With the real estate market slow down we have seen in price drops and interest rate dips, rental income has not wavered making now an optimal time to start building your revenue property portfolio or continue adding to your existing list of properties.

The sooner you develop a long term plan the  better your chance your investment can reward you with retirement income.

Helpful tips to investing in revenue properties:

• Working with a a team of experts that can offer you invaluable services in this niche which can provide you with a wealth of knowledge and ongoing information that will help you make informed investment decision.
• It is important to set up your venture properly from the on set so that you will be able to get future financing – a necessity for continuing to build your portfolio of revenue properties.
• Know your specific property investment goals and develop a game plan for the next five or 10 years based on these goals.
• Revisit your plan with your mortgage professional annually to ensure you’re still on track.
• Join groups such as the Real Estate Investment Network (REIN) – they will provide you with insights and investing tips. A local Rental Owners and Managers Society (ROMS),  – helps with credit checks for potential tenants and keeps you updated on the Residential Tenancy Act. for instance, you can receive a wealth of added knowledge catered to your revenue property needs.

Before you begin building your revenue property portfolio speak to a mortgage professional to determine the best and most effective strategy.

The post Revenue Properties appeared first on Mortgage Alerts Canada.

Perhaps you want to free up cash for such things as renovations, travel or putting towards your children’s education? Or maybe you want to pay down debt or pay your mortgage off faster?

If you’ve thought about breaking your mortgage and taking advantage of these historically low rates, feel free to give me a call to discuss your options.

In some cases, the penalty can be quite substantial if you aren’t very far into your mortgage term, but we can determine if breaking your mortgage now will benefit you long term.

People often assume the penalty for breaking a mortgage amounts to three months’ interest payments so, when they crunch the numbers, it doesn’t seem so bad. In most cases, however, the penalty is the greater of three months’ interest or the interest rate differential (IRD).

The IRD is the difference between the interest rate on your mortgage contract and today’s rate, which is the rate at which the lender can relend the money. And with rates so low these days, the IRD tends to be greater than three months’ interest. Because this is a way for banks to recuperate any losses, for some people, breaking and renegotiating at a lower rate without careful planning can mean they come out no further ahead.

Keep in mind, however, that penalties vary from lender to lender and there are different penalties for different types of mortgages. In addition, the size of your down payment and whether you opted for a “cash back” mortgage can influence penalties.

While breaking a mortgage and paying penalties based on the IRD can result in a break-even proposition in the short term, if you look at the big picture, you’ll see that the true savings are long term – as we know that rates will be higher in the years to come. Your current goal is to secure a long-term rate commitment before it is too late, and here lies the significant future savings.

The post The Cost of Breaking Your Mortgage appeared first on Mortgage Alerts Canada.

A few mortgage lenders and insurers have been doing something lately that they have not done in a long time – pulling new credit bureaus prior to funding, especially if there is a long period between the time of your approval and when the mortgage actually funds.

Following are eight tips to keep in mind between your mortgage approval and funding dates:

1. Don’t buy a new car or trade-up to a more expensive lease.
2. Don’t quit your job or change jobs. Even if it’s a better-paying job, you still are likely to be on a probationary period. If in doubt, call your mortgage professional and they can let you know if this may jeopardize your approval.
3. Don’t change industries, decide to become self-employed or accept a contract position even if it’s within the same industry. Delay the start of your new job, self-employment or contract status until after the funding date of your mortgage.
4. Don’t transfer large sums of money between bank accounts. Lenders get especially skittish about this one because it looks like you’re borrowing money. Be ready to document cash transactions or money movements.
5. Don’t forget to pay your bills, even ones that you’re disputing. This can be a real deal-breaker. If the lender pulls your credit bureau prior to closing and sees a collection or a delinquent account, the best you can hope for is that they make you pay off the account before they will fund. You don’t want to have to scramble to pay off a debt at the last minute!
6. Don’t open new credit cards. Again, just wait until after your funding date.
7. Don’t accept a cash gift without properly documenting it – even if this is from proceeds of a wedding. If you have a bunch of cash to deposit before your funding date, give your mortgage professional a call before you deposit it.
8. Don’t buy furniture on the “Do not pay for XX years plan” until after funding.  Even though you don’t have to pay now, it will still be reported on your credit bureau, and will become an issue – especially if your approval was tight to begin with.

While you may not risk losing your mortgage approval because you have broken one of these rules, it’s always best to talk to your mortgage professional before doing any of the above just to make sure!

The post Tips to Keep in Mind Between Your Mortgage Approval and Funding Dates appeared first on Mortgage Alerts Canada.

1. Make an impression. Prospective buyers make up their minds about your house even before they get out of the car. To ensure they have the right idea, clean up your yard, get rid of unsightly weeds, and sweep/shovel your driveway and porches. Get out the rags and cleanser and spend 30 minutes scouring your front door, porch, railings and steps. Then tuck away all your recycling cans and bins at the back of the house or in a corner of the garage.

