Zenar Financial Corporation

CMHC sees stability in housing market

Zenar — Tue, 14 Feb 2012 21:35:51 +0000

Canada’s hot housing market is due for a soft landing that stabilizes prices, sales and new construction over the next two years, the Canada Mortgage and Housing Corp. said Monday.

The national housing agency’s first-quarter 2012 report appears to underplay fears of a sharp correction that would see prices plummet in some hot spots like Vancouver and Toronto.

“With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” CMHC deputy economist Mathieu Laberge said in a statement.

Analysts say the assessment constitutes the best of all possible outcomes for the Canadian housing market, which has seen a remarkable run-up in prices and sales since the recession to record highs.

via CMHC sees stability in housing market | The Chronicle Herald.

Banks pull back on low rate mortgages

Zenar — Fri, 10 Feb 2012 01:03:01 +0000

Canada’s major banks pulled back on historic-low mortgage offers this week by raising their posted rates. But that doesn’t mean the deep discounting seen over the last month has necessarily ended.

Several of the banks are still unofficially offering deep discounts in the mortgage market through brokers and in-branch negotiations, while some credit unions say they are holding firm on rate offers brought in last month to compete with the banks.

via Banks pull back on low rate mortgages – The Globe and Mail.

House prices dip, but no crash in sight

Zenar — Tue, 17 Jan 2012 20:54:01 +0000

Toronto house sales are slowing, but economists are not predicting a crash in the real-estate market.

The latest statistics from the Canadian Real Estate Association, released Monday, show that Toronto house prices dipped about 2.4 per cent in December over November, putting the average house at $466,540 when adjusted for seasonal fluctuations. Even with that slight decline, Toronto house prices were up in December by four per cent, year over year, CREA notes.

Buyers are becoming “increasingly cautious,” but house sales are expected to continue making a “significant contribution to Canadian economic activity” this year, CREA says.

Economists believe the “distinct signs of moderation” in late 2011 suggest that Toronto is headed not so much for a fall as for a cooling-off.

via Metro – House prices dip, but no crash in sight: Report.

Lower Fixed Mortgage Rates Expected as Lenders Fight for Business

Zenar — Fri, 13 Jan 2012 16:02:09 +0000

Canadian consumers could see lower fixed mortgage rates this month as competition heats up and lenders look to build their mortgage pipeline for the year, says RateSupermarket.ca’s Mortgage Rate Outlook Panel for January 2012.

via Lower Fixed Mortgage Rates Expected as Lenders Fight for Business – MarketWatch.

Canadian home prices will rise again in 2012, but slower than last year: LePage

Zenar — Thu, 12 Jan 2012 18:03:05 +0000

Canadian home prices will continue to go up in 2012, although at a slower pace than they did last year, according to one of the country’s largest real-estate sales organizations.

Royal LePage, which franchises brokerages across the country, predicted Thursday that the national average price for resale homes will increase this year by 2.8 per cent by the end of 2012.

It said the national average price for a standard two-storey home was $375,427 in the fourth quarter of 2011, up 4.2 per cent from 2010.

“Widespread calls for a major real estate correction in 2012 simply can’t be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand — albeit at a slower pace,” said Phil Soper, the president and CEO of Royal LePage Real Estate Services.

via Canadian home prices will rise again in 2012, but slower than last year: LePage | CanadianBusiness.com.

10 Things To Keep In Mind When Buying A House

Zenar — Sat, 24 Dec 2011 15:10:36 +0000

Buying a home is a trying and complicated process. It often strains relationships and puts an enormous amount of stress on buyers physically, mentally and financially. That’s why the folks at the Boston Globe have put together this list of 10 things to keep in mind as you weather the home-buying storm.

More after the jump…

via 10 Things To Keep In Mind When Buying A House – The Consumerist.

Two Thirds of Homeowners Don’t Shop at Renewal

Zenar — Wed, 21 Dec 2011 13:11:38 +0000

The below is an article that I came across based on a research study done by Manulife Bank. The study shows that many people are willing to pay more on their mortgages.

Survey Details: The Manulife Bank of Canada polled 1,000 Canadian homeowners between ages 30 to 59 with household income of more than $50,000. The survey was conducted online by Research House between October 25 and November 7, 2011. In a similarly-sized random sample survey, the margin of error would be plus or minus 3.10% at a 95% confidence level. Here’s the full survey.

Manulife recently surveyed 1,000 Canadian homeowners between the ages of 30 to 59. Among respondents with a mortgage, two-thirds (65%) did not compare mortgages from more than one lender when they last renewed.

More specifically:

20% stayed with their current lender after maturity and did not negotiate
45% stayed with their current lender and tried to negotiate a good deal, but did not shop around
35% compared mortgages from several lenders and choose the best overall lender and product.

