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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Here’s What Happens When CMHC and MPC Bosses Verbally Spar Over YOUR Ability to Buy a Home or Renew a Mortgage

Posted on June 11, 2019 by tracyirwin

There is always something in the news about the current housing/real estate market, whether it’s:

  • the lack of affordable housing
  • real estate purchased through money laundering
  • mortgage stress tests
  • first time home buyer incentives
  • supply and demand (sellers and buyers markets)

boxing glovesBut when the head of Canadian Mortgage and Housing Corporation (CMHC), Evan Siddal, and Mortgage Professionals Canada (MPC) chief, Paul Taylor take their squabbles public, it’s time to sit up and take notice.

Ultimately, YOU are the one making the final decision whether to buy a home (regardless if it’s your first, second or third) or stay in your current situation. YOU have a right to know AND have a say.

Here are the Topic Contenders in the Title Bout:

  • Stress Testing & the Economy
  • Stress Testing Renewals (or lack thereof)
  • Consumption Risk
  • Slowing Home Prices
  • First-Time Home Buyer Incentive

Read the opinion.

Take a stand

Talk to your local Member of Parliament about your concerns. MPs are elected officials responsible for representing YOU and delivering your message to Ottawa. Change happens when a collective voice expresses discontent.

Be informed

Connect with me anytime you have a mortgage question. I’m here to help!

Tracy’s Trails and Tribulations

Tracy Irwin collage May 2019

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When Is The Right Time To Buy a Home?

Posted on May 13, 2019 by tracyirwin

first time buyersThe media buzz has died down on the government’s new First-Time Home Buyers Incentive since being announced in the Liberal Government’s March Budget. Why? Because specific details have yet to be released.

This unsettled situation has left home buyers in the lurch and echoing the lyrics from a 1982 song by The Clash, “Should I Stay or Should I Go“.

Two Things We Do Know:

  • The Mortgage Stress Test remains unchanged, a tactic that has completely underwhelmed the mortgage financing industry. Whether it’s your first, second, or third home, you still must qualify – even if you’re refinancing or renewing your mortgage.
  • The maximum purchase price permitted under the First-Time Home Buyers Incentive is confirmed at $505,000, which won’t do much to assist first-time buyers in the GTA, where prices are significantly higher.

Why Home Buyers Are Opting to Buy/Sell Sooner Rather Than Later

  • Families with school-aged children want to move now so they can get their kids settled before the September school year begins
  • People looking for outdoor features such as pools, patios and gardens want to enjoy them over the summer
  • The summer months are often quieter at work and easier to plan around
  • It’s easier to make a move when the weather is warmer and (slightly) more predictable
  • Inventory and selection. You’ve probably noticed the steadily increasing number of homes for sale everywhere. How will you feel if the “home of your dreams” slips away because you hesitated?
  • No one knows what’s going to happen with the FTHBI, the real estate market or mortgage financing interest rates.

A New Tool from Tracy That Will Help “Figure It Out”

Check out my new Mortgage Planning App: https://www.mccapp.ca/app/tracy-irwin. This new app is loaded with valuable information and features you may not have considered before. Being well-informed is the first step to successful home ownership.

What can you do with my app:

  • Calculate your total cost of owning a home
  • Estimate the minimum down payment you need
  • Calculate Land transfer taxes and the available rebates
  • Calculate the maximum loan you can borrow
  • Stress test your mortgage
  • Estimate your Closing costs
  • Compare your options side by side
  • Search for the best mortgage rates
  • Email Summary reports (PDF)
  • Use my app in English, French, Spanish, Hindi and Chinese

At the end of the day, the right time to buy a home is when you decide it’s the right time. I can help. Remember Mortgage Brokers are independent professionals that represent you, the client, not the lending institution. Fees are paid by the lender not the borrower.

Have a mortgage question or financing query? Talk to me! I’m here to help you.

April With Tracy & Sid

adorable youngest bowlersOn Saturday, April 6th we hosted our 2nd Annual Bowl-a-thon in support of the Suicide Prevention Community Council of Hamilton.

We raised almost $8,000!

Thanks to our youngest team players who won the Best Dressed Team Category!  Woohoo!

 

They Grow Up So Fast!

tracy's grandchildrenIt seems like yesterday we were posting new baby photos. Now suddenly there are gal pals, a new helper in the kitchen, and a serious sports fan! It begs the question:  how’d that happen?

 

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Are You Stressed Out by Mortgage Stress Tests?

Posted on April 1, 2019 by tracyirwin

confused couple Considered a “one size fits all” tool, the Mortgage Stress Test affects all homeowners alike, regardless of whether you are a first-time home buyer or homeowner preparing to renew* or refinance their mortgage.

