Written by  Morteza (Morty) Sadeghi

Gordon Nixon, chief executive officer of Royal Bank of Canada recently said that, contrary to some opinions, there is no housing bubble in the country and in fact although there were a few pockets of what he called ‘vulnerability’ the overall picture was comfortable.

The Canada Mortgage & Housing Corp. released some more goods news recently when they noted that housing starts rose to their highest level since 2007 last month. Economist Paul Fenton was also at the Bloomberg summit and he said that even though housing prices in Canada might be overvalued by as much as 10%, there was no sense that overbuilding was present.

All this is good news for anyone looking to get into the real estate market and take advantage of the low Toronto mortgage rates. Although some of the nations’ policy advisors like Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty are concerned that Canadians are taking on too much debt, it’s time to weigh in here with an opinion.

One thing that seems to have come out of the recent economic summit was a clear indication that our real estate markets are in fact in good shape here in Toronto and worthy of investment. Even CMHC has reported there is no clear evidence to support the fact that there is a bubble we need to be worried about.

In a recent report, they even mentioned they were keeping an eye on the stressors that affect the housing market including the condominium section that is attracting all the attention right now.

Now seems to be the right time to get into the housing market for the first time or even make a move from one existing location to another. The Toronto mortgage rates available now are the best they’ve been for years and mortgage brokers can help you find the terms that suit you best.

Written by  Morteza (Morty) Sadeghi

One of the things that mortgage brokers toronto do well is make sure their clients are well informed. That’s not just a good practice when these people are thinking about buying a home, it’s also a good idea when they’re in a place but might be considering a future move.

And there’s more to keeping on top of than just the toronto mortgage rates. Of course these are important but the overall picture is something you need to consider as well and that’s why it’s interesting to look at recent reports that show Toronto’s real estate market is still strong while across the country in Vancouver things seem to have tapered off.

The Canadian Real Estate Assoc (CREA.) painted a good picture for the Toronto market last week noting that February to March home sales rose by 2.5 per cent and that’s the best increase since 2010. The average house price in Toronto hit $504,117 and that’s another milestone gain.

On the other side of the coin, things were cooling off in Vancouver mainly because of an unprecedented spree last spring in some upscale neighbourhoods that sent prices through the roof. There were some other trends that came out of the CREA numbers and a drop right across the country of 1.7 percent could be attributed to seasonal fluctuations.

Supply and demand has started to tighten in Toronto and that made it harder to find new listings.

However, when you do find the right home that you want, getting mortgage brokers toronto to work for you finding the best rates and terms can be a real boon. Starting out in the real estate market in a place like Toronto can strap you financially and you can rest assured you’ll be getting the right rates when you use one of these professionals.

Written by  Morteza (Morty) Sadeghi

Of course you’re looking for the best Toronto mortgage rates and that’s what a Toronto mortgage broker will do for you, but you need to understand the requirements that will help you to get the right product. The landscape is constantly changing and that’s why you need a professional to help you get started.

The latest rules that were recently adopted on 19^th April 2010 state that anyone applying now needs to meet the criteria for a five year closed mortgage to qualify for any kind. It doesn’t matter whether your prefer fixed mortgages or a shorter term, the benchmark that has been set is the five year closed mortgage.

The Gross Debt Service Ratio is all about the monthly debt that you have and it’s another way lenders have of deciding if you qualify for a mortgage. The GDS ratio uses a simple formula where gross monthly income is divided by monthly housing costs. Here’s another aspect that your Toronto mortgage brokers can help you with since the ratio should generally be held under 32%.

There are some other aspects that you’ll need to look at that might not be as enjoyable as actually looking for a home but nevertheless are part of the process. For example you’ll need the right amount of a down payment and generally that’s considered to be about 5% of the total price of the home. Remember too that if you’ve got less that 20% of the purchase price, you’ll also need to buy mortgage insurance along with the actual mortgage.

Your Toronto mortgage specialist is there when you need to understand all the requirements that will get you a mortgage. They’ll also help you to get the best rates and products possible. We’re the people that want you to have the smoothest experience possible when it comes to your mortgage.

Written by  Morteza (Morty) Sadeghi

The Toronto mortgage broker industry is watching as the sub prime market starts to grow in the red hot Canadian housing market that's been doing well almost uninterrupted for the last two years. As it becomes more and more attractive to get a mortgage Toronto and get into the real estate game, it also becomes more difficult for many people. There are several reasons and one of the biggest has to do with CMHC and how it tinkered with the qualifications people needed to get  a mortgage a while back.

Tinkering with the rules last year and the year before, the government made the maximum length of a mortgage shorter while increasing the amount needed for a down payment. The result? The very kind of CMHC approved mortgages that were favoured by the bigger banks were harder to come by. It's been estimated that up to 20% of current applications that are being rejected are going to the likes of non traditional lenders. Since they don't usually require the same standards as as traditional lending institution, they are classified as sub prime lenders by Toronto mortgage broker firms.

Other experts in the industry are saying that this segment of Canada's mortgage market is current up to 10% and that's no small potatoes when one considers the entire market was worth $1.1 trillion at the end of last year alone. Still, the notion of the sub prime mortgages do play a legitimate role in any housing market although the one in Canada does deserve some attention since it represents a shift away from more traditional approaches.  

Recent immigrants, self employed people and those with a tarnished credit history have historically had a hard time with traditional lenders and been pushed to get mortgages through these alternative channels. Canada's sub prime market is about the size of the American market in 2004 if you're looking at the numbers proportionally.