Written by  Omid Jalili

The Royal LePage House Price Survey has just been released and it shows a trend toward rising prices they feel should continue. For the fourth quarter of 2011 last year, the numbers reported that the average price of a new home here in Canada rose between  3.6 and 6.1 per cent.

This evidence comes contrary to calls in the media that Canada’s housing market is continuing to soften. The Royal LePage survey lists low interest rates and a fairly stable national economy as two of the reasons for the continued upward trends in housing.

There’s even further evidence that Canadians remain confident in their real estate investments with the survey showing that a large number of our fellows either entered the market for the first time or moved up to a house that better suited their family’s needs.

Phil Soper, president and chief executive of Royal LePage Real Estate Services explains to Mortgagebrokers.com.

“Widespread calls for a major real estate correction in 2012 simply can’t be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand – albeit at a slower pace.”

There’s more recent indication that the kind of homebuyer that’s signing on the dotted line here in Canada is changing too. A recent Toronto Sun article noted that new Canadians are no longer primarily European based. Those coming from Muslim majority countries grew to 65,684 or almost 25% of the people entering the country and the Philippines , China  and India accounted for another 35% of new arrivals last year alone.

These numbers are significant because they will have a cumulative effect over time and bigger urban centres like Toronto and Vancouver will necessarily see a change in overall real estate buying habits over time.

Written by  Morteza (Morty) Sadeghi

It’s good to keep your head on straight in these tough economic times and listen to the people who know best. Now that may have been your Old World grandparents telling you that you should only buy what you’ve got money for, or the Governor of The Bank of Canada who is telling us we need to pull the reigns of our personal and household debt load back in.

It doesn’t really matter who you look to for this frugal financial advice, it’s best to read between the lines before you sign on the dotted line for one of BMOs No Frills 2.99% mortgages.

Here’s just a few of the reasons you should be cautious about this new product.

Right away there are too many limitations. Remember that the advantage you get when you use a mortgage broker are the best rates and terms through our ability to look through all the offers and conditions for you. Not all lending institutions have your best interests in mind.

First and foremost is the fact one of the bigger clauses that’s designed for the consumer has been taken way with BMOs latest offer—namely the ability to pay lump sums on the mortgage prior to maturity. With this product you can only make a 10% lump sum payment and that’s half of the 20% that more traditional mortgages allow for.

The maximum amortization rate has been lowered as well. This new BMO product only allows for 25 years amortization whereas the option for 30 years has been taken away. That means higher monthly payments plus there’s more than likely less mortgage available for new homebuyers looking to enter markets in places like Toronto or Vancouver where prices are highest. As well you cannot skip or double up on payments.

There’s more. You can’t refinance or go to another lender prior to the maturity date of five years. You can only break your mortgage via a bona fide sale. Statistics show that most Canadians don’t make it that far and refinance or sell after only three years. You’re locked in here and there’s no reason for the BMO to bargain with you for a new and better rate.

Remember the big banks in Canada have a penalty calculation for their mortgages. If you’re refinancing or paying off a mortgage with one of Canada’s big banks, you’ll be hit with astronomical penalties that can be avoided by using the right mortgage broker. Why get involved in a 10 month, 12, 14 OR to maturity interest penalty?

Lastly, with this new BMO  product, the usual 120 days hold is also gone.

Big bank or mortgage broker. It’s clear you shouldn’t be dazzled by BMOs low interest offers before you talk with us for the full picture.

Written by  Omid Jalili

It might seem like a bit of an overstatement but there’s more conclusive proof of what many of us have known for quite some time, that Canadians are financially aware and educated when it comes to their mortgages.

The most recent report from The Canadian Association of Accredited Mortgage Professionals (CAAMP) also  attests to our good relative fortunes with several noteworthy highlights. For example, Canadians are generally in good shape when it comes to their mortgages and they can even withstand the ill effects of another economic downturn if there’s one on the horizon.  Now that might not seem to be such an interesting note until you read that the latest numbers are saying 84% of Canadians could actually withstand a jump in their mortgage of $200 per month.

Remember here that the kind of fiscal prudence that we’re showing now as a nation has a historical precedence that leaves us in such good standing. According to more stats from “Mortgage Insights” that deals with CAAMP’s fall research, many Canadians pay their homes off sooner than the amortization period calls for. The average mortgage here in Canada is in fact paid off seven years sooner than the end of the amortization period calls for. Those trends are continuing in these hard economic times with 36% more mortgage holders making accelerated payments than withdrawing money from their mortgage.

It’s clear by these numbers that Canadians are cautious in these economic times and they are turning to mortgage brokers for trusted advice on how to proceed even with low interest rates. Remember that 38% of people with a mortgage have considered refinancing in the last year to take advantage of these rates.

Written by  Morteza (Morty) Sadeghi

Buying that first home or even looking for a second can be a daunting process unless you’ve got the right mortgage broker on your side. With one of these experts working with you, the best rates and outstanding terms are part of the package. It can be hard to get the right mortgage on your own. Here’s a few things to look for so you can be sure you’re getting the mortgage broker that will meet your needs.

Remember that you’ll be working closely with this expert so you need to be sure they are compatible with your home ownership goals. You can ask for and expect to get a list of past satisfied clients that have used their services or see client testimonials on the company website. Word of mouth travels quickly on the Internet as it’s still one of the best ways to gauge the reputation of the firm you’re considering.

They need to have the numbers at their disposal from a variety of different lenders as well and be working for your interests by using the rates they acquire to get you the best deal. Their industry connections should be explored to make sure they can do a great job.

You also need to talk about any fees or charges up front. Transparency is the key here and you need to be sure everything is above board so that you can look forward to a mutually beneficial relationship with the mortgage broker of your choice. Finally, make sure that any prospects you’re considering are up to date on all the latest online resources.  Researching out the technological IQ of the mortgage broker that you’re considering is a great idea to make sure that you’re getting the most up to date terms possible.