*Homeowners renewing their mortgage financing who fail the stress test are bound to their original mortgage lender, without the option to shop for better mortgage rates, features or terms.

What is the Mortgage Stress Test?

Borrowers must show they can afford interest rates two percentage points above the current rate.

Tracy says: Stay tuned for some budget incentives for first time home buyers.

Professional Mortgage Tips for Buying a Home or Refinancing Your Mortgage

  • Review your discretionary spending habits. Know exactly where you spend and why.
  • Divert a percentage of your income to save for a down payment or pay down your existing mortgage at renewal time, if you have that option. Set up a monthly automatic transfer of funds. After a few months of adjustment, you won’t miss it.
  • Live and die by a budget. Welcome the opportunity to get creative with spending and enjoy life!
  • Know and monitor your credit history. This is fundamental to the mortgage pre-approval process. A balanced credit score with appropriate spending limits allows brokers to provide flexibility in their mortgage rate offerings.
  • Decrease debt and pay off monthly credit card statements. In January 2019 Livabl_ Market News reported, “Debt has caused 18 percent of Canadians to put off buying a home, according to an Angus Reid Institute survey undertaken in partnership with The Globe and Mail newspaper.” Not only will this make you more attractive to mortgage lenders, you’ll avoid costly high-interest rates.
  • Live your dream of home ownership. Before you buy or refinance a home, live within your budget beforehand to truly appreciate how it feels.

Read more about Mortgage Basics: http://tracyirwinmortgages.com/Mortgage-basics.html

What’s a Collateral Mortgage?

Watch this 6-minute video produced by CBC News: Marketplace. Find out what to look for BEFORE you sign. https://m.facebook.com/story.php?story_fbid=10153151838879429&id=28211229428

Tracy says: If you’re applying for a mortgage with a down payment of more than 20% be sure to ask questions, such as, “Is this a collateral mortgage?” “What mortgage amount will be registered against my property title.” Please contact me if you have a mortgage question or need help!

Why Use a Mortgage Broker Like Tracy Irwin?

Mortgage Brokers are independent professionals that represent YOU, the client, not the lending institution, for example, a bank. This affords you the best independent advice for your mortgage needs. There is no charge to work with a Mortgage Broker. Their fees are paid by the lender.

If you have questions about first time home ownership, refinancing or renewing your current mortgage, give Tracy a call. Where there’s a will, there’s a way.

Tracy’s Digital Travel Journal

tracy irwin

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What’s In Store for 2019: Interest Rates and Real Estate

Posted on January 11, 2019 by tracyirwin

When is a Good Time to Buy a Home?

2019 predictions list on a napkin with a cup of coffee

According to journalist Steve Huebl of Canadian Mortgage Trends, “We’re about to turn the page on what was a challenging year for the mortgage and housing markets. But so far 2019 isn’t looking like it will be much better. That’s according to a slew of forecasts that have been released recently, most of which forecast moderating home sales, falling home prices and weaker economic growth that will lead to interest rates flat lining for much of the year.”

I have been in this business a long time and there is one thing I know for certain – predictions are often wrong and definitely the “sky is falling” predictions. Clients often ask me, “when is a good time to buy”? I tell them when you have a down payment saved and you are ready for the commitment of home ownership. One client was very concerned about the housing bubble and waited to buy for two years. During that time, housing prices went up $75,000 for the type of home they were interested in purchasing. They not only paid more for the home, interest rates were higher and they paid rent to a landlord instead of investing in themselves. Talk to me, I am always happy to help!

Here’s a condensed version of some of the latest predictions for where home sales, prices and interest rates are headed in the new year and beyond:

CREA Forecasts Pessimistic Year Ahead for Housing

The Canadian Real Estate Association is forecasting national home sales to post double-digit declines in 2019, falling to the lowest level in five years. Despite supportive population growth, the association says much of the headwinds are the result of government policy designed to throw cold water on the housing market.

CMHC: Housing Activity to Moderate in 2019 and 2020

The Canada Mortgage and Housing Corporation is also predicting a housing slowdown next year, according to its 2018 Housing Market Outlook. It expects housing starts to fall to a range of 194,000 to 204,500 units.

Interest Rate Forecasts for 2019

Falling inflation in both Canada and the U.S., as well as weakening economic forecasts for the year ahead, have led to tempered forecasts for interest rate hikes in 2019. Just months ago, a January hike was all but certain, but the next rate hike is now unlikely until the spring or summer at the earliest, according to rate forecasts.

