive measures to contain COVID-19 outbreaks. Oil prices remain high and volatile. The Bank now expects global economic growth to slow to about 3½% this year and 2% in 2023 before strengthening to 3% in 2024.

Further excess demand has built up in the Canadian economy. Labour markets are tight with a record low unemployment rate, widespread labour shortages, and increasing wage pressures. With strong demand, businesses are passing on higher input and labour costs by raising prices. Consumption is robust, led by a rebound in spending on hard-to-distance services. Business investment is solid and exports are being boosted by elevated commodity prices. The Bank estimates that GDP grew by about 4% in the second quarter. Growth is expected to slow to about 2% in the third quarter as consumption growth moderates and housing market activity pulls back following unsustainable strength during the pandemic.

The Bank expects Canada’s economy to grow by 3½% in 2022, 1¾% in 2023, and 2½% in 2024. Economic activity will slow as global growth moderates and tighter monetary policy works its way through the economy. This, combined with the resolution of supply disruptions, will bring demand and supply back into balance and alleviate inflationary pressures. Global energy prices are also projected to decline. The July outlook has inflation starting to come back down later this year, easing to about 3% by the end of next year and returning to the 2% target by the end of 2024.

With the economy clearly in excess demand, inflation high and broadening, and more businesses and consumers expecting high inflation to persist for longer, the Governing Council decided to front-load the path to higher interest rates by raising the policy rate by 100 basis points today. The Governing Council continues to judge that interest rates will need to rise further, and the pace of increases will be guided by the Bank’s ongoing assessment of the economy and inflation. Quantitative tightening continues and is complementing increases in the policy interest rate. The Governing Council is resolute in its commitment to price stability and will continue to take action as required to achieve the 2% inflation target.

Information note

The next scheduled date for announcing the overnight rate target is September 7, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on October 26, 2022.

Bank of Canada Rate Announcement Jun 1st, 2022

Wed, 01 Jun 2022 14:40:00 GMT

Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

June 1, 2022

The Bank of Canada today increased its target for the overnight rate to 1½%, with the Bank Rate at 1¾% and the deposit rate at 1½%. The Bank is also continuing its policy of quantitative tightening (QT).

Inflation globally and in Canada continues to rise, largely driven by higher prices for energy and food. In Canada, CPI inflation reached 6.8% for the month of April – well above the Bank’s forecast – and will likely move even higher in the near term before beginning to ease. As pervasive input price pressures feed through into consumer prices, inflation continues to broaden, with core measures of inflation ranging between 3.2% and 5.1%. Almost 70% of CPI categories now show inflation above 3%. The risk of elevated inflation becoming entrenched has risen. The Bank will use its monetary policy tools to return inflation to target and keep inflation expectations well anchored.

The increase in global inflation is occurring as the global economy slows. The Russian invasion of Ukraine, China’s COVID-related lockdowns, and ongoing supply disruptions are all weighing on activity and boosting inflation. The war has increased uncertainty and is putting further upward pressure on prices for energy and agricultural commodities. This is dampening the outlook, particularly in Europe. In the United States, private domestic demand remains robust, despite the economy contracting in the first quarter of 2022. US labour market strength continues, with wage pressures intensifying. Global financial conditions have tightened and markets have been volatile.

Canadian economic activity is strong and the economy is clearly operating in excess demand. National accounts data for the first quarter of 2022 showed GDP growth of 3.1 percent, in line with the Bank’s April Monetary Policy Report (MPR) projection. Job vacancies are elevated, companies are reporting widespread labour shortages, and wage growth has been picking up and broadening across sectors. Housing market activity is moderating from exceptionally high levels. With consumer spending in Canada remaining robust and exports anticipated to strengthen, growth in the second quarter is expected to be solid.

With the economy in excess demand, and inflation persisting well above target and expected to move higher in the near term, the Governing Council continues to judge that interest rates will need to rise further. The policy interest rate remains the Bank’s primary monetary policy instrument, with quantitative tightening acting as a complementary tool. The pace of further increases in the policy rate will be guided by the Bank’s ongoing assessment of the economy and inflation, and the Governing Council is prepared to act more forcefully if needed to meet its commitment to achieve the 2% inflation target.

Information note

The next scheduled date for announcing the overnight rate target is July 13, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.

Bank of Canada Rate Announcement Apr 13th, 2022

Wed, 13 Apr 2022 14:37:00 GMT

Bank of Canada increases policy interest rate by 50 basis points, begins quantitative tightening.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

April 13, 2022

The Bank of Canada today increased its target for the overnight rate to 1%, with the Bank Rate at 1¼% and the deposit rate at 1%. The Bank is also ending reinvestment and will begin quantitative tightening (QT), effective April 25. Maturing Government of Canada bonds on the Bank’s balance sheet will no longer be replaced and, as a result, the size of the balance sheet will decline over time.

Russia’s ongoing invasion of Ukraine is causing unimaginable human suffering and new economic uncertainty. Price spikes in oil, natural gas and other commodities are adding to inflation around the world. Supply disruptions resulting from the war are also exacerbating ongoing supply constraints and weighing on activity. These factors are the primary drivers of a substantial upward revision to the Bank’s outlook for inflation in Canada.

