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It is no secret that a lot of people took advantage of the attractive interest rates back in 2020/2021 and locked in extremely low interests with very manageable payments.But what happens when your mortgage term ends?&nbsp;At the end of the term, your mortgage becomes due and payable in full. If you are one of few lucky people to win the lottery or receive a large inheritance, good for you - you can pay off the mortgage in full with no penalty at all (assuming you make the payment on the maturity date).However, for the rest of us - we are left with the only option - renewing the mortgage for another mortgage term. But what happens when the rate you are offered from your current lender is much higher than your existing rate? You might be faced with the so- called Payment Shock: when your existing mortgage payment will be increased drastically and may negatively impact your monthly cash flow.Here is when my expertise comes to shine and I offer valuable advice and options to make the mortgage work for you.<figure id="figure-2wiskpa6frltpzpz8b"><img id="2wiskpa6frltpzpz8b" src="https://cdn.durable.co/blocks/0A8JPaNyp0VxSGzYYGeA2abIyQ2Df3ux6nYnMZUNHnx5ILAAlTNPUrMdFfXSQmTJ.jpg" alt="woman looking at the phone" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: 80% 5%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="80%" data-positiony="5%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/0A8JPaNyp0VxSGzYYGeA2abIyQ2Df3ux6nYnMZUNHnx5ILAAlTNPUrMdFfXSQmTJ.jpg" data-mce-style="aspect-ratio: 16/9; object-position: 80% 5%;"></figure> Did you know that 51% of Canadian homeowners don’t plan on changing lenders when their mortgage comes up for renewal — and 9% weren't even aware that they could switch lenders to get a better rate?&nbsp;Renegotiating your mortgage at renewal time is an excellent way to save money and ensure that you have the best mortgage product for your financial situation.&nbsp;There are 3 options to consider when your mortgage term is ending:1. Renew with the same lender 2. Switch/Transfer to another lender 3. Refinance the mortgage.<h3>What is Mortgage Renewal?</h3>Your mortgage is up for renewal when you approach your maturity date (also known as your renewal date). This is when your current mortgage contract ends and your mortgage lender will then present you with your options to renew the mortgage with them.As the name implies, a mortgage renewal is simply renewing your mortgage with your current lender. But here's the catch: don't just sign on the dotted line without checking out other options first.&nbsp; We're all busy, and it's tempting to just send the form back to your current lender without a second thought. It's quick, it's easy, and it seems like the simplest thing to do. But here's the deal: it could end up costing you a lot more than you realize. That's why it's super important to take a good look at your options. You want to make sure you're getting a really good deal when you renew with your current lender. They might offer you a decent rate, but guess what? You could actually save a ton of money or have a lower payment by switching to a different lender.<h3>What is Mortgage Switch/Transfer?</h3>There is a good chance that you’ll be able to find a lower rate with another lender. This is where you would switch your current mortgage balance and remaining amortization over to another lender. This is also known as a mortgage transfer.A title insurance company such as First Canadian Title (FCT) &nbsp;facilitates the transfer of funds from one lender to the other. The costs are generally picked up by the new lender. For most mortgage switches, the only fee involved is the discharge fee from your current lender. It can range anywhere from $200 to $400 depending on your province.&nbsp; While there are a small number of lenders who will cover the discharge fee, most will not. The fee would get added to the new mortgage, so you shouldn’t have any out of pocket costs at closing. The maximum amortization will be what you have remaining based on years passed on the calendar. For example, if you started with 25 years and five years have passed, then your maximum amortization will be 20 years. If you made use of your prepayment privileges or were on an accelerated biweekly or weekly payment schedule, then your effective amortization would reflect fewer years remaining. You can either go with the lower amortization or you can move it back up based on years passed.&nbsp; On a mortgage switch, you can always reduce your amortization but cannot increase it, nor can you increase your mortgage balance. However, &nbsp;there are some exceptions to this rule depending on your mortgage charge - whether the mortgage was registered as a standard or collateral charge. If you have a HELOC (Home Equity Line of Credit) attached to your mortgage, then your mortgage is most likely a collateral charge. If you have any debts outside your mortgage/HELOC, they can be transferred to the HELOC, and paid out during the mortgage switch.<h3>What is Mortgage Refinance?</h3>Refinancing allows you to replace your existing mortgage agreement with a new agreement – this means you’ll have a new interest rate, term length, and even a longer amortization. If you want to increase your amortization up to 30 years to reduce your payments, or if you are looking to take equity out of the property, then mortgage refinancing would be your best options. While the process is similar to a mortgage switch, it falls into a different pricing category. This means a slightly higher rate may apply.&nbsp; However, if your objective is to have a lower monthly payment and better cash flow - mortgage refinance will help you achieve your goal. Many people decide to refinance for a simple reason: to combine their debts. This means bringing together different debts, like paying for education or renovating a home, into one. Sometimes, you might have debts with high interest rates that make it hard to manage your money. Refinancing helps by combining these debts into one with a lower interest rate and a single, easier-to-manage monthly payment.In conclusion, exploring your options for mortgage renewal is a smart financial move that can help you save money, access equity, and improve your overall financial situation.&nbsp; Take some time to check out different mortgage options and reach out to me ahead of time. That way, I can help you find the right mortgage for what you need now and for the future. If you know anyone whose mortgage is coming up for renewal - feel free to share this blog post with them.If you are ready to discuss your mortgage renewal options, <a data-mce-href="http://www.calendly.com/snezhana" href="http://www.calendly.com/snezhana" data-mce-selected="inline-boundary">click here to book a call with me.</a>

