Found 56 blog entries tagged as interest rates.

Owning a home is a significant milestone, but as life evolves, so do our financial needs. If you're looking to ease the burden of your mortgage or leverage your home equity for other opportunities, refinancing may be the key to unlocking financial freedom. In this article, we'll explore the various options available for refinancing, ensuring you make informed decisions that align with your goals.

Understanding Refinancing

Refinancing is the process of replacing an existing mortgage with a new one, often with more favorable terms. In the Canadian landscape, this financial maneuver is governed by guidelines from the Canada Mortgage and Housing Corporation (CMHC), government regulations, and individual bank policies. Before diving into the options,…

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Embarking on the journey of buying and renovating a property for resale can be both thrilling and lucrative. However, before you dive headfirst into the world of house flipping, it's crucial to understand the costs involved. In this guide, we'll explore eight essential expenses to consider when turning a fixer-upper into a buyer's dream.

Purchase Price and Acquisition Costs:

The adventure begins with finding the right property. Remember, the purchase price isn't the only financial hurdle. Factor in closing costs, legal fees, and potential property taxes. Tools like home buying calculators can help you estimate these expenses beforehand.

Renovation Budget:

Renovations are where the magic happens, but costs can quickly spiral out of…

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In the ever-evolving landscape of real estate and personal finance, Canadians are discovering innovative ways to leverage the equity in their homes. One such financial tool that is witnessing a resurgence among homeowners is the second mortgage. With property values soaring across the country, homeowners find themselves sitting on substantial untapped equity in their residences. This article explores what a second mortgage is and the myriad ways it can be employed to consolidate debt, finance home improvements, or even fund an investment property.

Understanding the Basics

A second mortgage, also known as a home equity loan or a home equity line of credit (HELOC), is a loan taken out against the equity you have in your home. The equity is the…

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The real estate market is dynamic and can present both opportunities and challenges for buyers and sellers. Whether you are looking to buy a new home or sell your current property, understanding the current market conditions and trends is essential in making an informed decision. In this article, we will explore the factors that influence the market and provide insights into whether it is a good time to buy or sell.

Understanding the Real Estate Market

The real estate market is influenced by various factors, including supply and demand, economic conditions, interest rates, and government policies. The market can experience periods of stability, growth, or decline, impacting both buyers and sellers. Monitoring the market and seeking expert advice…

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Purchasing a home is an exciting milestone, and for many people securing a mortgage is an essential step in making that dream a reality. However, the mortgage process can be complex and overwhelming, especially for first-time homebuyers. In this article, we will provide you with valuable tips and resources to help navigate the mortgage process with confidence.

Understanding Mortgages

Before diving into the mortgage process, it's important to have a basic understanding of what a mortgage is. A mortgage is a loan that allows you to borrow money from a lender to purchase a home. The property acts as collateral for the loan, and you make regular payments over a specified period, usually spanning several years.

Assessing Your Financial Situation

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Congratulations on taking the first step towards homeownership! As a first-time homebuyer, the process of purchasing your dream home can be both exciting and overwhelming, especially when it comes to navigating the mortgage landscape. One of the critical decisions you'll face is choosing between a fixed-rate and a variable-rate mortgage. In this blog post, we will break down the differences between these mortgage options and provide valuable advice to help you make an informed decision that aligns with your financial goals.

What is a Fixed-Rate Mortgage?

A fixed-rate mortgage is a popular and straightforward option for first-time homebuyers. With this type of mortgage, the interest rate remains constant throughout the loan term, typically…

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Your credit score is a three-digit number that represents your creditworthiness. It is calculated based on your credit history and financial behavior. A higher credit score indicates that you are more likely to repay your debts on time, while a lower credit score suggests that you may be a higher risk borrower. In Canada, credit scores range from 300 to 900, with a score of 650 or higher considered to be good.

Your credit score is important because it affects your ability to get approved for credit, such as a credit card or loan, and the terms and interest rates that you are offered. It also impacts other areas of your life, such as renting an apartment, getting a job, and even setting up utilities.

When applying for credit, lenders will…

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The COVID-19 pandemic supercharged a market that already favoured sellers. With available listings hitting a record 14-year low before the pandemic, it was no wonder that housing prices had soared upward, with the Canadian Real Estate Association forecasting the national average home price would rise a whopping 19.9 per cent on an annual basis to $690,000 in 2021. Low interest rates, economic support and lockdowns that drastically shifted the consumer appetite, contributed to a sharp increase in demand and, consequently, price growth across virtually every Canadian housing market.

But did these changes cause real estate prices to become overvalued? According to Moody’s Analytics, a leading credit rating agency, this was most certainly the case. The…

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Canadian real estate Ottawa

It is no secret that the Canadian real estate market has been shifting over the last year. Home prices have tumbled, and sales activity has fallen. The Bank of Canada (BoC) has been raising interest rates since March 2022 to return the annual inflation rate to its two-per-cent target rate. In the process, this tightening campaign has increased mortgage rates and cooled off Canada’s red-hot housing sector.

But with the central bank still expected to pull the trigger on rate hikes for the next few months to ensure inflation has been defeated, what does this mean for the Canadian real estate market, especially with the typically busy spring buying season?

It could be a terrific opportunity for homebuyers, especially with…

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It’s looking like we’re going to be seeing similar real estate trends in 2023 compared to last year.

Following a year defined by market highs and lows, experts are forecasting a gradual return to a more balanced market towards the end of 2023. However, with inflation remaining more or less unchanged at the tail-end of 2022, last year’s trend of diminished purchasing power seems likely to persist.

As for what that means for mortgage lending, Shaun Cathcart, Senior Economist at the Canadian Real Estate Association (CREA), predicts primary-based mortgage payments will continue to rise dramatically until the Bank of Canada (BoC) reaches its terminal rate. 

Variable rate mortgages will hit their ‘trigger rate’

“The ‘terminal rate’ as it’s…

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