Mortgage Tips & Info

New mortgage rules in effect, make home ownership less affordable

Posted on October 25th, 2016

  There are new mortgage rules in effect. Here’s how they will impact our housing market. 1. Mortgage rate stress test for all insured mortgages As of October 17, 2016, all insured home buyers must qualify for the Bank of Canada’s posted five-year rate, now at 4.64 per cent. Previously, this requirement applied only to home buyers with variable rate mortgages and mortgages with terms of less than five years. Borrowers must also have a GDS ratio maximum of 39… Read more

Tips to reduce your mortgage costs

Posted on July 4th, 2016

 Buying a home is a significant investment. Whether you’re a first-time buyer or you’re refinancing your home, saving money on mortgage payments means you’ll be financially ahead.  Here are seven tips to cut your mortgage costs. Get a competitive rate. To get the best rate, you have to shop for a mortgage. Lenders will frequently give a discount off the posted rate, sometimes as little as a quarter of a percentage point up to a full percentage. Even a small… Read more

Can you port your mortgage?

Posted on March 27th, 2015

Porting a mortgage lets you transfer your mortgage from one home – the house you are about to buy – to another home in the future, at the same terms and conditions of your current mortgage. You may have to have a separate contract for the additional funds borrowed and some financial institutions will blend the old with the newer rate. Porting a mortgage can save you money if you’re locked in at a low rate and interest rates rise…. Read more

Important changes to CMHC mortgage loan insurance for self-employed home buyers

Posted on May 16th, 2014

As of May 30, 2014, Canada Mortgage and Housing Corporation (CMHC) is making it harder for self-employed home buyers to qualify for mortgage loan insurance. according to Andrew Peck, vice-president and general manager, Royal Pacific Realty Group. In Canada, home buyers with less than a 20 per cent down payment are required to buy mortgage insurance. The largest provider of mortgage insurance in Canada is CMHC. Previously self-employed buyers could prove their income without traditional third-party validation. Starting June 1,… Read more

Important changes to CMHC mortgage loan insurance for second home buyers

Posted on May 14th, 2014

As of May 30, 2014, Canada Mortgage and Housing Corporation (CMHC) is discontinuing mortgage loan insurance for buyers of second homes, according to Andrew Peck, vice-president and general manager, Royal Pacific Realty Group. In Canada, home buyers with less than a 20 per cent down payment are required to buy mortgage insurance. The largest provider of mortgage insurance in Canada is CMHC. Regardless of the closing date of the home purchase, mortgage insurance for a second home is available for… Read more

Mortgage rates could increase. Here’s how to get the best deal

Posted on September 2nd, 2013

Mortgage rates are at historic lows.  At some time, these rates will head upwards. To help home buyers prepare, here are Royal Pacific Realty Group’s tips to reduce mortgage costs 1. Get a competitive rate.  If you’re looking for a mortgage, shop around. Lenders will often discount the posted rate, ¼ of a per cent up to a full per cent. Even a small difference in the rate can result in big savings on monthly mortgage payments. Compare the rates… Read more

The Home Buyers’ Plan should not be wound down

Posted on February 8th, 2013

In “Why the Home Buyers’ Plan should be wound down” (Globe & Mail, February 4, 2013), Rob Carrick explains that a young couple with $20,000 in their respective RRSPs would be better off keeping their money in their RRSP which would “grow to roughly $96,000 in value over 40 years (assuming a 4-per-cent average annual growth rate).” What Carrick neglects to take into account is that a downpayment is a leveraged asset. That same couple who takes that same $20,000… Read more

Qualify for a mortgage if you’re self-employed in Metro Vancouver

Posted on July 27th, 2012

If you’re self-employed, and you’re shopping for a mortgage, Royal Pacific Realty Group can help you! Self-employment is part of a growing trend. Ten years ago, one in six Vancouver area workers was self-employed. The ratio is now one in five workers and it’s growing. Mortgage lenders at financial institutions consider you to be self-employed if you: run a business alone as a sole proprietor, with a partner, or as a corporation; receive 25 per cent or more of your income… Read more

How to reduce your mortgage costs

Posted on July 26th, 2012

Roal Pacific Realty Group REALTORS® know that buying a home is the significant investment. Whether our clients are first-time buyers or refinancing your their home, saving money on mortgage payments puts you financially ahead. Here are tips to cut your mortgage costs: 1. Shop around. To get the best rate, shop around. Lenders frequently discount the posted rate if you ask, sometimes by a quarter or one-half of a percentage point. Even a small difference in the rate will make a big difference in… Read more