Update to Foreign Buyers

Two weeks ago I wrote about the new ban on foreign buyers here in Canada. You can read about it here. As new clarifications are coming out almost daily, here is an update based on what I have learned from my underwriters.

If you do not yet have your permeant residency status then you will need to provide your past 3 years of tax returns in order to get approved or pre approved.

Also we talked last about the area’s ( metropolitan and large centres) that you could not buy if you were brand new to the county. In the census data they are referred to as Census Agglomeration (CA) or Census Metropolitan Area (CMA) area’s. To see if the area that you want to purchase is outside of a CA or a CMA, then just click here and follow the steps.

If the property being purchased falls outside of a CA or CMA, then the new temporary resident guidelines DO NOT apply.  A temporary resident can purchase a property outside of a CA or a CMA without requiring three years employment history and other applicable requirements. 

Please click here to determine whether a property is located within a CA or CMA.  Please follow the guide below to determine whether the property is located outside, or within a CA or CMA.

Step 1: Identify the location of the subject property in the mapping tool. 
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Step 2: Determine whether the searched area falls under a Census Agglomeration (CA) or a Census Metropolitan Area (CMA). 

Example 1:

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Example 2:

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Example 3:

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I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Commercial Mortgage Expert

If you are running a business then there is a good chance that you have an accountant to help you with your financials and your tax filings. You also have a lawyer who created your partnership agreement or created and filed your incorporation documents for you. You may also have someone doing your marketing & social media work.

This is all because that you should focus on what you do best which is running your business. So when it comes time to expand and grow your business and you need to purchase a commercial property to run it then you need to have us help you with your commercial mortgage.

We have years of experience in assisting clients obtain their commercial mortgage. We help you stream line the process so you can continue to focus on what’s important which is running your business. So it doesn’t matter if you are in the initial planning stages or finely ready to commit to you project, please contact us so we can help you make it happen.

Today I am thankful for having the opportunity to watch Wrexham play in the FA Cup yesterday, discovering and reading autobiography’s of people who really made a difference and having my daughter FaceTime me just to talk about music that we love.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Rate Announcement Jan 2023

The Bank of Canada did what many had predicted by increasing the overnight lending rate by .25% or 25 basis points. However it is their language in the press release that is providing some optimism going forward. This is key part “expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases.” They also said that they expect that CPI inflation will come down to 3% this year and back to 2% in 2024.

While nobody wanted another rate increase, at least it was only 25 basis points and that going forward they expect to hold the rates where they are unless demand on goods and services proves much more bullish than currently projected. If this happens then they are prepared to increase the rates yet again. However knowing that it does take 8-10 months for the effects of the rate increases to work their way through the system, let’s hope that this last one does the trick.

By the way the next meeting for the Bank of Canada is March 8th so mark your calendars.

Today I am thankful that this could be the last of the rate increases, a tune up from my physiotherapist what just what my body needed and my girls looking out for each other away at university.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Presence

Far too often we live our lives thinking of how we could change, undo or glorify events of our past. On the other side of things we also spend way too much time dreaming, planning or dreading what the future may entail. All of this is to the detriment of being present to what is actually happening today.

I write this today being fully aware that the Bank of Canada meets tomorrow. Many economists are predicting at least a .25% rate increase after 7 rate increases in 2022. The point is we don’t know what is going to happen tomorrow, next week or next year for that matter. All we can do is to master being present in the current moment and know with certainty that whatever happens you can deal with it.

The distractions of social medial play a big part in this, trying to shock or engage away from what’s really important. The thing is that we can’t change the events of our past and worrying about what may or may not happen in the future really does not help us either. So the only real logical option is to do the best we can at being present to what is happening in our lives right now.

Today I am thankful for discovering a great podcast to listen to while I workout, my dog who gets up with me at 5am and my daughter has found time to read more at university.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Inflation Rate update 01/17/23

The numbers have just been released and our inflationary rate dropped from 6.8% in November to 6.3% in December. This is .1% below expectations. This is just proof that we are headed in the right direction but will it be enough for the Bank of Canada to put a pause on future rate increases. We won’t have the answer on that till next week when the Bank meets on Wednesday January 25 to tell us what they are going to do.

Note of caution that we are still well above the 2% target rate for inflation and also still up from the 5.1% rate that we had in January of 2022. All in all we should be pleased that for the past 6 reporting periods the rate has come down from the high of 8.1% achieved in June of 2022. If we keep this up we may still achieve the soft landing that the BOC has been talking about rather than a hard landing which a recession would bring.

