We are delighted to announce the launch of our new website!

Our new website provides our existing and prospective clients with a simple yet interactive view of our work and the services that we offer.

In our business, we are constantly approached with questions about how reverse mortgages work and how they compare to Home Equity Lines of Credit (HELOCs). HELOCs are the most closely comparable products in Canada and many believe them to be superior to reverse mortgages. But many Canadians look at only two things and assume HELOCs are better in every situation: (1) lower interest rates; and (2) the flexible access to cash. Most are forgetting some of the other features and benefits that they should compare before deciding. Below is a chart that lets you see the bigger picture between these…

For businesses large and small, a loan may be needed to overcome financial distress, purchase real estate, or acquire equipment to make their jobs easier. Business loans come in all sizes and for use in every aspect of business. Depending upon the size, age, and niche of your business, you can find available funding for every financial need that you can think of. The problem isn’t the availability of funding, it is the turn-down rate of traditional banks that makes obtaining these loans so difficult. Businesses which have been turned down for a loan by a traditional bank often meet…

A mortgage broker can help you avoid many of the pitfalls commonly encountered during the home buying process, it's still important to be informed even before you start looking for that perfect home.

1. Check your credit report before you apply for a mortgage - Equifax
2. Lowest rate is not always the best rate for you
3. Minimum of 5% of the purchase price, over a purchase price of $500.000 it is 5% on the 1st $500,000 and 10% on the balance of the purchase price
4. Set a budget for yourself: legals fees, home inspection fees, condo fees
5. Rate shopping, don't!  Let your broker pull one bureau and find the best mortgage for you

The Office of the Superintendent of Financial Services (OFSI) announced earlier this month it will be increasing its supervisory efforts for residential mortgage underwriting - specifically focusing on Guideline B-20, which it also announced potential changes to.

Changes include:

uninsured mortgages requiring a qualifying stress test

LTV, loan to value measurements remain strong and adjust for local market conditions where they are used as a risk control, such as for qualifying borrowers

prohibiting co-lending arrangements that re designed or appear to be designed to circumvent regulatory requirements

Many brokers would argue that not enough time has been given to see how the impact of those changes from last summer have been.

Hard to say the impact of these changes if and when they come to pass, but keep an eye out....

Further interest rate rises may or may not be on the cards in 2017 with no expert consensus as yet. Following the increase on July 12, Bank of Canada governor Stephen Poloz said that further rates would depend on data. The latest retail figures, released by StatsCan last week along with rising inflation have some calling for another rate rise before 2017 ends. TD Securities' Fred Demers told Bloomberg that an interest rate hike in October 'is a very likely scenario," while Benjamin Reitzes of BMO Capital Markets added: "October is still a very reasonable call for the bank." CIBC economist Avery Shenfeld is…

After 7+ years of ultra low rates

This is something that has been a long time coming.  There is a huge overhang of central bank debt around the world that now must be unwound. It will not be without pain. The following are a few articles on the subject that we hope will hep shed some light on what is happening and on what you can expect.

How The Bank of Canada rate hike will affect borrowers

Bank of Canada raisers interest rate for first time in 7 years

What's your best rate is something we hear everyday and you would think it would be easy to reply, but nothing is ever easy!

To ensure that you get the best mortgage for YOU, we like to make sure we ask some questions:

1. What's the term?
   1. fixed / variable / 5 year ?
2. Is this your primary home or a second home or a rental?
3. Can you verify your income
   1. we understand that your bank already knows you and they can see your pay being deposited, but not all of the lenders that your broker has access to has that access.  So paperwork will be required
4. Where is the property located?
5. When is the closing date / possession date?
6. Can you live with prepayment restrictions?
   1. some of the lowest rate option do not allow prepayments at all which means no putting your bonus down towards your mortgage
7. Can you live with portability headaches?
   1. discounted rates will sometimes force you to ensure that the sale and purchase close on the same day!
8. Can you live with refinance restrictions?
9. Can you live with a large penalty?
10. What type of property is it?
11. Do you want good rates when you renew or refinance early?
12. Have you ever been bankrupt, consumer proposal, collections?
13. Do you have a property in mind or do you want a pre-approval?
14. What would be the loan to value, conventional or insured?
15. Can you pass the Governments stress test
    1. less than 20% down payment you MUST qualify @ benchmark rate 4.64%
16. Do you know your credit score?
17. Are you purchasing, refinancing or wanting to switch lenders?
18. What is the purchase price of the property?
19. Is your mortgage already insured?
    1. CMHC / Genworth / Canada Guaranty
20. How long of an amortization do you require?
    1. some lenders may charge a premium with an extended amortization over 25 years

This is a lot of questions but, once we go thru these we can find you exactly what you want and you will have all the information you need to make the decision that is right for you!

Last week CMHC announced their first quarter results, and the Globe and Mail reported:

"Steven Mennill, CMHC's senior vice president of insurance, said most of the drop in demand for portfolio insurance in the first quarter was the result of a premium hike CMHC introduced January 1 because of new capital requirements for mortgage insurers that were introduced by Canada's financial regulator.

