Qualifying | Investing | Refinancing ........ After April 19th 2010

March 26, 2010

The Canadian government's effort to mitigate residential foreclosure rates in the coming years stems from the following 3 major rules announced by Finance Minister Jim Flaherty back in February.

In Summary:

i) If you plan to qualify for a variable rate mortgage after April 19th 2010 expect your approval amount to be calculated off the 5yr posted fixed rate (currently 5.39%). A safe measure really, considering those that wish to sign up for a Variable rate mortgage will likely be paying a rate comparable to today's 5yr fixed in the coming few years.

ii) High Ratio Investors – Last Call! Anticipate a minimum 20% down payment for rental / investment property mortgages after April 19th, 2010. Considering the steep insurance premiums (upwards of 8.4%) high ratio investors pay on borrowed funds, it has been a risky model for “building wealth” on many levels in any case.

iii) Debt Consolidation: Currently, one can re-finance a property up to 95%LTV. After April 19th, 90% LTV will be the maximum refinance level. This understandable and proactive measure should help ensure home ownership remains an effective way to save.

These changes take effect nationally in a mere 25 days though some lenders are looking at implementing them sooner.

Call one of our Mortgage Specialists today for more information on how these new rules will affect you before, and after April 19th, 2010.
1.877.248.6677

Dan.

Store 4 - Curtain Call

March 16, 2010

Aside from a few minor details (like signage and HDTV;) the company's fourth retail store, Calgary's third True North Mortgage, opened its doors earlier this week. This location in Gulf Canada Square at 401 - 9th Ave S.W. will conveniently service our clients on the south end of Calgary's +15 system.

As usual, web and telephone inquiries (403.452.8245) are also welcomed. Parking is available across 9th Avenue S.W. in Bankers Hall or meter parking one block south along 10th Avenue S.W.

Please stop by and say hello; our rate screen and website currently post the lowest variable rates True North Mortgage has ever offered.

Dan.

Canada's Federal Budget 2010

March 05, 2010

Canada's Federal Budget 2010

Earlier this week Budget 2010 was announced. The plan boasts of Canada's strong economic position in relation to the G7, confirming broad signs of recovery in the Canadian housing market, with resale housing activity and prices returning back to pre-recession levels. The report states Canada's housing market remains healthy and stable, supported by sound economic factors including low interest rates, rising incomes and a growing population. Moreover, mortgage arrears - overdue mortgage payments - have remained low both during and after the recession.

The initiatives that will affect the mortgage industry in Budget 2010 include:

- Regulations to standardized the calculation and disclosure of mortgage pre-payment penalties (for federally regulated lenders).
- Legislative framework to enable Credit Unions to expand services beyond their provincial borders
- Federally regulated financial institutions will diversify funding sources to include Covered Bonds
- Extension of the Insured Mortgage Purchase Program, until the end of March 2010.

The government's priorities towards infrastructure projects, creating employment and holding interest rates (at least until July 2010) should be viewed as encouragement for today's mortgage shoppers and Canadian Home Buyers.

Dan