Canadian Mortgages, Insurance, Investment, Tax Planning

CRA Media Room

Revenu Québec - Tax News

XE Forex News

Canadian Mortgage Broker news

Thursday, May 27, 2010

Canadian Mortgage Broker News - RBC: Strong household price increases have hurt housing affordability across Canada.

Canadian Mortgage Broker News - RBC: Strong household price increases have hurt housing affordability across Canada.

RBC: Strong household price increases have hurt housing affordability across Canada.

| Wednesday, 26 May 2010


Strong household price increases have hurt housing affordability across Canada.

"Canada's housing markets started 2010 the same way they ended 2009: firing on all cylinders," a report from RBC concludes.


RBC affordability measures rose for the third straight quarter, increasing between 0.4 and 0.9 per centage points depending on the housing type. The bank's measures are above their long-term average, but still significantly less than the peaks reached in 2008. According to RBC, this suggests that homeownership costs are starting to pinch typical Canadian households, but not "dangerously so at this stage."


Alberta was the only province that registered affordability improvements in the first quarter. British Columbia experienced, by far, the sharpest deterioration. Saskatchewan and Manitoba also registered strong deterioration while affordability decreased more modestly in Ontario, Quebec and Atlantic Canada.


"Looking ahead, further erosion in affordability is likely to take place in Canada in the coming 12 to 18 months. The main cause will be an anticipated rise in interest rates, which are currently at exceptionally low and clearly unsustainable levels."

However, housing affordability isn't expected to exceed peak levels as supply (in both existing and new home markets) is responding to strong demand and local markets are heading towards balanced conditions.

RBC also expects demand for housing to cool during the latter half of 2010 citing that the pent-up demand of recent months has probably already ceased to be a factor.

Canadian Mortgage Broker News - New OECD report on the state of Canada released

Canadian Mortgage Broker News - New OECD report on the state of Canada released

New OECD report on the state of Canada released

| Wednesday, 26 May 2010


The Canadian economy is bouncing back forcefully thanks to a rebounding trade sector and policy measures, the Organization for Economic Co-Operation and Development (OECD) said in a report released today.


The OECD predicts the pace of recovery will be moderate going forward as policy stimulus is withdrawn, inventory rebuilding runs dry and households deleverage. Unemployment is expected to decrease but the high rate of household debt may be a risk to the outlook, the organization warns.


"The Bank of Canada should start normalizing its policy rate without delay and tighten gradually throughout the projection period. Governments should let remaining temporary stimulus measures expire to avoid over-stimulating the economy as it recovers on its own," the report said.


The organization recommends "fleshing out" fiscal consolidation plans and focusing on spending reductions.


The Paris-based organization forecasts the unemployment rate will fall to just below 8 per cent this year and 7.2 per cent next year.

Canadian Mortgage Broker News - $225 million to build social housing in BC

Canadian Mortgage Broker News - $225 million to build social housing in BC

$225 million to build social housing in BC

| Wednesday, 26 May 2010


The British Columbian provincial government, in conjunction with a private foundation, will provide $225 million to build eight social housing sites on city-owned land, Premier Gordon Campbell has announced.


The eight sites are in addition to six announced previously by the BC government and are expected to be built within 18 months. The value of the land is $64 million.


"These housing units are critically important as we break the cycle of homelessness because they create a sense of stability for the people who live in them," Campbell said.


For the eight most recent developments, the province will provide $205 million and the Streettohome Foundation agreed to add another $20 million.


Together, the 14 sites will provide 1,575 apartments managed by non-profit agencies. Tenants will have access to health care, mental health services, addiction counseling as well as education and job training.


The first building to open will be an 80-unit complex slated for February.

Frequently Asked Questions - The Employment Insurance Measure for Self-Employed People (Bill C-56)

Frequently Asked Questions - The Employment Insurance Measure for Self-Employed People (Bill C-56)


Frequently Asked Questions - The Employment Insurance Measure for Self-Employed People (Bill C-56)