Mr. Mennill said CMHC doesn't know yet whether the drop in portfolio insurance signals a permanent shift in its business model or whether demand for the insurance product will swing back again.

"It's not clear at this point whether either of these changes will be sustained over the long term," he said. "Portfolio insurance (demand) is largely a function of the overall sources of capital and liquidity and funding available to lenders in the system, which is affected by a wide range of factors. The cost of portfolio insurance is just one of them."

The declining insurance volumes led to an 8.1% drop in premiums and fees earned by CMHC on new mortgage insurance written in the first quarter.

We are just wondering, perhaps CMHC's premium volume drop, is because of not accepting application for single unit rentals, not accepting applications of refinances, not accepting applications for properties valued at over $1 million rather than a premium hike.

CMHC used to promote itself as "helping house Canadians". CMHC now is in the business of preventing Canadians from achieving home ownership. Have all the changes CMHC instituted been in the best interests of the home buyer and mortgage consumer?

It would be very nice to see a dialogues about the role of CMHC in Canadian Housing. The House of Commons Standing committee did received testimony on the subject. The role of CMHC in our economy and in the housing market needs to be openly discussed and understood. Top down dictates from such an important institution do not serve Canadian well.

We all need to make ourselves aware of the government and CMHC's unintended consequences from mortgage rule changes. IF the VP of Insurance at CMHC is quoted as thinking the premium hike is responsible for the drop in revenue and not the restricted product offerings, perhaps more awareness is needed.

Croft Axsen

Broker Owner / President

Jencor Mortgage Corporation

You have worked hard, saved and are financially ready to buy a home and your next step is to find the professionals, Jencor Mortgage Agents are licensed mortgage professionals and can also refer you to a licensed real estate professional as well as lawyers.  Jencor's team of professionals will provide advise to ensure you are comfortable and you successfully negotiate the best mortgage financing.

Whether purchasing your first home, vacation property, renewing your mortgage or looking at some investment properties. Let us work with you and provide you with the service and expertise you deserve.

Bank employees can assist in mortgage financing but they do not require a license through The Real Estate Council of Alberta.

We have Mortgage Advisors licensed in Alberta, British Columbia and Ontario.

Refer to the RECA website:  www.reca.ca / Searching for an Industry Professional.  All mortgage brokers in Alberta must obtain a license thru RECA. For British Columbia FICOM, Finanical Institutions Commission http://www.fic.gov.bc.ca/index.aspx?p=mortgage_brokers/index. Financial Services Commission of Ontario http://www.fic.gov.bc.ca/index.aspx?p=mortgage_brokers/index

Canadians are living longer. Statistics Canada's latest 2016 Census data release, will have big implications for the country's housing market suggests some economists. Statistics Canada announced this week that the latest results mark the first time census data has down more seniors than children living in the country as those born during the post-war baby boom continue to reach retirement age. There were 5.9 million people in Canada aged 65 and over last year, compared to 5.8 million who were no older that 14, according to the 2016 Census. "The increase in the proportion of seniors from 2011 to 2016 was the largest observed…

 

Did you know that U-Haul releases an annual report which details the previous year's highest growth markets? The cities are calculated by the net gain of arriving one-way U-Haul trucks over departing one-way U-Haul trucks for a calendar year. The data is compiled from more than...

You're thinking about buying a home, which means you'll most likely be in the market for a mortgage. As with any large financial transaction, there is a lot of paperwork involved. Below is a list of the standard documentation you'll need to provide.

You’ve bought new home and there are a million things swirling in your mind to prepare as the closing day countdown ticks away. The normal hassles of changing your mailing address, canceling utilities and setting them up at the new place.

Part I - Hiking Rates

For the third time in four years, the Canada Mortgage and Housing Corporation (CMHC) recently announced it will again increase mortgage insurance premiums, which would average an additional $5 per month ($60/year) for the typical insured mortgage.

In July 2016, BC's government unexpectedly mandated a 15% tax on any foreign national buying real estate in Metro Vancouver. This maneuver was to put a major speed bump on the steady flow of offshore money (mainly Chinese), streaming into the province, which bore the brunt of the blame for Vancouver's record high real estate last year.

As we enter into 2017, we take a look back at major headlines in 2016 and projections for what might lay ahead for Canadians in the next 12 months.

New Mortgage Rules

Last October, Canada's Federal Finance Minister made an announcement that would affect those trying to qualify for a mortgage as of November 30, 2016. In the past, borrower's could qualify for a mortgage based on discounted rates.

A mortgage is a considerable financial investment for anyone. It is likely one of the biggest investments an individual will make in their lifetime and there are many aspects to consider to ensure that your type of mortgage is the right one for you.

If you've ever thought about trying to make more money, the idea of making an investment has probably crossed your mind. Perhaps you've thought about getting into real estate, as investing in property could potentially offer the perfect opportunity to expand your income.

No matter what kind of home you live in, it's probably safe to assume that you want it to be as close to your taste as possible, which is often more difficult than it sounds.