Buying your first home is often the largest financial commitment you will have made and just coming up with the down payment is a difficult task for many! Then there are the legal fees, property transfer fees, disbursements and all those other costs that can really add up, creating a huge dent in your finances!

To help offset these costs for first time home buyers, the Federal Government created the First Time Home Buyers Tax Credit (HBTC) to assist home buyers with the costs associated with purchasing their home.

Who is Eligible?

The HBTC applies to first time homebuyers who intend to occupy the home as their principal residence no later than one year after acquisition. To be considered, a first time home buyer, neither the individual nor the individual’s spouse or common law partner will have owned  another home in the year of the home purchase or in the four preceding calendar years.

Special rules apply for the purchase of homes that are more accessible or better suited to the personal needs and care of an individual who is eligible for the Disability Tax Credit. In these cases, the HBTC can be claimed even if the first time homebuyer criteria is not met.

How Much is the Tax Credit?

The $5,000 non-refundable tax credit provides up to $750 of federal tax relief. It is based on a down payment of $5,000 and is calculated by multiplying the lowest personal income tax rate (15%) x $5,000 = $750.

The individual’s spouse or common law partner may claim any unused portion of an individuals HBTC. When two or more eligible individuals jointly purchase the home, the credit may be shared but cannot exceed $750.

If only one individual is eligible to claim the tax credit, the percentage of that individuals ownership of the home can be used. ie. 50% of $750= $375

Also note, it is up to the applicant to ensure that they can provide documentation for the purchase transaction and that they meet the applicable eligibility requirements, should the CRA require proof.

For more information, you can visit the Department of Finance Canada website.

Here at Dominion Lending Centres, we are always happy to provide advice and help you with the financing of your first home!

JORDAN THOMSON
Dominion Lending Centres – Accredited Mortgage Professional
https://dominionlending.ca/news/do-you-know-about-the-first-time-home-buyers-tax-credit/

There are a growing number of families living in Vancouver, or moving to the region, who are choosing the option of buying a second home in the lower mainland or in one of the many great locations throughout British Columbia.

When it comes to mortgage financing, there are many lender programs available at the best rates. Homeowners buying a second home can purchase the second property with as little as 5% down with the following considerations:

1. Down payment can be from own resources or other sources

2. Property must be owner occupied during the year or occupied by a family member

3. Property can be new construction

4. A maximum of two homes can be insured by CMHC in Canada

5. Financing is available to permanent residents of Canada

6. Property must have year round access by car or ferry

7. Maximum $1,000,000 purchase price

8. No time shares or life leases and rental pool are excluded

For home owners buying a second home with more than 20% down payment, insurer guidelines may not apply and lender rules will assigned. Talk to us at Dominion Lending Centres for specific requirements to meet your needs.

PAULINE TONKIN
Dominion Lending Centres – Accredited Mortgage Professional
https://dominionlending.ca/news/buying-a-second-home/

Musician John Agius had seen the reverse mortgage advertisements on television for years before he decided to take one out against his own home in downtown Toronto.

That was three years ago, when he was looking for some extra cash to pay for his mother’s funeral and to fix up her house. The costs were high relative to the modest income he earns as a piano composer, performer and teacher.

“I’d never thought I’d have to use it, but glad that it was there,” Mr. Agius, 58, said of the reverse mortgage, which is a loan secured against the value of a home.

The banks weren’t an option for Mr. Agius after a previous business of his went bankrupt years earlier. Meantime, his home, which he paid off in 1978, has appreciated significantly. He took out a reverse mortgage for less than $100,000, at a rate of just under 6 per cent.

“Personally I don’t like debt … but it helped a lot in maintaining a reasonable lifestyle,” said Mr. Agius, who is single and never married. Without the reverse mortgage, he says, “I would have had to sell my home.”

What Mr. Agius likes most about this financial product is that he doesn’t have to make payments until he sells the house or passes away.

“It’s nice to have the option that, if I don’t manage to pay it off sooner, I can stay in my home as long as I wish and retire from here.” Still, his intention is to repay the loan sooner rather than later and he’s already making regular interest payments.

Mr. Agius is one of a growing number of Canadians turning to his home for badly needed cash, whether it’s to help pay for major expenses or, in some cases, to reduce debt. 