The war in Ukraine is disrupting the global recovery, just as most economies are emerging from the impact of the Omicron variant of COVID-19. European countries are more directly impacted by confidence effects and supply dislocations caused by the war. China’s economy is facing new COVID outbreaks and an ongoing correction in its property market. In the United States, domestic demand remains very strong and the US Federal Reserve has clearly indicated its resolve to use its monetary policy tools to control inflation. As policy stimulus is withdrawn, US growth is expected to moderate to a pace more in line with potential growth. Global financial conditions have tightened and volatility has increased. The Bank now forecasts global growth of about 3½% this year, 2½% in 2023 and 3¼% in 2024.

In Canada, growth is strong and the economy is moving into excess demand. Labour markets are tight, and wage growth is back to its pre-pandemic pace and rising. Businesses increasingly report they are having difficulty meeting demand, and are able to pass on higher input costs by increasing prices. While the COVID-19 virus continues to mutate and circulate, high rates of vaccination have reduced its health and economic impacts. Growth looks to have been stronger in the first quarter than projected in January and is likely to pick up in the second quarter. Consumer spending is strengthening with the lifting of pandemic containment measures. Exports and business investment will continue to recover, supported by strong foreign demand and high commodity prices. Housing market activity, which has been exceptionally high, is expected to moderate.

The Bank forecasts that Canada’s economy will grow by 4¼% this year before slowing to 3¼% in 2023 and 2¼% in 2024. Robust business investment, labour productivity growth and higher immigration will add to the economy’s productive capacity, while higher interest rates should moderate growth in domestic demand.

CPI inflation in Canada is 5.7%, above the Bank’s forecast in its January Monetary Policy Report (MPR). Inflation is being driven by rising energy and food prices and supply disruptions, in combination with strong global and domestic demand. Core measures of inflation have all moved higher as price pressures broaden. CPI inflation is now expected to average almost 6% in the first half of 2022 and remain well above the control range throughout this year. It is then expected to ease to about 2½% in the second half of 2023 and return to the 2% target in 2024. There is an increasing risk that expectations of elevated inflation could become entrenched. The Bank will use its monetary policy tools to return inflation to target and keep inflation expectations well-anchored.

With the economy moving into excess demand and inflation persisting well above target, the Governing Council judges that interest rates will need to rise further. The policy interest rate is the Bank’s primary monetary policy instrument, and quantitative tightening will complement increases in the policy rate. The timing and pace of further increases in the policy rate will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target.

Information note

The next scheduled date for announcing the overnight rate target is June 1, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 13, 2022.

A market notice providing operational details for QT will be published this morning on the Bank’s web site.

The next scheduled date for announcing the overnight rate target is June 1, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR on July 13, 2022.

A market notice providing operational details for QT will be published this morning on the Bank’s web site.

Bank of Canada Rate Announcement Mar 2nd, 2022

Wed, 02 Mar 2022 15:34:00 GMT

Bank of Canada increases policy interest rate.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

March 2, 2022

The Bank of Canada today increased its target for the overnight rate to ½ %, with the Bank Rate at ¾ % and the deposit rate at ½ %. The Bank is continuing its reinvestment phase, keeping its overall holdings of Government of Canada bonds on its balance sheet roughly constant until such time as it becomes appropriate to allow the size of its balance sheet to decline.

The unprovoked invasion of Ukraine by Russia is a major new source of uncertainty. Prices for oil and other commodities have risen sharply. This will add to inflation around the world, and negative impacts on confidence and new supply disruptions could weigh on global growth. Financial market volatility has increased. The situation remains fluid and we are following events closely.

Global economic data has come in broadly in line with projections in the Bank’s January Monetary Policy Report (MPR). Economies are emerging from the impact of the Omicron variant of COVID-19 more quickly than expected, although the virus continues to circulate and the possibility of new variants remains a concern. Demand is robust, particularly in the United States. Global supply bottlenecks remain challenging, although there are indications that some constraints have eased.

Economic growth in Canada was very strong in the fourth quarter of last year at 6.7%. This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed. Both exports and imports have picked up, consistent with solid global demand. In January, the recovery in Canada’s labour market suffered a setback due to the Omicron variant, with temporary layoffs in service sectors and elevated employee absenteeism. However, the rebound from Omicron now appears to be well in train: household spending is proving resilient and should strengthen further with the lifting of public health restrictions. Housing market activity is more elevated, adding further pressure to house prices. Overall, first-quarter growth is now looking more solid than previously projected.

CPI inflation is currently at 5.1%, as expected in January, and remains well above the Bank’s target range. Price increases have become more pervasive, and measures of core inflation have all risen. Poor harvests and higher transportation costs have pushed up food prices. The invasion of Ukraine is putting further upward pressure on prices for both energy and food-related commodities. All told, inflation is now expected to be higher in the near term than projected in January. Persistently elevated inflation is increasing the risk that longer-run inflation expectations could drift upwards. The Bank will use its monetary policy tools to return inflation to the 2% target and keep inflation expectations well-anchored.