Navigating Your Mortgage Renewal

While all the eyes were on the Bank of Canada, and their expected rate hold, let’s jump to what has been happening to the fixed rates in the last several months.I have seen many clients who are still on the fence and waiting for the “rates to drop” further in order to act and get their feet wet.Here is a real live example of a couple I am working with. I wanted to share their story because it reflects the changes happening in the real estate market, especially when it comes to affording a mortgage.Of course, their names have been changed, and I will call this cute couple Mike and Molly. They have been looking for a home since late Fall, and their strong determination keeps their search for their dream home alive. And now there is some good news for them!Let’s look at some numbers for &nbsp;them to show how affordability in the housing market is changing. Let's compare what they could afford at the end of 2023 to what they can afford in early March 2024.<figure id="figure-q3o8w1n33sltj073kq"><img id="q3o8w1n33sltj073kq" src="https://cdn.durable.co/blocks/23JPec1CL6RkWMXM3Fn64Kw5xHCokrGOE9fq0mbM4FGmqKNq6gvCZPOv8FbwspTN.jpg" alt="Snezhana looking at the camera with her hands on the closed computer" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/23JPec1CL6RkWMXM3Fn64Kw5xHCokrGOE9fq0mbM4FGmqKNq6gvCZPOv8FbwspTN.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure>In November 2023, with a 3-year fixed-rate mortgage at 6.39% over 25 years, compared to today's 3-year fixed-rate mortgage at 5.14% over the same period, there was a big shift in affordability.Their situation has not changed in both November 2023 &amp; March 2024, and their ballpark figures are:- Down payment: $120,000 - Molly’s Income: $85,000 - Mike’s Income: $62,000 - No debts and excellent credit November 2023:Their budget, inclusive of property taxes, heating costs, and default insurance, allowed for a purchase price of $640,000 with a mortgage balance of $544,840 and a monthly payment of $3,613.22.March 2024:Their budget, inclusive of property taxes, heating costs, and default insurance, would allow for a purchase price of $700,000 with a mortgage balance of $606,520.00 and a monthly payment of $3,593.44.<table style="border-collapse: collapse; width: 100%;" border="1" data-mce-style="border-collapse: collapse; width: 100%;" data-mce-selected="1"><tbody><tr><td style="width: 30%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 30%; border: 1px solid #34495e;">Mortgage Details</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">Nov 2023</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">March 2024</td><td style="width: 10%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 10%; border: 1px solid #34495e;">Difference</td></tr><tr><td style="width: 30%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 30%; border: 1px solid #34495e;">Subject Property Value</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$640,000</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$700,000</td><td style="width: 10%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 10%; border: 1px solid #34495e;">$60,000</td></tr><tr><td style="width: 30%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 30%; border: 1px solid #34495e;">Mortgage Amount</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$530,000</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$590,000</td><td style="width: 10%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 10%; border: 1px solid #34495e;">$60,000</td></tr><tr><td style="width: 30%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 30%; border: 1px solid #34495e;">Insurance Premium Amount</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$14,840</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$16,520</td><td style="width: 10%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 10%; border: 1px solid #34495e;">$1,680</td></tr><tr><td style="width: 30%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 30%; border: 1px solid #34495e;">Requested Loan Amount</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$544,840</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$606,520</td><td style="width: 10%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 10%; border: 1px solid #34495e;">$61,680</td></tr><tr><td style="width: 30%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 30%; border: 1px solid #34495e;">Payment</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$3,613.22</td><td style="width: 15%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; border: 1px solid #34495e;">$3,593.44</td><td style="width: 10%; border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 10%; border: 1px solid #34495e;">-$19.78</td></tr><tr><td style="width: 30%; border-color: rgb(52, 73, 94); border-style: solid; background-color: rgb(255, 255, 255); border-width: 1px;" data-mce-style="width: 30%; background-color: #ffffff; border: 1px solid #34495e;">Payment Frequency</td><td style="width: 15%; background-color: rgb(255, 255, 255); border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; background-color: #ffffff; border: 1px solid #34495e;">Monthly</td><td style="width: 15%; background-color: rgb(255, 255, 255); border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 15%; background-color: #ffffff; border: 1px solid #34495e;">Monthly</td><td style="width: 10%; background-color: rgb(255, 255, 255); border-color: rgb(52, 73, 94); border-style: solid; border-width: 1px;" data-mce-style="width: 10%; background-color: #ffffff; border: 1px solid #34495e;"> </td></tr></tbody></table>So, let's break it down. If we compare today's scenario with what it was before, buyers now could swing about $60,000 more in the purchase price. Plus, they'd end up with a lower monthly payment of just under 20 bucks and a bigger mortgage balance, all thanks to the decreased fixed-rate interest.Basically, what this tells us is that the housing market is always shifting. There's no one "perfect" time to buy. If you got pre-approved back in November/December, now's the time to circle back with your mortgage broker. You might be surprised at the numbers.But hey, let's keep things real. This example is just to give you an idea of what's happening in the market. It's not financial advice or a promise of pre-approval.. Remember, rates and terms can change quicker than you can say "sold."If you're thinking about taking the plunge into homeownership, why not shoot me a message? Let's chat about your options, dive into what's going on in the market, and figure out a plan that works for you. Your dream home could be closer than you realize.Book a <a data-mce-href="http://www.calendly.com/snezhana" href="http://www.calendly.com/snezhana">call with me here</a>Snezhana

Your Borrowing Power Might Have Increased Without You Even Knowing It!

