Just an FYI, the Alberta Municipal Affairs recently contacted a Real Estate Brokerage to advise a Realtor that he must remove a listing from the MLS® as there was no New Home Warranty on the property.

For the week of June 1, 2015

Interest Rates: Last week in their regular meeting, Bank of Canada did not raise interest rates. Rather, economists are now factoring in dismal economic data and once again talking about a further rate cut when BOC meets again in July. See more here.

Reminder to Realtors

Insurers' premiums increasing June 1, 2015 - deadline fast approaching.  Get your clients' offers accepted by May 27th.

I always keep my eye on bond rates, as they drive the 5 year fixed interest rates.  Normally, we find 5 year mortgage rate at ~1.6% higher than the bond-yield, now at 1.13. This tells me 2.63% should be 5 year rate, and we are about there now.  With any continued up-trend, rates may start to rise.

Last updated: May 2019

What are permitted Down Payment Sources for a Mortgage in Canada?

A question that often comes up with Realtors and clients is about permitted sources of down payment and how long the money has to be sitting in the client's account. Here's the list I send to my mortgage customers:

Greetings! It's been awhile since my last update. I've been very busy despite the news!  On top of that, I moved to a new home last fall, and totally updated my website and branding over the winter.  I even worked remotely from Mexico for the month of February!

Mortgage Interest rates in Canada started the week out on a lower note.  For budgeting purposes, the monthly payment factor for $100,000 borrowed is now $455/mo, based on 2.59% 5 year fixed mortgage amortized over 25 years.  Keep in mind lenders often have 30 day "quick close: mortgage specials, as well as 45 and 60 day specials.  Keep this in mind when working out possession dates and save your client some money!

Every Realtor knows that showing a home to a non-qualified buyer is potentially wasting his or her valuable time and that of the home seller.  "Have you been pre-approved?," is a question many Realtors are taught to ask, but what does YES really mean?  Pre-approved has different meanings to different people, and certainly the buyer's interpretation can be a long way from reality.  My advice is to Realtors is to ask another question or two: 1) What is the name of the mortgage professional you are dealing with? (to see if an actual relationship has been established), and 2) When did they last review any of your documents and credit report? (to see at what stage of assessment prospect is at).  Depending on the prospect's answers, you can better prioritize your time and decide on best next steps.

How to finance home improvements

Yeah, but the house needs some work...

Solution

A number of mortgage lenders participate in a program called Purchase + Improvements, which means qualified home buyers can get reimbursement for pre-approved renovations made to their new home, which need to be completed immediately after taking possession of the purchased property.   All this can be done with one mortgage and with as little as 5% down.