HomEquity Bank, which offers the CHIP reverse mortgage in Canada, says new reverse mortgages are projected to reach $400-million in 2015 – nearly double 2010’s tally of $205-million. It forecasts new loans will grow between 25 per cent and 30 per cent annually over the next few years.

Still, it’s a controversial product. Critics point to the higher interest rates that are charged compared with standard mortgages or lines of credit, penalties for early repayment and requirements to keep the house in good shape.

HomEquity Bank says current rates range from about 3.95 per cent to 5.49 per cent, depending on product and term. To qualify, you must be over the age of 55. The loan amount can be up to 55 per cent of your home’s current value.

John Eastwood, a notary and estate planner with Eastwood and Associates in Delta, B.C., said he doesn’t have an issue with reverse mortgages, but believes they should be a last resort.

“Where it’s good is for someone who is elderly, who couldn’t otherwise stay in their home,” Mr. Eastwood said.

“If they can use it to enjoy a better life, then I think that’s a good thing – a reverse mortgage is appropriate.”

He doesn’t like the idea of seniors using the money to fund expensive lifestyles, such as vacations or other big-ticket, luxury items. “It’s not inexpensive money,” he said. Mr. Eastwood also notes not all properties values appreciate over the term.

“People considering this type of financing need to fully understand the consequences of what they are doing,” he said.

Aging demographics, high home values drive demand

Some of the trends driving the increase in reverse mortgages include aging demographics, longer life expectancies and insufficient retirement savings, alongside a strengthening of Canada’s housing market over the past 25 to 30 years, according to HomEquity chief executive Steven Ranson.

“With a lot of clients, their principal retirement asset is their house. It has worked out way better than they ever expected,” he said. “It’s a chance for them to monetize it and stay in their house, without having to worry about payments.”

He said about a third of HomEquity clients are looking to pay off their existing debt. That includes loans and mortgages, even if their rates are higher.

“You get the benefit of not having to make payments and never having to worry about the loan maturing, “ said Mr. Ranson. “In return for that you pay modestly higher interest.”

Penalties for early repayment

There are penalties, or what Mr. Ranson calls a “prepayment charge” if you repay the reverse mortgage early. The penalty is 5 per cent in the first year, 4 per cent in the second year and 3 per cent in the third year. After three years, the penalty is three-months interest. There are no penalties if the owner dies, and the penalty is cut in half if the owner can’t handle the upkeep of their home and moves into a long-term care home.

“What we tell people is: ‘If you think you only need the money for a year – you should actually do something else,’” Mr. Ranson said, noting the reverse mortgage is best suited to people who plan to be in their homes for five or more years.

Less financial stress?

HomEquity also promotes the reverse mortgage as a way to relieve financial stress, including mortgage and other forms of debt.

John Laister, 73, and his wife, Jane Ann, 76, got a reverse mortgage earlier this year after their car broke down. The couple have been living in their Burlington, Ont., home for 35 years and Mr. Laister has no company pension., after working in real estate for most of his career. His mobility is also limited as he waits for a hip replacement, and his wife suffers from arthritis.

“My son has been telling me for two years, ‘Dad, it can take some of the pressure off,’” Mr. Laister said of the reverse mortgage.

The couple had thought about moving to an apartment, but don’t want to leave their neighbourhood yet, at least for the foreseeable future.

They used the loan – which was $120,000 at about 5 per cent – to buy a new car, pay off what was left on their mortgage and a line of credit. The way Mr. Laister sees it, the house will likely rise in value to help offset the loan. “It’s a win-win situation.”

BRENDA BOUW
Special to The Globe and Mail
Published Wednesday, Nov. 04, 2015 6:58PM EST
Last updated Thursday, Nov. 05, 2015 10:44AM EST

http://www.theglobeandmail.com/globe-investor/retirement/retire-housing/reverse-mortgages-gain-popularity-as-canadians-turn-to-their-homes-for-cash/article27111238/

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw up to $25,000 from your registered retirement savings plan (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability .

You must be considered a first-time home buyer.

You are not considered a first-time home buyer if you or your spouse or common-law partner owned a home that you occupied as your principal place of residence during the period beginning January 1 of the fourth year before the year of withdrawal and ending 31 days before your withdrawal. (Dec 31, 2010 or prior for anyone buying in 2015)

However, if you are a person with a disability, or you are buying or building a home for a related person with a disability or helping such a person buy or build a home, you do not have to meet this condition.