Today, the Bank of Canada decided to keep its main interest rate steady at 5.0%. They're worried about prices going up too fast (inflation), even though the Consumer Price Index only rose by 2.9% in January. Here's a summary of what the Bank said:In Canada:- The cost of housing is still high and is the main reason why prices are going up. - Prices for other things are also going up by about 3% to 3.5% each year. - Canada's economy grew a bit more than expected last year, but it's still not doing as well as it could. - People are spending a little more, but businesses aren't investing as much. - More goods are being sold overseas, which is helping the economy. - Not as many people are getting jobs compared to the number of people who want them. -The Bank thinks there's still too much stuff available compared to how much people want to buy. In the world:- The global economy slowed down at the end of last year. - The United States is doing okay, but Europe is struggling. - Prices in the U.S. and Europe are not rising as fast. - Interest rates have gone up a bit, but loans for businesses are becoming cheaper. - Stock markets are doing well. - Oil prices are a bit higher than expected. Looking ahead:The Bank thinks prices will stay high for the first part of this year before coming down a bit. They're worried about prices staying high for too long. High interest rates are causing households to spend less on non-essential items when they renew their mortgages, facing higher monthly payments. As the economy slows down in the first half of this year, the Bank of Canada (BoC) is expected to hint at easing its policies. This could occur at the next meeting on April 10, where policymakers will update economic projections, potentially paving the way for a rate cut in June.If your mortgage is coming up for renewal soon - reach out to us at <a href="mailto:mortgages@snezhana.ca">mortgages@snezhana.ca</a> to discuss your options.

Bank of Canada Rate update - March 6th, 2024

Are you in the process of buying a new home but finding yourself in need of some extra financial support to bridge the gap between selling your current home and purchasing a new one? Bridge financing could be the solution you're looking for. In this guide, we'll walk you through everything you need to know about navigating bridge financing as a homebuyer.<h2>What is Bridge Financing?</h2>If you're in the process of purchasing a home, you might have come across the term "bridge loans" and questioned their purpose and necessity. For first-time homebuyers, bridge loans typically aren't a financial tool to contemplate. However, if you're already a homeowner aiming to sell your current property and purchase another, the possibility of requiring a bridge loan alongside a mortgage becomes relevant, contingent upon your specific circumstances.Bridge financing is a short-term loan that helps homebuyers cover the down payment and closing costs on a new home before selling their current one. It essentially bridges the financial gap between the sale of your old home and the purchase of a new one.Also known as a bridge loan, this temporary loan allows you to purchase and move into your dream home before your current home's closing date.&nbsp;<h3>How Does Bridge Financing Work?</h3>When you secure bridge financing, you can use the equity in your current home as collateral to access funds for the down payment on your new home. Once your current home sells, you can use the proceeds to pay off the bridge loan.Bridge loans are short-term loans, usually ranging from a few days to up to a 90 days, depending on the lender. They typically have higher interest rates compared to traditional loans due to their short-term nature and higher risk for the lender.