Refinance and Consolidate Your Mortgage

Refinance / Consolidate
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The Dirty “R” Word

If the word “Recession” fills you with unease, you’re not alone. The word doesn’t sit well with many people. Unless you are in the rare circumstance of having just come into a gratuitous fortune, or you are employed in a sector of the economy that has somehow been unaffected by it, a recession will to affect you. Even then, depending on the severity of the recession, unaffected sectors can be effected by proxy.

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Is debt consolidation the right choice for you?

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A report from Equifax Canada has both good and bad news regarding debt in the country.

On the one hand, despite droves of Canadians rushing out to take advantage of low mortgage rates, the amount falling behind on their mortgage loan payments fell to pre-recession levels over the summer. Only 1.22 percent of debts were unpaid in the quarter comprising July through September. That’s a considerable decrease from 1.37 percent of unpaid debts in the previous quarter. It also marks the lowest delinquency rate since early 2007.

On the other hand, the amount of Canadian household debt continues to rise. Non-mortgage debt grew from $484.7 billion in the second quarter to $489 billion in the third quarter. The majority of the increases came from auto loans, bank loans and lines of credit.

While rising household debt has been a topic of contention in the nation for quite some time, it’s often overlooked that there are a number of ways to bring debt under control. For some consumers, debt consolidation is the answer. Continue reading

Significant number of Canadians suffering from large household debt

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A recent report from the Certified General Accountants Association of Canada discovered that, despite the lower amount of consumer spending during the first quarter of 2011, a significant number of households are suffering from increased totals of debt.

The report revealed that household debt reached an all-time high of $1.5 trillion. Furthermore, the report relayed that, for those suffering from debt currently and beginning to reach financial limits, the situation is becoming more dire.

"The debt of a typical household is rising," said Rock Lefebvre, CGA-Canada’s vice president of research and standards and co-author of the report. "And the financial situation of certain groups of households is much worse than average and continues to deteriorate. This is concealed if you focus only on the national or aggregate picture."
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Report: Canadians borrowed more home equity during 2010

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According to new data released by the Canadian Association of Accredited Mortgage Professionals, more residents took money out from their homes during 2010.

In all, $26 billion in home equity was taken by Canadians during 2010, an increase from 2009’s total of $20 billion. Among the most popular reasons that Canadians did so was to fund home renovations. Of the 2,000 residents responding to CAAMP’s survey, 36 percent stated this was the case for their withdrawn funds.

Investments and debt consolidation were the other most popular answers, garnering 28 and 19 percent, respectively.

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CMHC Allows Commercial Financing up to 85 per cent

Commercial New Purchase, CanEquity
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Energy-Efficient Properties Eligible for Premium Discount

Amassing the 25 per cent down payment that most commercial mortgage products require for commercial properties can be difficult. But with the Canada Mortgage and Housing Corporation’s multi-unit (5+ units) insurance coverage, a commercial investor can attain up to 85 per cent financing toward their commercial purchase. This includes financing and coverage for retirement dwellings, licensed care facilities, condominium construction and student residences, new or existing, Canada-wide.

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Canadian Home Renovation Statistics

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According to a recent survey published by the Canada Mortgage and Housing Corportation (CMHC), 50 per cent of (or 2.1 million) Canadian households renovated their homes in 2009, and just over 40 per cent intend to this year. The survey took information from homeowners dwelling in the 10 largest Canadian housing markets: Vancouver, Edmonton, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec, Halifax and St. John’s.

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Falling Housing Prices Mean It’s Time To Act

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When home values begin to decline, it‘s best to take action before lenders and home insurers start narrowing their allowances. This is especially true in cases where refinancing and home lines of credit are concerned.

Many lenders require that a potential borrower has at least 20 to 25 per cent equity in the home from which they intend to draw a Home Equity Line of Credit (HELOC). In other words, if housing values fall and you lose, for example, five per cent of the equity you have amassed, you may also lose your ability to qualify altogether.

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