  1. What is the Employment Insurance (EI) Measure for Self-Employed People?
  2. What are EI special benefits?
  3. Is this measure mandatory for self-employed people?
  4. Who can participate in this new measure?
  5. How can I participate?
  6. Who is considered to be a self-employed person under this measure?
  7. If I am self-employed in Quebec, can I benefit from this new measure?
  8. Am I eligible to participate in this measure if I am self-employed and if I also work as an employee receiving insurable earnings?
  9. When can I enter into an agreement with the Commission to participate in the EI Measure for Self-Employed People?
  10. How do I enter into an agreement with the Commission to participate in the EI Measure for Self-Employed People?
  11. How long does my agreement with the Commission to participate in the EI Measure for Self-Employed People last?
  12. How do I use My Service Canada Account?
  13. Will I receive confirmation that I have entered into an agreement?
  14. Once I enter into an agreement, how long do I have to wait before I can apply for EI special benefits?
  15. What happens if I enter into an agreement to participate in the EI Measure for Self-Employed People and then later decide that it is not appropriate for me?
  16. How do I terminate my agreement?
  17. Once I terminate my agreement, when does my participation end?
  18. If I terminate my agreement, do I receive a refund of any of the EI premiums I have paid?
  19. Do I receive any confirmation when I terminate my agreement?
  20. What if, after I terminate my agreement, I need to apply for EI special benefits?
  21. Can I terminate my agreement after I have received EI special benefits?
  22. What are the conditions I have to meet to qualify for EI special benefits?
  23. When do I experience an interruption of earnings as a self-employed person?
  24. How do I apply for EI special benefits?
  25. Will I have to provide any evidence of the reason for the interruption of earnings?
  26. If I qualify for EI special benefits, how much money will I receive every week?
  27. What are my average weekly earnings?
  28. What proof do I need of my earnings?
  29. Will I have to serve a waiting period to receive EI special benefits?
  30. Can I continue working part-time while receiving special benefits?
  31. If my business continues to generate income while I am receiving EI benefits, how will this affect me?
  32. What are EI regular benefits, and can I also qualify for them?
  33. Once I register for the EI Measure for Self-Employed People, when do I start paying EI premiums?
  34. How will the Canada Revenue Agency (CRA) calculate my EI premiums?
  35. What is the 2010 EI premium rate?
  36. Will I have to pay the employer’s portion of the EI premium?

1. What is the Employment Insurance (EI) Measure for Self-Employed People?

The new EI Measure for Self-Employed People extends access to EI special benefits to self-employed people on a voluntary basis.

2. What are EI special benefits?

There are four types of EI special benefits:

  • maternity benefits, which are available to birth mothers only and cover the period surrounding the child's birth (maximum of 15 weeks);

  • parental benefits, which are available to biological or adoptive parents while they are caring for newborn or newly adopted children—these benefits may be taken by either parent or shared between them (maximum of 35 weeks);

  • sickness benefits, which may be paid to a person who is unable to work because of illness, injury, or quarantine (maximum of 15 weeks); and

  • compassionate care benefits, which may be paid to a person who has to be away from work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death (maximum of 6 weeks).

For more information on EI special benefits, visit the Employment Insurance Web page.

3. Is this measure mandatory for self-employed people?

No. Participation in the EI Measure for Self-Employed People is voluntary.

4. Who can participate in this new measure?

You can participate if you are:

  • self-employed; and
  • a Canadian citizen or a permanent resident.

5. How can I participate?

To participate, you must enter into an agreement with the Canada Employment Insurance Commission (the Commission) through Service Canada.

6. Who is considered to be a self-employed person under this measure?

For the purposes of the EI Measure for Self-Employed People, a self-employed person is someone who:

  • operates his or her own business; or
  • is employed by a corporation but is not eligible to participate in the EI program as an employee because he or she controls more than 40 percent of the voting shares of that corporation.

7. If I am self-employed in Quebec, can I benefit from this new measure?

Currently, if you are a self-employed person in Quebec, you are already covered for maternity and parental benefits through the Quebec Parental Insurance Plan. If you choose to participate in this new measure, you will be eligible to apply for EI sickness and compassionate care benefits.

8. Am I eligible to participate in this measure if I am self-employed and if I also work as an employee receiving insurable earnings?

Yes. If you have registered for the measure, you may choose to apply for EI special benefits either as a self-employed person or as an employee.

Under the new EI Measure for Self-Employed People, we will take into account earnings from both self-employment and employment as an employee when we calculate your benefit amount, as long as your earnings from both sources are eligible. You will need to provide us with a Record of Employment from your employer that shows details of your insurable earnings.

9. When can I enter into an agreement with the Commission to participate in the EI Measure for Self-Employed People?

If you are a self-employed Canadian, you will be able to enter into an agreement with the Commission through Service Canada starting on January 31, 2010.

If you enter into an agreement between January 31, 2010 and April 1, 2010, you will be able to make a claim for EI special benefits as early as January 2011. This is a special start-up measure. However, if you enter into an agreement with the Commission after April 1, 2010 , you will have to wait 12 months from the date of your agreement before you will be able to make a claim for EI special benefits.

10. How do I enter into an agreement with the Commission to participate in the EI Measure for Self-Employed People?

To enter into an agreement with the Commission, you will have to register online using My Service Canada Account anywhere you can access the Internet, including at a Service Canada Centre near you.

