<![CDATA[Self Directed RRSP - Time To Lend<br /> - Blog]]>Fri, 11 May 2012 18:37:05 -0800Weebly<![CDATA[ Budget: Highlights of the 2012 federal budget]]>Fri, 30 Mar 2012 07:20:28 -0800http://www.timetolend.com/1/post/2012/03/-budget-highlights-of-the-2012-federal-budget.html The budget will:

- Gradually raise the age of eligibility for Old Age Security from 65 to 67 beginning in 2023.
- Contain no new taxes or tax increases.
- Tell consumers to complain directly to food companies about product labeling.
- Eliminate the penny.
- Eliminate 19,200 government jobs over three years, including 600 senior executives and 7,200 through attrition.
- Reform regulation in the resource industry, including amending the Canadian Environmental Protection Act.
- Allow Canadians to claim more goods duty-free at the border. The limit after 24 hours goes from $50 to $200.
- Cap EI premium rate increases to 5 cents a year until the fund is balanced again.
- Cut $2.1 billion from the Department of National Defence over the next three years.
- Cut funding to the CBC by 10 per cent over three years totaling $115 million.
- Cut funding to Elections Canada by $7.5 million a year starting in 2012-13.
- Give $5.2 billion over 11 years to the Canadian Coast Guard.
- Give $67 million to the National Research Council to refocus on "business-led, industry-relevant research."
- Streamline overall regulatory reviews of major economic projects.
- Provide $275 million to build and renovate schools on reserves.
- Pass legislation to create standards for First Nations education.
- Refund $130 million in application and processing fees to skilled foreign workers stuck in immigration limbo.
- Raise the retirement age of public servants from 60 to 65, for new employees beginning in 2013.
- Increase employee-contribution levels to pension plans for those working in Canadian Forces, RCMP, Public Service Commission and parliamentarians.
- Make the Governor General pay income tax beginning in 2013.
- Shut down the Public Appointments Commission, Assisted Human Reproduction Canada, and the National Round Table on the Environment and the Economy.
- Sell official residences abroad, generating $80 million in revenue.
- Standardize all government emails to one system.
- $205 million over one year for Hiring Credit for Small Business.
- Give $50 million over two years to Youth Employment Strategy.
- Give $150 million over two years on Community Infrastructure Improvement fund
- Give $105 million next year to Via Rail for operational and capital projects.
- Give $101 million over next five years for Esquimalt Graving Dock.
- Give $50 million over two years to protect wildlife at risk.
- Provide $450 million for sports facilities in the Greater Toronto Area for the 2015 Pan American and Parapan American Games.
- Give $8 million to clean up low-level radioactive waste in Port Hope and Clarington, Ont.
- Provide $44 million over two years to the Canadian Grain Commission to reform their funding model.
- Provide $13.5 million over two years to improve pipeline safety.
- Give $35.7 million over two years to improve tanker safety and inspections, emergency preparedness related to oil spills and updated charts for shipping routes.
- Announce a new global commerce strategy in 2013 that sets trade priorities.
- Provide $9.6 million over three years to the RCMP to fight counterfeiting.
- Give $ 99.2 million over three years to help the provinces create permanent flood mitigation measures.
- The Government has found $5.2 billion in ongoing savings from departmental spending or less than two per cent of federal program spending.
]]><![CDATA[OSFI, Canada’s banking regulator, is leaning on banks and other federally regulated lenders to clamp down on underwriting practices]]>Wed, 21 Mar 2012 15:08:35 -0800http://www.timetolend.com/1/post/2012/03/osfi-canadas-banking-regulator-is-leaning-on-banks-and-other-federally-regulated-lenders-to-clamp-down-on-underwriting-practices.html It released these draft recommendations this week. 

After reading through 18 pages of changes, in detail, our immediate reaction was concern.

That’s not because the guidelines are greatly imprudent. Some are unnecessarily rigid, but most are sound policy. It’s because OSFI risks tightening too much, too fast. 

If the government also decrees new insured mortgage regulations (like these), and/or rates rise significantly, and/or unemployment unexpectedly spikes, it could form the proverbial perfect storm that blows over housing valuations.
]]><![CDATA[CAAMP Mortgage Insights Report]]>Thu, 08 Mar 2012 15:05:02 -0800http://www.timetolend.com/1/post/2012/03/caamp-mortgage-insights-report.html Highlights from CAAMP’s Fall 2011 Consumer and Industry Surveys contain some great information and statistics worth sharing with your customers and referrals sources.

