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MORTGAGE INSURANCE RULES ANNOUNCEMENT

2010-02-16 | 08:46:54

This morning, Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010. CAAMP (Canadian Association of Accredited Mortgage Professionals - AMP) was actively engaged in the discussions around these changes which are as follows:

  1. All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term;
  2. The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home;
  3. Non-owner occupied properties will require a minimum down payment of 20%.

There were no changes to down payment requirements or length of amortizations for owner-occupied residences.

Don't hesitate to contact me with any questions or concerns.



GO CANADA GO!!

2010-02-12 | 11:20:46

Best wishes to all athletes for success in reaching thier goals and to enjoy the moment.



The Bank reinforced its pledge to keep rates on hold.

2010-02-09 | 12:45:16

 

 

 

 

In its most recent interest rate announcement, the Bank reinforced its pledge to keep rates on hold at least until after June of 2010. Since the timing of rate moves is geared to the timing of getting inflation back to the 2% target, if anything, the Bank may even add a few months to when it anticipates pulling the trigger on the first rate hike.


Your RRSP can help you buy a home!

2010-02-01 | 15:27:41

First-time homebuyers who are Canadian residents can withdraw up to $25,000 from their RRSP TAX FREE. Through Canada’s Home Buyers Plan (HBP) you and your spouse can each withdraw up to $25,000 (as of the 2009 federal budget) to build or buy a qualifying home. 

 Getting access to your RRSPs through the HBP is fairly easy. Fill out form T1036 at your financial institution for each withdrawal. Then make sure to file an income tax return for the year of the withdrawal and each year thereafter, until the RRSP is fully repaid.

 Keep in mind there are a few rules:

  • To qualify, you must be a first time home buyer and a resident of Canada at the time of withdrawal.
  • You MUST purchase/build the home before October 1st after the year of withdrawal.
  • You only need to repay 1/15 of the borrowed amount starting in the second year after the year of withdrawal,  or you’ll have to add the amount as income.
  • RRSP contributions of up to 90 days before the withdrawal date can be used towards the HBP.

 This is one of the only ways to withdraw from your RRSP tax free and a great way to get yourself into the real estate market.  For more information about the HBP program go to the CRA website .



Financial executives are bullish about the coming economic recovery!

2010-01-29 | 16:17:37

Financial executives are bullish about the coming economic recovery and expect their companies to perform well through the rest of this year, according to a new survey.
 
The survey of more than 200 senior decision-makers found that 60.4% of executives expect the Canadian economy to return to normal growth in 2010, with the second half of the year likely to be better than the first.
 
One in four remains cautious, expecting the recovery in 2011, while 7.4% saw 2012 as the year that growth returns.
 
Overall, nearly two-thirds, or 64.5%, of respondents expect their firm’s revenues to increase through the year, while 61.9% foresee higher sales volumes along with a hike in product prices.
 
It’s a surprising level of optimism given the depth of the recession, said Ramona Dzinkowski, executive director of the Canadian Financial Executives Research Foundation.
 


"Take Advantage of This Gift !"

2010-01-12 | 10:16:29

Current mortgage interest rates are still at historical lows.  Back in  January of 2009 the governor of the Bank of Canada implemented "emergency interest rates" to help stimulate Canada's recovery from the recession. It was his promise to hold rates low until June of 2010.  With that in mind we expect mortgage rates to start their climb back to normal rates very soon. If you are considering buying a new home or refinancing the one you are in now, don't delay and take advantage of this gift from the government - it won't last much longer!



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