By entering into this agreement, you will confirm your interest in participating in this measure and in paying EI premiums on your self-employment income.

11. How long does my agreement with the Commission to participate in the EI Measure for Self-Employed People last?

Once you enter into the agreement, you will have 60 days to reconsider your decision. If you choose to withdraw from the EI Measure for Self-Employed People within this 60-day period, you will not have to pay any premiums.

Once the 60-day grace period has elapsed, your participation lasts indefinitely, unless you terminate it.

However, please keep in mind that you can only terminate your agreement if you have never received EI special benefits as a self-employed person. If you have received benefits, you cannot terminate your agreement. In other words, after you receive EI special benefits, you have to continue to pay EI premiums on your self-employment income for the entire duration of your self-employment career, regardless of any change in the nature of your self-employment.

12. How do I use My Service Canada Account?

Instructions on how to use My Service Canada Account are available on the Service Canada Web site.

Please note that if you have previously used My Service Canada Account, you can register using your existing user code and password.

If you have not previously used My Service Canada Account, you can apply at any time for a personal access code on the My Service Canada Account Web page. Once you apply, it will take about 10 days to receive your personal access code in the mail.

13. Will I receive confirmation that I have entered into an agreement?

Yes. After you enter into the agreement, you will receive a confirmation number that you should keep for your records. In addition, you will later receive a letter in the mail confirming your registration.

Once the 60-day grace period has elapsed, your participation lasts indefinitely, unless you terminate it.

However, please keep in mind that you can only terminate your agreement if you have never received EI special benefits as a self-employed person. If you have received benefits, you cannot terminate your agreement. In other words, after you receive EI special benefits, you have to continue to pay EI premiums on your self-employment income for the entire duration of your self-employment career, regardless of any change in the nature of your self-employment.

14. Once I enter into an agreement, how long do I have to wait before I can apply for EI special benefits?

If you enter into an agreement on or before April 1, 2010, you will be able to apply for EI special benefits as early as January 1, 2011 .

In all other cases, you will have to wait 12 months after the day you enter into an agreement before you will be able to apply for EI special benefits. For example, if you enter into an agreement on June 15, 2010, you will be able to apply for EI special benefits as early as June 15, 2011.

15. What happens if I enter into an agreement to participate in the EI Measure for Self-Employed People and then later decide that it is not appropriate for me?

You can terminate your agreement only if you have not received EI special benefits as a self-employed person. If you have received benefits, you cannot terminate your agreement. In other words, after you receive EI special benefits, you must continue to pay EI premiums on your self-employment income for the entire duration of your self-employed career, regardless of any change in the nature of your self-employment.

Please note that, once you register, you will have 60 days to reconsider your decision. If you choose to withdraw from the EI measure for Self-Employed People within this 60-day period, you will not have to pay any premiums.

16. How do I terminate my agreement?

To terminate your agreement to participate in the EI Measure for Self-Employed People, you must notify the Commission by filing a notice of termination online using My Service Canada Account anywhere you can access the Internet, including at a Service Canada Centre near you.

17. Once I terminate my agreement, when does my participation end?

Your participation in the EI Measure for Self-Employed People will end on December 31 of the year in which you file the notice of termination.

This means that, regardless of the date you file the notice of termination, you must pay EI premiums on your self-employment income for the entire calendar year. For example, if you terminate your agreement on April 20, 2011 , you must continue to pay EI premiums until December 31, 2011 . Your access to EI special benefits will continue until the end of the year in which you terminate your agreement.

However, if you submit a claim for EI special benefits before the end of the year in which you filed your notice of termination, your notice of termination will automatically be withdrawn and you will have to continue to pay EI premiums on your self-employment income for the entire duration of your self-employed career, regardless of any change in the nature of your self-employment.

For example, if you file a notice of termination on April 20, 2011 , and you then become sick and you apply for and receive EI sickness benefits in September 2011, your agreement will not terminate on December 31, 2011 . Your participation in the measure will continue for the duration of your self-employed career.

18. If I terminate my agreement, do I receive a refund of any of the EI premiums I have paid?

If you terminate your agreement, you must still pay EI premiums on your self-employment income for the entire calendar year in which you terminate the agreement. You will not receive a refund of any EI premiums.

19. Do I receive any confirmation when I terminate my agreement?

When you terminate your agreement using My Service Canada Account, you will receive a confirmation number that you should keep for your records. Later, you will receive a letter confirming the termination.

20. What if, after I terminate my agreement, I need to apply for EI special benefits?

After you terminate your agreement, you are still eligible to apply for EI special benefits for the rest of the calendar year in which you terminate it. However, if you have not applied for benefits before that year is over, you will need to enter into a new agreement to participate in this measure, and you will have to wait 12 months before you will be eligible to apply for EI special benefits.

