Written by  Omid Jalili

After more than a month of Canada’s major backs undercutting each other to offer low rates to consumers, what’s been dubbed the ‘mortgage wars’ seems to be subsiding according to a top banking executive.

HSBC Bank Canada chief executive officer Lindsay Gordon noted in a recent interview with the Globe and Mail there was a mixed message getting out to consumers for at least the last quarter.

“It was a very interesting quarter in that you had some of the banks professing concern [about the mortgage market] and then basically the next day offering incredibly competitive, low rates,” he recently told the online news source.

Gordon also said the there are signs the market in general is picking up even though there is a general feeling otherwise. With that in mind, Move Smartly, the Toronto Neighbourhoods and Real Estate Blog has come up with list of the best places to look at if you’re thinking about moving in.

Lawrence Park ranks number one on the survey with two top rated schools in the area and a three year increase in house prices of 3%. Lytton Park comes in second on the list with two top schools again but a three year increase in home prices there of 12%. Moore Park is another top choice with the same number of top schools as the other two and an increase of 12% in the house prices there.

There is cause for some caution here however. Reading through the most recent Macleans article on what they’re calling the housing bubble, it’s worth noting that Ben Rabidoux, who runs The Economic Analyst website is saying that we need to be as concerned about how Canadians are burying themselves in debt to keep the housing market going. Food for thought sure, but it’s never been a practice of responsible mortgage brokers to encourage people to spend more than they can afford.  

Written by  Omid Jalili

It could be your first home or you might be a seasoned real estate pro that’s decided to get a Toronto mortgage broker working for you. Either way, you’ll want to make the right choices as far as your money is concerned and that’s why you need to have a good overview of what a mortgage professional can do for you and what these professionals are all about.

It stands to reason that getting the right mortgage broker is about getting the mortgage that’s right for your particular situation. They need to understand what makes your set of statistics unique and that means they need to get the information on your credit rating to help determine what you can afford before they start approaching lenders. Remember that a Toronto mortgage broker will be able to inform you about all the nuts and bolts pertaining to the best rates and terms as well as the other costs that need to be factored in like the lawyer’s fees and the land transfer taxes where applicable.

It’s good to look for and find the Toronto mortgage broker that specializes in the kind of property that you are looking for as well. There’s a good reason for this. Mortgages for the most part tend to be fairly complicated endeavors that have a constantly changing landscape of regulations, new products and even legislations that need to be dealt with on a constant basis.  Having a Toronto mortgage broker that understands and keeps up with all the nuances, whether you’re looking for a condo or a commercial property is important.

Finally, remember to ask to see proof of their past successes. Although the commission is generally paid for by the lending institution you sign on with, it will be your mortgage in the end so you’ll want to be sure you’ve got the best professional working with you.

Written by Omid Jalili

Lots of people want to get into their first home but they don’t really know what they can afford. There’s no shame in that, but you need to have a trusted Toronto mortgage broker on your side so that you can find the right fit between getting a nice place you’ll be proud of and one that won’t break the budget.

Here’s a few tips.

Remember when it comes to your home, your monthly costs shouldn’t be more than 32% to 35% of your gross income. That includes the mortgage, property taxes and heating expenses. This number is called your Gross Debt Service (GDS) and it’s a great number your Toronto mortgage broker can work with.

The size of the down payment that you save will affect the size of the mortgage that you get as well. The bigger the down payment, the less you have to pay back and the smaller your monthly payments. Consider the fact that while there is quite often a minimum for the down payment, that number often varies.

Take a good look at the other costs associated with property that you’re interested in as well. Heating and utility costs are a concern these days as the rates go up for both. Quite often calling a utility company to get an average of the cost of payments will help you to plan out the amount you can afford overall.

Finally, take a good look at the property taxes. Divide any total for the year that you get by twelve and remember to add that number on to the monthly totals of the other payments that you’ll need to make.

Getting a mortgage depends on being able to qualify but you need to do some calculations on your own to make sure you’re not getting in over your head.

Written by  Masoum Jalili

There’s no doubt that when you’re looking for the right mortgage, there are lots of variables you’ll need help with. It’s always good to keep in mind that mortgage brokers are the professionals that have your best interests in mind. They’re looking for the terms that will suit you and not the lending institutions handing over the money for your purchase.

That said, you need to take into account the length of the term that you’ll get as that affects the amount you pay and over what time frame. Your mortgage broker will suggest you ask yourself the following questions so that you can get a good idea on the length of the term that best suits you—they usually run from six months up to ten years.

How long do you plan on staying in the same location? Some people find the home they want right away and settle in while others needs a few ‘stepping stones’ before they get to where they need to be.

A short term mortgage is the best option when you’re planning on selling your home without buying another, but if you’ve got plans to stay where you are and think the rates are a low as they’re going to get, it’s a better idea to lock in for a longer period.

Remember that when you’re a first time home buyer, there are lots of new expenses to get used to and that’s why a longer term mortgage here is also one of the options to consider. You’ll need to budget for a new set of monthly expenses with a new home and having a stable mortgage rate over a long period of time is preferable here.

If you think the current rates are too high, you should look for a shorter term in anticipation of them dropping.