The policy rate is the Bank’s primary monetary policy instrument. As the economy continues to expand and inflation pressures remain elevated, the Governing Council expects interest rates will need to rise further. The Governing Council will also be considering when to end the reinvestment phase and allow its holdings of Government of Canada bonds to begin to shrink. The resulting quantitative tightening (QT) would complement increases in the policy interest rate. The timing and pace of further increases in the policy rate, and the start of QT, will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target.

Information note

The next scheduled date for announcing the overnight rate target is April 13, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.

The next scheduled date for announcing the overnight rate target is April 13, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.

Bank of Canada Rate Announcement Jan 26th, 2022

Wed, 26 Jan 2022 15:41:00 GMT

Bank of Canada maintains policy rate, removes exceptional forward guidance.

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

January 26, 2022

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ %, with the Bank Rate at ½ % and the deposit rate at ¼ %. With overall economic slack now absorbed, the Bank has removed its exceptional forward guidance on its policy interest rate. The Bank is continuing its reinvestment phase, keeping its overall holdings of Government of Canada bonds roughly constant.

The global recovery from the COVID-19 pandemic is strong but uneven. The US economy is growing robustly while growth in some other regions appears more moderate, especially in China due to current weakness in its property sector. Strong global demand for goods combined with supply bottlenecks that hinder production and transportation are pushing up inflation in most regions. As well, oil prices have rebounded to well above pre-pandemic levels following a decline at the onset of the Omicron variant of COVID-19. Financial conditions remain broadly accommodative but have tightened with growing expectations that monetary policy will normalize sooner than was anticipated, and with rising geopolitical tensions. Overall, the Bank projects global GDP growth to moderate from 6¾ % in 2021 to about 3½ % in 2022 and 2023.

In Canada, GDP growth in the second half of 2021 now looks to have been even stronger than expected. The economy entered 2022 with considerable momentum, and a broad set of measures are now indicating that economic slack is absorbed. With strong employment growth, the labour market has tightened significantly. Job vacancies are elevated, hiring intentions are strong, and wage gains are picking up. Elevated housing market activity continues to put upward pressure on house prices.

The Omicron variant is weighing on activity in the first quarter. While its economic impact will depend on how quickly this wave passes, it is expected to be less severe than previous waves. Economic growth is then expected to bounce back and remain robust over the projection horizon, led by consumer spending on services, and supported by strength in exports and business investment. After GDP growth of 4½ % in 2021, the Bank expects Canada’s economy to grow by 4% in 2022 and about 3½ % in 2023.

CPI inflation remains well above the target range and core measures of inflation have edged up since October. Persistent supply constraints are feeding through to a broader range of goods prices and, combined with higher food and energy prices, are expected to keep CPI inflation close to 5% in the first half of 2022. As supply shortages diminish, inflation is expected to decline reasonably quickly to about 3% by the end of this year and then gradually ease towards the target over the projection period. Near-term inflation expectations have moved up, but longer-run expectations remain anchored on the 2% target. The Bank will use its monetary policy tools to ensure that higher near-term inflation expectations do not become embedded in ongoing inflation.

While COVID-19 continues to affect economic activity unevenly across sectors, the Governing Council judges that overall slack in the economy is absorbed, thus satisfying the condition outlined in the Bank’s forward guidance on its policy interest rate. The Governing Council therefore decided to end its extraordinary commitment to hold its policy rate at the effective lower bound. Looking ahead, the Governing Council expects interest rates will need to increase, with the timing and pace of those increases guided by the Bank’s commitment to achieving the 2% inflation target.

The Bank will keep its holdings of Government of Canada bonds on its balance sheet roughly constant at least until it begins to raise the policy interest rate. At that time, the Governing Council will consider exiting the reinvestment phase and reducing the size of its balance sheet by allowing roll-off of maturing Government of Canada bonds.

Information note

The next scheduled date for announcing the overnight rate target is March 2, 2022. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report on April 13, 2022.

Bank of Canada Rate Announcement Dec 8th, 2021

pclappleton@gmail.com (james loewen) — Wed, 08 Dec 2021 15:25:00 GMT

Bank of Canada maintains policy rate and forward guidance

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank’s extraordinary forward guidance on the path for the overnight rate is being maintained. The Bank is continuing its reinvestment phase, keeping its overall holdings of Government of Canada bonds roughly constant.

The global economy continues to recover from the effects of the COVID-19 pandemic. Economic growth in the United States has accelerated, led by consumption, while growth in some other regions is moderating after a strong third quarter. Inflation has increased further in many countries, reflecting strong demand for goods amid ongoing supply disruptions. The new Omicron COVID-19 variant has prompted a tightening of travel restrictions in many countries and a decline in oil prices, and has injected renewed uncertainty. Accommodative financial conditions are still supporting economic activity.

Canada’s economy grew by about 5½ percent in the third quarter, as expected. Together with a downward revision to the second quarter, this brings the level of GDP to about 1½ percent below its level in the last quarter of 2019, before the pandemic began. Third-quarter growth was led by a rebound in consumption, particularly services, as restrictions were further eased and higher vaccination rates improved confidence. Persistent supply bottlenecks continued to inhibit growth in other components of GDP, including non-commodity exports and business investment.