Some key points include:   
  • Canadians have roughly 68% equity in their home, compared with 43% in the US
  • 71% of homeowners say they’re in a good position to weather a potential downturn in the housing market
  • 84% of mortgage holders could withstand a mortgage payment increase of $200 per month
  • 10% of mortgage holders withdrew equity from their mortgage in the past 12 months, down sharply from 18% measured in Spring 2011
  • 38% of mortgage holders are considering, or did consider, in the past year refinancing early to take advantage of low rates 
  • 27% represents the share of outstanding Canadian mortgages originated through a mortgage broker
  • 33% is the broker share of first mortgages (defined as the first mortgage taken out on a property)
  • 20% is the broker share of renewals/renegotiations
  • The average broker customer received 2.8 mortgage quotes, significantly higher than 1.8 among bank customers
  • The average bank customer plans to pay their mortgage off five years early, compared with three years among bank customers
  • When consumers were asked why they did not consult a mortgage broker: 39% said they were loyal to their bank; 33% said they just didn’t think about it; 24% don’t understand the services provided by brokers; 10% said it was too much effort to find a good broker
  • The top five challenges facing the broker channel include: lack of consumer awareness/understanding of the channel; lender mobile sales forces; risk of lenders leaving the channel; oversaturation of brokers; and lender in-store sales force


Click here to view the full report. ]]><![CDATA[Employment Impacts of Housing and Mortgage Activity]]>Tue, 21 Feb 2012 09:43:13 -0800http://www.timetolend.com/1/post/2012/02/employment-impacts-of-housing-and-mortgage-activity.htmlCAAMP recently released it's analysis of the vital role that housing plays—directly or indirectly—in Canada’s economy. Here are highlights:
  • Housing accounts for approximately 8% of Canada’s employment.
  • It’s been responsible for 18% of job creation since 2006.
  • “A 10% rise in housing values might cause consumer spending to rise by 0.4%,” says CAAMP. (One may presume the reverse is also true.)
  • 2-3% of home sales nationally are for investment purposes. (The number is notably higher in major metros like Toronto and Vancouver.)
  • CAAMP says: “The biggest threat to the health of the Canadian housing and mortgage industry is a recession that results in job losses.”
  • Housing risk caused by “an unaffordable rise in payments…is a negligible risk in Canada…A more important risk is reduced ability to pay.”
  • “..In the event of a severe housing market downturn that brings substantial price reductions, there is a risk of a downward spiral (in the economy).”
  • “..We must avoid any policy changes that would artificially constrain housing activity or reduce the ability of lenders to provide mortgages to qualified buyers,” says CAAMP. “The last thing Canada needs is a policy-induced housing market downturn.”
Read Complete Report


]]><![CDATA[Who "owns" the Federal Reserve]]>Tue, 21 Feb 2012 09:23:05 -0800http://www.timetolend.com/1/post/2012/02/who-owns-the-federal-reserve.htmlFederal Reserve Directors: A study of Corporate and Banking Influence

Complete Chart
]]><![CDATA[Housing Market Outlook]]>Tue, 21 Feb 2012 09:13:20 -0800http://www.timetolend.com/1/post/2012/02/housing-market-outlook.htmlCMHC's Q1 2012 Housing Market Outlook, published last week, was generally met with an underwhelming "ho-hum" reaction. The forecast of a "steady" market overall with balanced re-sale market conditions isn't exactly a headline grabber but Canadians should probably consider themselves lucky as we have not seen any significant pull-back in new housing starts, prices or re-sale activity like our neighbours to the south have been dealing with since late 2007

Read full report
]]><![CDATA[Top 10 kitchen renovation tips]]>Wed, 15 Feb 2012 18:25:32 -0800http://www.timetolend.com/1/post/2012/02/top-10-kitchen-renovation-tips.html
Picture
From the cabinets to the appliances, find out how to ensure a successful renovation.  Renovating your kitchen will add ease to your lifestyle and value to your home. Here are the 10 most important things to consider when you're updating your kitchen.

Click here to read the entire article
]]><![CDATA[10 Questions Mortgage Borrowers Should Ask But Often Don’t]]>Thu, 12 Jan 2012 15:11:59 -0800http://www.timetolend.com/1/post/2012/01/10-questions-mortgage-borrowers-should-ask-but-often-dont.html_ 1. If I have mortgage default insurance do I also need mortgage life insurance?
·      Yes. Mortgage life insurance is a life insurance policy on a homeowner, which will allow your family or dependents to pay off the mortgage on the home should something tragic happen to you. Mortgage default insurance is something lenders require you to purchase to cover their own assets if you have less than a 20% down payment. Mortgage life insurance is meant to protect the family of a homeowner and not the mortgage lender itself.