<h3>Pros and Cons of Bridge Financing</h3>Pros:<ul><li>Provides flexibility in buying a new home before selling the current one</li><li>Allows you to make a stronger offer on a new home without a sale contingency</li><li>You are free to accept the best offer on your home, regardless of closing date</li><li>You can take your time moving into your new home—and even complete some renovations—instead of moving everything in one day</li></ul>Cons:<ul><li>Higher interest rates compared to traditional mortgages</li><li>You must have a firm closing date on the property you’re selling to get a bridge loan from your mortgage provider</li><li>Short repayment terms - up to 3 months (with some exceptions)</li><li>Can be risky if your current home doesn't sell quickly</li></ul><figure id="figure-o188hye18slt64r98u"><img id="o188hye18slt64r98u" src="https://cdn.durable.co/shutterstock/20VfwBgYFCBIJqJPNEf3hvUqgz0OLgE3mxJdQVa4xCzkvSpjvGwaDn0XRxhQLdqc.jpeg" alt="Mortgage concept property. coins are stacked in front of the house puzzles. mortgage and real estate investment. Financial agent complete wooden model of the house with last piece with text mortgage." class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://cdn.durable.co/shutterstock/20VfwBgYFCBIJqJPNEf3hvUqgz0OLgE3mxJdQVa4xCzkvSpjvGwaDn0XRxhQLdqc.jpeg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>How to Qualify for Bridge Financing</h3>If you need a bridge loan, it won't affect your ability to get a mortgage. You don't have to prove your income to qualify for a bridge loan. You just need to have a firm offer from a buyer to purchase the property you're selling. A bridge loan is like an extra loan on top of your regular mortgage - for which you have to prove your income and qualify in a tranditional manner. With the bridge loan, your lender gives you the money you'll eventually get from selling your property to help with the whole process.<h3>Costs associated with Bridge Financing</h3>Bridge loan interest rates are typically higher compared to conventional rates due to their unsecured nature, short-term duration, and the fact that the lender essentially finances the entire house purchase during the bridge loan period. Anticipate interest rates ranging from Prime Rate + 2% to Prime + 4%, translating to approximately 9% to 11% currently. Additionally, some lenders may impose an application fee of around $250.Despite the higher rate, the bridge loan costs could be minimal if you need the bridge loan only for a couple of weeks!<figure id="figure-1ivendlvrlt64rbye"><img id="1ivendlvrlt64rbye" src="https://images.unsplash.com/photo-1502005097973-6a7082348e28?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxN3x8aG9tZSUyMGJ1eWluZ3xlbnwwfHx8fDE3MDkxNDQ5MjR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="home buying" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1502005097973-6a7082348e28?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxN3x8aG9tZSUyMGJ1eWluZ3xlbnwwfHx8fDE3MDkxNDQ5MjR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Final Thoughts</h3>Bridge financing can be a valuable tool for homebuyers who need temporary financial assistance during the transition between homes. It maximize your flexibility when selling and buying your next home.&nbsp;Instead of worrying about lining up your closing dates on the same day, consider bridge financing as an easy and cost-effective way to increase your flexibility when your buy and sell dates don’t overlap.However, NOT not all lenders offer bridge financing. an experienced, independent mortgage broker will have access to several who do.Remember to consult with a financial advisor or mortgage specialist to discuss your specific situation and determine the best course of action for your home buying journey.Feel free to email me at <a href="mailto:mortgages@snezhana.ca" data-mce-selected="inline-boundary" data-mce-href="mailto:mortgages@snezhana.ca">mortgages@snezhana.ca</a> to discuss your mortgage options when selling and buying.

