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Bank of Canada increases overnight rate target to 1 per cent
OTTAWA, Ontario, September 08, 2010 — The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. The global economic recovery is proceeding but remains uneven, balancing strong activity in emerging market economies with …TD Bank Predicts Home Prices to Decrease by 10%
According to TD Bank, Canada's real estate market is in for a moderate downward correction. At this point, the bank is predicting a 10 to 15 per cent decrease in Canadian home prices. Unfortunately, TD is not alone in their predictions, with other economists also forecasting that the market is overvalued by as much as 25 per cent. Let's hope that those economists are wrong.
The first half of 2010 saw a particularly hot housing market. However, the housing market in the past couple of months has certainly cooled off. As has been said before, it looks like the recent changes to the real estate market-including tighter mortgage regulations, interest rate uncertainty, and the introduction of the Harmonized Sales Tax-meant that most of those who were in the market have already gone ahead and made their housing purchase.
So, where do we go from here? It looks like a market correction is necessary. The Canadian Real Estate Association recently released a report that basically said that we shouldn't expect real estate numbers for the last five months of 2010 to match last years' corresponding months.
It looks like home sellers are in for some disappointment in the coming months.
Words of Wisdom for First Time Homebuyers
So you're looking to buy your first home. What do you need to know? The following covers the basics of buying your first property.
The first question you need to answer is: what can you afford? Putting together a budget and looking at your current, as well as projected expenses, is a vital first step. Take a look online at a mortgage calculator that can help you to get a grasp of what your potential mortgage payments will be. When putting together your budget, don't forget that the cost of home ownership is greater than just the mortgage payment. Extra expenses, such as the cost of insurance, repairs and upkeep, can really make a dent in your budget.
The next step is to find a financing partner, someone who can help you get pre-approved for a mortgage. It's important to remember that the bank or lender is going to pre-approve you for the amount of money that they're comfortable with lending, this amount is not necessarily what you may be comfortable spending month-to-month.
Remember that mortgage documents are long and complicated. Ultimately, once you sign your name on the dotted line, you’re responsible for everything covered in your mortgage agreement. Make sure that you understand the terms and provisions before you sign. Ask your mortgage broker to explain anything that you don't understand; that's what they're there for.
Purchasing a property is an exciting part of life, even if it can be stressful. Happy house or condo hunting!
CanEquity Denounces Telemarketing Ploys
CALGARY, Alberta, September 07, 2010 — CanEquity wishes to make adamant its no tolerance standpoint on the telemarketing tactics used by some companies in their attempt to gain clientele. CanEquity has recently been notified by other mortgage brokerages that they have been contacted by telemarketing companies claiming to be providing marketing services for CanEquity and other large …Recently Divorced Father Should Take a Second Mortgage for Debt Consolidation
There was an interesting article in the Financial Post about Tom, a divorced father of two with a mountain of debt from the divorce, requiring him to consider additional financial options. His eldest daughter has recently graduated from university and is now out in the workforce, while his youngest daughter is just starting her university education. Tom has a house, wants to be able to finance his daughter's university education, but has limited financial assets. Therefore, Tom must carefully consider his options so that he can sustain his lifestyle. If you have ever been in a situation similar to Tom's then here is a possible solution.
After speaking with a mortgage broker, Tom was given various options to consider for financial aid. I think that Tom's best option would be to take a second mortgage. There are many situations why one would take a second mortgage that include: home improvements, debt consolidation, help your business, investments, and emergency expenses.
Tom has mortgage payments that need to be made, his daughter's university tuition to pay, and other lifestyle expenses. Therefore, Tom would be taking a second mortgage to aid in his debt consolidation. This is beneficial to Tom because a debt consolidation packaged offers less interest and lower monthly payments. As a result, Tom will be able to pay off his expenses and watch his daughter excel on her pathway through university.
Even though times can be tough, there is always another option. In Tom's case, a second mortgage to aid in his debt consolidation would be the best option.
Taking a Home Equity Loan to Start Up a Property Business
While attending the University of Guelph, Scott McGillivray took out a home equity loan during his last year of studies. The Financial Post had a great article about McGillivray's story.
First, Scott spent every penny of his student loan to purchase a house with his friend Mike Sarracini. The two guys lived in the basement of the house, and rented out the rooms upstairs to friends. Then, once they realized the earning potential, they took out a home equity loan on the first house to finance other houses. Today, McGillivray owns a total of 29 properties.
This entire property business venture was made possible because McGillivray realized the potential of a home equity loan. The first house was financed solely by McGillivray's student loan which is one source. But then he realized that the house had value in it and therefore he was able to take a home equity loan out to finance the second house.
For the average person who is not risky business minded, a home equity loan has many other advantages. For example, if a family wants to take a vacation but does not have the finances in the bank to do so, then taking a home equity loan is an option.
Tips on Home Renovations and Associated Loans
How do you determine what is appropriate in a home renovation? Well there are many factors to consider when you choose to renovate your home.
2. The value of your house at the end of the renovation.
3. The type of home renovation that will fit in with your lifestyle and requirements.
All three of these points are important and must be considered. First, you need to ensure that you actually have finances to conduct the renovation. If not, it is a good idea to get a home renovation loan from a bank, mortgage company, or some other means.
Then you need to evaluate how much your house will be worth after the renovation is complete. This is important because you want to ensure that your renovations are not over the top. If the total value of your house significantly exceeds the average cost of a house in your neighbourhood, then selling could be an issue down the road.
Lastly, you want to consider what the purpose of the renovation will be and how it fits in with your lifestyle. For example, if you have kids and an unfinished basement, then perhaps having a home renovation to the basement would be a good idea. This could be used as a play area for the kids.
Consumers expect home sale prices to decline, say construction and home builder sector weaker than a year ago: RBC Consumer Outlook Index
TORONTO, Ontario, September 02, 2010 — From New York -The barrage of negative housing data in the past month has taken a toll on U.S. consumers, with 40 percent saying they expect the sale prices of homes in their neighborhood to decrease over the next year, compared to 31 percent who said this in August, according to the monthly RBC Consumer Outlook Index. Only one-quarter of Americans …BMO Slashes Market-Leading Five Year Mortgage Rate By 20 Bps to 3.59 Per Cent
TORONTO, Ontario, September 01, 2010 — BMO announced today it is decreasing its popular five-year low rate mortgage from 3.79 per cent to 3.59 per cent* effective September 2, 2010. The move will provide home buyers just the incentive they need to kick-start the fall house-hunting season with a renewed fervour. “It’s a great time to buy a home,” said Martin Nel, Vice …Requirements