21. Can I terminate my agreement after I have received EI special benefits?

No. If you have received EI special benefits as a self-employed person, you cannot terminate your agreement. Your agreement will last indefinitely, and EI premiums will always be payable on your self-employment income. In other words, after you receive EI special benefits, you have to continue to pay EI premiums on your self-employment income for the entire duration of your self-employed career, regardless of any change in the nature of your self-employment.

22. What are the conditions I have to meet to qualify for EI special benefits?

You must meet the following conditions to qualify for EI special benefits:

  • your agreement to participate in the EI Measure for Self-Employed People must still be valid (that is, not terminated); and
  • you must have experienced an interruption of earnings because of:
    • the birth of a child;
    • the need to provide care to your newborn or adopted child or children;
    • illness, injury, or quarantine; or
    • the need to provide care to a gravely ill relative; and
  • you must have earned a minimum specified amount of self-employment earnings during the calendar year before the year you submit an EI claim (for claims filed in 2011, the minimum amount of 2010 income is $6,000).

23. When do I experience an interruption of earnings as a self-employed person?

As a self-employed person, you experience an interruption of earnings at the beginning of the week during which you have reduced the time you usually devote to your business by more than 40 percent as a result of illness, injury, quarantine, pregnancy, the need to care for newborn or newly adopted children, or the need to provide care or support to a family member.

For example, if you adopt a child and you reduce your usual 40-hour work week to 10 hours per week, you have reduced the time you devote to your business by 75 percent. In this case, therefore, you would experience an interruption of earnings.

24. How do I apply for EI special benefits?

To apply for EI special benefits, you must complete an EI application form on the Service Canada Web.

To do so, you can apply on the Internet from home, at any Service Canada Centre using one of the many Internet kiosks available, or at a public Internet access site in your community, such as your public library.

25. Will I have to provide any evidence of the reason for the interruption of earnings?

Yes. When you experience an interruption of earnings because of illness, injury, or quarantine or to provide care to a gravely ill relative, you will have to provide a medical certificate.

26. If I qualify for EI special benefits, how much money will I receive every week?

For those who are self-employed, the weekly benefit amount is 55 percent of the average weekly earnings from the calendar year before the year you submit an EI claim, up to a yearly maximum amount. For 2010, this maximum amount is $43 200, and the maximum weekly EI benefit amount is $457.

27. What are my average weekly earnings?

Your average weekly earnings are your total self-employment earnings for the previous calendar year, divided by 52. Total self-employment earnings are your self-employment income minus any losses, as calculated according to the Income Tax Act.

If you are a shareholder of a corporation and you control more than 40 percent of that corporation's voting shares, your average weekly earnings are what would have been your total insurable earnings from that employment if the earnings were insurable, divided by 52. Insurable earnings include most of the types of compensation that employers provide to their employees.

Your earnings from insurable employment (earnings as an employee) may also be used to calculate your average weekly earnings.

28. What proof do I need of my earnings?

If you have already filed your income tax and benefit return for the year before the year you submit an EI claim, we will obtain the amount of your self-employment earnings from the Canada Revenue Agency.

If you have not filed your income tax and benefit return for the year before the year you submit an EI claim, we will ask you to provide an estimate of your income from self-employment. We will calculate your benefit amount based on the estimate you provide, and we will make any necessary adjustments after you file your income tax and benefit return.

Please note that if your estimate is higher than your actual income, you may have to repay EI benefits.

If you also have earnings from insured employment as an employee, we will require a Record of Employment from your employer.

29. Will I have to serve a waiting period to receive EI special benefits?

Yes, there is a two-week waiting period. You will not receive any EI special benefits during this waiting period.

In some cases, such as when parental or compassionate care benefits are shared, only one waiting period needs to be served.

30. Can I continue working part-time while receiving special benefits?

Yes, you can work part-time while claiming EI special benefits, but you will have to declare any earnings you have from this part-time work on your bi-weekly EI reports (you will have to submit EI reports every two weeks during the period your EI claim is active to show you are still entitled to receive EI benefits).

  • If you are claiming sickness or maternity benefits, we will deduct any part-time earnings from your benefits on a dollar-for-dollar basis.
  • If you are claiming parental or compassionate care benefits, you can earn either a maximum of 25 percent of your weekly benefit (if your weekly benefit amount is $200 or more) or a maximum of $50 (if your weekly benefit amount is less than $200) without changing the amount of EI benefits you receive for that week. We will deduct any money you earn above that amount from your benefits on a dollar-for-dollar basis.