2. Declutter. A common phrase used to describe the importance of decluttering is: Clutter eats equity. So purge your closets, empty cupboards and box up small appliances. You may even want to rent a storage locker to keep items you simply cannot part with, while throwing out items you’ve collected over the years that you don’t want to take with you to your next home. This will also save you time during your big move. Ensure you pay close attention to your countertops and coffee tables as well.

3. Impersonal works. You want buyers to imagine themselves living in your home, so stash anything connected to your family or personal interests. Hide your son’s hockey trophies, store family photos and remove all traces of day-to-day life. This also includes removing personal effects from the bathrooms.

4. Keep it fresh. There’s nothing worse than stepping into a house that smells of smoke, dampness or pet odours. The easy solution is to keep your windows open for 10 minutes a day. This strategy works better than deodorizers since a lot of people have allergies to artificial room fresheners. The oldest trick of all? Leave chocolate chip cookies baking in the oven. Yes, it’s hokey, but the smell does do wonders to help buyers bond with your home.

5. Declare war on grime. Cleanliness helps put a buyer’s mind at ease since it suggests that you’ve probably taken good care of your residence in other ways as well. So clean everything: walls, door handles, light fixtures and pantry cupboards. And don’t forget to dust your furnace room and furnace, since this makes your furnace look newer. Power washing windows, walkways, eavestroughs and pathways can also do wonders for your home’s exterior.

6. Hire a handyman. If you don’t have the time or expertise to deal with the aesthetics of your home, consider hiring a professional. Dripping faucets, cracked tiles and mouldy caulking around the bathtub can knock thousands of dollars off the price of your home.

7. Colour it up. Your single best investment may be a fresh coat of paint in key areas of your home. Try painting your front door and placing some urns containing seasonal arrangements on your front step or just inside the entryway. Remember that small touches can make a house seem cared for and important.

8. Reduce furniture. An easy way to create a sense of space is to get rid of some furniture. Moving a sofa and end tables into storage can give a small room some much-needed breathing space. If your furniture dates from the Mulroney era, consider packing it away and renting or borrowing some modern, stylish furniture or a couple of well-chosen pieces of wall art. Keep your rooms clean and simple like a hotel room or the showroom for a new house.

9. Lighten up. The brighter and sunnier a space, the easier it is to sell. If you don’t have the time or energy to clean all of your windows – inside and out – it may be a wise investment to hire a professional window-cleaning company. Thoroughly clean the shades on your light fixtures, change light bulbs and add floor lamps if an area seems dim. Finally, when it comes time to show your home, make sure all the lights are on, especially in hallways.

10. Add a touch of humanity. A couple of planters containing seasonal arrangements on your front porch, a vase of flowers on your dining room table, or even a simple rose in a vase can warm up a room. Candles can also do wonders in lighting and warming a room.

The post Top 10 Home Staging Ideas appeared first on Mortgage Alerts Canada.

In the case of renovations, bad debt would fund improvements that have no value to future buyers. Whereas good debt would add convenience and pleasure today, while increasing your home’s value tomorrow. By opting for good debt, the interest you pay on your equity loan can be more than covered by the increase in resale value.

Improvements to kitchens, bathrooms and outdoor living space offer the highest return on investment. Here are a couple of things to keep in mind:

• In general, the more recent the improvement, the higher the return on investment.

• The most appealing kitchens have an open plan with island, and an efficient triangle between the refrigerator, stove and sink.

• Adding a deck increases the apparent floor space of your home. Make outdoor and indoor space blend seamlessly by using French doors and indoor-style light fixtures and furnishings.

By renovating strategically, your improvements can pay for themselves, plus create a healthy profit!

The post Don’t Pay for Renovations, Let them Pay for Themselves appeared first on Mortgage Alerts Canada.

“The Royal LePage House Price Survey released today showed that house prices remained relatively flat in the first quarter of 2013 compared to the first quarter of 2012, recording that the average price of a home in Canada increased between 1.2 per cent and 2.4 per cent.”

The first quarter of 2013 shows that the national average price of a typical two storey house increased by 2.2%, compared to 2012. Within the same period the national average price of a detached bungalow increased 2.4% and the average price of a standard condominium increased 1.2%.

We start the year in an unusual place, with a combination of extremely low mortgage rates and flat house prices and the improvement of the economy. Says Phil Soper, president and chief executive of Royal LePage. “Typically one of these variables is moving hard in an opposite direction. While some have spoken loudly about impending market volatility and dramatic downward pressure on home prices, we are simply not seeing evidence of this. The current environment is very supportive for housing. Those waiting for big declines in home prices will likely be disappointed.”

“It is important to remember that Canada is a collection of regional markets. Case in point, we see renewed strength in the Alberta and Saskatchewan markets in early 2013, based on the health of the energy sector. Across the mountains in Vancouver, affordability concerns dampened demand significantly. The resultant correction in home prices there may attract a new round of buyers before year end.”

Regional Market Summaries for the first quarter of 2013.

