Thursday, April 23, 2015

Employment Insurance reflects oil prices

Great article by Todd Hirsch on the EI Benefits and our economy.

I like to focus on the goods news of this story.

#1.  With the amount of layoffs and cuts to spending plans, today’s report shouldn’t come as a surprise. Given the economic slowdown, a rising number of people collecting EI was to be expected. However, with oil prices showing some stability and promise for the second half of 2015, Alberta’s labour market should show some rebound.
#2 In 2010 EI had just under 60 000 people collecting benefits compared to today at just under 40 000.00 people.

Read the whole article here:

How does this relate to Mortgages?

#1. Buyers have the opportunity to get some great pricing on new build homes with excellent incentives to buy now and the rates at the banks are excellent.  Contact me to go over some amazing rate options for your first or next mortgage.  I also have New Home builders offering great referral of up to $5000.00 cash in your pocket for referring someone to buy from them or $5000.00 towards your own purchase in upgrades - contact Amy for the full details.

#2. Rates across the board are very low for mortgages so if you were looking for the right time to buy a home or refinance your current home, the time is NOW!

#3. If you are looking to lower your current mortgage payment, rates are almost a full point lower than a mortgage you arranged two or three years ago, which again gives you an opportunity to re write your mortgage and save some money on your monthly payments and pay less interest over the term of the mortgage.

Amy Wilson
Verico Brokers For Life.


Wednesday, April 22, 2015

Track Your Tax History

Did you know?  The government has a site to track your tax history!  Sign up and make applying for loans a breeze with all your income information at your fingertips.

Saturday, April 11, 2015

Increase in CMHC Mortgage Loan Insurance Premiums — Key Facts

Increase in CMHC Mortgage Loan Insurance Premiums — Key Facts
Mortgage loan insurance helps protect lenders against mortgage default and enables consumers to purchase homes with a minimum down payment of 5% with interest rates comparable to those with a 20% down payment. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price.
Effective June 1, 2015, the mortgage loan insurance premiums for homebuyers with less than a 10% down-payment will increase by approximately 15%. The increase applies to mortgage loan insurance premiums for residential housing of 1 and 2 units for homebuyers with less than a 10% down payment.
For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on housing markets.
This information may help get some of your buyers off the fence and ready to put pen to paper!!!!  Remember I am now offering 6 month hold at 2.69% for a five year!
Contact me for any questions you any questions you may have,
Amy Wilson

Friday, April 3, 2015

CMHC Hikes Premiums Again

If you plan to buy a home with less than 10% down and get CMHC insurance, get ready to pay another $450 per $100,000 of mortgage. That’s what CMHC’s just-announced premium hike amounts to. Click here for details. It’s the second time in about a year that CMHC has raised its fees on homeowners. The new premiums are a 14-15% increase over today, or 31% if you compare them to CMHC’s fees last year.

CMHC’s move targets only those putting down less than 10%, which amounts to 56.8% of CMHC-insured borrowers, as of CMHC’s latest reported quarter. The company says the decision is not because of an increase in borrower risk.

“For the average Canadian homebuyer who has less than a 10% down payment, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment,” the agency said in its release today.

“CMHC completed a detailed review of its mortgage loan insurance premiums and examined the performance of the various sub-segments of its portfolio,” said SVP of Insurance Steven Mennill. “The premium increase for homebuyers with less than a 10% down payment reflects CMHC’s target capital requirements which were increased in mid-2014 (to 220% of the minimum OSFI requirements).”

We’ll probably know by next week if Genworth and Canada Guarantee follow CMHC’s lead. They did last time and there’s a fair chance they will again. A Genworth spokesperson said, “We are reviewing [CMHC’s announcement] and expect to release our official announcement early next week.”
Some quick notes for homebuyers:
  • If your loan-to-value is over 90% and your lender submits your complete application to CMHC before June 1, 2015, you’ll pay the old (cheaper) CMHC fees. It doesn’t matter when your mortgage closes.
  • Submitting a pre-approval as opposed to a complete application will not hold the old insurance premiums.
  • If you borrow your down payment, the fee is another 5 basis points (0.05%) higher, or 3.85% of the mortgage amount.
  • If you live in Manitoba, Ontario and Quebec, you also have to pay provincial sales tax on your default insurance. That sales tax cannot be rolled into the mortgage.