Keep in mind that you must always declare all your earnings.

31. If my business continues to generate income while I am receiving EI benefits, how will this affect me?

Any income your business generates for you while you are receiving EI benefits can reduce your EI benefit amount.

32. What are EI regular benefits, and can I also qualify for them?

EI regular benefits are benefits available to employees when they lose their jobs through no fault of their own and are available for and able to work, but cannot find a job.

Self-employed people cannot access EI regular benefits based on their self-employment. EI regular benefits are only available to employees who have earned insurable earnings and who meet the eligibility criteria.

33. Once I register for the EI Measure for Self-Employed People, when do I start paying EI premiums?

Beginning in the year you register to participate in the measure, your EI premiums will be calculated on your income tax and benefit return for that year. For example, if you register in 2010 to participate in this program, premiums for 2010 will be calculated on your 2010 income tax and benefit return and will be payable by April 30, 2011 .

Subsequently, if you pay your income tax by instalment, EI premiums may be included in your instalment payments .

When you register for the measure, EI premiums will be payable on your self-employment income for the entire year, regardless of the date you register. For example, whether you register in April 2010 or December 2010, you will pay EI premiums on your self-employment income for the entire year of 2010.

Please note that, once you register, you will have 60 days to reconsider your decision. If you choose to withdraw from the EI Measure for Self-Employed People within this 60-day period, you will not have to pay any premiums.

34. How will the Canada Revenue Agency (CRA) calculate my EI premiums?

The CRA will calculate your EI premiums based on your net self-employment earnings, as calculated under the Income Tax Act.

If you are a shareholder of a corporation and you control more than 40 percent of that corporation's voting shares, the CRA will calculate your EI premiums based on the amount of what would have been your insurable earnings from that employment if the earnings had been insurable. Insurable earnings include most of the types of compensation that employers provide to their employees.

35. What is the 2010 EI premium rate?

EI premiums are payable on the amount of your earnings from self-employment, up to an annual maximum amount. The annual maximum amount for 2010 is $43 200.

The 2010 EI premium rate for self-employed people is $1.73 per $100 of earnings, which is the same rate that employees pay. This means that the maximum EI premium you can pay for the 2010 calendar year is $747.36.

Since Quebec has its own parental benefits program, the Quebec Parental Insurance Plan, the 2010 EI premium rate for self-employed people in Quebec is $1.36 per $100 of earnings. In Quebec, the maximum EI premium you can pay for the 2010 calendar year is $587.52.

36. Will I have to pay the employer’s portion of the EI premium?

No. You will not have to pay the employer's portion of the EI premium.

Tuesday, May 25, 2010

Canadian Mortgage Broker News - Loonie drops to seven-month low

Canadian Mortgage Broker News - Loonie drops to seven-month low


Loonie drops to seven-month low

| Tuesday, 25 May 2010


The Canadian dollar has fallen to the lowest level since October, sitting at 92.40 cents after global markets fell on concerns over European debt crisis and uncertainty in Asia.


This latest downturn in the markets show concerns over the solvency of Spanish banks and the growing tensions between North and South Korea.

Questions are being raised as to whether the Bank of Canada will raise interest rates next month as concerned Canadians still worry about Europe's debt crisis and the strength of the global recovery.


"With the Spanish headlines, there will be further speculation that the Bank of Canada will resist raising rates next week," said Andrew Pyle, associate portfolio manager at Bank of Nova Scotia.


In Canada, the benchmark S&P/TSX composite index fell two per cent in early trading and saw such commodities as crude oil and copper sink, while the Canadian dollar fell to a seven-month low over the long weekend.


Currencies in Australia and New Zealand also weakened as investors moved out of commodity currencies and to what they believe as the safety of the U.S. dollar.

Canadian Mortgage Broker News - Canadian home prices up

Canadian Mortgage Broker News - Canadian home prices up

Canadian home prices up

| Tuesday, 25 May 2010


Owning a home in Canada, except in Alberta, has become even more expensive, according to the latest housing report just release by RBC Economics Research.


The report says the costs of owning a home rose for the third straight quarter across all housing segments in the first quarter of 2010.


"Although home ownership became more costly in the first quarter of 2010, affordability measures are still moderately above the long-term average and below peak levels," said Robert Hogue, RBC senior economist. "We expect affordability to deteriorate throughout 2010 and 2011, but this should be limited as more balanced supply and demand conditions will take much of the steam out of the housing market," he said.


The report projects the cost of owning a home will continue to rise and the main contributing factor is the expected interest rate hike.


In Quebec, housing affordability declined moderately, as well as in Ontario and Atlantic Canada. Alberta is the only province to show a drop home ownership costs.

