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Steven Burrows
Business: (905) 338-3721 Email Steven

Mortgage Rates


 RATE SHEET 

Special Rate Mortgages


Terms Posted
Rates
Payment
  Per $100k
Our Rates Payment
  Per $100k
Savings
6 Months 3.04% $475.30 2.79% $462.54 $12.76
1 Year 2.79% $462.54 1.84% $415.77 $46.77
2 Years 2.94% $470.17 1.54% $401.59 $68.59
3 Years 3.49% $498.74 1.54% $401.59 $97.16
4 Years 3.74% $512.02 1.84% $415.77 $96.25
5 Years 4.59% $558.49 2.09% $427.81 $130.68
7 Years 5.35% $601.69 2.84% $465.07 $136.61
10 Years 5.60% $616.23 3.24% $485.65 $130.58
 Variable   2.45% $445.48 1.45% $397.39 $48.09
Prime Rate 2.45%
Prime Rate 2.45%
Please Note: Payment per $100K and possible savings shown above are based on a 25-year ammortization. Rates are subject to change without notice and the rate you receive may vary depending on your personal financial situation. *OAC E&OE. Please reply to this email and I will be happy to provide you with greater detail and determine the best rate available for you.

 

Please note that rates shown above are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. “Some conditions may apply. Rates may vary from Province to Province. Rates subject to change without notice. *O.A.C. E.& O.E.” Check with your Mortgage Professional for full details & to determine what rate will be available for you.

Mortgage Rates have been provided by different Mortgage providers such as:
Homefree Mortgages, Dominion Lending Centres, Mortgage Alliance.

 Contact Steven Burrows for Details: 


Look for a Vacation Home now?


Is it too early to look for a Vacation Home now?

The housing market in spring 2020 was originally negatively impacted with the COVID-19 lockdown and then took off after a couple months or so.  Since August, some of the financing restrictions have loosened and we saw a bounced back to a spring like housing market.
 
During the pandemic, travel has been limited, and people have been forced or chose to cancel their vacations. As the cities started to loosen up, there has been upsurge in interest for vacation home properties. Home buyers were searching for a domestic escape. In addition, the work style has also been changing. A portion of the work force were forced to work from home.

Many employers are now giving their employees the option to work from home permanently and that has prompted home buyers to reassess their living conditions. The idea of having a home as a place to work and relax has become more appealing.   

 
While the idea of owning a vacation home is appealing, it will take a greater amount of time and planning. If you start now, you could be taking advantage of the summer weather in your vacation home. Here are some factors to consider when you are looking at financing a vacation home:

  1. Is it a second home, rental, and primary residence?  Your down payment will be different depending on the usage of the property. For example, if the property is used as primary residence, the down payment can be as low as 5% as long as the property value does not exceed $1M.For rental properties down payment can be anywhere between 20-35%. 
  2. If the property is in a remote area, you may be required to have either higher down payment and/or higher rates. Some lenders will only lend up to a capped amount (i.e. $600,000), independent of location of the vacation home.
  3. Year-round access, also known as 4-season property, on public road is required. 
  4. The zoning of the property must be residential. It is important that you confirm the zoning because agricultural properties require a different set of approval guidelines and lenders.
  5. If the property has well and septic systems, you should make sure that the seller provides you with the well and septic certification. Properties with well and septic tanks may require a higher down payment.
 
For those that currently have a property, you also have the opportunity to leverage your current home to either make up any shortfall or finance it completely..
 
It is difficult to get a mortgage on the following type of properties
  • Homes on privately leased land
  • Native land
  • Time shares, fractional interests, and life leases
  • Rental pools, hotel-condos, Airbnb-style and rooming houses
  • Heritage homes.

 
Looking for a vacation home can be very exciting however, you should speak to a mortgage specialist beforehand to ensure that you can get the financing that you need.

Feel free to get in touch with me about finding a Vacation Home as well as having me connect you with one of my mortgage specialists.

 
Stay safe and have a great day!

If you may be thinking of selling or buying a property and would like to discuss the market as it applies to you plus strategies for moving forward and forecasted market expectations, just contact me and I can review your situation and goals.

Steven Burrows

Sales Representative
Right At Home Realty Inc., Broker

 

 


‘Spousal Separation Program’


A few lenders have a special ‘Spousal Separation Program’  that you need to know about. How does this work? 
 

