Category Archives: Financial Tips

Get a Better Rate: Five Questions to Ask Your Broker

Mortgage brokers are expected to be honest when it comes to providing their customers with financial advice. It’s their job, after all, to find you the best possible rate based on your unique financial situation. But, as with any other position of authority, there are always a few bad apples in the bunch. If you’re shopping for a mortgage rate, never assume that just because your broker has a friendly face, that he or she is looking out for your best interests.

Educate yourself in order to avoid less-than-ethical mortgage brokers. Remember, mortgage brokers are usually paid by the lender for referring customers and processing applications. This compensation varies based on the lender and the mortgage type. As such, it’s difficult for many brokers to resist the temptation of a higher commission for recommending a certain product.  The following are five important conflicts to discuss with your broker the next time you’re shopping for a new rate.  Continue reading →

Listing This Spring? Sounds Like You Could Use a CMA

Thinking about listing your property this spring? Then now’s the time to request a comparative market analysis (CMA) from your real estate agent. A CMA is an evaluation of listings and sale prices of similar houses in your neighbourhood. Similar to an appraisal in that it provides sellers with an estimate of their home’s market value, a CMA can help you be objective about the true value of your home.  Continue reading →

A Closer Look At Your Neighbourhood’s Housing Market

The elusive soft landing has finally hit ground in Canada, as the latest reports from the Real Estate Association show a decrease in year-over-year sales. The real estate group found that sales were down 0.1% in October from September. Actual sales for October (without the seasonal adjustment) were down 0.8% from a year ago.

While not unexpected (a housing slowdown has been anticipated since the government tightened mortgage rules back in June) experts are worried that the changes to the regulatory system may have a bigger impact than originally expected.  Continue reading →

The Perks of Paying Off Your Mortgage Faster

The amortizations gods have been good to Canadians over the past three years. Just 60 months ago, mortgage rates were nearly double what they are now, costing homeowners thousands of dollars in interest every year. In fact, if you were to compare interest costs in 2007 with today’s rates, you’d save over $100,000 in interest over a 25 year amortization period on a $200,000 home.

There’s no doubt that now’s the time to take advantage of these historically low rates. Which begs the question – are homeowners doing enough to capitalize on these record-breaking deals?

Continue reading →

Should You Trust Your Bank?

When it comes to financial advice, including information on the best mortgage rates, who do you turn to? According to a survey released by the Bank of Montreal last Friday, Canadian’s are more likely to turn to their financial institution with money problems than anywhere else. This includes friends, family members, financial advisors and mortgage brokers. Even in the age of social media, younger home hunters and investors admit that the bank is their number one source for financial advice.

But is the bank really the best place to go for unbiased information?

There’s no denying that Canada’s big six banks deserve a pat on the back for their marketing prowess. But it’s important to recognize it for what it is – smoke and mirrors. Banks position themselves as partners in the pursuit for financial success, but at the end of the day that’s not necessarily the truth. While banks aren’t out to suck you dry, they certainly are out to make a profit. At the end of the day, banks are driven to rake in profits in order to please shareholders. Sadly, this is often at the expense of the customer. Continue reading →