Mortgage rate as of 25/05/2010

Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.65 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.40 %3.30 %
3 years4.95 %3.75 %
4 years5.74 %4.39 %
5 years6.10 %4.39 %
6 years6.30 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.49 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*





*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Saturday, May 22, 2010

Mortgage rate as of 22/05/2010

Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.65 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.40 %3.30 %
3 years4.95 %3.85 %
4 years5.74 %4.39 %
5 years6.10 %4.39 %
6 years6.30 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.49 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*





*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Friday, May 21, 2010

Mortgage rate as of 21/05/2010

Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.95 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.40 %3.30 %
3 years4.95 %3.85 %
4 years5.74 %4.39 %
5 years6.10 %4.39 %
6 years6.30 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.49 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*





*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Thursday, May 20, 2010

Canadian Mortgage Broker News - Restricted access

Canadian Mortgage Broker News - Restricted access

Restricted access

| Tuesday, 4 May 2010


Self-employed Canadians have always had a harder time getting approved for a mortgage due to a higher-risk borrower profile. As of April 9, getting a mortgage became even more difficult for business-for-self clients due to new CMHC rules that are receiving mixed reviews from the mortgage broker community. The new rules change a number of things. First off, self employed borrowers with more than three years in the same business, as well as commissioned-income borrowers, are now required to provide traditional proof of income (or "third-party validation") to qualify for a loan.

Traditional income validation is available through documents like financial statements, contracts and T4s. The CMHC said the rule changes will ensure that self-employed borrowers with third-party validation will benefit from a lower premium. Those who have recently become selfemployed and don't have third-party validation can still apply for a mortgage, but have to come up with a 10 per cent down payment instead of five per cent. Refinancing will also be cut to 85 per cent loan to value instead of the previous 90 per cent.

The decreased likelihood of approval for recent self-employed borrowers is something Vancouver-based Verico broker Mark Fidgett has a problem with.

"I don't think this was a good decision," said Fidgett, who runs Notapennydown.com. He added that if the new guidelines were actually beneficial, they should have been introduced a long time ago. "It doesn't make sense now."

The CMHC originally came out with a program for self-employed borrowers in March 2007 when it realized the notice of assessment for business owners and entrepreneurs wasn't always a true reflection of their real income.

"When the CMHC came out with this program, they advertised it by saying they understand that small businesses of Canada oil the wheel, that they help float the economy," said Fidgett. "And now they're taking it away. They're saying you can only
use [the program] in year three."
Self-employed borrowers often write off a large portion of their income for tax purposes, but the changes make such actions conflicting for those looking for loans, Fidget added.

"I'm a business owner as well, and we all pay an accountant to write off as much as possible to make our taxable income as low as possible," he said. "Our income tax is low, but on this program now, it's like you need to add everything back."

Private lenders, meanwhile, are out of the scope of the CMHC and could stand to benefit from the new rules. A private lender who wished to remain unnamed confirmed her expectation with CMP that the upcoming changes will bring more potential borrowers pushed away under the new guidelines her way. And while some brokers, such as Fidgett, have openly criticized the move by CMHC, others such as Stephen Gilmour of Dominion Lending Centres Alliances in Oshawa, Ont., were steady in
their praise.

"The more people who default on loans, the worse the market becomes," he said, noting he felt a lot of self-employed people have qualified formortgages when they shouldn't have.

"This provision for self-employed is going to put the right people in the right structure of home."

Gilmour added that the timing of the changes could be due to the struggles that the U.S. housing market continues to face.

"I don't think they made the decision based on the Canadian market - we're fine. Sales are up and listings are down, which is great," said Gilmour. "I just think they're looking at the housing situation in the U.S. and trying to prevent us from having the
same thing here." But not everyone agrees. Fidgett said he finds fault in this reasoning, questioning if the CMHC is "running scared."

"I think it's a gut-wrenched reaction to what's happened in the U.S.," he said. "I wrote on my Twitter that when the U.S.
sneezes, CMHC gets pneumonia." Fidgett said he has already had a couple clients call him in frustration, expecting that they'll no longer be able to get approval. When he called CMHC for an explanation of the rule changes, he said the reason they gave him was that too many people were abusing the system. While some recent changes already passed, such as matching listed salaries for selfemployed with those expected for such a profession in Canada were positive, Fidgett said the latest move was "off the wall" and is hoping that if enough people talk about their displeasure with the changes, the CMHC
might alter its decision.

But for others like Zoltan Padar, the owner of Mortgage Pro Ltd. in Alberta, the rule changes are barely a blip on the radar.