Today I am thankful for the inflation rate coming down from it’s peak last year, starting to notice the results since I have dialled up the intensity in my workouts and a new book with some new perspectives.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Foreign Buyers

A ban on Foreign Buyers commenced on Jan 1st/2023. This prevents non citizens and non residents from purchasing real estate here in Canada for a period of 2 years. This was passed as part of C-19 on June 23 of 2022. The purpose of this was to cool our hot housing market. However I don’t think it was needed as the rise in interest rates have taken care of that.

The law does state that anyone who knowingly assists non Canadian’s in purchasing real estate can be fined up to 10,000 for the offence. While nobody wants to receive such a fine, we are still waiting for the full explanation of the regulation, and I will do my best to explain what has been provided thus far.

There are some exceptions as outlined in this government publication.

  • Properties outside of Census Metropolitan Area (CMA) or Census Agglomeration (CA) To put this in common language, rural properties with populations less than 10,000 are exempt.
  • Recreational Properties like cottages ( outside of CMA or CA)
  • Vacant Land within large urban centre’s that has been zoned residential
  • Indigenous peoples
  • International Students on the path towards permeant residency
  • Those who are on work permits residing in Canada
  • Individuals fleeing international crises
  • Accredited members of foreign missions in Canada

It took a lot of digging to find this information, and if you still have questions it will be best to direct those to your Realtor or your lawyer representing you in your transaction.

Today I am thankful for a quiet stormy day yesterday, a great book to help fill my day and a very playful puppy who kept us busy if we sat down too long.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Christmas Break

The way the calendar works this year means that most of the people involved in financing will be off, unavailable or on reduced hours until January 3rd 2023. With the way the financial markets have been this year the break will be well deserved and allow me to spend some time with my family and plan for bigger and better things for next year.

So if you have any immediate financing needs then it will be best to get your request in very soon before all those needed to help you are no longer available.

Today I am thankful for having all my kids back home for Christmas, a lunch date with an old friend and the smell of fresh baked sweets all through the house.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Last minute

Just like there are always last minute Christmas shoppers there are also last minute requests for financing before the lender, brokers and lawyers take a break for the holiday’s. While Christmas is now less than 10 days away, there is only 6 full banking days and two half days left before we complete 2022.

So if you are still hoping to close in 2022, you may have missed your chance. Any files in now are looking to close the 5th of January 2023 at the earliest. Also Keep in mind the dates on your contracts as I had to send one back this morning that had a condition date of January 14/2022 instead of January 14/2023.

The only sources who could possibly close before the end of the year are my private lenders. To get this accomplished however we would need a complete file including appraisal to make it happen. Otherwise let’s plan for next year.

Today I am thankful that I have my cousin in Ottawa who can take in my daughter since her flight was cancelled due to the snow storm, for having some of my mom’s favourite Christmas music stuck in my head today and that it’s beginning to feel quite festive around my house.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Weigh your options

With the most recent move by the bank of Canada, it may be time to look at the age old dilemma of fixed vs variable mortgages. Sure over the past few years it made mathematical sense to take and stay with a variable rate mortgage. However the tides may have turned and it is an ideal time to look at this again and see if the numbers favour fixed or variable.

Currently the prime rate is at 6.45%. If your mortgage is insured ( CMHC, Sagen or Canada Gurantee) you will have a discount to prime of between .90 to 1.10 depending on the lender and when you took it out. This will put you around 5.45% for your current mortgage which is now above the 5.25% stress test rate that you qualified when you took out the mortgage.

So depending on your lender you may be able to switch to a fixed rate which would be much less than staying with the variable. So if that is the case then the math will work in the favour to switch. However some of the big 5 banks only offer the discounted rate at the start of the term and in those cases to switch out of variable will have you paying more. Do the math and see what makes the most sense to you.

Today I am thankful for all the birthday wishes from my kids, my family and my friends, a great workout to start the day and all the opportunities in front of me.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Interest Rate Hike

Well the Bank of Canada met this morning for the last time this year and hiked the overnight interest rate by 50 basis points or a half a percentage point. This means that those with variable rate mortgages and home equity lines of credit will have to pay more to service the debt.

This is as a result of our staggering high inflation rate which is currently sitting at 6.9%. Although it has come down in recent months from the high of 8.1% back in June, it is not coming down fast enough or far enough. The rate hike is the banks way of wants Canadian’s to drastically cut back on our spending so that the inflation rate will come down more quickly to it’s 2% target.

So while inflation has made everything from food to fuel more expensive, now the bank of Canada is making the costs of servicing our debts even more so. Cutting back on unnecessary expenses may be the only way forward to get us out of this high inflationary environment.

Today I am thankful for the feeling of muscle soreness from my workout yesterday, that this may be the last of a long series of rate increases and that the best food in the city is made in my own kitchen.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here