Navigating Bridge Financing: A Guide for Homebuyers

As we bid farewell to 2023 and usher in the new year, let's reflect on the economic landscape of Canada and cast our gaze forward to what economists project for 2024.The previous year showcased Canada's economic resilience through robust job growth and increased investments in its early months. However, as the year concluded, the impact of elevated interest rates became evident, contributing to a slowdown in both business and consumer activities. This deceleration has led to forecasts of subdued growth in the initial half of 2024. Nevertheless, economists anticipate a gradual economic rebound in the latter part of the year.In 2023, the inflation rate commenced at 5.9% and steadily decreased to 3.1% by November (awaiting December's data). Despite the Bank of Canada's expectation that inflation won't reach its 2% target until late 2025, it aims for comfort within the 3% - 2.5% range. The noticeable impact of the Bank of Canada's rate hikes has caused potential buyers to feel excluded from the market, affecting consumer confidence and fostering a 'wait-and-see' approach throughout 2023. Simultaneously, strategic rate adjustments by the Bank of Canada have effectively tempered the housing market's pace, contributing to a gradual slowdown without significantly affecting property values in most regions.Canadians in 2023 also grappled with the reality that historically low interest rates are a thing of the past, with these new normal rates becoming a permanent fixture. While there may be some modest decreases in rates in the upcoming year, many Canadians can no longer postpone their entry into the housing market in hopes of further rate drops.Looking ahead to 2024:Signs are emerging that the tangible effects of the Bank of Canada's rate hikes are taking root. Coupled with the anticipation of inflation dropping below 3%, movements in rates are finally being observed. Anticipated rate cuts from both the Bank of Canada and the US Federal Reserve have prompted a positive response in bond markets, resulting in lowered fixed rates, particularly the 5-year rates. Some insured rates have dropped as much as 1%, fostering competition among lenders. This competition is advantageous for borrowers, particularly first-time home buyers with less than a 20% down payment, as they prepare for the spring market.There's a glimmer of hope for Floating Rate holders (Variable or Adjustable). Most economists and markets predict a potential 100 - 150 bps rate cut to the current policy rate in 2024. However, this transition will likely be gradual, with the Bank of Canada proceeding cautiously, implementing gradual decreases while monitoring inflation and the economy. This will benefit Adjustable Rate holders with reduced mortgage payments and Variable Rate holders seeing a shift towards principal repayment.With housing affordability and supply shortages pressing all levels of government, there will be a continued push for new construction developments aimed at bolstering the housing supply. Although this issue won't be swiftly resolved, it remains a top priority for all levels of government, emphasizing the ongoing need to address the housing shortage.What this means for consumers:Approximately $251 billion in mortgages will come up for renewal in 2024, with another $352 billion worth in 2025. As a result, many Canadians will soon face a significant increase in their monthly mortgage payment, requiring adjustments to their spending. However, with numerous lenders vying for business, working with professionals who have access to multiple lenders is crucial for securing better rates and products. Planning ahead of your renewal allows for adjustments to the family budget to accommodate a certain increase in the monthly mortgage payment.For those dealing with high-interest debt, now is an opportune time to consider refinancing for debt consolidation, especially with declining rates. This provides a chance to manage debt effectively, acting as a "reset button" to get finances back on track and increase monthly cash flow.Lastly, with a growing anticipation that the period of interest rate hikes might be concluding, this prospect is likely to reignite buyer interest in the market. The expected decrease in fixed and variable rates could enhance purchasing power, leading to increased demand in the housing market and a potential uptick in property values. Opting for a variable rate or a short-term fixed rate now allows you to enter the market before the surge in demand, positioning yourself to secure a potentially lower rate in the near future, rather than waiting for rates to drop significantly.While uncertainties persist, it's crucial for those planning mortgage transactions in 2024 to review their needs sooner rather than later. Together, we can determine the best course of action that aligns with your family’s budget and needs. I'm here to assist whenever you're ready.

