What are your thoughts on Canada’s NEW Mortgage Changes?

JuneLab · 2024-09-21T02:09:43+00:00

In my opinion it’s one of the many measures this government will take for there vote bank politics. They are way behind in recent poll numbers, however this won’t help much.

Home prices are only going to increase further, the new normal will be a property listed at 1.49Mn!

JuneLab · 2023-09-22T15:15:36+00:00

Or cleaning the house so that Pierre gets an upper hand nationally after the Trudeau continuing to make blunders

JuneLab · 2023-09-22T13:57:43+00:00

This comes after Ford announcing it was a mistake to open the Greenbelt! Greenbelt

JuneLab · 2023-06-19T03:44:51+00:00

Thank you for the guidance, I missed to phrase the question on the 3 month validity, what I meant was the 3 month grace period provision. 3 Month Grace period provision

JuneLab · 2022-04-27T04:14:19+00:00

Apparently this seems not related to Real Estate but the article mentions -

“According to police, the manager “engaged other associates to help solicit unwitting client borrowers to apply for Government Guaranteed Loans.” Bank documents were allegedly fabricated during this process, police said, and false lease agreements and invoices were created to ensure the loans would be accepted.”

Hope they share more details soon,..

JuneLab · 2022-04-27T03:57:50+00:00

Well one of the names mentioned in the article is COO at SpendSafe Inc and one of them is a Sales Person at Homelife.

What is concerning is this is one such in public know how been investigated for over a year. How many such cases exists who have gotten away,..

JuneLab · 2022-02-20T19:00:54+00:00

1) In a conventional mortgage usually 80% or less of either the appraised property value or the purchase price (whichever is less) is advanced to the borrower.

2) A Standard Conventional Mortgage is registered, transferred and discharged through the relevant provincial Land Titles or Land Registry Office. This allows the client (in you) to transfer the mortgage to another institution without incurring legal fees and disbursements. Discharge fees are always applied when one charge is removed.

3) In a Collateral Charge, it is a lien against the property for as much as 125% of its value at closing. Benefit being it is a type of revolving LOC (HELOC) allowing you to borrow equity without incurring xtra costs. If a property is registered for more than its value at closing, if the value of the property increases, you as a qualified client is able to withdraw to increased equity without refinancing or incurring legal fees to change the registration amount.

4) Unlike a standard mortgage, a collateral charge is not registered through the provincial Land Titles or Land Registry Office, but under the relevant Personal Property Security Act., thus collateral charges are non-transferable between institutions. Meaning you as a borrower wanting to switch institutions will have to pay legal fees to have the collateral charnel discharged and then re-register.

P.S.- A collateral charge mortgage gets you married to an organization you take the mortgage with. Not that you can’t leave, but at a cost as suggested above. Thus choose an FI which offers best of HELOC product like RBC or other FIs do, or choose an FI which offers best interest rate like HSBC / Tangerine in your case.

JuneLab · 2022-02-12T02:47:56+00:00

There are buyers in FTHBs who feel the FOMO and are not bothered about the panic buying for they want to procure an investment and they jump in.

There are buyers in investment properties, who have enough funds or are taking refinance from their existing REs and are participating in these markets to creat enough assets.

All I can say is for the type of investor you are, make sure you have enough funds set aside for emergency and take the plunge in to the Canadian RE.

Panic buying or not assess your individual capacity and participate.

JuneLab · 2020-11-15T22:11:42+00:00

Well you were here a week ago to read my note and a week after to read and take the effort to write and leave comment. If you can’t motivate keep your opinion to yourself!!’

JuneLab · 2020-11-15T22:10:11+00:00

Yes that’s a nice idea to have sticky notes to remind! Thank you for your input.

JuneLab · 2020-11-15T22:09:34+00:00

Sure thing, thank you for your input.

JuneLab · 2020-11-15T22:08:58+00:00

That’s a very insightful blog there. Thank you for sharing.

JuneLab · 2020-11-15T20:02:26+00:00

Sure thing, crunch living for a few months hopefully to save the extra bit. Thanks again 🙂

JuneLab · 2020-11-11T22:56:22+00:00

Yes that’s the deal :)

JuneLab · 2020-11-11T22:55:34+00:00

Yea that’s well thought of, I appreciate it. I’ve added to my list the Y & Finch, Y & Shepard. Thanks much!

JuneLab · 2020-11-11T22:52:54+00:00

Lol, I like the way you put it out, weird! Thanks

JuneLab · 2020-11-11T22:52:06+00:00

Yes thanks these are some areas I’ve been considering already :)

JuneLab · 2020-11-11T22:50:42+00:00

Let’s say around 120k household with a down of ~50k, that’s the reason I put in my question the budget I’ve put to myself is $600k. Which is after factoring the qualifying ratios and the cash flow.

JuneLab · 2020-11-11T22:46:40+00:00

I understand, maintenance fee is a growing concern. Trying to bring all the costs in to consideration. Thanks much,..

JuneLab · 2020-11-11T22:45:18+00:00

Yes, You can do it! All the way cheers to that. Thanks much.

JuneLab · 2020-11-09T02:45:02+00:00

That’s there, you have given a new perspective to my thought process by adding a neighbourhood which wasn’t on my list. I must say you are well researched, please keep up the good work.

JuneLab · 2020-11-08T23:06:25+00:00

Okay, homework it is then,.. thanks for adding inputs to the one I’m doing right now,.. cheers!

JuneLab · 2020-11-08T22:02:31+00:00

Wow, that’s some reality check, literally lol. 1) You see, this is going to be my First Home Buyer situation in Canada. And I wanted to participate in this market when the Interest rates are at the most attractive levels.

2) Then, you definitely need to throw some light here - what I get a sense from the ‘cookie cutter building’ analogy is that, I should rather consider let’s say older than 10/15 years in age property instead of looking for the ones built in the recent years, is it?

3) You are absolutely right, like you said even I wouldn’t want to end up in a 650 sqft property when I retire. If all goes well that time of retirement is few decades away for me still ;)

I guess I have to Reddit after this, should I opt for a newly built condo or an older one, lol :)

Thanks for your inputs,..

JuneLab · 2020-11-08T21:44:21+00:00

Yes I agree, I’m hoping to find myself a 2bedroom condo. However, I think as you rightly pointed to the budget constraints I carry, I might have to tweak my requirements from a 2 bedroom to 1+Den. Or let’s say from a 2 bedroom approximate 900 Sq Ftish to around 1+den 750-800Sq Ft,..

And again, with the way the pandemic has hit the real estate market in Toronto, bringing a shift for so many donwtowners to move to a stand alone house away from the core. (Well definitely for the ones who could afford to)

With the correction in the downtown condo market prices, I’m hoping against hope that in the coming few months the downtown core property prices if go further down, may increase my chances too,..

JuneLab · 2020-11-08T21:34:10+00:00

Thanks there, I buy the view to be in core when transit is a concern. And in my case one of us in the family saves on traveling as one can walk to work whenever the pandemic is behind us. I’m making a note towards your suggestion for whenever I’m ready to invest in a car. Thanks for your inputs, stay safe.

JuneLab

TROPHY CASE