2. What steps can I take to maximize my mortgage payments and own my home sooner?
·      There are many ways to pay down your mortgage sooner that could save you thousands of dollars in interest payments throughout the term of your mortgage. Most mortgage products, for instance, include prepayment privileges that enable you to pay up to 20% of the principal (the true value of your mortgage minus the interest payments) per calendar year. This will also help reduce your amortization period (the length of your mortgage). Another way to reduce the time it takes to pay off your mortgage involves changing the way you make your payments by opting for accelerated bi-weekly mortgage payments. Not to be confused with semi-monthly mortgage payments (24 payments per year), accelerated bi-weekly mortgage payments (26 payments per year) will not only pay your mortgage off quicker, but it’s guaranteed to save you a significant amount of money over the term of your mortgage. With accelerated bi-weekly mortgage payments, you’re making one additional monthly payment per year. In addition to increased payment options, most lenders offer the opportunity to make lump-sum payments on your mortgage (as much as 20% of the original borrowed amount each year). Please note, however, that some lenders will only let you make these lump-sum payments on the anniversary date of your mortgage while others will allow you to spread out the lump-sum payments to the maximum allowable yearly amount.

3. Can I make lump-sum or other prepayments on my mortgage, or will I be penalized?
·      Most lenders enable lump-sum payments and increased mortgage payments to a maximum amount per year. But, since each lender and product is different, it’s important to check stipulations on prepayments prior to signing your mortgage papers. Most “no frills” mortgage products offering the lowest rates often do not allow for prepayments. 

4. How do I ensure my credit score enables me to qualify for the best possible rate?
·      There are several things you can do to ensure your credit remains in good standing. Following are five steps you can follow: 1) Pay down credit cards.The number one way to increase your credit score is to pay down your credit cards so they’re below 70% of your limits. Revolving credit like credit cards seems to have a more significant impact on credit scores than car loans, lines of credit, and so on. 2) Limit the use of credit cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there’s a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you may have paid the balance off the next month. 3) Check credit limits. If your lender is slower at reporting monthly transactions, this can have a significant impact on how other lenders view your file. Ensure everything’s up to date as old bills that have been paid can come back to haunt you. Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring agencies that you’re regularly maxing out your cards. The best bet is to pay your balances down or off before your statement periods close. 4) Keep old cards. Older credit is better credit. If you stop using older credit cards, the issuers may stop updating your accounts. As such, the cards can lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the cards for a long time. Use these cards periodically and then pay them off. 5) Don’t let mistakes build up. Always dispute any mistakes or situations that may harm your score. If, for instance, a cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

5. What amortization will work best for me?
·      While the lending industry’s benchmark amortization period is 25 years, and this is the standard that is used by lenders when discussing mortgage offers, and usually the basis for mortgage calculators and payment tables, shorter or longer timeframes are available – to a maximum of 30 years. The main reason to opt for a shorter amortization period is that you’ll become mortgage-free sooner. And since you’re agreeing to pay off your mortgage in a shorter period of time, the interest you pay over the life of the mortgage is, therefore, greatly reduced. A shorter amortization also affords you the luxury of building up equity in your home sooner. Equity is the difference between any outstanding mortgage on your home and its market value. While it pays to opt for a shorter amortization period, other considerations must be made before selecting your amortization. Because you’re reducing the actual number of mortgage payments you make to pay off your mortgage, your regular payments will be higher. So if your income is irregular because you’re paid commission or if you’re buying a home for the first time and will be carrying a large mortgage, a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be the best option for you.

6. What mortgage term is best for me?

·      Selecting the mortgage term that’s right for you can be a challenging proposition for even the savviest of homebuyers, as terms typically range from six months up to 10 years. The first consideration when comparing various mortgage terms is to understand that a longer term generally means a higher corresponding interest rate. And, a shorter term generally means a lower corresponding interest rate. While this generalization may lead you to believe that a shorter term is always the preferred option, this isn’t always the case. Sometimes there are other factors – either in the financial markets or in your own life – that you’ll also have to take into consideration when selecting the length of your mortgage term. If paying your mortgage each month places you close to the financial edge of your comfort zone, you may want to opt for a longer mortgage term, such as five or 10 years, so that you can ensure that you’ll be able to afford your mortgage payments should interest rates increase. By the end of a five- or 10-year mortgage term, most buyers are in a better financial situation, have a lower outstanding principal balance and, should interest rates have risen throughout the course of your term, you’ll be able to afford higher mortgage payments.