"The CMHC always wanted a certain kind of documentation for self-employed people anyway," Padar said. "Basically, in my mind, there's really no change. The rules and regulations haven't really changed at all." He also doubts the suggestion that private lenders will get more business due to moreself-employed borrowers being shut out.

"Private mortgages are much more expensive," he said. "People aren't going to go for it."

Canadian Mortgage Broker News - Euro hits four-year low

Canadian Mortgage Broker News - Euro hits four-year low

Euro hits four-year low

| Monday, 17 May 2010



Although European stock markets rebounded after last weeks declines, the euro continues to hover near four-year lows against the dollar.


Attention is still centred on the European debt crisis as investors worry that efforts to cut deficits and debt will destroy all growth by withdrawing government stimulus from economies in Greece, Spain and Portugal. These are key export for countries whose finances are more affluent such as France and Germany.


After last week's 750-billion rescue package, European Central Bank president Jean-Claude Trichet told a German newspaper that Europe's economy "is in its most difficult situation since World War II or perhaps even since World War I."


Stocks proved to be resilient though, amid worries that weighed on expectations before the open in Europe, as foreign exchange markets sold off the Euro.


"Before the financial markets opened, we were quite worried that they would drop in Europe....we now see that this tendency is not as harsh as we expected it to be," said Alain Crouzat, head of Paris-based asset management firm Montsegur Finance.


The euro has been the biggest casualty from the debt crisis which was down 0.4 per cent on the day at $1.2306, up earlier from the four year low of $1.2237.


Analysts think the euro will remain under pressure until the markets see rational budgetary actions in place for all indebted countries.

Canadian Mortgage Broker News - RBC poll shows Canadians growing interest in combination mortgages

Canadian Mortgage Broker News - RBC poll shows Canadians growing interest in combination mortgages

RBC poll shows Canadians growing interest in combination mortgages

| Tuesday, 18 May 2010



Combination mortgages are rising in popularity among Canadians, with 40 per cent of those polled in RBC's 17th Annual Homeowners Survey saying if they were to purchase a home within the next couple of years, they would plan on taking out a combination mortgage, higher than the 32 per cent in 2009 who opted for combination mortgages.


The growing popularity of combination mortgages, which offer both fixed and floating rate segments, clearly shows that Canadians are trying to take advantage of low interest rates and retain security of a fixed mortgage at the same time.


"Although interest rates are expected to rise, our study shows that not all Canadians intend to automatically opt for a fixed mortgage with a longer term," said Marcia Moffat, head, Home Equity Financing, RBC Royal Bank. "As consumers begin to learn about the benefits of mortgage diversification, we're seeing more homebuyers gain a better comfort level with adding floating rate mortgage options."


According to the poll, fixed-rate mortgages continue to be a common choice for Canadians and are favoured by 44 per cent of potential buyers likely to buy a home within the next two years. In Atlantic Canada, 54 per cent are likely to choose a fixed rate, while 41 per cent of Ontarians are least likely to do so.


Current homeowners were asked about the impact of potential interest rate hikes and 66 per cent said they were concerned, with women being 70 per cent more concerned than then 60 per cent of men asked.

Canadian Mortgage Broker News - April home sales takes dip

Canadian Mortgage Broker News - April home sales takes dip

April home sales takes dip

| Monday, 17 May 2010



Although April was the busiest month on record for Canadian real estate agents, listing almost 100,000 homes, sale numbers continued to dip with buyers stepping away from an increasingly expensive market.


A new monthly record was set with 99,901 homes being put up for sale according to The Canadian Real Estate Association. Many homeowners are hoping to sell in what is being deemed the market's peak, with higher mortgage rates and growing prices discouraging buyers from entering the market.


The number of homes being listed has cooled the market a little as buyers have more choices, allowing them more time before making a purchase.


Seasonally adjusted national home sales slipped 2.6 per cent from March, now 6.8 per cent lower than in December.

Canadian Mortgage Broker News - GTA existing homes sales may break record this year

Canadian Mortgage Broker News - GTA existing homes sales may break record this year

GTA existing homes sales may break record this year

| Thursday, 20 May 2010



A new record will be set with sales of existing homes in the GTA expecting to reach six digits for the first time by the end of 2010, but a report by the CMHC says things will be "quite different" for 2011 as the market edges down.


"The era of rock bottom mortgage rates is coming to an end and the red hot Greater Toronto Area housing market will begin to lose its steam," said Shaun Hildebrand, senior market analyst for the CMHC.


Sales in the GTA are expected to pass the 100,000 mark for the first time to 101,000. In 2007, sales hit $95,000 dollars, the peak of the market.


The CMHC also expects the rise of price appreciation to continue into 2011 which will result in 16 consecutive years of increases. They also forecast that prices will slightly increase by 1.7 per cent at the end of next year.