In addition, ALL of the following conditions must apply:

You must enter into a written agreement (Offer of purchase) to buy or build a qualifying home. The agreement may be with a builder, contractor, realtor or private seller.
You intend to occupy the qualifying home as your principal place of residence. When you withdraw funds from your RRSPs under the HBP, you have to intend to occupy the qualifying home as your principal place of residence no later than one year after buying or building it. Once you occupy the home, there is no minimum period of time that you have to live there.
Your repayable HBP balance on January 1 of the year of the withdrawal is zero.
Neither you nor your spouse or common-law partner owns the qualifying home more than 30 days before the withdrawal.
You are a resident of Canada.
You buy or build the qualifying home before October 1 of the year after the year of withdrawal.
Your RRSP issuer will not withhold tax from the funds you withdraw if you meet the HBP conditions and complete Form T1036.

You can withdraw a single amount or make a series of withdrawals throughout the same year and January of the following year, as long as the total of your withdrawals is not more than $25,000.

If you buy the home with your spouse or common-law partner, or other individuals, each individual can withdraw up to $25,000 from his or her RRSP, provided each of you meet the HBP conditions.

Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP.

Your first repayment is due the second year following the year in which you made your withdrawals.

You have up to 15 years to repay the amount that you withdrew under the HBP. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew until the full amount is repaid to your RRSPs.

LEN ANDERSON
Dominion Lending Centres – Accredited Mortgage Professional

https://dominionlending.ca/news/federal-rrsp-first-time-home-buyers-program/

3 POINTS YOU NEED TO CONSIDER

In hot real estate markets, it’s common for both buyers and agents to consider having no subjects to financing when making a purchase offer.

It’s important to realize, however, that no professional is in a position to legally advise you to enter into a real estate transaction with no subjects, especially no subject to financing.

This is a personal choice that you must carefully consider. Understanding the risks involved will help you make an informed decision.

Keep these three points in mind when making the choice with which you will be most comfortable:

1. Regardless of whether you have secured a rate hold / pre-approval, the lender has the right at any time to decline the property. This can occur for a number of reasons including but not limited to: value, condition, wiring, tanks, strata documents, zoning, work completed without permits, full fix completed without proper documentation, rental components or remaining economic life. Lenders only review property details once an accepted offer is in place – not when you’re simply considering making an offer or during the time you’re going back and forth as part of the negotiating process. They then review the contract, property disclosure statement (PDS) and anything else accordingly.

2. Even if a lender has approved you based on credit and income, if your scenario has since changed and they request further documentation (eg, you haven’t received enough overtime, you spent more on your credit cards, your employment/credit has changed or there was something you may have forgotten to disclose), they have the right to alter or cancel the approval. All lenders only do a full review of your credit and income once you have an accepted offer in place. They only view an application for rate hold or pre-approval purposes and verify once an accepted offer is in place with the right reserved to disregard the pre-approval, or even an approval at any time for the above reasons while doing their due diligence, right up until closing.

3. Who is in the best position to go into a purchase with no subjects? Borrowers who:

– Are overqualified for the purchase

– Can afford a higher payment if the original plan doesn’t work out with any of the above points

– Have their own cash (not a gift pending qualifications) far in excess of what was intended

– Have income that far surpasses what is required

As Accredited Mortgage Professionals, it’s our responsibility / fiduciary duty to be honest and transparent, and give you the power of choice with clarity on all the considerations to anticipate scenarios that may arise, so you can make the best choices for your family. It would be much easier to be a yes person and cross our fingers that none of this comes up, but it’s not how a professional should guide you, as you come to trust in our clarity, knowledge and experience. When you have this expertise coupled with the right real estate agent, they too will ensure you take the emotion out of the purchase, and protect you accordingly with subjects you’re comfortable with for your personal circumstances so your choice is calculated, clear and comfortable long term.

ANGELA CALLA, Dominion Lending Centres – Accredited Mortgage Professional
https://dominionlending.ca/news/thinking-about-a-no-subject-to-financing-offer-3-points-you-need-to-consider/

Broker: ‘Every deal is a documentation nightmare’

It seems to be the complaint of the season, as brokers continue to struggle with last minute requests from lenders.
 
“On this particular deal, the lender was so busy they didn’t make the call [requesting follow-up documentation] to rectify the situation until the last minute,” Layth Matthews, a broker with Rate Miser, told MortgageBrokerNews.ca. “I had to scramble to verify pension income in addition to the employment income; the employment income wasn’t as high as originally thought.”
 
