July 31st Mortgage Industry Update
July 31st, 2014 Mortgage Industry Update
Firstly, I’d like to start off this week’s update with some inquires I had regarding financing purchases in America. Since it was a common concern this week from a few of my partners, I’d like to address it as a whole as I feel many people would be able to benefit from the answer. From an overall perspective, financing in the States is difficult. American lenders usually do not lend to people who are not American residents. Furthermore, since Canadian lenders do not have any jurisdiction in America, they are unable to lend money across the border. This led me to inquire more deeply for more unique solutions for the answer of our problem. I came up with the following three safe and secure solutions:
1) TD and RBC both have contact numbers for clients who wish to finance a project in the States. Once a client calls the number, their representatives take over and all fate is left in their hands. This can be great if you are a very well qualified buyer, however there is no realtor or broker control.
2) Obtain a line of credit in Canada from a Canadian lender and use the money to finance your purchase in the States.
3) Refinance a property in Canada and use the proceeds to finance the American project.
For any questions and concerns about American financing please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.
Now back to this week’s update:
Interest rates slightly decreased with a few major lenders as promotional rates declined from 2.99% (5Y fixed) to 2.94%. Often we see a domino effect when it comes to lenders changing rates as they feel the need to remain competitive in the mortgage market. This may serve as a reason for a possible small interest rate decline for the upcoming month of August.
Additionally this week:
– CMHC began preliminary steps to scrutinize condo investors due to concern of overheated market growth. [fancy_link link_text=”Learn More” url=”http://business.financialpost.com/2014/07/28/cmhc-turns-up-scrutiny-of-condo-investors-as-concerns-of-overheated-market-grow/” float=”none”].
– Maclean’s reported about Toronto’s uneven increases in housing prices between communities, something they referred to as a “bubble”. [fancy_link link_text=”Learn More” url=”http://www.macleans.ca/economy/realestateeconomy/charting-torontos-uneven-housing-bubble/” float=”none”].
– Canadian Business ranked the top 10 most expensive neighbourhoods to buy a house, 3 of which were in Toronto. [fancy_link link_text=”Learn More” url=”http://www.canadianbusiness.com/lists-and-rankings/richest-neighbourhoods/most-expensive-home-prices-2014/?utm_content=7074620&utm_medium=social&utm_source=twitter” float=”none”].
– In June, new condo sales in the GTA rose 94% over last year. Residents continue shift toward a condo lifestyle. [fancy_link link_text=”Learn More” url=”http://news.buzzbuzzhome.com/2014/07/new-condo-sales-gta-realnet.html?utm_source=BuzzBuzzHome+Corp.+List&utm_campaign=e2f08ae9eb-The_BuzzBuzzReport_Central_Canada_July_1&utm_medium=email&utm_term=0_6d6db2b31f-e2f08ae9eb-217852233″ float=”none”].
– A CMHC survey showed 59% of mortgage renewers renewed before their scheduled date, mainly to avoid increase in rates. [fancy_link link_text=”Learn More” url=”http://www.cmhc.ca/en/hoficlincl/moloin/cosu/2014/mocosu_005.cfm?WT.cg_n=TWT_MAC” float=”none”].
Stay tuned for the next update!
For any questions and concerns please do not hesitate to call Harpreet Singh The Mortgage King at (416) 795-1919.