7. Is my mortgage portable?

·      Fixed-rate products usually have a portability option. Lenders often use a “blended” system where your current mortgage rate stays the same on the mortgage amount ported over to the new property and the new balance is calculated using the current rate. With variable-rate mortgages, however, porting is usually not available. This means that when breaking your existing mortgage, a three-month interest penalty will be charged. This charge may or may not be reimbursed with your new mortgage. While porting typically ensures no penalty will be charged when you sell your existing property and buy a new one, it’s best to check with your mortgage broker for specific conditions. Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day, while others offer extended periods.

8. If I want to move before my mortgage term is up, what are my options?

·      The answer to this question often depends on your specific lender and what type of mortgage you have. While fixed mortgages are often portable, variable are not. Some lenders allow you to port your mortgage, but your sale and purchase have to happen on the same day, while others offer extended periods. As long as there’s not too much time between the sale of your existing home and the purchase of the new home, as a rule of thumb most lenders will allow you to port the mortgage. In other words, you keep your existing mortgage and add the extra funds you need to buy the new house on top. The interest rate is a blend between your existing mortgage rate and the current rate at the time you require the extra money.

9. What steps can I take to help ensure I don’t become a victim of title or mortgage fraud?

·      The best way to prevent fraud is to be aware of how it’s committed. Following are some red flags for mortgage fraud: someone offers you money to use your name and credit information to obtain a mortgage; you’re encouraged to include false information on a mortgage application; you’re asked to leave signature lines or other important areas of your mortgage application blank; the seller or investment advisor discourages you from seeing or inspecting the property you will be purchasing; or the seller or developer rebates you money on closing, and you don’t disclose this to your lending institution. Sadly, the only red flag for title fraud occurs when your mortgage mysteriously goes into default and the lender begins foreclosure proceedings. Even worse, as the homeowner, you’re the one hurt by title fraud, rather than the lender, as is often the case with mortgage fraud. Unlike with mortgage fraud, during title fraud, you haven’t been approached or offered anything – this is a form ofidentity theft. Following are ways you can protect yourself from title fraud: always view the property you’re purchasing in person; check listings in the community where the property is located – compare features, size and location to establish if the asking price seems reasonable; make sure your representative is a licensed real estate agent; beware of a real estate agent or mortgage broker who has a financial interest in the transaction; ask for a copy of the land title or go to a registry office and request a historical title search; in the offer to purchase, include the option to have the property appraised by a designated or accredited appraiser; insist on a home inspection to guard against buying a home that has been cosmetically renovated or formerly used as a grow house or meth lab; ask to see receipts for recent renovations; when you make a deposit, ensure your money is protected by being held “in trust”; and consider the purchase of title insurance.

10. How do I ensure I get the best mortgage product and rate upon renewal at the end of my term?

·      The best way to ensure you receive the best mortgage product and rate at renewal is to enlist your mortgage broker once again to get the lenders competing for your business just like they did when you negotiated your last mortgage. A lot can change over a single mortgage term, and you can miss out on a lot of savings and options if you simply sign a renewal with your existing lender without consulting your mortgage broker.

]]><![CDATA[TD Weekly Bottom Line]]>Mon, 14 Nov 2011 07:52:33 -0800http://www.timetolend.com/1/post/2011/11/td-weekly-bottom-line6.html_
HIGHLIGHTS OF THE WEEK

United States

• This week markets laid siege to Italian sovereign debt, driving yields on 10-year bonds to levels not seen since the country adopted the common currency a decade ago. The longer such rates are sustained, the greater the risk that Italy becomes insolvent, and is forced into a messy default.

• Two things must happen for the crisis to be contained. First, investors must regain confidence in Italy ’s ability to make good on future debt obligations. Second, the European Central Bank (ECB) must act in a more aggressive role as lender of last resort.

• Stateside, the deficit reduction committee is nearing its November 23rd deadline for coming up with $1.2 trillion dollars in fiscal savings over the next decade. With continuing economic weakness both at home and abroad, the risk is that policymakers cut spending too much too soon, sucking demand out of the economy at a time when consumers and businesses are still unable to fill the void.

Canada

• Canadian financial markets experienced volatility as positive trade news on the home front were not enough to turn around a week marked by developments in Europe.

• Canada ’s merchandise trade balance returned to a surplus position in September as strong export growth outpaced the increase in imports. Exports rose to the highest level since October 2008. The gains were largely attributable to price increases.


