CAAMP Stats mortgagebrokernews.ca

Canadian homeowners are comfortable with their current mortgage, focusing on reducing their mortgage faster

 

23% are increasing their regular payments

19% are making lump-sum payments

10% are doing both

50% of borrowers pay $100 per month (or more) above their required payments

83% of Canadians have at least 25% equity in their home

 

FW: BOC Holds Rate

Subject: BOC Holds Rate

Bank of Canada holds rate steady as global storm clouds gather OTTAWA — In
the face of mounting economic uncertainty, the Bank of Canada on Wednesday
once again left its key lending rate on hold, as expected.
"Global growth prospects are unfolding largely as the bank projected in its
July Monetary Policy Report," the central bank said its statement, "with a
widespread slowing of activity across advanced and emerging economies."
The bank held its trendsetting interest rate at 1%, where it has stood since
September 2010.
But as the U.S. Federal Reserve and other global central banks contemplate
further rounds of easing, Canada repeated what it has been saying for months
– that the time for removing stimulus could be near.
"To the extent that the economic expansion continues and the current excess
supply in the economy is gradually absorbed, some modest withdrawal of the
present considerable monetary policy stimulus may become appropriate,
consistent with achieving the 2% inflation target over the medium term," the
bank said in its announcement, using language identical to its last two rate
statements.
"There has been no significant change in the economic backdrop since July,
and the bank's bias is so mild that it can almost be regarded as
aspirational rather than any type of commitment," BMO Capital Markets said
in a note ahead of the bank's announcement.
The central bank's rate announcement comes after Tuesday night's election
victory by the Parti Québécois, led by Pauline Marois. Still, the separatist
party only narrowly defeated Jean Charest's incumbent Liberals, making
another referendum on independence unlikely any time soon.
The vote is also unlikely to affect markets, the Canadian dollar most
importantly. The loonie was little changed Wednesday morning.
Bank of Canada governor Mark Carney and his policy advisors made no mention
of the election outcome in Wednesday's rate announcement.
Prime Minister Stephen Harper, in a statement late Tuesday, said Ottawa does
not believe "that Quebecers wish to revisit the old constitutional battles
of the past."
"Our government will remain focused on jobs, economic growth and sound
management of the economy," he said. "We believe that economic issues and
jobs are also the priorities of the people of Quebec."
Bigger concerns for Canada remain: The still-unresolved European debt and
banking crisis, as well as the weak recovery in the United States and
slowing output elsewhere — in particular China, the world's second largest
economy after the U.S.
"The economic expansion in the United States continues at a gradual pace,"
the Bank of Canada said in Wednesday's rate announcement.
"Europe is in recession and its crisis, while contained, remains acute. In
China and other major emerging economies, growth is decelerating somewhat
more quickly than expected from previously rapid rates."
Canada's economy, meanwhile, continues to show modest growth. Gross domestic
product rose 1.8% on an annualized basis in the second quarter, in line with
the Bank of Canada's most recent projections.
For the year, the bank expects GDP growth of 2.1%, followed by a 2.3%
advance in 2013 and 2.5% in 2014.
Employment growth in Canada has been relatively disappointing, however, as
has U.S. labour market. Statistics Canada will report the latest employment
numbers for Canada on Friday.
Still, reiterating July's statement, the bank on Wednesday said that "while
global headwinds continue to restrain economic activity, underlying momentum
remains at a pace roughly in line with the economy's production potential."
European concerns will be front and centre on Thursday, when the European
Central Bank issues its monetary policy statement. No change is expected,
but the central bank could present its long-awaited plans to buy bonds from
Spain and Italy to ease the debt pressure in those countries.
Following its Sept. 12 and 13 meeting, the U.S. Federal Reserve could unveil
its latest plan to stimulate that economy, most likely announcing another
round of asset purchases.

First time home buyers reflect on their rookie mistakes

 

 

 

News Releases

First time home buyers reflect on their rookie mistakes

Aug 2, 2012

- The 2012 TD Canada Trust First Time Home Buyers Report reveals the top things buyers wish they could do differently -

--Infographic of the hidden costs of home ownership, regional releases and graphs of key report findings available at: smrmediaroom.ca/TDCTFirstTimeHomeBuyer2012--

TORONTO, Aug. 2, 2012 /CNW/ - Even though Canadian home buyers do their homework, the majority say there are some things they would have done differently. According to the 2012 TD Canada Trust First Time Home Buyers Report, the top three lessons learned from new home buyers are:

·  Be more thorough when budgeting and accounting for all of the costs of home ownership (60%)

·  Make a bigger down payment (60%)

·  Buy a home sooner (55%)

"From being more thorough in their budget to exploring their mortgage options carefully, many first time buyers think they could have prepared better for their house-hunt," says Farhaneh Haque, Director of Mortgage Advice, TD Canada Trust. "Prospective buyers can learn from other buyers' mistakes. If you think you're ready for homeownership, do your research and make sure you know as much as you can about the process and on-going commitment."

