The Mortgage Advantage Vancouver Island
14-1500 Anchor Rd. Crofton BC V0R1R0 Victoria, BC, Canada

THE 5 MORTGAGE ELEMENTS- DECISIONS YOU NEED TO MAKE BEFORE YOU SIGN! Before you buy a home there are a couple things you need to figure out first. One of the very first decisions you need to make is whether you want to work with a mortgage broker who is independent from the bank, or if you prefer, work with a financial representative from a specific bank. Next, you want to find a realtor that best understands your needs and wants. From there, you and your realtor go through t...Continue reading

Canadian real estate investment is missing an ingredient by Neil Sharma | Jun 08, 2018 With the Canadian housing market unquestionably in a state of flux, questions are naturally being asked about the continued viability of real estate investment.... According Neville Joanes, Chief Investment Officer at WealthBar, Canadian real estate will remain a sound investment provided portfolios are diversified We look at real estate as being a set of an asset class, he told CREW. When we have portfolios for clients, we like to diversify across equities like fixed income, bonds and real estate. Our viewpoint is they should have some exposure to real estate in their portfolio for their diversification. While benchmark prices in the residential sector are in declivity, the overall economic picture in the country remains buoyant, he added. When we look at the Canadian residential real estate sector, we’ve seen a decline of benchmark prices, and that’s one of worst declines since financial crisis of ’08. We do have faith in the Canadian real estate market because if we look at it in the commercial and professionally managed residential class, from an investment standpoint, we still have faith in it. We expect the Canadian economy to strengthen, and as it does people and companies will want more space, whether it’s space for larger homes or renting space for businesses. We see strength in the Canadian economy in the real estate market. However, the rising rate environment has rendered the market nebulous. Overleveraged investors could imperil their ability to make prompt mortgage payments. Even though rates are not rock bottom like we saw several years ago, they’re still very low, said Joanes. If there’s a 1.5% increase, that could significantly affect mortgage payments. In most municipalities, there are controls by how much you can increase your rent by, and if you can’t increase with rising mortgage rates, you might be in a position not to increase rent to levels that cover the mortgage costs. Investment in Canada will remain strong, though. Roy Salsinha, CEO of Manhattan-based Carmo Companies, says that commercial investment in Canada on an institutional level is sure to grow. His company is bringing together 250 of the largest institutional investors, endowments, developers, private wealth investors and real estate professionals from Canada, the U.S. and Latin America. In fact, the disarray south of the boarder may impel even greater investment. There’s also an appetite for investment in Canada because, pretty obviously, a lot of Latin America-based investors really don’t like the rhetoric, given the U.S. elections, so a lot of them have been looking at other countries to place money and Canada is one of them, said Salsinha.

Three months into B.C.’s experience with tighter mortgage-qualification rules, layered in with provincial real-estate tax changes, property markets are starting to shift. However, parsing out the whether the provincial measures the speculation tax on second homes, school surtax on expensive homes and raising the property transfer tax are having a big, small or any impact on the housing market is an open question. When we look at the overall downturn we’ve seen in the mar...Continue reading

By Craig Wong OTTAWA _ The Bank of Canada kept its key interest rate target on hold Wednesday, but hinted that rate hikes could be coming as it noted the Canadian economy was a little stronger than expected in the first quarter. The central bank held its target for the overnight rate _ a key financial benchmark that influences the prime lending rates at the country's big banks _ steady at 1.25 per cent.... ``Exports of goods were more robust than forecast and data on imports of machinery and equipment suggest continued recovery in investment,'' the Bank of Canada said in a statement. ``Housing resale activity has remained soft into the second quarter, as the housing market continues to adjust to new mortgage guidelines and higher borrowing rates. Going forward, solid labour income growth supports the expectation that housing activity will pick up and consumption will continue to contribute importantly to growth in 2018.'' The central bank also said global economic activity remains broadly on track, but added that ongoing uncertainty about trade policies is dampening global business investment and stresses are developing in some emerging market economies. It noted that recent developments have reinforced its view that higher rates will be warranted to keep inflation near its target, but added that it will take a gradual approach and be guided by the economic data. ``In particular, the bank will continue to assess the economy's sensitivity to interest rate movements and the evolution of economic capacity,'' it said. Economists had predicted the Bank of Canada would keep its key rate on hold Wednesday, but many have suggested the rate may be headed higher later this year. The central bank's decision to keep its trend-setting rate on hold came as inflation sits above the two per cent midpoint of its target range of one to three per cent and core inflation has crept past the two per cent mark for the first time since 2012. It noted that inflation will likely be a bit higher in the near term than was forecast in its April monetary policy report due to recent increases in gasoline prices, but that it will look through the transitory impact of the fluctuations at the pump. The central bank has raised its key rate three times since last summer, increases that have prompted the big Canadian banks to raise their prime rates which are used to set the rates charged for variable-rate mortgages and other variable-rate loans. Its next scheduled interest rate decision is set for July 11 when it will also update its outlook for the economy and inflation in its monetary policy report.

Be careful out there so many scammers Scammers claiming to work for the Canada Revenue Agency (CRA) bilked a Victoria man out of $11,000. They did it through a scheme that involved a Bitcoin ATM, a man pretending to be a police officer and a bank branch, until a teller grew wise to the deception.... The scam began on Wednesday night, when the man was contacted by fraudsters who claimed to work for the CRA. CRA scams often see fraudsters tell victims they owe taxes to the government. They’ll say a judgment has been rendered against them, that a warrant has been issued and that officers are on their way to arrest them, said a Victoria police news release. This time, fraudsters pointed the victim to a Bitcoin ATM that was located at a business in the 100-block of Gorge Road East.