Recent economic indicators suggest the economy had considerable momentum into the fourth quarter. This includes broad-based job gains in recent months that have brought the employment rate essentially back to its pre-pandemic level. Job vacancies remain elevated and wage growth has also picked up. Housing activity had been moderating, but appears to be regaining strength, notably in resales. The devastating floods in British Columbia and uncertainties arising from the Omicron variant could weigh on growth by compounding supply chain disruptions and reducing demand for some services.

CPI inflation is elevated and the impact of global supply constraints is feeding through to a broader range of goods prices. The effects of these constraints on prices will likely take some time to work their way through, given existing supply backlogs. Gasoline prices, which had been a major factor pushing up CPI inflation, have recently declined. Meanwhile, core measures of inflation are little changed since September. The Bank continues to expect CPI inflation to remain elevated in the first half of 2022 and ease back towards 2 percent in the second half of the year. The Bank is closely watching inflation expectations and labour costs to ensure that the forces pushing up prices do not become embedded in ongoing inflation.

The Governing Council judges that in view of ongoing excess capacity, the economy continues to require considerable monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s October projection, this happens sometime in the middle quarters of 2022. We will provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation target.

Information note

The next scheduled date for announcing the overnight rate target is January 26, 2022. The Bank will publish its full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report at the same time.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Bank of Canada Rate Announcement Oct 27th, 2021

pclappleton@gmail.com (james loewen) — Wed, 27 Oct 2021 15:46:00 GMT

Bank of Canada maintains policy rate and forward guidance, ends quantitative easing.

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank’s extraordinary forward guidance on the path for the overnight rate is being maintained. The Bank is ending quantitative easing (QE) and moving into the reinvestment phase, during which it will purchase Government of Canada bonds solely to replace maturing bonds.

The global economic recovery from the COVID-19 pandemic is progressing. Vaccines are proving highly effective against the virus, although their availability and distribution globally remain uneven and COVID variants pose risks to health and economic activity. In the face of strong global demand for goods, pandemic-related disruptions to production and transportation are constraining growth. Inflation rates have increased in many countries, boosted by these supply bottlenecks and by higher energy prices. While bond yields have risen in recent weeks, financial conditions remain accommodative and continue to support economic activity.

The Bank projects global GDP will grow by 6½ percent in 2021 – a strong pace but less than projected in the July Monetary Policy Report (MPR) – and by 4¼ percent in 2022 and about 3½ percent in 2023.

In Canada, robust economic growth has resumed, following a pause in the second quarter. Strong employment gains in recent months were concentrated in hard-to-distance sectors and among workers most affected by lockdowns. This has significantly reduced the very uneven impact of the pandemic on workers. As the economy reopens, it is taking time for workers to find the right jobs and for employers to hire people with the right skills. This is contributing to labour shortages in certain sectors, even as slack remains in the overall labour market.

The Bank now forecasts Canada’s economy will grow by 5 percent this year before moderating to 4¼ percent in 2022 and 3¾ percent in 2023. Demand is expected to be supported by strong consumption and business investment, and a rebound in exports as the US economy continues to recover. Housing activity has moderated, but is expected to remain elevated. On the supply side, shortages of manufacturing inputs, transportation bottlenecks, and difficulties in matching jobs to workers are limiting the economy’s productive capacity. Although the impact and persistence of these supply factors are hard to quantify, the output gap is likely to be narrower than the Bank had forecast in July.

The recent increase in CPI inflation was anticipated in July, but the main forces pushing up prices – higher energy prices and pandemic-related supply bottlenecks – now appear to be stronger and more persistent than expected. Core measures of inflation have also risen, but by less than the CPI. The Bank now expects CPI inflation to be elevated into next year, and ease back to around the 2 percent target by late 2022. The Bank is closely watching inflation expectations and labour costs to ensure that the temporary forces pushing up prices do not become embedded in ongoing inflation.

The Governing Council judges that in view of ongoing excess capacity, the economy continues to require considerable monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s projection, this happens sometime in the middle quarters of 2022. In light of the progress made in the economic recovery, the Governing Council has decided to end quantitative easing and keep its overall holdings of Government of Canada bonds roughly constant.

We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation target.

Information notes

A market notice outlining details of the reinvestment phase will be published on the Bank’s web site at 10:30 am ET today.

The next scheduled date for announcing the overnight rate target is December 8, 2021. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on January 26, 2022.

Monetary Policy Report October 2021.

Bank of Canada Rate Announcement Sept 8th, 2021

pclappleton@gmail.com (james loewen) — Wed, 08 Sep 2021 19:22:00 GMT

Bank of Canada maintains policy rate, continues forward guidance and current pace of quantitative easing

The Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank is maintaining its extraordinary forward guidance on the path for the overnight rate. This is reinforced and supplemented by the Bank’s quantitative easing (QE) program, which is being maintained at a target pace of $2 billion per week.

The global economic recovery continued through the second quarter, led by strong US growth, and had solid momentum heading into the third quarter. However, supply chain disruptions are restraining activity in some sectors and rising cases of COVID-19 in many regions pose a risk to the strength of the global recovery. Financial conditions remain highly accommodative.