They also say that prices will probably flat line after 2011 as affordability becomes an issue.


"Five year mortgage rates will be a full percentage point higher by the end of the year. Combining higher rates with the new reality of average prices well above $400,000 will make the transition to homeownership more expensive," said Hildebrand. "The erosion of affordability will cause delay for many first time buyers."

Canadian Mortgage Broker News - CMHC reports seeing rising housing starts over next two years

Canadian Mortgage Broker News - CMHC reports seeing rising housing starts over next two years

CMHC reports seeing rising housing starts over next two years

| Thursday, 20 May 2010


The next two years are expected to see housing starts rise due to demand and strong economic conditions, the CMHC reported in their forecast for new home construction and residential sales.


They expect housing starts of 182,000 units, which is up from 175,000 units in a previous view. In 2010, they are expected to see a range between 166,900 to 199,600.


Next year, the CMHC said it sees housing starts at 179,600 units, ranging between 148,600 to 208,800 units, compared with the forecasting for 2011 of 175,150 units last quarter.


The new government measures for the mortgage market, which took effect in April, will aid in the long-term stability of Canada's housing market, CMHC's chief economist Bob Dugan cited.


According to the rule changes, borrowers are now required to qualify on a five-year fixed-rate mortgage even if they choose a lower-cost variable mortgage. The government also lowered the maximum amounts that can be withdrawn when borrowers refinance their mortgages. A minimum down payment of 20 per cent is also required now for insured mortgages coupled with properties purchased as housing investments that the owner will not occupy.


In 2009 there were 149,081 housing starts.

Canadian Mortgage Broker News - The Canadian dollar continues its downward plunge

Canadian Mortgage Broker News - The Canadian dollar continues its downward plunge

The Canadian dollar continues its downward plunge

| Thursday, 20 May 2010



The loonie, which was worth approximately 94.22 cents US, is now down 1.55 cents from the close on Wednesday.


In little over a week, Canada's dollar has fallen close to four cents and nearly seven cents since last April, when it was worth about $1 dollar US. The fallout from the Greece debt crisis has affected the loonie's recent drop.


There are growing fears that the global economic recovery will be hindered as the European Union continues with their effort to help Greece and other member countries.


This could result in lower demand for commodities which are key to the Canadian economy.

Wednesday, May 12, 2010

Mortgage rate as of 12/05/2010

Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.95 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.55 %3.30 %
3 years5.10 %3.85 %
4 years5.74 %4.39 %
5 years6.10 %4.49 %
6 years6.50 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.49 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*





*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Monday, May 10, 2010

Mortgage rate as of 10/05/2010

Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.95 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.55 %3.30 %
3 years5.10 %3.85 %
4 years5.74 %4.39 %
5 years6.25 %4.54 %
6 years6.50 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.49 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*





*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Friday, May 7, 2010

Mortgage rate as of 07/05/2010

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*


Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.95 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.55 %3.30 %
3 years5.10 %3.85 %
4 years5.74 %4.39 %
5 years6.25 %4.54 %
6 years6.50 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.49 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %



*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Thursday, May 6, 2010

Mortgage rate as of 06/05/2010

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*


Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.75 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.55 %3.30 %
3 years5.10 %3.85 %
4 years5.74 %4.39 %
5 years6.25 %4.54 %
6 years6.50 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.36 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %



*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Credit Auto Montreal - Financement Auto - Pret Auto - Montréal

Credit Auto Montreal - Financement Auto - Pret Auto - Montréal

Tuesday, May 4, 2010

Mortgage rate as of 04/05/2010

Our commitment:
* Negociate on your behalf the best interest rates and loan conditions
* Provide you with a pre-approval service
* Explain to you the range of government programs (Home Buyers Plan, ...)
* Protect your mortgage rate for up to 120 days
* Transfer your mortgage free of charge*


Mortgage product Posted rate Our rate
     
5 years Variable 3.75 %1.75 %
5 years Var Promo PAP2.25 %1.75 %
1 year 4.50 %2.54 %
1 year open6.70 %6.45 %
2 years4.55 %3.30 %
3 years5.10 %3.85 %
4 years5.74 %4.34 %
5 years6.25 %4.54 %
6 years6.50 %5.05 %
7 years7.00 %5.00 %
9 years5.73 %5.43 %
10 years 7.35 %5.36 %
15 years9.55 %9.25 %
18 years9.55 %9.25 %
25 years9.65 %9.35 %



*Some conditions apply, subject to change without prior notice.

Posted by DataTracker Powered by CoolRent

Sunday, May 2, 2010

Soda Stream

Soda Stream