- One spouse can purchase up to 95% LTV (Loan to Value) from the other on title, allowing them to remain in the family home.  Biggest misconception I hear is that 80% LTV is the max.

- Separation agreement must clearly state the division of assets from the matrimonial home.

- Appraisal is required.

- Purchase and Sale agreement is required

- Must income qualify as per any other regular mortgage.

 


Helping Retired Canadians


Hope you are having a great week.

A quick update on one of our Mortgagors areas of expertise. The reverse mortgage....there I said it, I know it can be considered a dirty word.

 

I still like this product for seniors whom are house rich and cash poor that don’t have the income to support a new traditional line of credit or mortgage and do not want to sell.  A bit of information on this product for you below.

 

Top 3 Misconceptions About Reverse Mortgages:

 

1. The Bank Owns Your Home. 

2. Your Estate Can Owe More Than Your Home. 

3. The Best Time to take a Reverse Mortgage is at the End of Your Retirement.

 

Let’s examine each misconception in more detail. 

1. The Bank Owns Your Home. 

Over 50% of Canadian homeowners over the age of 65, believe the bank owns your home once you’ve taken a reverse mortgage. Not true! We simply register our position on the title of the home, exactly the same as any other mortgage instrument, with the main difference in the flexibility of not having to make P&I payments on the reverse mortgage.

 

2. Your Estate Can Owe More Than Your Home. 

A reverse mortgage, unlike most traditional mortgages in Canada, is a non-recourse debt. Non-recourse means if a borrower defaults on the loan, the issuer can seize the home asset, but cannot seek any further compensation from the borrower - even if the collateral asset does not fully cover the full value of the loan. Therefore, when the last homeowner dies (and the reverse mortgage is due), the estate will never be responsible for paying back more than the fair market value of the home. The estate is fully protected – this is not the case for almost any other mortgage loan in Canada, which is  full recourse debt. So read the fine print the next time you offer to co-sign for a loan for mom!!

 

3. The Best Time to take a Reverse Mortgage is at the End of Your Retirement. 

This is a common mistake that reflects the “old-school” financial planning mentality.

For the majority of Canadians (without a nice government pension), the old school financial planning mentality is about cash-flow, and is as follows: 

a) Begin drawing down non-taxable assets to supplement your retirement income. 

b) Once your non-taxable assets are depleted, begin drawing down more of your registered assets (RSP/RIF) to supplement retirement income. 

c) Once your registered assets are depleted, sell your home, downsize and re-invest to generate enough cash-flow to last you until you die.

 

The problem with the “old-school” financial planning model is two-fold: 

1. 91% of Canadian seniors have no plans to sell their home (CBC News “Canadian Boomers Want To Stay In Their Homes As They Age). 

2. You are missing out on a huge tax-saving opportunity by not taking out a reverse mortgage in the beginning of your retirement. 

“Research has consistently shown that strategic uses of reverse mortgages can be used to improve a retiree’s financial situation, and that reverse mortgages generally provide more strategic benefits when used early in retirement as opposed to being used as a last resort.” - Jamie Hopkins, Forbes

 

In Canada, a reverse mortgage can be set-up to provide homeowners with a monthly draw  out of the approved amount. For example: client is approved for $240,000 and decides to take $1000/month. This is deposited into the clients’ bank account over the next 20-years. Interest accumulates only on the amount drawn (i.e.: not on the full $ amount at the onset).

 

This strategy allows clients to draw down less income from their registered assets to support their retirement lifestyle. In turn, this can create some excellent tax savings, since home equity is non-taxable. Imagine lowering your nominal tax bracket by 5 – 10% each and every year over a 20 year period?! 

 

The tax savings can be huge.  You are also able to preserve your investable assets, which historically, can generate a higher rate of return when invested over a greater period of time.

 

In summary, Canada and the U.S. both have aging populations and both have misconceptions about reverse mortgages. Learning about these misconceptions will allow you to be knowledgeable on how to balance retirement, lifestyle and cash-flow, with the desire for retirees to age gracefully within their own homes. 

 

 

Have a great week!  

 

As always feel free to get in touch with me about any mortgage questions.

 

Steven Burrows

 


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