Barrie Mortgages with Julie Lorriman

Most Canadians suffer with their highest personal debt load in January, when the holiday hit arrives and your credit card statements let you know just how much you spent on the festive season. That’s why it’s the perfect time to talk about a Personalized Paydown Plan. With the right plan in place, you could be seeing the difference: a boost to your cash flow, one easy payment, and potentially thousands of dollars in interest savings. If you have enough equity in your home (you can’t refinance a mortgage above an 80 per cent loan-to-value), I can show you how to use that equity to roll your high-interest debt into a low-rate mortgage.

With a lower growth forecast, the Bank of Canada is once again keeping its key policy rate unchanged, noting that our historic low rates "will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required." With a weaker second half of 2012, the bank projects that growth in Canada will regain some momentum through 2013, with the economy "reaching full capacity in mid 2015 later than anticipated." The prime rate for most lenders s...hould stay at 3%, now unchanged since September 2010. The Bank's next rate decision is scheduled for May 29. As for fixed rates, we continue to enjoy historically low rates for those looking to purchase or refinance, perfect for the spring market!

Today Bank of Canada announced a delay in rate increase keeping its benchmark interest rate at one per cent for the 19th consecutive time. BOC also cut its forecast for economic growth in 2013 to 2 per cent, down from October’s estimate of 2.3 per cent.

Five renovations that pay off: Updating Bathrooms Although it is certainly possible to over-invest in bathroom renovations, they are among the most reliable renovations in terms of boosting the overall value of your home. If your home has fewer bathrooms than others in the neighbourhood, then a bathroom addition should be a top priority. A smart bathroom reno should return 75% to 100% according to the Appraisal Institute of Canada. Always consider, of course, that your renova...tions should be in keeping with the rest of your home and that your home should be compatible with your neighbourhood. A glamorous spa bathroom, for example, might be entirely out of place in the overall style of your home and also not something a new buyer is likely to pay for when buying a home in your neighbourhood. Popular mid-range renovations could include installing modern, matching showerheads and faucets, an attractive new sink and a fresh coat of paint. Sleek new baths and showers can also provide excellent returns although renovations that require drastic plumbing changes could dramatically decrease the odds of a good return on your bathroom reno investment. Bathroom renovations can be very disruptive, which is why so many buyers appreciate moving into a new home with upgraded bathrooms.

New mortgage rules have Canadians scrambling to get in under the wire. The surprise announcement that mortgage rules will change again on July 9 has many homebuyers scrambling to get in under the wire with the old rules. These latest new rules amortization limit of 25 years and refinance limits of 80 per cent - are designed to lower debt levels, enforce some belt-tightening, and promote savings through home ownership. You should get in touch with us now if:... you are planning to buy or have a mortgage pre-approval with an amortization of 30 years. You must have an agreement of purchase and sale before July 9 in order to keep that amortization, and any new applications before July 9 must fund by December 31, 2012; or, you need to refinance to consolidate your high interest debt to lower your interest costs and boost your monthly cash flow. If you are an existing homeowner, the new parameters will only apply if you need to increase the amount of your insured mortgage. We can help clarify your situation. We are always aware of the current environment and the resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals!