Mortgage Wise: A Breath of Fresh Air

Posted on September 22, 2020 by tracyirwin

COVID-19 may have frozen the real estate market earlier this year, but it thawed in a spectacular fashion in July with 62,355 sales nationally. Amidst all the negative COVID news, this was a breath of fresh air for everyone. Resilient Canadians reshaped their demands for housing and pushed prices higher than any other month in the past 40 years.

The Highs and Lows Contributing to this Climate

  • Home sales were bolstered by all-time low mortgage rates – less than 2% on a 5 year fixed rate mortgage
  • The Bank of Canada reduced the benchmark qualifying rate (stress test rate) to 4.79% (from 4.94%)
  • Staying at home and working from home meant:
    • pressing pause on the daily commute
    • having more freedom to work at different times
    • discovering a new-found importance of home
    • realizing the desire for more space indoors (a home office for you and play area for the kids) and out (pools and patios)

Mortgage Forecast for Fall

I’m predicting a bright and sunny fall with buyers continuing to show confidence by keeping the real estate market active as they satisfy their pent up demands. It’s also expected Canadian mortgage rates will stay below 2% for quite some time.

Are you ready to make your move?

When you or someone you know needs personal mortgage advice for current or future financing needs, connect with me to schedule a confidential and no cost or obligation mortgage financing consultation. I’ve been providing mortgage solutions that open doors since 2005.

Amazing August

Cycling to Paris (Ontario)

Enjoying a long cycling adventure to Paris with my friend, Margot.

C’était magnifique

Full disclosure:  I was glad the wind was at our backs coming home, I’d forgotten how long the ride is!

 

 

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You Are Not Alone: Running for Rachael 2020

Posted on September 15, 2020 by tracyirwin

The 8th Annual CF Lime Ridge RUNNING FOR RACHAEL VIRTUAL Walk/Run Event is September 27th 2020

We’re doing it differently this year! Join us at 9 am for our walk/run launch videoBring together your neighbours, friends and family, and coworkers to walk or run in support of suicide prevention – anywhere and everywhere. Funds raised will be used to launch the Be Safe mobile app that informs the user about crisis mental health and addiction resources. We believe that when a community comes together, lives are transformed!

Watch last year’s Running for Rachael video highlights then register yourself or a team for FREE at RunningforRachael.com or make a donation.

Your Life Matters – Suicide Can Be Prevented! #RunningforRachaelVirtual2020

A Cause Near and Dear to Tracy’s Heart

No family is immune from the heartbreak of suicide. My husband Sid’s daughter, Rachael Arielle Stacey, left us when she was just 18 years of age. She will forever be in our hearts. We honour her legacy of wanting to help those who struggled the same way that she did. This, she decided, was what she was meant to do. Rachael didn’t have to die. Suicide is preventable. Read Rachael’s Story.

Running for Rachael (RFR) plays a vital role in supporting the city-wide work of suicide prevention in Hamilton. RFR brings the community together to promote hope, help and healing through crisis support information, training, education and support groups.

This event has supported youth mental health initiatives for the past 7 years. Our partnership with CF Lime Ridge has been an important step in helping to engage the community.

Your support has made it possible to fund our 2019 community initiatives:

  • Funded the Brief Intervention and Contact Pilot Program at SJHH
    • 6 month follow up program after discharge for individuals that have attempted suicide
  • Community suicide training programs
    • ASIST, safeTALK, suicideTALK training
  • Community Strategies to Support the Zero Suicide Initiative Conference
  • Suicide Bereavement Clinician Training Program
  • Suicide Bereavement Loss Support Groups in Hamilton

Please join us this year for the 8th Annual Running for Rachael VIRTUAL Walk/Run in support of suicide prevention anytime and anywhere on Sunday, September 27th. Join us at 9 am for our walk/run launch video.

There is no cost to register! We encourage fundraising. Any donations of $10.00 or more will receive an income tax receipt.

4 Ways You Can Support Running for Rachael

  • Create a virtual team with your friends and family or register as an individual and plan to walk/run in your own neighbourhood to support hope, help and healing.
  • Join the virtual walk/run as a corporate team and rally your employees to mobilize wherever they are to support hope, help and healing.
  • Make a donation

We look forward to walking or running with you virtually to support suicide prevention work in our community!

The Suicide Prevention Community Council of Hamilton is a registered charity #83552155ORR0001

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Another Reason to Use a Mortgage Broker (Like Me)

Posted on July 7, 2020 by tracyirwin

This month, I’m featuring excerpts of an article written by Juliette Baxter and published in The Financial Post. The article provides valuable insight into the tightening of lending rules that came into effect on July 1 – and what it means for you.

In a (Mortgage Lending) Nut Shell

nut shellsThe Canadian Mortgage and Housing Corporation (CMHC) announced plans in early June to reduce borrowing limits, demand higher credit scores and restrict down payments for anyone who needs default insurance from the agency. That kind of insurance is mandatory for “high-ratio” buyers putting less than 20% down on a home.

It’s important to recognize that, if you’re not a risky borrower in the eyes of the CMHC, these changes may not affect you at all.

Why is this happening?

Evan Siddall, president and CEO of the CMHC, explains the changes are meant to steady the economy in the age of the coronavirus by controlling debt and protecting lenders from people who pose a high risk of defaulting.

While the rules will sting for some people trying to crack their way into the real-estate market, they could be a boon for others. By reducing the number of buyers, the crown corporation hopes to quell demand and balance out home prices.

Although Canada Mortgage and Housing Corporation (CMHC) is implementing these changes, for now, Genworth and Canada Guaranty are not. That means there are other options available!

“COVID-19 has exposed long-standing vulnerabilities in our financial markets, and we must act now to protect the economic futures of Canadians,” Siddall explained in a statement. “These actions will protect homebuyers, reduce government and taxpayer risk and support the stability of housing markets while curtailing excessive demand and unsustainable house price growth.”

Three New Rules

  1. Homebuyers looking for a high-ratio mortgage won’t be able to submit a down payment with money borrowed from credit cards, unsecured personal loans or lines of credit. Only “traditional sources” of cash, such as savings, equity from the sale of a house or financial support from relatives, will fly.
  2. The minimum credit score to qualify has changed from 600 to 680. If you don’t know your credit score, you can check it for free online. If it’s too low, you’ll have to take steps to improve it. Read my March blog for ways to improve your credit score.
  3. Borrowers will be capped at spending 35% of their gross income on housing. That includes the mortgage itself, property taxes and utilities. They will also only be able to borrow up to 42% of their gross income, taking into account all of their other loans and credit. Currently, buyers can spend up to 39% of their gross income and borrow up to 44%. This means potential buyers could see their purchasing power cut by up to 12%.

Mortgage Strategies Tailored to Your Needs!

Whether you’re buying a new home or refinancing your existing mortgage, let’s work together to create a mortgage strategy that’s best for you. Do you have a mortgage question? Who wouldn’t these days! Connect with me. Our conversations are confidential and guaranteed to provide you with the insight you want.

Tracy’s Joyful June

How have you – or will you – celebrate your birthday this year? One thing is for sure, you’ll never forget the celebration of 2020. Here’s how we created special memories in June.

Tracy's photo collage Have a wonderful summer everyone!

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Essential Mortgage News: Short Term Gain = Some Long Term Pain

Posted on May 5, 2020 by tracyirwin

There’s Good News and Not-So Good News About Your Mortgage During COVID-19

If you’ve opted for mortgage deferral assistance to free up some money, you’ll gain in the short term. The Canadian Bankers Association has reported that more than 90% of those seeking a deferral are approved.

The not-so good news is this relief effort comes at a cost. You’ll be paying compound interest. However, the good news is that your mortgage has prepayment privileges that will allow you to make extra payments later, without penalty, to help offset the deferral mortgage interest costs.

Most lenders will allow you to make lump sum payments (generally for as little as $100 on any payment throughout the year), and also increase your mortgage payments (once per year). Some lenders allow you to double up payments as well.

Two Smart Mortgage Strategies:

  • Use next year’s tax refund to make a lump sum payment against your mortgage.
  • Pay your mortgage every two weeks (biweekly accelerated) and shave years of interest accrued from the mortgage deferral. You won’t even notice the extra month’s payment per year.

Helpful links to learn more:

https://cba.ca/bank-sector-relief-measures-during-the-covid-19-pandemic?l=en-us

https://www.canadianmortgagetrends.com/2020/04/latest-in-mortgage-news-six-month-deferrals-could-cost-you-up-to-12000/

Do you know your mortgage details?

Contact me if you have any questions about your mortgage. I’m here to help you weather the storm.

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What You Need to Know About Your Mortgage During COVID-19

Posted on April 7, 2020 by tracyirwin

Mortgage Renewals: Resources & Repercussions

no place like home cushion Lenders will always offer mortgage renewal terms as long as you have not had a late payment on your mortgage during your term. If you have contacted your lender and requested a mortgage payment deferral, they will not consider that as a late payment and it will not show as a missed payment on your credit report – although I would recommend requesting your credit report after your mortgage deferral period has been completed. Here’s a Toronto Star article, explaining why people deferring their mortgage payments are making an unpleasant discovery: it can wreck your credit rating!

You can request your credit report free of charge at: https://www.consumer.equifax.ca/personal/.

Here is a list of Bank/Lender phone numbers:

lender phone numbersThe only time you have to qualify for your mortgage renewal is if you are refinancing, switching to another lender or moving to another home. Here is a great article that encourages mortgage holders to take a proactive approach with their next mortgage renewal: https://www.ratehub.ca/mortgage-renewal-process.

Knowledge is power!

For Everyone:

For Business Owners:

Questions? Concerns?

These are trying times. Give me a call or send an email with any mortgage questions or concerns – I am here to help!

Pre-COVID-19 Family Album

These are the reasons we listen to and follow the recommendations of public health officials. Please protect and respect your family and friends.

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Mortgage News That Will Put a Spring in Your Step

Posted on March 10, 2020 by tracyirwin

springs on stepAt Last! New Qualifying Stress Test Rate for Insured Mortgages…

On April 6, 2020, the federal government will be changing the benchmark qualifying rate used for Canada’s insured mortgage stress test.

The change means borrowers with insured mortgages (typically those with less than a 20% downpayment) will need to prove they can afford monthly mortgage payment based on a rate equal to the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications plus 2%.

Bill Morneau, Minister of Finance said, “For many middle class Canadians, their home is the most important investment they will make in their lifetime. Our government has a responsibility to ensure that investment is protected and to support a stable housing market. The government will continue to monitor the housing market and make changes as appropriate. Reviewing the stress test ensures it is responsive to market conditions.” Read the News release.

When you or someone you know needs personal mortgage advice for current or future financing needs, connect with me to schedule a confidential and no cost or obligation mortgage financing consultation. I’ve been providing mortgage solutions that open doors since 2005.

Read It and Reap (the benefits): Five Tips to Increase Your Credit Score Quickly

Would you like jumper cables for your credit score? This article will help boost your critical credit score so you can better qualify for certain mortgage and loan products.

Is your credit rating dangerous to your financial health? Do you have other mortgage financing questions? Ask me!

Our Fabulous February!

Starting Them Early …

Last month, while babysitting our 3-year-old granddaughter Mila, she casually asked to see my phone while we were waiting at a stoplight. That’s what grandparents are for, right?

Without saying a word, she was able to open the camera app, compose and snap this picture of me before handing me back my phone.

Our future is in good hands with the next generation!

 

Cycling the Legacy Trail…

Here’s Sid and I soaking up the Vitamin D in Venice, Florida and cycling the Legacy Trail to Sarasota.

The Legacy Trail is a 12.5-mile multi-use recreational trail in Sarasota County, Florida located between Sarasota near Palmer Ranch and Venice.

It’s beautiful!

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Millennials and Mortgages…

Posted on January 15, 2020 by tracyirwin

Why do Millennials believe that homeownership may be out of reach?

budgeting A KPMG survey says Millennials believe it’s a combination of (a) rising house prices, (b) high levels of personal debt, and (c) annual incomes that are just a fraction of the cost of buying a home compared with their parent’s generation. That last part isn’t entirely accurate. Read my last blog, What Boomers Got vs. What Millennials Are Getting.

In contrast, here is an infographic created by Statistics Canada that perhaps sheds a little more light on one of the issues Baby Boomers rarely experienced – namely, eating out! Talk about chewing up your savings for a home!

eating out - how often and whyLet’s start a conversation about how I can help you (or your children) develop mortgage strategies for homeownership that will open doors!

Refreshing News:

First-Time Home Buyer Incentive
There is more information available now on the First-Time Home Buyer Incentive. Aimed at helping people across Canada purchase their first home, the program offers 5 or 10% of the home’s purchase price to put toward a down payment. This addition to your down payment lowers your mortgage carrying costs, making homeownership more affordable.

If you’ve been wondering whether you’re eligible, follow the link and read the section entitled, “Am I Eligible for the Incentive”. It contains in-depth information, criteria (and a calculator) to determine your eligibility.

If you have questions about homeownership in Canada, let’s talk. I am here to help!

Family Smiles from November and December

family pictures

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First-Time Home Buyers: What Boomers Got vs. What Millennials Are Getting

Posted on November 12, 2019 by tracyirwin

The More Things Change, the more they stay the same!

This is fascinating! To compare what Millennials are able to afford now with what Baby Boomers could afford when they bought their first homes, HuffPost Canada built profiles of the first-time homebuyer neighbourhoods in three Canadian cities: Halifax, Toronto, and Vancouver. By analyzing data on housing construction, first-time homebuyer incomes (ages 25 to 34) and house prices, they created profiles for 1977 (1980 for Halifax) and 2017. Continue reading…

While housing prices have skyrocketed, falling interest rates have balanced mortgage payments. Monthly payments – adjusted for inflation – are similar to what they were 40 years ago. Additionally, the insured mortgage decreased from 10% to 5%, easing the process of buying a home for first-timers. Read more…

Whether you’re a Millennial, Boomer, Gen X or Z buying your first home or fifth, nothing can compare to solid mortgage financing advice and a network of experienced lenders ready to tackle all your financing or refinancing needs. Talk to me today!

Running for Rachael Results

running for rachael logoRunning for Rachael on Sunday, September 29th starting at CF Lime Ridge Mall was very rewarding! We had an excellent day with 330 participants and volunteers enjoying the Ring Road, Messages of Hope, local entertainment, food and Bruiser from the Hamilton Bulldogs.

It was a tremendous community event that generated considerable mental health awareness and a better understanding of suicide prevention in our community.

We are very pleased to report that together we raised $30,180. These funds will be used to support student-led mental health initiatives, city-wide suicide prevention training and education and support programs for those who have experienced loss by suicide.

There were so many wonderful photos taken at the event, I thought I would share the link rather than including only a few. Once on the website, scroll down to see the Gallery. You’ll see some familiar faces, like my husband, Sid (Rachael’s father), and our grandchildren, Mila and Addy.

Tracy’s Scrapbookhalloween pictures

 

 

 

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Close To Our Hearts:  Running for Rachael – Supporting Suicide Prevention

Posted on September 11, 2019 by tracyirwin

running for rachael logoNo family is immune from the heartbreak of suicide.

My husband Sid’s daughter, Rachael Arielle Stacey, left us when she was just 18 years of age. She will forever be in our hearts. We honour her legacy of wanting to help those who struggled the same way that she did. This, she decided, was what she was meant to do. Rachael didn’t have to die. Suicide is preventable. Learn more about Running for Rachael.

Running for Rachael plays an important role in supporting the city-wide work of suicide prevention, hope, help and healing. The community 5k walk or run helps support youth mental health awareness and suicide prevention in local area schools and community.

Please join us this year as we commemorate the 7th Annual Running for Rachael event at our new location CF Lime Ridge Mall  999 Upper Wentworth Street, Hamilton (Old Navy main entrance doors).

Date:                        Sunday, September 29th

Distance:                  5k walk or run (timed)

Cost:                         $30.00 per person (includes t-shirt)

                                 Children under age 12 are free!

Registration:            Opens at 8:00 am

Walk/Run start:        9:00 am

Register here:  https://raceroster.com/events/2019/23699/running-for-rachael

Donate here:  https://raceroster.com/events/2019/23699/running-for-rachael/charity/donate

Update on the First Time Home Buyer Incentive

Details are now available on the Government of Canada National Housing Strategy website at https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive.

The First-Time Home Buyer Incentive helps qualified first-time home buyers reduce their monthly mortgage carrying costs without adding to their financial burdens. You can learn more about the program, determine your eligibility, choose your incentive, understand repayment rules, apply and download application documents here: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive.

When is the best time to buy a home?

When YOU’RE ready! Talk to me about the ins and outs of mortgage financing today.

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Mortgage News That’s Clear as Mud and Crystal Clear!

Posted on August 13, 2019 by tracyirwin

mud maskAh August… it’s a time to sit back, relax and get caught up on all the important mortgage news of the day, right?

August is also a month full of juxtapositions.

Some of us are taking time off and going away while others are heading back home. Many are enjoying warmer than normal summer temperatures (okay, ridiculously hot), at the same time they’re thinking about fall, and getting the kids back to school. Some couples are actively looking for new homes, while others have decided to stay in their present location.

In this month of contrasts, I decided to feature both the clear as mud and crystal clear mortgage financing news.

Clear as Mud…

Emerging Details on the First-Time Home Buyers Incentive

Details on the CMHC’s First-Time Home Buyers Incentive have been slow coming out since the down payment assistance program was first announced as part of the Liberal government’s 2019 budget (way back in March). Here’s a recap of what we now know:

  • The $1.25 billion program is on track to begin September 2, 2019
  • The program will provide 5% of a first-time buyer’s down payment for the purchase of existing homes, or 5% or 10% for the first-time buyer’s purchase of a new build
  • A participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual income

You can learn more here: https://www.placetocallhome.ca/fthbi/first-time-homebuyer-incentive and/or sign up to receive additional details about the incentive when they become available (in the next 3 weeks?) on the Canada Mortgage and Housing Corporation website here:
https://www.cmhc-schl.gc.ca/en/nhs/canada-first-time-home-buyer-incentive

Crystal Clear…

Guess How Much of a Difference Prepayment Privileges Really Make…

If you pay your mortgage as a bi-weekly accelerated payment instead of monthly or semi-monthly, you will pay down your mortgage faster by almost 3 years!

Here’s a great way to “recycle” your money and pay less interest. Consider making an RSP contribution so that you will receive a tax credit and most likely a tax refund. You could then apply the tax refund to your mortgage using the “lump sum prepayment privileges”.

Any additional payments that you make against your mortgage will go directly towards principal and greatly reduce the amount of interest you pay over the life of the mortgage. Most lenders will allow you to pay as little as $100 on any mortgage payment throughout the year.

Another option is to increase your mortgage payment – set it and leave it. For a few extra dollars, the interest savings will be noticeable and will help you be mortgage-free sooner!

Either Way…

Whether you’re staying put in your current home or getting ready to make a move, talk to me today! Your questions are always welcomed!

Tracy’s Sun-sational Summer News!

Summer is never a time to put on the brakes! Here’s how we raced through June and July.

family summer fun collage

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