In Canada, GDP contracted by about 1 percent in the second quarter, weaker than anticipated in the Bank’s July Monetary Policy Report (MPR). This largely reflects a contraction in exports, due in part to supply chain disruptions, especially in the auto sector. Housing market activity pulled back from recent high levels, largely as expected. Consumption, business investment and government spending all contributed positively to growth, with domestic demand growing at more than 3 percent.

Employment rebounded through June and July, with hard-to-distance sectors hiring as public health restrictions eased. This is reducing unevenness in the labour market, although considerable slack remains and some groups – particularly low-wage workers – are still disproportionately affected. The Bank continues to expect the economy to strengthen in the second half of 2021, although the fourth wave of COVID-19 infections and ongoing supply bottlenecks could weigh on the recovery.

CPI inflation remains above 3 percent as expected, boosted by base-year effects, gasoline prices, and pandemic-related supply bottlenecks. These factors pushing up inflation are expected to be transitory, but their persistence and magnitude are uncertain and will be monitored closely. Wage increases have been moderate to date, and medium-term inflation expectations remain well-anchored. Core measures of inflation have risen, but by less than the CPI.

The Governing Council judges that the Canadian economy still has considerable excess capacity, and that the recovery continues to require extraordinary monetary policy support. We remain committed to holding the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2 percent inflation target is sustainably achieved. In the Bank’s July projection, this happens in the second half of 2022. The Bank's QE program continues to reinforce this commitment and keep interest rates low across the yield curve. Decisions regarding future adjustments to the pace of net bond purchases will be guided by Governing Council's ongoing assessment of the strength and durability of the recovery. We will continue to provide the appropriate degree of monetary policy stimulus to support the recovery and achieve the inflation objective.

Information note

The next scheduled date for announcing the overnight rate target is October 27, 2021. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.

Bank of Canada Rate Announcement July 15th, 2020

pclappleton@gmail.com (james loewen) — Thu, 16 Jul 2020 05:04:00 GMT

Here is a copy of the Monetary Policy Report for July 2020.

Bank of Canada Maintains Overnight Rate Target and Unveils New Market Operations

pclappleton@gmail.com (james loewen) — Wed, 15 Apr 2020 19:39:00 GMT

Here is a copy of the Bank of Canada's Monetary Policy Report for April 2020.

Tips For Renewing Your Mortgage

pclappleton@gmail.com (james loewen) — Thu, 15 Aug 2019 02:02:00 GMT

Explore expert tips on renewing your mortgage, navigating recent changes, moving your mortgage, researching rates, and maximizing savings with a mortgage broker. Keep payments smartly and unlock valuable insights.

Is Deposit The Same Thing as Down Payment?

pclappleton@gmail.com (james loewen) — Sat, 03 Aug 2019 06:00:00 GMT

Understand the crucial disparity between deposit and down payment when purchasing a home. Learn how these terms impact your budget and ensure a smooth home buying process.

Home Affordability Calculator - How Much House Can I Afford?

pclappleton@gmail.com (james loewen) — Wed, 24 Jul 2019 17:54:00 GMT

These home affordability calculators

here

Tips For Refinancing Your Mortgage

pclappleton@gmail.com (james loewen) — Thu, 06 Jun 2019 16:28:00 GMT

Unlock the secrets of mortgage refinancing with expert tips. Enhance your application, set realistic goals, and maximize property equity for financial success.

What You Need To Know Before Applying For A Mortgage

pclappleton@gmail.com (james loewen) — Fri, 05 Apr 2019 16:38:00 GMT

Prepare for your mortgage application with tips on income stability, credit score, employment history, and required documents.

10 Closing Costs You Need To Know When Buying A Home

Thu, 14 Mar 2019 06:00:00 GMT

Discover essential closing costs when purchasing a home, from land transfer tax to insurance fees. Don't be caught off guard!

Tips For Canadian Home Owners In Winter

pclappleton@gmail.com (james loewen) — Sat, 09 Mar 2019 07:00:00 GMT

Prepare for winter with these essential tips for Canadian homeowners. Learn how to safeguard your home from the cold.

Ways To Purchase A Home With The Minimum Downpayment

pclappleton@gmail.com (james loewen) — Thu, 07 Feb 2019 07:00:00 GMT

Learn how to buy a home with a minimal down payment. Understand down payment requirements and using gifted funds for your dream home.

Top Mortgage Myths Debunked

pclappleton@gmail.com (james loewen) — Tue, 08 Jan 2019 07:00:00 GMT

Learn the truth about mortgage myths. Discover why 30-year vs 15-year, pre-qualification, and credit score aren't what you think. Contact us for expert advice.

The Loewen Group Referral Program

pclappleton@gmail.com (james loewen) — Sat, 29 Dec 2018 07:00:00 GMT

HAVE YOU EVER SEEN SCISSORS CUT A PENNY? IF YOU THINK THAT IS AMAZING – WAIT UNTIL YOU SEE HOW WE REWARD YOU & TREAT YOUR REFERRALS!

Your referrals mean the world to us & your support keeps small businesses like ours alive! So what is the Cutco Referral Reward Program?

