Our blog

Buying a home in the GTA is expensive and too often buyers don’t take advantage of available rebates. There are a handful of rebates that could cushion the costly blow of buying and maintaining a home. Most of them come from one of the three levels of Government and are intended to motivate Ontarians to buy or care for their home in an efficient and responsible manner.

There are rebates for new homeowners, for homes that are more energy efficient and even rebates for homes that feature “smart” technology. Unfortunately, most don’t leverage these rebates mainly because they don’t know they exist.

Purchasing Rebates

In Ontario, homeowners could apply for a GST/HST rebate if they purchased, built or renovated a property. This rebate allows homeowners to recover some of the taxes that they paid towards the purchase. This even extends towards mobile and floating homes.

Prior to closing, the buyer will be saddled with the land transfer tax, which is based on a sliding scale that ranges from 0.5% to 1% based on the price of the property. First-time homebuyers are eligible for a rebate up to $4000. The lawyer should arrange for this rebate to be paid once the property is transferred to the buyer’s name.

Energy Efficiency Rebates

Homes need to be environmentally friendly and leave the smallest carbon footprint possible. To entice homeowners to convert their home to be more efficient, the Government offers rebates for owners who install and employ certain technologies that aid in making a home more efficient.

In 2017, Save on Energy and the Green Ontario Fund started offering a $100 rebate for those who purchase and install a smart thermostat. These modern thermostats allow owners to remotely control the temperature of their home. This technology learns your preferences and analyzes data to automatically adjust. They can also save help money by adjusting the temperature when no one is home. 

Renovation Rebates

Like efficiency rebates, Ontarians could apply for green renovation rebates. The province rolled out a new program where homeowners could receive thousands of dollars in rebates if they complied with renovations that meet certain green standards.

This program offers up to $7,200 in rebates and covers insulation, windows and heat pumps. The rebate can only be paid if the homeowner hires an approved contractor.

Every homeowner should be aware of available rebates and ensure they do everything in their power to receive the money they are eligible for.

Barrie Housing Market after New Mortgage Rules

Thanks to new mortgage rules implemented on January 1, 2018, it’s gotten a lot more difficult to secure a mortgage. If you’re hoping to get onto the property ladder in Barrie or secure a second mortgage, you might want to avoid Canada’s big banks and other traditional lenders.

Because of stricter lending rules, the Imperial Bank of Commerce expects the number of new mortgages it approves in the second half of 2018 to be half of what it was in the first six months of the year.1

The federal government introduced new regulations in January, requiring borrowers taking out uninsured mortgages to pass a stress-test to ensure they can make their mortgage payments at a rate that is 200 basis points higher than their contracted mortgage. Even if mortgage rates never get to that level.

The new mortgage rules even apply to borrowers who have saved up a down payment of 20% or more. Before 2018, only those borrowers with a small down payment needed to pass a stress test.

It’s only taken a few months for the banks to realize that the new mortgage rules are having a big impact on sales of mortgages and other financial products.

The new mortgage rules were put into place to cool down the red-hot housing markets in Toronto and Vancouver. Unfortunately, there’s more to the Canadian housing market than Toronto and Vancouver, which means those looking to secure a residential or commercial mortgage in Barrie are going to be limited to the size of mortgage they can take out.

The new mortgage rules will also severely limit the amount of debt Canadians can borrow, refinance, and renew.

This could spell trouble for those living in Barrie or looking to move to Barrie. Thanks to a booming economy, housing in Barrie is already unaffordable for those with average incomes.

It’s not just the strong economy fueling Barrie’s strong real estate market, Barrie is just a one hour’s drive north of Toronto. It’s also just a two-hour commute to Toronto via GO Train. Would-be homeowners in Toronto who have been squeezed out of the local market are moving north and getting more for less.

To secure a commercial or residential mortgage, a home equity loan, second and third mortgages, tax arrears mortgages, or bad credit mortgages, as well as renew a mortgage and consolidate debt, the only place to turn is to Canadalend.com.

Home and Commercial Mortgages Services in Barrie

More and more people are getting turned down by traditional lenders and Canada’s big banks. If you have bad credit, no credit, unreliable income, are recently divorced, or are self-employed, it’s even harder to find the financial product you want.

If you’ve been turned down by the banks for a residential mortgage, commercial mortgage, debt consolidation, home equity loan, or any other financial product, call the mortgage professionals at Canadalend.com.

Here are some of the mortgage and financial products we provide to those in Barrie.

• Private mortgage for first-time home buyers
• Second mortgages in Barrie
• Residential mortgages in Barrie
• Commercial mortgage for businesses in Barrie
• Mortgages for those in Barrie who are self-employed
• Mortgages for those in Barrie with bad credit or no credit
• Mortgages for those in Barrie with unreliable income
• Mortgage refinancing in Barrie
• Home equity line of credit (HELOC)
• Debt consolidation in Barrie
• Home equity loans in Barrie
• Mortgages & tax arrears in Barrie

How Can Canadalend.com Beat Major Banks and Other Private Lenders?