According to Matthews, he received an “urgent” email on the morning of closing, saying the “verbal income verification came in light” and the lender required more documentation.
 
“I don’t really want to criticize the lender because you don’t know what led to it,” Matthews said. “The employer could have been sluggish in providing income details.”
 
Still, Matthews is echoing a growing number of brokers who charge that every deal is a documentation nightmare these days. “Condition requirements have become painstaking and nitpicky; underwriters have very little flexibility,” he said.
 
An alarming number of brokers complained about the same issues late in the mortgage origination process this summer. They point specifically to last minute audits throughout the summer, many the result of lender understaffing issues.
 
One former lender recently confirmed that challenge and its contributions to delays.
 
“There is often another level of review after the underwriter signs off on a deal before it gets funded; the underwriters sometimes miss something and it’s a function of underwriters being overwhelmed,” Tim Hill of Dominion Lending Centres Primex Mortgages told MortgageBrokerNews.ca in September. “Volumes for lenders are also as high as they’ve ever been, and a lot of documents are being looked at very late in the process.”

by Justin da Rosa | 28 Oct 2015

http://www.mortgagebrokernews.ca/news/broker-every-deal-is-a-documentation-nightmare-198561.aspx

There are many things that can affect the market value of a property, ranging from interest rates to home improvements to the mood of the seller.  Below are some of the key dynamics that tend to have the largest influence on home values that every homeowner or aspiring homeowner should be aware of.  These factors are often gauged by sophisticated Real Estate investors before they decide to invest in an area:  

1. Increase in Disposable Incomes

This is one of the most important indicators. If a town’s average disposable income is increasing faster than the national average, real estate prices are poised to follow suit.  Key indicators: a) increased average income; b) decreasing income tax rates; c) increasing retail sales.  Be wary of towns where demand is driving values upward while the average income is remaining flat. 

2. Job Growth & Migration

It pays to read the news regularly in the town you would like to invest in or have invested in.  Be on the lookout for announcements of new jobs, major expansions, or new employers. Ideally you can purchase in areas where the population is growing faster than the provincial average and where the reputation of the town, city or region is strong.

3. Political Climate

Business friendly politicians generally equal real estate friendly investment areas.  Look for regions where development is wanted, not shunned.  Look for areas with forward-looking economic development offices where they sell the area to potential employers. Progressive towns attract business while other towns lose it. 

4. Infrastructure Expansion

Here’s another reason why reading local news in areas that you plan to invest in can pay off for you big time.  Look for planes, trains, highways, sewers, land annexation or expansion plans.  Don’t buy until the construction begins or until plans have been completely firmed up, it can be dangerous to buy based on rumors alone.  Trains and rapid transport are huge opportunities (towers that spring up at subway stops as an example). To enjoy a nice price increase relative to other areas of the town, city or region not affected by the infrastructure enhancement, try to buy within 800 meters of the station, or exit/entrance etc. 

5. Areas Of Renewal

If chosen correctly this consistently provides the biggest bang for investment dollars.  This is best defined as areas that are moving up from one economic class to the next, often described as “tough, yet funky”.  In these areas, you’ll witness a mix of run down to well-kept, recently fixed up properties.  Often you’ll see these areas mentioned in the news, every city and most towns have areas like this.  The local perception is the hardest to change, so often locals miss the opportunity.

6. Mortgage Interest Rates

Low interest rates allow a greater proportion of renters to become homeowners, which in turn can lead to an increase in home sales and therefore push prices higher.  That said they don’t significantly increase mortgage costs (on a $100K mortgage a quarter % increase in rates only increases the payments by about $14). With interest rates historically low for the past several years, this is less of a factor now than it would be when rates first dropped.

7. Maximizing Value and Zoning Opportunities

Sophisticated real estate investors look first at a properties physical attributes, and then they examine how they may be able to change the property to optimize profit way beyond just renovations. As an example, an old hotel that is converted into loft apartments (advanced), or taking a single family home and converting it to a duplex (less advanced but still can be tricky).  You need to know zoning bylaws and tenant regulations to make the transition successful. A small percentage of properties will have this potential, but make sure you have the required finances and expertise before taking this on, or find a partner. 