Real Estate Firms Expect Modest Home Price Growth in 2019

Two separate forecasts from real estate brokerages Royal LePage and Re/Max are both forecasting modest house price increases next year. Royal LePage expects the median home price to grow by 1.2% next year. Re/Max, meanwhile, is forecasting home sales to rise an average of 1.7% nationally.

Are you thinking about mortgage refinancing, buying or selling a home? Talk to me for strategic mortgage planning ideas that will open doors for you and your family.

Tracy and Sid Take On New Zealand

tracy's travel pictures

 

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The #1 Question Inquiring Home Buyers and Refinancers Ask

Posted on October 9, 2018 by tracyirwin

What is a Digital Mortgage?

digital mortgage technologyYou’re probably hearing more and more about digital mortgages these days and wondering what they’re all about.

Basically, a genuine digital mortgage is one that leverages technology to create an environment where a mortgage is produced, transferred, and stored without using a single piece of paper.

In a (financial) industry so heavily regulated and burdened with paper, the concept seems more like a fantasy than reality. One statistic we found published by the World Bank said, “Around the world, waste generation rates are rising. In 2016, the worlds’ cities generated 2.01 billion tonnes of solid waste, amounting to a footprint of 0.74 kilograms per person per day. With rapid population growth and urbanization, annual waste generation is expected to increase by 70% from 2016 levels to 3.40 billion tonnes in 2050.”

In other environmental news: There’s a huge cry, now being heard around the world, advocating the elimination of single use plastic straws, plastic water bottles, and non-recyclable bags that are polluting our oceans and killing marine life. You only have to watch the straw and the sea turtle video once to realize it’s time for humans to take a stand to protect rather than destroy our environment. We can all do our part. It’s as simple as saying “no straw, please” at every restaurant you visit.

Learn more about digital mortgages by chatting with Mortgage Broker and lover of the environment, Tracy Irwin, today.

Suicide Prevention Community Council of Hamilton

A Personal Message from Tracy…
Logistics kept me very busy during the month of September! The Suicide Prevention Community Council of Hamilton (SPCCH) held its annual Running for Rachael community run/walk on Saturday, September 28th at Bayfront Park in Hamilton.

running for rachael supports SPCCHIt was the most perfect day! I am happy to report that the event raised just over $19,000 for school based mental health grants. Over the past 5 years, our work has touched 22,000 students in our schools.

Helpful links:

Speaking of the Great Outdoors

Tracy and Sid's September photosHere are a few of the pictures Sid and Tracy snapped during September. They’re so “outdoorsy”!

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Exciting Mortgage News for Self-Employed Canadians

Posted on August 7, 2018 by tracyirwin

A Common Sense Approach to Lending

reduce the stress of mortgage financingFinally there’s some relief for the self-employed related to mortgage financing!

In 2010, 2.7 million Canadians were self-employed. That number has continued to skyrocket thanks in part to the precarious employment environment and workers looking for more stability and a better quality of life.

The government needs to loosen its grip on qualifications for the self-employed and return to a more common sense approach to lending. This announcement (below) by Canada Mortgage and Housing Corporation (CMHC) is a good start. Hopefully, more changes will follow soon. Want to know more about what’s happening in the world of mortgage of financing and how it affects you? Talk to Tracy today.

CMHC enhances qualification for self-employed borrowers

The Canada Mortgage and Housing Corporation (CMHC) will enhance qualification criteria for self-employed borrowers beginning October 1 to give them much-needed relief. Under current rules, self-employed borrowers who operate their business or have been in the same line of work for fewer than two years can qualify for a mortgage provided that a solid rationale is noted on the lender’s loan file. But a few additions to the guidelines will reduce rigidity. Read more…

A July to Remember

Speaking of “quality of life”… enjoy this digital diary of everything Tracy managed to pack in during July, and still look so relaxed! Our all-time favourite is the “after” picture of Tracy’s two granddaughters, Addy and Lyla leaving the splash pad. Get ready to laugh.

tracy's pictures tracy's pictures

Top left to right: Addy and Lyla; Tracy at Bruce National Park in Tobermory
Bottom left to right: Mila, Dean and his Dinos, Tracy cycling in Port Elgin

 

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WARNING: You May (or May Not) Want to Try This at Home

Posted on June 9, 2018 by tracyirwin

reverse mortgages can cost more than you thinkHow far would you go to help your children?

As parents, we all want to help our children succeed in life. But, would you be willing to go to the extreme of setting up a reverse mortgage on your own home so your children can become homeowners themselves?