Click here to read the full report


]]><![CDATA[Canadians heed debt warnings and exhibit confidence in their ability to manage their mortgage:]]>Wed, 09 Nov 2011 08:33:48 -0800http://www.timetolend.com/1/post/2011/11/canadians-heed-debt-warnings-and-exhibit-confidence-in-their-ability-to-manage-their-mortgage.htmlCAAMP Canadian Association of Accredited Mortgage Professionals releases Annual State of the Residential Mortgage Market in Canada report 

TORONTO, Nov. 9, 2011 /CNW/ - Canadians have heard the many cautions about carrying too much debt and are taking action to insulate themselves from future economic downturns, according to the seventh Annual State of the Residential Mortgage Market report by the Canadian Association of Accredited Mortgage Professionals (CAAMP), released today.

Highlights:
  • About one-third (32 per cent) of homeowners with mortgages had some mortgage activity in 2011, with 23 per cent renewing or refinancing their mortgage
  • Fixed rate mortgages remain most popular (at 60 per cent), while 31 per cent have variable rate mortgages
  • Among those who renewed their mortgage in the past 12 months, 78 percent saw a reduction in their rate
  • Among those who renewed or refinanced their mortgages in the last year, 21 per cent changed lenders
  • Levels of equity takeout have dropped in 2011 - only 10 per cent of mortgage holders took out equity in the last year, a 40 per cent drop from 2010
"Overall, our survey paints a picture of Canadians generally and homeowners in particular as very focused on their finances. They are planning ahead, aggressively paying down their mortgage in advance of any further economic jolt,"" said Jim Murphy, AMP, President and CEO of CAAMP. "Prudent is the word that best sums up how Canadians are feeling at this time."

Canadians secure in their own positions; skeptical about others
The 2011 survey found an interesting contrast between individuals' own debt levels and their feelings towards other Canadians' financial positions. Forty-six per cent of respondents agreed that "as a whole, Canadians have too much debt" and many believe that "low interest rates have meant that a lot of Canadians, who probably should not have, became homeowners over the past few years."

However, among those with a mortgage, most disagree with the statement "I regret taking on the size of mortgage I did" and a substantial number agree that mortgage debt is "good debt." Canadians also agree overall that "real estate in Canada is a good long-term investment."

And, despite being concerned about overall debt levels of Canadians, they believe that they personally have acted responsibly.

Canadians could weather a potential storm
Canadians have insulated themselves by shopping for the best interest rates with the help of a mortgage broker whose market share has increased. Among those who renewed a mortgage in the past year, the number who switched lenders was up to 21 per cent in 2011. At the same time, three quarters of Canadians who renewed or refinanced their mortgage this year saw a decrease in their mortgage rates. For a five year fixed rate mortgage, the average discount has been 1.46 per cent during the past year. And fewer Canadians have taken out equity, down to 10 per cent in 2011.

By comparing rates with different mortgage lenders, aggressively paying down their mortgages, and decreasing the amount of equity they take out of their mortgages, most Canadians appear to be in a comfortable position to weather the economic challenges ahead. In fact, eighty-four per cent of mortgage holders said they can handle an increase of $200 per month in their mortgage payments, and 78 per cent have at least 25 per cent equity in their homes.

"Despite less than positive feelings towards the economy, or maybe because of that, Canadians are showing a level of prudence in their decisions that is inspiring," said Murphy. "That suggests to us that there is no need for policy makers to introduce new measures that would reduce housing activity."

The report is authored by CAAMP Chief Economist Will Dunning and based on information gathered by Maritz Research Canada in a survey of Canadian consumers conducted in October 2011.

The CAAMP survey report contains a wealth of industry information, including consumer choices and borrowing behavior, opinions on current "hot topics" related to housing and mortgages, regional breakdowns of responses, and an outlook on residential mortgage lending. For a copy of the report, please visit www.caamp.org.

About CAAMP
Established in 1994, the Canadian Association of Accredited Mortgage Professionals (CAAMP) is Canada's national mortgage industry association. CAAMP has assumed a leadership role in the industry it serves and has set the standard for best practices for Canada's mortgage practitioners. In 2004, CAAMP created the Accredited Mortgage Professional (AMP) designation as part of an ongoing commitment to increasing the level of professionalism in Canada's mortgage industry.

As a membership-based organization, CAAMP strives to develop its network of professionals and to represent the interests of these individuals to government, media and consumers. CAAMP has attracted 12,500 members and 1,700 companies from across Canada - representing over 90% of Canada's mortgage activity. CAAMP members make up the largest and most respected network of mortgage professionals in the country. CAAMP's membership base consists of mortgage lenders, brokers, insurers and other industry participants. ]]>