8. Buy Wholesale; Sell Retail

You can buy properties at wholesale any day of the week in any town across the country, there are many investors across Canada who make their entire livings this way. This can include buying rundown properties and fixing them up, developing raw land or buying properties that are going to foreclosure.  In Canada, accessing foreclosure properties is tougher than in other countries such as the US.  The best opportunity for this in Canada is the pre-foreclosure market, some investors will advertise targeting distressed homeowners and then provide them with a much needed opportunity to sell.

9. Stand Out

Quality marketing is a real estate investor’s best kept secret.  You must be proficient to get above market rents and values for your properties. An example of this would be how two incredibly similar houses in the same neighbourhood can easily sell or rent for a 5-10% variance from each other. Matching your message to your prospective target in a compelling way is critical.  

10. Renovations and Sweat Equity

Areas in transition are great sources for homes that need improvements.  Look for well-built but neglected homes.  Keep the work simple and in line with what a renter or owner is looking for. Remember, smaller aesthetic investments such as in paint, flooring or carpeting can provide the biggest bang for your buck.  Landscaping and exterior work also typically provide a solid return.

Versus (vs) – as compared to or as one of two choices; in contrast with.

At least once a day I get asked, what’s the difference between ‘this’ and ‘that’? With this in mind I put together some content that will hopefully provide some clarity in regards to  a few of the more commonly asked questions.

LAWYER VS NOTARY

Most real estate deals are fairly straightforward, both a lawyer and notary can and will prepare the documents for you. If you are buying a home, they will: conduct a title search, obtain tax information and any additional information to prepare the Statement of Adjustments. Then they will prepare closing documents, including a title transfer, mortgage, property transfer tax forms and forward them to the seller’s lawyer/notary for execution. After you sign your papers, the lawyer or notary will register the transfer, mortgage documents and transfer funds to the seller’s lawyer/notary. Sometimes there are more complicated transactions, at this point one would need to decide LAWYER or NOTARY?

If something were to go wrong with your transaction, a notary cannot represent you in court of law, unlike a lawyer. Nor can the notaries represent and guide you through a dispute process. Notary also cannot advise you on legal matters, for example, if you go to a notary to convey a real estate file and you were to ask a legal question, such as, “I think my neighbour’s fence is on my land, what should I do?” the notary cannot give you advice on what your recourse is.

With regard to the fee structure, there isn’t much of a different these days. If you are unsure of which one to use, it’s always a good idea to phone a notary and a lawyer to describe the services you need and then decide from there.

GUARANTOR VS CO-SIGNER

A co-signer is a co-owner that is registered on the title and is equally accountable for payments, while a guarantor personally guarantees the payments will be made if the original applicant defaults. However, the guarantor has no claim to the property as they’re not registered on the title. Typically a co-signer is added to a mortgage application to increase the income, which will assist with reducing the debt service ratios. Whereas a guarantor will be utilized if the applicant(s) has received past credit blemishes and needs to strengthen the file.

TITLE INSURANCE VS SURVEY CERTIFICATE

These two are slightly different but work in conjunction with one another. Title insurance is an assurance as to the state of title of any given property. In practical terms, it protects lenders and purchasers against loss or damage suffered due to survey problems, defects in title and other matters relating to title fraud. A survey certificate will typically show the lot boundaries, improvement locations and often the locations of any rights of ways or easements registered against the property. This will also assist a purchaser in determining whether any of the improvements on the property encroach on a neighbouring property or if there are improvements from an adjacent property that encroach on the subject property.

JOINT TENANT VS TENANT IN COMMON

When a property is held in joint tenancy, the situation is what I refer to as “the last man standing.” When one joint tenant dies, the entire property belongs to the remaining, surviving joint tenant(s). Only that last person can use his or her Will to give the property to someone else. Tenants in common is a different story. In this arrangement, each person owns a percentage that is registered in their name. They can then leave their share to someone in their Will or sell it (never mind the logistical problems of trying to sell one third of a house).

SWITCH/TRANSFER VS RE-FINANCE

To switch/transfer one’s mortgage, it involves moving your current mortgage from one lender to another without changing anything except for the term and interest rate, amortization remains the same. If switching lenders within the term, there will likely be a penalty for breaking the mortgage, though often the savings in moving to another lender with a better rate will substantially outweigh the penalty. Doing a switch at the end of your mortgage term will allow you to completely avoid the penalty.

