Long term mortgage rates for both 7 year and 10 year are now under 4%. Having a mortgage locked in under 4% for next 7 to 10 years is an amazing option especially on a investment property.
With RRSP season in full flight allot of people wish they had the income available to invest into their RRSP. An investment in a RRSP reduces a person income tax and at the same time builds wealth (if invested correctly) for the future. If you have large contribution room in your RRSP but do not have the funds to invest why not try taken equity from your home. The borrowing cost today are extremely low, you will receive a healthy cheque back from revenue Canada or reduce your over all taxes while building wealth for the future. You could also reduce your overall mortgage costs with a very low interest rate.
Call or email me with questions on this tax strategy.
We have all heard the doom and gloom that is surrounding the world economy especially in Real Estate. Although some parts of Canada have being hit by a negative decline in Real Estate Value Toronto and GTA has continuously performed well. As a result the equity in ones property has increased. With current interest rates being as low as they are, now could be an excellent time to tap into that equity take out if needed. Equity in a property belongs to the owner, it yours and can be used for a number of things
Article from the Financial Post
A new round of new mortgage rules form Ottawa could include tough new measures for calculating how the self-employed qualify for loans and tighten regulations for condominium buyers. Ottawa remains concerned about the possibility of an inflated housing market and wants to crack down on the practice where consumers self-disclose what they make when applying for a loan. In the case of the condominium buyer, the government continues to consider a proposal that would have 100% of condo fees count when assessing how much debt a consumer could afford, currently 50% of condo fees are used in debt calculations. Going back to the standard 25 year amortization is also on the cards for this year. Only time will tell if we get new mortgage rules this year.
Canada`s key interest rate will begin 2012 exactly where it`s being since September 2010 unchanged at 1.00%. For retail lending and mortgages this is 3.00% which is the current prime rate. It is the longest Stretch on record without a Bank of Canada rate change.
The Minimum down payment required for a mortgage is 5%. On rental or investment properties it is 20%. This is a government law.
Sources for down payment can be banks accounts, investments, Lines of credit (secured against property), Gifted funds.
Canadian resale housing market tightened slightly in November. The supply of new listings fell in 23 of 28 markets in November, but exceeded year – earlier levels in 20 Jurisdictions. An easing in Supply of listings, combined with slightly weaker sales gains, lifted sales to listing ratio in November in 23 out of 28 markets.resale hou
Bond yields have dropped by a few basis points over the course of the last week due to a lack of surprises in the data and markets wind down ahead of the holiday period.
Expect the ongoing situation in Europe to continue to dominate markets and policy decisions well into the new year.
As a result mortgage rates will remain low for 2012
The main objective of any mortgage borrower is to pay down there mortgage as soon as possible. Naturally coming up with the money to do this is not that easy. Two ways to chip away at your mortgage is to take an accelerated payment frequency and take advantage of the automatic payment increase allowed on your mortgage by your mortgage lender. Here is an example.
TREB supports the recommended 2012 Budget because it continues the process of bringing fiscal sustainability back to City Hall,” said Richard Silver, president of the Toronto Real Estate Board Tuesday in a written release, “however, while we support the direction of this Budget, we are pointing out that it does not begin the process of fulfilling Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax in 2012. This is a commitment that is strongly supported by Torontonians.”