At first glance this might seem like an unusual gift from a mortgage broker – but as you know, we are a little “different” and darn proud of it! We aim to provide our clients with exceptional service and your referral tells us that we are meeting this goal. This is a small gift of our BIG gratitude for your support.

We often say in Real Estate that the kitchen is the ‘heart of the home.’ One of my favourite pastimes is preparing a big meal for family and friends and I believe that brings people together. For these reasons and more, I value high quality tools in my kitchen. A good knife is an item that gets used daily and a necessity in any kitchen. I have been using Cutco knives for over 4 years now and will one day teach my daughter about the safety that comes with using a high quality sharp-knife over a dull knife. I even have the scars on my left finger to prove it �55357;�56841;

The 2nd referral recognition knife is the Spatula Spreader – the perfect knife for any sandwich connoisseur. From spreading PB&J to creating the perfect crust less cucumber sandwiches for high tea this knife can do it all. It even has a flexible blade for slicing a piece of pie or lasagna and removing from the pan BETTER than a regular spatula.

Coming to you for your 3rd successful referral are the Super Shears, so sharp and powerful they can cut a penny into the rose as you can see from the video. Use them in the kitchen, garden & around the house and we promise you will never go back to using a normal pair of scissors ever again!

For your 4th referral recognition knife we will be sending you the 5” Petite Santoku, the ideal knife designed specifically for smooth chopping, slicing and dicing. The ultra-sharp straight-edge blade & low tip are ideal for clean & intricate cutting & boning.

The 5th referral gift of gratitude we will share with you (we can’t share ALL the knives we are going to be sending you as we want to keep them a surprise) is the 7” Santoku. This chef inspired knife will allow you to expertly butterfly chicken & slice sushi. The wide blade also allows for the easy transfer of ingredients.

All Cutco products are backed by a Forever – Lifetime Guarantee (www.cutco.ca) just as the Loewen Group will always be keeping a ‘sharp eye’ on your finances, these knives will remain a ‘cut above’ for years to come.

Every year as a thank you, I will have these and EVERY knife in your drawer sharpened for you as a reminder of how much I truly appreciate your support.

From our home to yours – THANK YOU for the continued support!

10 Commandments Of Applying For A Mortgage

pclappleton@gmail.com (james loewen) — Fri, 30 Nov 2018 07:00:00 GMT

Discover the essential 10 commandments for mortgage applicants. Avoid pitfalls, and secure your loan. Read now!

Why Should You Get Pre Approved?

Wed, 01 Aug 2018 18:26:00 GMT

here

Burlington Market Update – July 2018

pclappleton@gmail.com (james loewen) — Tue, 10 Jul 2018 19:11:00 GMT

As your local Burlington mortgage brokers, we strongly believe that once you make the decision to buy a home, you should look into the current residential market of the area you want to live. Understanding what the housing prices were listed in the past and comparing them to current prices today will help you know when the best time to [...]

The post Burlington Market Update – July 2018 appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

Benefits of a Private Mortgage

pclappleton@gmail.com (james loewen) — Thu, 07 Jun 2018 14:02:00 GMT

Before you begin the mortgage application process, you may be wondering what type of Burlington mortgage you should apply for, and who you should get the mortgage from. Well, here at Loewen Group Mortgages, our team of experts has created a list of the top four benefits of getting a private mortgage. Benefits Of A Private Mortgage A private mortgage [...]

The post Benefits of a Private Mortgage appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

Interview with a Mortgage Broker: what / how does a mortgage broker work for you?

pclappleton@gmail.com (james loewen) — Thu, 10 May 2018 19:39:00 GMT

“” Highlighting the various positive contributions people and organizations are making in the greater Hamilton area. This month’s interview is with Mortgage Broker, James Loewen… Sunshine: What is a mortgage broker and how long have you been in this profession? James: My profession is finding the right solution strategies for mortgages. I started with the Royal Bank 4 1/2 years [...]

The post Interview with a Mortgage Broker: what / how does a mortgage broker work for you? appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

Common Costs – What to Expect at Closing

pclappleton@gmail.com (james loewen) — Mon, 07 May 2018 11:55:00 GMT

Becoming a homeowner is much more involved than just paying towards your Burlington mortgage every month. As a first-time homebuyer, you may be unaware of the additional costs associated with purchasing a home. So to help you get a better understanding, our team at Loewen Group Mortgages has created a list of the most common costs to expect when closing [...]

The post Common Costs – What to Expect at Closing appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

Ultimate Variable Mortgage Rate Guarantee

Sat, 14 Apr 2018 06:00:00 GMT

Ask your Bank or Broker if your mortgage comes with the “ Ultimate Variable Rate Mortgage Guarantee”

What is the Loewen Group UVRM Guarantee?

We will keep an eye on your mortgage rate for you! Whenever we see a change in the rate, we’ll inform you AND we will tell you when it’s a good time to lock-in to a fixed rate.
When locking-in your mortgage to a fixed rate we will GUARANTEE our broker best rates OR we will pay your breakage fee and find you the best fixed rate.

No bank can or will offer to take you to another bank when their lock-in offer is their posted rates since they only have one set of rates & solution. Has your bank ever offered to help you shop for better options outside what they can offer?

