Mastering Mortgages: Your Roadmap to Homeownership

Unlocking Your Dream Home with the Right Mortgage

In the realm of real estate, finding the perfect mortgage is like discovering the key that unlocks the door to your dream home. However, navigating the intricate world of mortgages can often feel like venturing into uncharted territory. Fear not, as we embark on a journey to demystify mortgages. We will shed light on the various types of mortgages available, explore how they work, and guide you in selecting the perfect fit for your unique needs.

Understanding Mortgages

At its core, a mortgage is a financial agreement that enables individuals to purchase a home without paying the full price upfront. In this arrangement, a lender provides the necessary funds to buy the property, and the borrower…

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Bank of Canada Raises Target for Overnight Lending Rate

Bank of Canada Raises Target for Overnight Lending Rate Again, Changes Language on Future Rate Hikes

The Bank of Canada hiked its target for the overnight lending rate by 50 basis points to 4.25% while continuing its policy of quantitative tightening but stated that looking ahead it would need to consider whether the policy rate should rise further—a much more neutral stance than previous announcements.

After the announcement, financial markets were pricing in the potential for one more interest rate hike by the third quarter of 2023.

The Bank noted economic growth was stronger than expected in the third quarter of 2022 and continued to operate in excess demand. The Bank expects growth to stall through the end of the year and into the…

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What’s Happening in the Atlantic Canada Housing Market?

The Atlantic Canada housing market has been sizzling since the early days of the coronavirus pandemic. But what differentiates the real estate markets in New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador is how they have held steady, even as the broader Canadian real estate market experiences a correction.

Although there have been forecasts suggesting that the eastern provinces could join the downturn, the numbers so far show that real estate activity in this part of Canada is not imploding.

So, what do the data show? Let’s look at the latest trends in Atlantic Canada.

What’s Happening in the Atlantic Canada Housing Market?

Here is a look at the four major Atlantic Canada real estate…

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Locking In a Variable Rate Mortgage

When mortgage interest rates were on a downward trend in the early days of the coronavirus pandemic, a variable mortgage rate made sense. With no signs of tightening on the horizon, the housing market boomed at extraordinary levels never seen before.

Now that interest rates are rising as the central bank attempts to rein in out-of-control price inflation, the discussion is how high mortgage rates will go. It is a crucial conversation, since rising rates will increase your monthly mortgage payments. While it’s challenging to forecast just how high mortgage rates will climb, Canada Mortgage and Housing Corporation (CMHC) thinks they will start to stabilize in 2024, which is when some market analysts expect the Canadian real estate market to…

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What Just Happened to the Canadian Real Estate Market?

Are the effects of the Bank of Canada’s (BoC) tightening cycle being felt in the Canadian real estate market?

For at least two years and probably longer than that, the nation’s housing market has been sizzling, with nearly every pocket of the country experiencing soaring prices and impressive sales activity. The laws of supply and demand have been in full force since the beginning of the coronavirus pandemic – inventory is low and demand has been strong – but historically low interest rates have also played a significant role.

When rates are low, prospective homeowners can take advantage of monetary conditions to increase their purchasing power and outcompete other buyers who may be interested in the same property. Now…

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How do Home Renovation Loans Work?

When first thinking about renovating our homes, we often get lost in daydreams and fantasies of new bathrooms, kitchens, walk-in closets, and a whole host of other great renovation ideas. Eventually, though, we come back to reality and the daunting thought of the cost associated with renovations. So, how do home renovations work? Let’s dig in.

Home renovations can run anywhere from a few hundred dollars up to hundreds of thousands of dollars, and there are many different ways to pay for them. While inexpensive upgrades such as new light fixtures, countertops and windows can be paid for using either a line of credit or a savings account, large reconstruction projects take far more time and money, often requiring home…

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Newfoundland Real Estate Frenzy and the Impact on Locals

Is the Newfoundland and Labrador real estate market still sizzling, or is it cooling down like a February evening in the province?

For the last two years, Canada’s housing market has been taken aback by the exceptional growth in Atlantic Canada, heated up by the population boom and the surge in home prices. This was a surprising turn of events because, before the coronavirus pandemic, people were leaving parts of the east coast, and some local real estate markets unable to gather much momentum.

Now it appears that Newfoundland real estate is joining the broader market. Sales activity is strong, though it has eased recently. Price gains remain sky-high, but growth has also eased year-over-year. Overall, the housing boom is…

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Seeking Affordability? Spotlight on Newfoundland Real Estate

The national average home price in the Canadian real estate market hit $796,000

In March, up 11.2 per cent from last year. Price growth slowed slightly month-over-month, but many industry experts project that prices still have room for growth this year. But while the broader housing conversation has been on the affordability crisis impacting many markets across Canada, there are still some relatively affordable parts of the country. Wait a minute. There is still affordability in Canada? Yes. All you have to do is look toward the nation’s east coast, to Newfoundland real estate.

According to the Newfoundland and Labrador Association of REALTORS®, MLS® Home Price Index (HPI), which is considered a more accurate measurement than average or median…

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5 Reasons Why You Should Get Pre-Approved for a Mortgage

Buying a home for the first time is an exciting experience. While the process can be stressful at times, there are ways to limit unnecessary anxiety, and one of the most significant ways is to get pre-approved for a mortgage before you begin your house-hunting adventure.

To put it simply, being pre-approved for a mortgage means that a lender says you have qualified to borrow a specific amount of money for the purchase of a home. Pre-approval is based on various factors, and the process involves several different steps.

As the borrower, you can shop around for mortgages and compare options from different lenders. Throughout this process, you will learn the maximum amount of mortgage you qualify for and the estimated…

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Canadian housing market is “problematic” says CMHC

Photo: Tyler Farmer / Unsplash

Canada’s housing market is seeing a “high degree of vulnerability,” in the face of continued price acceleration and overvaluation.

In its Q3-2021 Housing Market Assessment, the Canada Mortgage and Housing Corporation (CMHC) stated that a high degree of market vulnerability has been created at the national level as a reflection of “problematic conditions,” detected in several local markets within Ontario and Eastern Canada.

Between CMHC’s March 2021 and September 2021 reports, the rating of national market vulnerability escalated from “moderate” to “high.” The corporation explained that high vulnerability means that the market is more susceptible to a potential downturn that would result in greater…

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