“As an increasing number of parents help their children attain homeownership, reverse mortgages are being touted as a way to do just that but with fewer encumbrances.” Read it and weep…

Tracy’s Point of View:  Pitfalls of a Reverse Mortgage

While reverse mortgages may be a good fit for some people, there are (at least) 3 pitfalls that you should be aware of:

  1. Reverse mortgages have much higher interest than traditional lending institutions.  For example, if rates are 3.69% for a 5 year fixed rate, a reverse mortgage would easily be in the mid 5% range.
  2. This is a big one! The interest is compounded for as long as you own the home or you die.  You are not making any principal payments so interest costs balloon very quickly.  It is called “negative amortization” and you may end up with a lot less than you expected – either for yourself, if you are moving into a long term care facility, or for your estate.
  3. If you did decide to pay out the mortgage before the term has been completed, there are very stiff penalties.

Remember that there are other cost effective mortgage strategies (financial planners agree!) to explore before taking out a reverse mortgage. Ask me about them!

Renewing Your Mortgage?

Refinancing has become a lot more complicated!

Interesting factoid. Around 47% of all existing mortgages will need to be refinanced this year, according to CIBC estimates. This is up from 25 to 35 percent in a typical year. It attributes the increase to unintended consequences of regulatory changes in recent years, such as stress testing rules and rising interest rates. Before you even think about renewing talk to your financial planner. Develop an up to date overview of your income and expenses and discuss what’s changed since you obtained your existing mortgage. Then work with a Mortgage Broker, like Tracy Irwin, who will help you find the right mortgage financing product for your needs. Mortgage Brokers have access to thousands of products from hundreds of lenders – and best of all – it doesn’t cost you a thing. Mortgage Broker fees are paid by lenders not homeowners. Talk to Tracy today!

Tracy Irwin: Community Volunteer

Tracy organized the 1st Annual Bowl-a-Thon in support of the Suicide Prevention Community Council of Hamilton. Get this, the event raised over $8,000 – despite the fact that it was held on Saturday, April 14, the day of the freak freezing-rain storm!  The money raised will be used to create postvention* strategies for our community. There was a prize for the best dressed team – The 5 Amigos (with one missing)!

*postvention definition: A postvention is an intervention conducted after a suicide, largely taking the form of support for the bereaved (family, friends, professionals and peers).

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Cast Your Mortgage Financing Sails

Posted on April 9, 2018 by tracyirwin

Tracy Irwin helps with mortgage financing so you can experience smooth sailingThis month, we’re presenting a boatload of helpful mortgage and financing news.

You don’t have time to know everything there is to know about mortgage financing, especially when there are so many changes. Trust Tracy to help you navigate lending options so you can enjoy smooth sailing!

BNN Video: Important Factors to Consider When Shopping for a Mortgage
Mortgages of Canada CEO Samantha Brookes joins BNN with what you need to know about the OSFI changes before you buy your next home. Watch the video!

Global News: Should You Pay Down Your Mortgage or Save for Retirement?
Rising interest rates are changing the math. If you have a little extra cash to throw around, is it better to take a bite out of your mortgage debt or fatten up your retirement savings? That’s the eternal dilemma that faces many Canadians around this time of the year. Read the story of Joe and Jane Canuck.

CMHC Releases New Findings on Prospective Home Buyers
Read what Canadians had to say about home purchase drivers, housing expectations, financing a home, and the impact of changes to the housing industry. Where do you fit in? Download the Canada Mortgage and Housing Corporation (CMHC) 2018 Prospective Home Buyers Survey

Do you have questions about mortgage financing? For straight answers that will keep you on course, talk to Tracy Irwin today.

And now, on a Personal Note…

Readers love to see what Tracy’s been up you. Thank you for that! Here’s a collection of recent photos, sure to satisfy.

Tracy's Happenings

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Why Work With a Mortgage Broker?

Posted on February 13, 2018 by tracyirwin

happy new homeownersIn short, Mortgage Brokers provide options and information to guide consumers through the complicated mortgage application process. This is especially true in view of the Office of the Superintendent of Financial Institutions’ newly enacted tighter lending requirements, in turn triggering these attention-grabbing headlines:

Do Mortgage Brokers Work With Just One Lender?

Mortgage brokers are licensed professionals who can identify a large number of lenders and options for you. They do not just work with one lender, which is why they can provide you with a variety of options. In fact, some lenders will only work through brokers. Mortgage brokers assess and compare the proposed mortgages and determine if you meet the lender’s criteria.

They can also explain the application and approval process and answer any questions you may have, and review the rate, terms and conditions of the mortgage.

Does the new lending landscape have you shaking your head and wondering whether home ownership or mortgage refinancing is in your future? Talk to Tracy.

January’s Gem

Where does the time go?

This is Mila celebrating her first birthday. Rather than cake, she’s munching on Tracy’s business card and laughs when she sees her Nana’s picture.

Isn’t she beautiful? (And she’s smart too!)

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