I’m beyond grateful to each client who trusted me to guide them through the mortgage process. Every review is a reminder of why I do what I do – making the journey smoother, clearer, and maybe even adding a laugh along the way.
Huge thanks to all of you for the trust, feedback, and stars. Here’s to keeping up the five-star service (and hopefully the dad jokes)! 🏡💫

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With another big announcement from the federal government that will impact housing supply, mortgages, and homeowners, I wanted to give you an updated breakdown so you are informed with your clients. Here’s a quick rundown, with more details to come as they roll out:

Refinancing for Secondary Suites Effective January 15, 2025:

• Homeowners will be able to refinance up to 90% of their home’s value (capped at $2 million) with default-insured mortgages to build secondary suites. This aims to increase rental options in high-demand areas and help homeowners manage rising mortgage costs.

Key Highlights:

• Max LTV up to 90% of the “as improved” property value.
• Amortization up to 30 years for easier payments.
• Up to 4 units allowed, including the main home.
• Self-Contained Suites – each must have its own entrance, kitchen, and bathroom.
• Long-term Rentals Only – No short-term rentals like Airbnb.

New Mortgage Rules Effective December 15, 2024:

• 30-Year Amortizations: Available for all buyers of new builds to increase purchasing power and reduce monthly payments.
• Higher Insured Mortgage Cap: Increasing to $1.5M (up from $1M), making it easier to qualify with less than 20% down. For example, a $1.5M purchase now requires a $125K down payment, compared to $300K under current rules.

Other Key Updates:

• Easier Mortgage Switches: Starting November 21, 2024, insured mortgage holders can switch lenders at renewal without needing a new stress test, potentially unlocking better rates.
• Tax on Vacant Land: The government is exploring taxes on vacant land to encourage more development.
• New Development Sites: 14 more federal properties are available for housing projects, totaling 70 sites.
• New Renters’ and Home Buyers’ Bills of Rights: Aiming for stronger protections and plans to deliver 4 million new homes.

These changes could open up more opportunities for rental units and new development projects.

It’s all part of the largest housing plan in Canadian history, making homeownership more attainable for everyone. Stay tuned for more updates as they roll in!

In the meantime, if you or your clients have any questions, please don’t hesitate to give me a call.

Be well and talk again soon.

In case you missed it….earlier today the Bank of Canada cut its key interest rate by 0.50%, bringing it to 3.75% after a series of smaller cuts in recent months. This larger cut was due to slower-than-expected GDP growth and weak inflation reports. While the rate is still considered restrictive, it is expected to stimulate growth and ease inflation concerns.

The Bank predicts that the policy rate could fall to 2.50% by next spring, with another possible rate cut in December if weak economic data continues. There is concern that lower rates could reignite the housing market, which is expected to rebound as rates decline. Mortgage rates are also dropping, and this is likely to lead to increased housing demand and rising home prices, although supply challenges like zoning and labor shortages may limit new construction.

What this means for Variable Rate Mortgage holders:

• For every $100K borrowed, you’ll save about $28 a month. For a $400K mortgage, that’s around $112 in monthly savings.
• In combination with the previous 3 reductions, you’ll be saving $72 a mount. For a mortgage of $400K, that’s around $288 in monthly savings

Key Points:

• Adjustable Rate Mortgage (ARM Variable): Your payments should automatically adjust in the next lender cycle. If not, give your lender (or me) a call to confirm.
• Traditional Variable Interest Rate Mortgage (VIRM Variable): Contact your lender to adjust your payment. If you’re with one of the big banks, you’re likely in a VIRM, and action on your part will be needed.
• Fixed Mortgage: No change for you
• Looking to Buy: This positive market news might bring sellers and buyers back, potentially driving prices up. If you’re in the market to buy, reach out to update your numbers and budget so you can act quickly and wisely.

The next BoC announcement is scheduled for December 11^th and it is expected that we will see another 25-50bps reduction.

If you have any questions or would like to discuss your specific situation, please don’t hesitate to reach out.

Be well and talk again soon,

With the deadline for self-employed tax filing less than a month away, let’s take a moment to discuss how I can help you leverage the equity in your home to save money.

1. Pay the CRA for any taxes owed to avoid costly penalties and fees.
2. Repayment of the Canada Emergency Business Account (CEBA) loan to take advantage of the $20K in partial loan forgiveness being offered by the Canadian government. (forgiveness = free money)
3. Improve cash flow through debt consolidation while freeing up funds for future investment and growth opportunities.
4. Protect your investment portfolio by avoiding the costly tax implications of “cashing out”.

At first glance you may be opposed to changing your mortgage as you think you are saving money but you may be surprised. Let me run the numbers showing you how I can save you thousands of dollars compared to the lost value and cost of cashing out investments, or compared to the other high interest products you are using.

I’m here to help, so please don’t hesitate to give me a call for a no-obligation review or to answer your questions.

Be well and talk again soon.

Trevor

When it comes time to select the frequency of your mortgage payment there are several factors to consider which will determine what option is right for you. When making that decision, here are a few things to remember.