If you’ve hit a brick wall dealing with Canada’s big banks or other private lenders, call Canadalend.com, we can help you skirt the new mortgage rules. How can we offer more extensive products and services at better rates? The big banks are federally regulated and have to follow strict lending rules. On top of that, they only offer you their own financial products. Their only goal is to get you to sign the dotted line, even if it’s not in your best interest.

Canadalend.com works with private lenders who are not tied down to the same strict lending rules the big financial institutions are. This means we can provide you with a lot more flexibility when it comes to finding the financial product you want.

Canadalend.com also works with hundreds of different lenders. This flexibility means we can negotiate the best financial product at the best rates and terms.

Canadalend.com, Securing Financial Products for Those in Barrie

Whether you’re from Barrie, Orillia, Toronto, Hamilton, Kitchener or anywhere else in the province, you know the new mortgage rules have made it very difficult to refinance a mortgage, renew a mortgage, get a first, second, or third mortgage, or take out a HELOC. That’s only true though if you use one of the big banks or traditional lenders. The independent, licensed mortgage experts at Canadalend.com can help you sidestep the new debilitating mortgage rules.

Canadalend.com is the nation’s leading low-cost private mortgage solutions provider with access to hundreds of different private lenders. Many of these providers specialize in helping those with bad credit or no credit, are self-employed, or have declared bankruptcy secure a residential or commercial mortgage, consolidate debt, get a home equity loan, home equity line of credit, and even help with mortgage tax arrears.

If you are interested in finding out what kind of mortgage you qualify for, contact Canadalend.com today or apply online and a Canadalend.com mortgage specialist will set up an appointment at your earliest convenience.

Sources:

1. “CIBC expects new mortgages to halve in second half as rules bite,” Financial Post, May 23, 2018; http://business.financialpost.com/news/fp-street/cibc-reports-second-quarter-net-income-up-nearly-25-per-cent-from-year-ago.

As spring approaches, both the weather and the housing market are poised to thaw. The question that buyers and sellers will be asking is whether last year’s stagnant spring market was an aberration or the beginning of a trend.

Early reports from 2018 seem to position the housing market as being more in-line with profitable years like 2013 and 2014. While it’s a bit early to know for sure, the signs do point to this spring being more productive and generating more sales.

Spring Impact on the Housing Market

Spring usually drives property sales due to an increase in inventory as more people list their homes. As well, it’s a popular time for buyers as the new supply offers more options for them to find a home that fits their budget and needs.

Supply can effectively drive the market and the spring typically sees an influx of listings that motivates buyers to get out and shop for their first or next home.

2017’s Stagnant Spring Market

Last spring, the average selling price dropped and there were fewer transactions. The biggest decline was experienced by detached houses. The slowdown could be attributed to the lack of supply or economic factors. In addition, affordability might have been an underlying reason.

The 2018 Spring Market

This year’s optimism could be related to the arrival of new Canadians, many of whom are situated in the GTA and looking to buy a permanent residence. This will drive the market as will the completion of several major development projects. Markets like the GTA tend to rebound due to the population and the constant demand.

It’s fair to assume that the bloated rental market and the high cost of rent might motivate renters to shift course, propelling the market to greater heights in 2018.

It might not be a season of crazy gains but it will wake the housing market from its hibernation and could gain steam through the summer and well into 2019.

The biggest takeaway is that buyers and sellers shouldn’t wait another year. They should start the process and monitor the market in the coming weeks. Contact us today to learn more about the GTA’s spring housing market and to discuss the steps to mortgage pre-approval.

Searching for the right mortgage lender and terms can be an arduous process filled with questions and options. Most people aren’t inherently equipped with the knowledge required to navigate the road to mortgage approval. Applicants need to ask the right questions to an experienced mortgage professional.

Some of the common questions borrowers ask revolve around credit profiles, types of mortgages and what are some of the hidden costs and fees.

Credit Profiles

Most applicants focus on their credit score, thinking it will help determine the loan amount. In fact, an entire credit profile could impact an application, which includes payment history, debt load, and unpaid debts.  This profile helps paint a clear portrait of the applicant’s financial history and situation. If the profile is strong it can reassure the lender that a borrower can handle the loan.

Credit scores do matter to lenders but it is not the only aspect that can determine a mortgage approval or rejection. 

Different Types of Mortgages

There are a lot of different types of mortgages and it can get a bit confusing for first-time borrowers or even the seasoned pros.

Mortgage types include but are not limited to:

• Traditional mortgages (20% down payment, loan-to-value ratio)
• High-ratio mortgages
• Fixed rate mortgages
• Variable rate mortgages
• Convertible mortgages
• Open mortgages

Each mortgage has its own stipulations and terms so sit down with a mortgage specialist to determine which is best for your situation.

Costs and Fees

Mortgages contain a lot of fine print which can balloon the cost of your home. One of the costs is insurance that the borrower must purchase if their down payment is less than 20%. Other costs include taxes, processing fees (usually $200-300), lawyer fees and interest adjustment.

Borrowers need to be aware of all the costs and fees and make sure they are covered in their budget.

The best way to approach a mortgage application is carefully, thoroughly and with knowledge. Contact us to learn more about your mortgage options. We can walk you through the entire process and answer all your questions.