This “Broker Rate Lock in Guarantee” means that our service doesn’t stop once you sign your mortgage documents—we continue to look for the best mortgage options for as long as you have your mortgage with us – that’s our commitment to you.

Deciding between a fixed or variable rate mortgage can be a difficult decision for some. Remember our blog on the penalties of breaking your mortgage early?

Please note that this does apply to existing variable clients who obtained their variable rate mortgage through Loewen Group & we will of course review all your options if you are looking to lock in.

Eligible Lenders: First National, Merix, Street Capital, Scotia, TD, Home Trust, Eq Bank, Canadiana Standard, CFF, ICICI, Meridian, First Ontario Credit Union, MCAP Standard, B2B, NBC

Non-Eligible Lenders: RBC Royal Bank, BMO, CIBC, PC Financial, Manulife, Tangerine, Investors Group, RMG Low Rate Basic, MCAP Value Flex, Canadiana Spendless, Industrial Alliance, True North.

Mortgage Insurance

pclappleton@gmail.com (james loewen) — Wed, 07 Mar 2018 02:08:00 GMT

If you are a first time homebuyer, the mortgage process can be very confusing due to the variety of mortgage options out there. As your local mortgage broker in Burlington, we have compiled a list of mortgage insurance explanations to help ease this confusion. What is Mortgage Insurance? Mortgage insurance, also known as mortgage default insurance, is insurance a homebuyer [...]

The post Mortgage Insurance appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

Burlington Market Update – No Signs of Cooling Off

pclappleton@gmail.com (james loewen) — Fri, 09 Feb 2018 00:18:00 GMT

At the James Loewen Group of Burlington mortgage brokers, we take pride on keeping up to date on the latest real estate and mortgage trends. This allows us to find the best mortgage for you, no matter what the situation is. As we enter the new year the Burlington real estate market remains strong. In December there were 753 sales [...]

The post Burlington Market Update – No Signs of Cooling Off appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

The Pre-Approval Premium Parody!!

pclappleton@gmail.com (james loewen) — Fri, 26 Jan 2018 19:43:00 GMT

Why The Rate You Hold, May Not Be The Rate You Receive. Have you ever purchased a Jeep and then all around you it seems EVERYONE is driving a jeep as well? The Baader-Meinhof phenomenon occurs when someone learns the meaning of a new word and then comes across this word everywhere they go. We see this in mortgages a [...]

The post The Pre-Approval Premium Parody!! appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

The Pre Approval Premium Parody

Thu, 18 Jan 2018 19:46:00 GMT

Why The Rate You Hold, May Not Be The Rate You Receive.

Have you ever purchased a Jeep and then all around you it seems EVERYONE is driving a jeep as well? The Baader-Meinhof phenomenon occurs when someone learns the meaning of a new word and then comes across this word everywhere they go. We see this in mortgages a lot: a client gets pre-approved for a mortgage with their pre-approval rate, suddenly everywhere they go they start seeing mortgage rates. (Online pop-ups, ads on the radio … even their neighbors’ dog-walker starts telling them about the exceptionally low rate they got on their mortgage!)

This can be confusing when potential buyers start comparing what is being advertised to what they have been pre-approved for because,

Pre-approval rates are usually priced 0.05% to 0.15% higher than current market rates.

(Not to mention if rates have increased from 2 years ago, we’re now not comparing apples to apples on the time line either). It is important to realize that pre-approval rates are not the “final” rate you’ll receive on your mortgage – think of it instead as an “insurance”. In the event that rates have increased sufficiently, from the time of the pre-approval to the time of purchase, lenders will honor the pre-approval rate no matter how much higher current rates are.

Mary Needamortgage Applies For a Mortgage and receives 3.19% pre-approval, but best rates are at 2.99% online and she’s feeling her broker didn’t’ get her the best rate. However this is just a pre-approval to protect her (insurance) should rates increase.

If At The Time Of Closing, the rate special on “real deals” is available at 2.99% or lower, she will get that lower rate. HOWEVER, should rates increase to say 3.49% – the pre approved rate of 3.19% that was secured will be available and save her from that increase.

SO, WHY IS THIS? First, lenders have, at a VERY large cost, to set aside all that money which isn’t cheap when only 25% of pre-approvals ever convert to an actual mortgage. The second reason is that when a pre-approval is sent to a mortgage lender, like First National Financial, they complete a FULL pre-approval and treat the application like a real file using sufficient man-power used to provide an approval to the client (some banks only do a brief pre-qualification, not having pulled/Reviewed Credit Bureaus, full income which can lead to disappointment when making an offer only to have been misled as to the actual amount you can afford)

Brokers have access to multiple lenders at all stages of the deal, are well versed in the lenders’ policies and products and can help navigate the different types of mortgages for your needs. During the pre-approval stage, ensure your broker is comparing multiple lenders as part of your education. When you have an accepted offer to purchase a home, your broker will then convert the pre-approval to a full-approval and “shop it” with multiple lenders to provide a mortgage solution that fits your lifestyle – taking into account factors such as, pre-payment privileges, online banking, tax account options, penalties and yes, even rate. Ensure your broker is also not just providing a rate since, as with most everything, you get what you pay for – if it seems too good to be true, ensure you understand what you have to GIVE UP to get what you want.