A Look Back At 2023 And What's Ahead For 2024!

man in blue denim jacket facing turned on monitor

The Fall Economic Statement from the federal government focused extensively on Canada's housing situation. Rather than solely addressing the demand for homeownership, most of the new spending aims to tackle the pressing need for adequate and affordable shelter. However, there's a particular item that seems tailored to grab the attention of most homebuyers.The Canadian Mortgage Charter aims to strengthen Ottawa's expectations regarding how federally regulated financial institutions should handle vulnerable borrowers. It includes provisions such as:- Allowing temporary extensions of amortization periods for at-risk mortgage holders-&nbsp;Waiving fees and costs that “would have otherwise been changed for relief measures.”- Exempting insured mortgage holders from re-qualifying under the stress test during lender switches at mortgage renewal.Other requirements involve:- Financial institutions contacting homeowners 4 to 6 months ahead of mortgage renewal to make them aware of their options.- Granting at-risk homeowners the ability to make lump sum payments without prepayment penalties, and avoiding interest on interest by waiving charges in cases where relief measures result in payments not covering interest.While these measures have generally received a positive reception, it's worth noting that most of them are already outlined in guidelines from the Financial Consumer Agency of Canada. They aren't legally binding, and there are currently no plans to enshrine them in legislation.Recent surveys indicate that a significant percentage of homeowners facing mortgage renewals, ranging from 35% to nearly 90%, express concerns about potential increases in payments. Including the Charter in the Fall Economic Statement seems to be a proactive move to reassure the growing number of homeowners worried about mortgage renewals amid the current high-interest rate environment.Reach out if you need to discus your mortgage renewal options. <a data-mce-href="http://www.calendly.com/snezhana" href="http://www.calendly.com/snezhana" data-mce-selected="inline-boundary">Book a call HERE.</a>

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Navigating Your Mortgage Renewal

Your Borrowing Power Might Have Increased Without You Eve...

Bank of Canada Rate update - March 6th, 2024

Navigating Bridge Financing: A Guide for Homebuyers

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