1. Select a payment frequency that best aligns to your household budget and lifestyle.
   • If you’re used to paying monthly (ex: rent) then a monthly schedule could be best for you.
   • If you are paid bi-weekly, matching your mortgage payment may help with budgeting and cash flow.
2. Monthly, Semi-Monthly, Bi-Weekly, and Weekly all pay the mortgage down at the same rate. Despite what you may have heard, there is no interest advantage compared to each another.
3. If your intention is to pay your mortgage off faster, there are two options.
   • Utilize the lender’s Prepayment Program while keeping your monthly payments low; Frequent or lump some payments are applied directly to the principle.
   • Increase your regular payment’s using accelerated bi-weekly or accelerated weekly options; Payments are increased to a higher locked in amount where you are making an additional 1 months worth of payments over the course of the year, evenly spread throughout the year.

In the end, it all comes down to personal preference and how you manage your household budgeting. There is no wrong choice.

If you have questions about mortgages or would like to discuss payment options in more detail, please don’t hesitate to reach out for a no-obligation review. I’m here to help.

Be well and talk again soon.

Trevor

Prior to becoming a licensed mortgage agent, I was in the same camp as most in asking, “Why do I need additional mortgage coverage?” Not only did I have great coverage through work, but my wife and I had also purchased a term insurance plan as secondary coverage when we got married. We were covered, right? Well guess what…live happens.

Here we are…10-Years later…2 kids…4 moves…job relocations and career changes…finally our dream house…and now, a global pandemic. Exactly how we
planned it out over a decade ago, right. Ok, so not quite.

Job changes triggered coverage gaps and our expanded family (and mortgage) meant we no longer had sufficient insurance.

As a member of your financial team, I have a responsibility to ensure that your largest single asset is protected for the future. Although you may have coverage through your workplace or privately, the above is a personal example of how mortgage protection can help fill the gaps to help protect you and your family in case the unexpected happens.

What are the two types of Mortgage Insurance?

• Life Insurance – Pays off the mortgage if one of the mortgage holder passes
  • Most work insurance plans cover less than 2x salary
  • Work insurance acts as short-term Income Replacement vs. Mortgage Insurance which is long-term Debt Elimination
  • Immediate coverage is available
  • Mortgage payments are paid while claim is being settled (no delays)
  • 1-in-5 households would face immediate financial uncertainty if primary wage earner suddenly passed
• Disability Insurance – If you suffer a serious injury or illness and are unable to work, mortgage payments (and property tax) will be covered
  • Disabilities can include both physical and mental health issues
  • More common than you might think as 1-in-3 Canadians will be disabled for 90 days or more before age 65
  • 56% of Canadians on disability leave returned to work early due to financial reasons
  • Includes Terminal Illness coverage which will pay your mortgage so you can focus on self care

Why choose coverage through your Mortgage Agent?

1. The coverage I arrange for you moves with you whether you change properties or switch banks – this is unique as bank or solicitor offered coverage is tied to the mortgage only
2. Coverage isn’t dependent on your place of employment or status (ex: layoffs, furlough, Covid disruptions)
3. Work insurance is often not sufficient coverage – Mortgage Insurance is a great way to top-up existing coverage to protect your family
4. No Risk Coverage – 60-Day money-back guarantee if you change your mind

No one enjoys talking about insurance but it is an important component of your overall financial plan. Make sure you have the right Life and Disability Insurance to cover your mortgage payments and help protect the people you love.

Give me a call or drop me an email for a no-obligation mortgage review – and if you have family or friends that could benefit from these services, I will welcome the introduction.

Be well and talk again soon,

Whether you have grand plans for the upcoming year or are comfortable in your daily routine, it’s always a good idea to take a few moments throughout the year to take stock of your financial needs and goals. With the start of a new year there is no better time than now to do a quick financial health assessment.

As home ownership often represents your largest single asset, it is important to look at this investment as part of this process. Even if you have no intention of selling or are mortgage free, in today’s market of low interest rates and competitive mortgage products there is opportunity to leverage your hard-earned equity to improve your lifestyle, reduce financial stress, or focus on building long-term wealth.

With a booming real estate market we’ve seen the average home price go up significantly over the last 6+ months.  This is being driven by a shift in market timing due to Covid, a swing in supply vs. demand, as well as record low interest rates. Currently, there are quality mortgage products in the market going as low as 0.99%* for a purchase and 1.29%* on a refinance. What this means for you is smaller monthly payments and/or the ability to unlock more equity in your home.

I am a licensed mortgage professional that works for you – not the banks – and I will provide you with unbiased professional advice that is customized to fit your needs.

If you, or someone you know answers yes to any of the below questions – we should talk.

1. Are you a First Time Home Buyer and not sure where to start?
2. Are you thinking/planning on buying a new home this year?
3. Is your current interest rate >2.49%?
4. Would you like to improve your monthly cash flow?
5. Are you struggling to manage your debt load?
6. Do you have any major purchases coming up such as a renovation or vacation home?
7. Is your mortgage up for renewal within the next 12 months?
8. Do you have a bruised credit rating?

Give me a call or drop me an email for a no-obligation review – and if you have family or friends that could benefit from these services, I will welcome the introduction.

Be well and talk again soon.

*January – 2020 – For qualified buyers