Buying a Home in the Halton Region? It Could Soon Get More Difficult

pclappleton@gmail.com (james loewen) — Sat, 06 Jan 2018 00:31:00 GMT

Whether you live in Burlington, Oakville, Milton or another area within the Halton Region, you are going to want to read about this. As if it wasn’t difficult enough to purchase a property in the area, buying a home within the region could soon become much more difficult. We already know that you have to spend a pretty dollar to [...]

The post Buying a Home in the Halton Region? It Could Soon Get More Difficult appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

Ongoing Mortgage Management: Customer Service

pclappleton@gmail.com (james loewen) — Wed, 22 Nov 2017 19:43:00 GMT

Loewen Group is Century 21’s in-house mortgage team. We often give informative presentations. Click the link below to read our presentation from Nov, 20th, 2017. C21 Presentation Nov 20

The post Ongoing Mortgage Management: Customer Service appeared first on Burlington, Hamilton, Oakville, Mississauga and Toronto Mortgage Brokers | Loewen Group Mortgage Professionals .

What Documents Do I Need?

Sat, 25 Feb 2017 07:00:00 GMT

Discover the necessary documents for mortgage approval. Learn about void cheques, lawyer info, employment proof, and more at Loewen Group.

How To Prepare For Divorce Or Loss Of A Spouse

pclappleton@gmail.com (james loewen) — Tue, 13 Sep 2016 06:00:00 GMT

Learn how to safeguard assets during divorce or the loss of a spouse, protect your home, and manage finances. Expert advice on preparing for life's uncertainties.

It's Moving Day. What Should I Expect?

pclappleton@gmail.com (james loewen) — Tue, 06 Sep 2016 06:00:00 GMT

Get expert advice for moving day and homeownership. Learn about budgeting, renovations, home maintenance, utilities, and more!

You Fell In Love With a House. Now What?

pclappleton@gmail.com (james loewen) — Fri, 26 Aug 2016 06:00:00 GMT

Explore the emotional journey of buying a home and get bidding war advice. Your path to homeownership begins here!

Your Home Ownership Teammates

pclappleton@gmail.com (james loewen) — Wed, 24 Aug 2016 06:00:00 GMT

Explore the key players in homeownership - mortgage brokers, real estate agents, lawyers, and more. Your expert team awaits!

How Much To Spend On Home Ownership

pclappleton@gmail.com (james loewen) — Sun, 07 Aug 2016 06:00:00 GMT

Discover how much to spend on a home, down payment requirements, equity, and mortgage options. Get expert insights in our Home Ownership Series Part 2.

What To Ask Before Buying a Home

pclappleton@gmail.com (james loewen) — Wed, 27 Jul 2016 23:51:00 GMT

Discover key questions for homebuyers, from budget to location. Get insights on mortgage approval and ownership benefits.

What Is “Mortgage Insurance” And How Does It Benefit You?

Fri, 14 Mar 2014 06:00:00 GMT

WITHOUT IT, MOST FIRST TIME BUYERS WOULD STILL BE RENTING. HERE’S WHY….

When people hear about mortgage default insurance (often referred to as CMHC fees) they have a negative reaction. People often assume that it is the type of insurance that can be declined, such as life or disability insurance. And of course, most people are against having additional fees added to the cost of purchasing a new home. But, mortgage default insurance is actually a good thing. It allows people to purchase a home with less than 20% of the purchase price as a down payment. Since most people put less than 20% down on their first home purchase, many of us wouldn’t be able to buy a home without mortgage default insurance.

Although mortgage default insurance is commonly referred to as “CMHC fees”, there are 3 providers of mortgage insurance in Canada: CMHC (www.cmhc.ca), Genworth (www.genworth.ca) and Canada Guarantee (www.canadaguarantee.ca). But, you don’t have to decide between these providers, all of these companies offer the same service and the same rates.

Mortgage default insurance is a ONE-TIME COST that is added to your mortgage. The amount of insurance you pay depends on how much you put as a down payment. The more money you put down, the less risky it is for the bank to loan you the amount of your mortgage, so the less you pay in mortgage insurance. The chart below shows how the cost of the insurance is calculated (if you’re having trouble understanding, call us anytime and we can help!):

For example, if you put 5% down on a $300,000 home, your CMHC fees would be as follows:

Purchase price: $300,000 –$15,000 (5% down payment) = Mortgage requirement of $285,000

$285,000 mortgage X 3.6% Mortgage default premium = $10,260 plus 8% PST ($820.80) = $11,080.80.

You are charged PST on your mortgage default insurance, but the good news is that only the PST portion has to be paid out-of-pocket by you on the closing date. The remainder, in this example the $11,080.80 is added to your mortgage.

In short, mortgage default insurance is an additional cost you need to consider when purchasing a home with less than 20% down, but the benefit is that it allows you to purchase a home for as little as 5% down

Top Need To Know Facts For New Condo Home Buying

Sat, 27 Jul 1017 06:59:00 GMT

Discover the difference between the Interim Occupancy date and the Registration date when buying a condo. Important insights for new condo buyers.