The youngest group (ages 30-39) was most likely to shop around (41%), but was also most likely to
accept their current lender’s offer without negotiating (24%).

When Doug Conick, President & CEO of Manulife Bank was asked, why on earth people would give so much power to their lender he stated that “most people lead very busy lives and may not have the time or expertise to fully investigate their options”.

“With busy lives and a lack of advice for most, this decision often gets left until very close to the renewal date, causing borrowers to follow the path of least resistance and renew with their current lender.”

“The unfortunate thing,” he added, “is that this could end up costing them a lot of extra money and keep them in debt longer than they need to be.”

That’s for sure.

People who auto-renew often pay 1/2%-3/4% more than necessary, or worse! In fact, thousands of people sign renewal letters at their bank’s “special offer” rate, which is usually well above the market. (Example: Today’s 5-year fixed “special offer” bank rates are 3.94% to 4.09%. Competitive rates from brokers are around 3.49% on a 5 year renewal and we have access to great quick close 30 day rates even less than 3.49%.)

Even a 1/4% rate difference amounts to over $4,000 more in interest over five years, on a $200,000 mortgage with a 20-year amortization. That’s money that could normally go towards prepaying a fat chunk of principal.

It’s hard to fathom why anyone would let a lender pick their pocket like this. At the very least, folks must find it within their strength to lift up the phone and call an independent mortgage planner.

Even if you’d rather stay with your current lender at renewal, seek out a second opinion. You absolutely owe it to yourself to keep your lender honest by surveying the market.

Of course, this all begs the question of why someone would ever want to deal exclusively with a lender that aims to maximize the interest they pay…but that’s a story for another day.

Canadian real estate in the “middle of the pack” globally

Zenar — Wed, 21 Dec 2011 13:01:33 +0000

Canada’s housing market is maintaining a strong presence and in the 13th year of a housing boom, average prices for homes in many Canadian cities continue to rise, according to a new report on global real estate trends.

The report from Scotiabank Group says that Canada is “in the middle of the pack” at the international level, with the average price of homes jumping about 85 per cent over the 13-year period after adjusting for inflation.

via Canadian real estate in the “middle of the pack” globally: Report.

Toronto real estate market favours sellers

Zenar — Fri, 16 Dec 2011 16:32:20 +0000

Canadian housing numbers released Thursday suggest that the market is getting tight and inching closer to a sellers’ market as sales and prices jumped again in November.

Figures released by The Canadian Real Estate Association (CREA) shows that sales activity rose by a slight 0.5 per cent in November on a month over month basis, while year-over-year sales also rose.

However, in the Greater Toronto Area listings in November fell 4.4 per cent, while the average selling price was $479,302, up 2.9 per cent from October.

“It is very much a seller’s market at the moment,” John Lusink, a Royal LePage broker in Newmarket told CTV News. “They are competing in multiple offer situations and prices have risen to the point where we are seeing new home buyers move further and further north.”

And Lusink said now might be the right time for a seller to put a “for sale” sign on their front lawn.

“You buy and sell in the same market, so I would suggest that it’s a good time for a seller to put their homes on the market,” Lusink said.

The market is expected to remain tight for the next few months before loosening up in the spring and creating a more balanced market.

via Toronto real estate market favours sellers | CTV Toronto.

Buying a Home? CMHC Offers Range of Tips and Resources

Zenar — Wed, 16 Nov 2011 15:49:04 +0000

Buying a home is one of the biggest financial decisions you will make. Canada Mortgage and Housing Corporation CMHC offers a variety of publications, calculators and tools to help you make informed and responsible homebuying decisions.

To assist you in making choices you can be comfortable with into the future, publications like Homebuying Step-by-Step and the Condominium Buyers’ Guide show how to evaluate your housing options and meet your unique housing needs.

CMHC also offers resources designed specifically for recent immigrants to Canada in eight different languages. Buying Your First Home in Canada includes a variety of relevant and appropriate tools, products and resources to make finding safe and affordable housing easier.

In addition to guides, CMHC has also developed a series of online calculators that allow homebuyers to evaluate and test their financial readiness as they pursue their housing goals. The recently launched Premium Calculator joins the Mortgage Payment Calculator, the Mortgage Affordability Calculator and the Household Budget Calculator as easy to use online resources.

CMHC also provides other useful tips for planning and managing your mortgage. These tips range from saving money on your mortgage, to protecting yourself from becoming a victim of mortgage fraud, to understanding your credit report, to preparing for a meeting with your mortgage professional.

Taking the time to plan and determine what you need and how much you can afford can make the overall homebuying experience less stressful and the outcome more satisfying. CMHC’s range of resources are available to support you throughout all stages of the homebuying process.

via Buying a Home? CMHC Offers Range of Tips and Resources.