Haque offers advice for first time home buyers to consider before house-hunting:

Budget for the hidden costs of home ownership

Home ownership takes a major financial commitment beyond the down payment and monthly mortgage payment. Many first time buyers admit they overlooked some of the additional costs: 29% say they didn't budget for on-going costs such as maintenance and utilities, 13% overlooked some of the one-time fees associated with buying a home, such as inspection fees and land transfer costs, and 6% didn't budget for anything beyond the down payment and monthly mortgage payment.

"When setting a budget for home ownership, you not only need to consider all the upfront costs involved in the purchase but the on-going costs that will become a part of your monthly expenses. Having a realistic picture of your new monthly expenses will give you  a clear understanding of what you can afford and help you decide on the mortgage term and repayment plan that you'll be comfortable with. Online calculators are a great way to help you estimate these costs," Haque says.

More than half of first time home buyers with a mortgage (55%) said they were worried about affording their home if interest rates increase. If you're on a tight budget and worried that a rate increase could put too much pressure on your cash flow, Haque recommends considering a fixed interest rate mortgage. "If you do decide to go with a variable interest rate mortgage, factor the potential for a rate increase into your budget and make sure there's a clause that lets you lock in at a fixed rate if market volatility makes you nervous down the road."

Buy now or save for a larger down payment?

The top reasons home buyers give for deciding when to buy their first home is that they get sick of paying rent (48%), get a full time job (31%) or want to start a family and need more space (31%). Many first time buyers say if they could do it again, they would have bought sooner (55%), however 60% also say they wish they would have made a bigger down payment (likely requiring more time to save).

According to first time home buyers, saving for a bigger down payment might not take as long as you may think:

·  A down payment of 5% or less takes 2 years or less to save (71%)

·  A down payment of 10% to 20% takes 1 to 4 years to save (66%)

·  A down payment of 25% or more takes 3 years or more to save (61%)

"Becoming a homeowner is a big decision. I'm not surprised that even after becoming homeowners, people are split about whether their timing was right," says Haque. "If you want to buy a home, learn as much as you can about the home buying process and start to prepare your finances. This research will help you determine whether you're ready or if you should hold off and continue to save."

What kind of homes do first time home buyers want?

The majority of first time buyers say they're looking for a detached home (54%). Condos were a distant second (18%). The top five most important features first time home buyers considered when shopping for a home were price (97%), the layout of the home (96%), number of bedrooms (95%), features of the home (92%) and size of backyard/garden (86%).

But, realizing that their dream home may not exist, the report found first time home buyers are willing to make some compromises. Encouragingly, the majority say they will stick within their budget and aren't willing to compromise on price (52%).

Before they were home buyers

Before buying their first home, home buyers are most likely to be renting with their significant other (38%) or on their own (20%). One-quarter go from living somewhere they don't pay rent (25%) to their first home purchase.

"Buying a home is the biggest investment most people will ever make, so it's important to save a sizable down payment and prove to yourself that you are ready to take on the responsibility of a mortgage," says Haque. "Start by comparing what it costs you to rent monthly to what it would cost if you owned your home. Remember, as a homeowner there are housing expenses such as property tax, insurance, repairs and utilities that should be factored in, in addition to your monthly mortgage payments."

The biggest purchase most Canadians have made before buying their first home is buying a car (58%). One-in-five say their biggest previous purchase was their education (19%), followed by a vacation (7%), wedding (6%) or electronic gadget (6%).

TD Helps

TD hosts an online community called TD Helps for home buyers at www.tdcanadatrust.com/homeownership. The online community allows home buyers to learn from each other's experiences, share stories on a wide range of home financing topics and pose questions to TD expert, Farhaneh Haque, Director of Mortgage Advice.

About the 2012 TD Canada Trust First Time Home Buyers Report

TD Bank Group commissioned Environics Research Group to conduct an online custom survey of 1,002 Canadians 18 years of age or older who bought their first home in the past two years or intend to buy their first home in the next two years. Responses were collected between March 9 to March 21, 2012.

About TD Canada Trust  

TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, to credit protection and travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as in over 1,100 branches, with convenient hours to serve customers better. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.

SOURCE: TD Canada Trust

For further information:

Steve Presant / Liz Christiansen
Paradigm Public Relations
416-413-5194 / 416-413-5188
spresant@paradigmpr.ca / lchristiansen@paradigmpr.ca

Barbara Timmins
TD Bank Group
416-307-6498
Barbara.Timmins@td.com

 

 

 

Brenda Aasman l  Regional Sales Manager, Southern Ontario Region l TD Broker Services l

Phone 1 877 763 2935 l Fax 1 519 763 4641

 

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