Halifax continued to see growth. Detached bungalows increasing 7.8% year-over-year to $294,667. St. John’s seen some of the highest average price gains in Canada. A two story house increased to 10.6% due in large part home owner moving up and higher priced home owners purchasing even more higher priced homes.

Montreal house prices remained flat in the first quarter 2013. The typical two storey house seen the highest increase to 1.4% to an average price of $392,929, while condominiums seen the smallest rise of 0.4% to $240,044.

Ottawa’s real estate market also remained flat, with gains ranging from 0.8 to 1.9%. Standard condominiums saw the largest price gains, unit inventory for this housing category shot up 41 per cent compared to last year.

Toronto seen moderate growth in the first quarter, an average price gains of 1.8 to 4.0%. The quarter saw a decrease in volume and first time home buyers. However multiple offer situations and bidding wars were still taking place in some areas of the city. Yikes..

Winnipeg was off to a strong start for the first quarter. Detached bungalows seen the largest increase of 6.9% to $302,896. Again multiple offer and bidding war took place with 35 per cent of listings selling above asking price.

Regina sees a strong price increases with low inventory and more first-time buyers moving to the city. A standard two-storey homes saw the highest increase, rising 12.7% year over year to an average price of $337,000.

Calgary increases to 5.1 to 6.8% as well due to low inventory with only a small price increase. A typical condominium seen the most activity in the house market in the first quarter.

Edmonton prices remained flat with some price changes and a decrease of 0.2% to an increase of 1.7%.

Vancouver on the other had seen a decreases of 5.1 to 5.6% year over year. The market seen an overall reduction in activity from both the buyers and the sellers, which continued to drive prices down.

The post Housing prices begin on a positive note for 2013 appeared first on Mortgage Alerts Canada.

Comparing ourselves to our friends south of the boarder they are offering a slightly higher rate of 3.63% but for a fixed 30 years! Yikes, that is too long term for me but the advantage is that it will “guard against an inevitable rise in mortgage rates down the road.” To add to this the USA mortgage rates deal these mortgages are not really fixed mortgage rates, meaning they can refinance or to advanced of lower rates at any time. The borrower can switch to a different lender at any time. In other words the mortgage rates can’t go up but they might go down if you they find a better deal.

The only drawback is this deal is that lenders still risk rate falls so then need to compensate by charging a higher mortgage rates usually an extra 0.25 to 0.5 percentage point to compensate for the low 30 year fixed mortgage. In Canada mortgage are charged a penalty for the shorter term or anyone breaking their mortgage rates.

It seems strange to me why Canada and the USA have such different lending practices. There is some research that backs up why USA offers a 30 year fixed-rate mortgage but it points to the Canadian system being more conservative with a mix of offering higher competitive rates. Thanks, I’ll take that over the slightly inflated rate for once Canada is beating the USA at paying out more for something.

The post Canada Versus USA who is getting a better deal on their mortgage rates? appeared first on Mortgage Alerts Canada.

Predicting what rates will do in 1, 5 and in 10 years is a good a guess as any. Unfortunately predictions of what the expectations of how rates preform tend to be how people decide. Think again and before locking in on which mortgage rate will be the lowest cost mortgage rate for you.

To read more on what should mortgage shoppers choose the 1 year or 5 year fixed click here for the full story on The Globe and Mail.

The post What fixed mortgage rate should you be choosing a 1 – 5 year or 10 year fixed rate? appeared first on Mortgage Alerts Canada.

For those newbies looking for their first mortgage and for anyone renewing or refinancing, request your credit report. Getting a credit report six months in advance will allow you to check for any errors or anything that might need to be addressed to improve your credit score before applying.  A credit report is a summary of your credit history that includes bill payments and debt repayments with credit providers. A credit report shows your credit worthiness such a s court judgments and bankruptcies or liens.

Financial Consumer Agency of Canada (FCAC) will provide information about how to obtain free credit reports and steps that you can be take to improve credit scores. Having good credit offers you leverage to negotiate a mortgage. However if you have bad report the lender could refuse to approve you for a mortgage or request a larger down payment or co-signer. Financial institutes can even charge a higher interest rate for bad reports – something that can be avoid with the help of a mortgage broker working on your side. Mortgage brokers will provide you with the tips and tools to help improve your scores.

The post How to get the best mortgage rate appeared first on Mortgage Alerts Canada.

We start the Spring off on a great note with mortgage rates at an all time low down to 2.74% the lowest rate ever for a 5 year fixed. It is also the most common mortgage rate amongst home owners.

That also means it is a great time to take advantage of this low offer while it is around. Anyone currently thinking about home buying this Spring should be getting their pre-approval and securing the all time lowest 5 year fixed rate because it is available for a 120 rate hold.

Of course there are some strings attached with only two lenders offering this 2.74% mortgage rate. The rate is being offered in Ontario, Yukon and Northwest Territories. It is available to home buyers with as little as only 5% down. With some prepayment privileges of 10% to 20% annually and a 10% to 20% increase to monthly payments as well.

As always, if you have questions about your mortgage, I’m here to help!

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