In re-financing a mortgage, the borrower is also likely taking advantage of lower rates whilst at the same time accessing equity. The reasons for this could range from; debt consolidation, renovation, purchasing a vacation home, post-secondary education, investment planning and so on… Two other major differences are when one wants to re-finance, the maximum loan is 80% of the market value whereas a switch/transfer lender can surpass the 80% mark as the mortgage amount does not change. And finally, with re-financing the mortgage will need to be disbursed and re-registered with the lender (or new lender) therefore a fee will be charged. With a switch/transfer, there is a possibility that there will be no extra fees charged.

ACCELERATED BI-WEEKLY VS BI-WEEKLY PAYMENT FREQUENCY

Nobody wants a mortgage and everyone that has one wants to pay it off faster, or at least they should. Payments are income streams that lenders blend a principal and interest amount into one payment with the goal to pay more principal than interest. As one gets further through the term the inevitable shift happens from paying more interest to paying more principal (P&I).

The bi-weekly payment is basically 12 monthly payments spread out over 26 installments or every other week. For example, if your monthly payment is $2,000 your total yearly mortgage payment will be $24,000. The bi-weekly or 26 payment equivalent is $923.08 ($24,000.08), the net amount remaining unchanged. To speed up the inevitable P&I shift, one might want to opt for accelerated bi-weekly payment frequency. This is the key to shortening or reducing the life of the mortgage (amortization). The accelerated repayment plan takes a 24 payment cycle and adds on 2 more payments of the same size, for a total of 26 payments or 1 extra payment every 12 months to total 13 payments. So you are paying slightly more each year, thus reducing the life of the mortgage. Using the same example from above, if your monthly payment was $2,000, adding two extra payments to the grand total, one’s yearly mortgage payment would be $28,000, with each payment now being $1,076.92.

Obviously if you have questions, we here at Dominion Lending Centres would love to answer them for you.

MICHAEL HALLETT
Dominion Lending Centres – Accredited Mortgage Professional
https://dominionlending.ca/news/this-vs-that/

Advice from a leading financial writer could drive more clients to market

One of Canada’s most respected housing critics is now advising Canadians intent on purchasing in hot markets to do so with less than 20% down. What do brokers think about the suggestion?

Rob Carrick, a personal finance columnist for the Globe and Mail, is making a case for people intent on buying in hot markets to take the high ratio hit rather than defer until enough money can be saved for the full 20% down payment. 

“A popular and sensible bit of financial advice is that you should ideally wait to buy a house until you have a down payment of at least 20% and thus are excused from buying mortgage default insurance,” Carrick recently wrote in a recent column entitled It’s time for many Canadians to abandon the 20% down-payment rule. “But if it takes a few years to save that much, you may find that soaring prices more than offset the savings on mortgage insurance.”

While Carrick does argue “the conventional wisdom about 20% down payments is right on the money,” he also acknowledges it may not apply in hot markets such as Toronto and Vancouver, where home prices have been on skyward trajectories.

“Either jump in now or resolve to wait and save indefinitely for sanity to return,” Carrick writes of those who are set on purchasing in hot markets.

Carrick is one of the most influential voices in personal finance through his regular contributions, despite the fact that he is neither a mortgage broker nor an economist.

And this specific advice is nothing new, with many Canadians already choosing high ratio loans in favour of deferring purchases until 20% is saved.

Still, it’s the sort of advice that could entice even more buyers to jump off the fence.

But at least one industry player argues that advice is incomplete.

“What I preach is that with the current low rate environment, clients should be utilizing prepayment privileges and (paying more than the minimum mortgage payment),” Geoff Lee, a broker with Dominion Lending Centres GLM Mortgage Group, told MortgageBrokerNews.ca. “That way, when rates go up, psychologically they’re ready to handle that increased mortgage cost.”

For his part, Tim Hill, a broker with Dominion Lending Centres Primex Mortgages, advises clients to focus solely on affordability.

“(Carrick’s) approach is very speculative,” Hill said. “I advise clients to approach a mortgage in terms of affordability and to make sure they can handle the increased costs if prices go up; I tell them to focus on affordability more than rates and price increases.”

To read Carrick’s column in its entirety, click here.

by Justin da Rosa | 29 Sep 2015

http://www.mortgagebrokernews.ca/news/advice-from-a-leading-financial-writer-could-drive-more-clients-to-market-197066.aspx