4 SIGNS YOU’RE READY FOR HOMEOWNERSHIP While most people know the main things they need to buy a home, such as stable employment and enough money for a down payment, there are a few other factors that may help you realize you’re ready, perhaps even earlier than you thought! As a mortgage broker, it is my job to ensure that each one of my clients is getting the best service I can provide. Part of this means educating as much as possible when it comes to buying a home, which is...Continue reading

Canadian households increasingly relying on debt to stay afloat study by Ephraim Vecina31 May 2018 Canadian households increasingly relying on debt to stay afloat study A fresh study conducted by Ipsos for personal insolvency practice MNP LTD revealed the extent of Canadian households’ reliance on debt, with 58% of those with consumer debt stating that they would need an increase of at least 37% in their household incomes to live debt-free.... The problem is exacerbated among lower-income and insolvent households, which stated that they would need to make 49% more income. Albertans in debt stated that they are more likely (69%) to need significant increases (21% or higher) in their household incomes in order to live without any consumer debt. Other provinces whose residents are raring for higher household incomes amid the debt-heavy climate are Atlantic Canada (62%), Saskatchewan and Manitoba (59%), Ontario (55%), Quebec (51%), and British Columbia (50%). Read more: Higher rates putting greater pressure on indebted Canadians It used to be that people would save for big purchases and have some money tucked away for emergencies. Now Canadians look straight to HELOCs or credit cards or other forms of debt when it comes to paying for unexpected car repairs, home maintenance, and even basic household expenses, MNP LTD president Grant Bazian said. When debt becomes a financial survival tool it makes people particularly vulnerable to exploitative and high-cost lending. They have to spend more to service their debts particularly as interest rates rise so they have less money to make ends meet. And so begins the vicious cycle of debt, Bazian added.

Two Canadian banks hit by cyber attack BMO Financial Group and Simplii Financial say that some customer data appears to have been exposed in a cyber attack incident. The incidents both took place Sunday and both banks issued statements Monday saying they are working with relevant authorities and have contacted customers who may have been affected.... The total number of customers who may have been affected is less than 100,000 across the two lenders. The full BMO statement reads: On Sunday, May 27, fraudsters contacted BMO claiming that they were in possession of certain personal and financial information for a limited number of customers. We believe they originated the attack from outside the country. We took steps immediately when the incident occurred and we are confident that exposures identified related to customer data have been closed off. We have notified and are working with relevant authorities as we continue to assess the situation. We are proactively contacting those customers that may have been impacted and we will support and stand by them. BMO has strong and robust processes in place to protect customer data and we take customer privacy very seriously. Customers are recommended to monitor their accounts and notify BMO with any suspicious activity. Simplii Financial’s SVP Michael Martin said that the safety and security of customer accounts is the firm’s top priority. We want to assure you that if you are affected by fraud because of this issue, we will return 100% of the money lost from the affected Simplii account, he said in a statement. Customers are urged to monitor their accounts for any unusual activity.

There’s a lot of talk about what to do right with your money. Now, let’s talk about what some do wrong with their money, and what you can do to avoid their mistakes. Here are 10 money mistakes that you should avoid this year:...Continue reading

WHAT IS A COLLATERAL MORTGAGE? A collateral mortgage is a way of registering your mortgage on title. This type of registration is sometimes used by banks and credit unions. Monoline lenders, on the other hand, rarely register your mortgage as a collateral charge which is an all-indebtedness charge that allows you to access the equity in the home over and above your mortgage, up to the total charge registered. What this means is that you may be able to get a home equity line... of credit and/or a readvanceable mortgage, or increase your mortgage without having to re-register a mortgage. This is a real benefit to you in some cases because re-registering your mortgage can cost up to a thousand dollars. However, there are some negatives to having a collateral mortgage. First and most glaring because it is an all indebtedness mortgage it brings into account all other debts held by that lender into an umbrella registered against your home. This means that your credit cards, car loans, or any related debt at your mortgage’s institution can be held against your home, even if you’re up to date with your mortgage payments. Secondly, if you want to switch your mortgage over to a different lender, they may not accept the transfer of your specific collateral mortgage. This means you’ll need to pay additional fees to discharge the mortgage and register a new one. And lastly, collateral mortgages make it more difficult to have flexibility to get a second mortgage, obtain a home equity line of credit from a different institution, or use a different financial instrument on your home. This is because your collateral mortgage is often registered for the whole amount of your property. To recap, collateral mortgages give you the flexibility to combine multiple mortgage products under one umbrella mortgage product while tying you up with that one lender. While this type of mortgage can be a great tool when used correctly, it does have its drawbacks. If you have any questions, don’t hesitate to contact me.

Humans make decisions about risk management every day. We decide whether or not to take that new job; we buy life insurance to protect our families in the event of an untimely death, and we even gauge whether or not to wear a raincoat if the sky is looking cloudy. We make many of these decisions unconsciously or automatically, but they are all designed to protect us from the unexpected. When it comes to your mortgage, planning for the worst-case scenario like job loss or risi...Continue reading

While the discounts on Variable and Adjustable rate Mortgages continues yet another deep dive to prime minus 1.05% (which we've had for about 2 months, long before BMO and TD) Is there opportunity to be had in taking a 7 or 10 yr mortgage?? 5 yr rates are bouncing around 3.59% while we have 7 Yrs at 3.79% and ten year at 4.09% both these rates, I believe, will look like a deal in a year from now.