Survey Links Home Buying and Happiness! August 24, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: buying a home, finances, first home buyer, first time buyers, home financing, home investment, home purchase, housing markets, mortgage financing, Mortgages, new home sales, real estate, real estate markets
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A survey was recently done by Genworth Financial’s First-Time Homebuyer’s Monitor and the Canadians surveyed said they would feel more financially secure if they owned their own home and 84 per cent revealed owning a home gives them a greater sense of emotional well-being and security.
This is encouraging feedback as it shows that even in today’s economy, people are living and striving for the dream of home ownership.
The survey focused on measuring both the financial and psychological factors of home ownership and explored the link between owning a home and self-fulfillment. Resutls were similar for regions across the country, with respondents in Montreal placing the least value on home ownership and those in Vancouver placing the most.
Are Homes the Cause of Some Bankruptcies? August 17, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: home investment, housing costs, mortgage, mortgage financing, mortgage rates, net worth, qualifying for a mortgage, women and mortgages
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According to an article in the Toronto Star, homes are becoming more of a problem for consumers with escalalting debt.
In the past it was unusual for the family home or real estate to be the cause of bankruptcy in the last 10 to 15 years. It actually was a solution for many people. However, with the drop in the value of homes, their equity has disappeared and they come up with a deficit that the bank still wants repaid.
A bankruptcy trustee with Deloitte & Touche attributes the recent spike in consumer insolvencies to a seven-year high unemployment rate and people relying too much on credit as an income supplement. People worried about losing their job should be cutting expenses and aggressivley repaying debt. Always sound financial advice!
U. S. Mortgages Default Rate August 14, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: buying a home, first home buyer, first time buyers, foreclosures, home purchase, housing costs, housing markets, investing in real estate in the United States, mortgage, mortgage financing, qualifying for a mortgage, real estate, U. S. housing market, women and mortgages
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It’s interesting to note that the default rate for U. S. mortgages that have been modified to prevent house foreclosures may actually end up at 75% according to Fitch Ratings, because of “shrinking disposable income, escalating job losses and possibly some deceptive practices on the part of the borrowers themselves”.
Since the U. S. government announced assistance programs to help struggling homeowners and lower the rate of foreclosures, lenders have been trying to modify mortgage terms for borrowers to give them a better chance to get back on track. They reported that aproximately seven per cent of U. S. home loans packaged into securities without government support have been modified to date.
In a statement to Bloomberg, a Fitch representative stated that loan modifications hold clear value for many homeowners proved the modified payments are sustainable. Unfortunately, more often than not, reducing the home payments to an affordable level may not be enough to rescue borrowers who are overextened on other credit and expenses.
How will all this shake out? We’ll have to watch and wait, only time will tell.
Warmly,
Mary Wozny
Commercial Mortgages Drying Up August 13, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: commercial funding, commercial mortgages, commercial real estate investing, finances, housing markets, mortgage, mortgage agent, mortgage backed securities, mortgage consultant, mortgage financing, Mortgages, qualifying for a mortgage, real estate investing, real estate markets, women and mortgages
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According to a recent report in the Globe and Mail, the supply of money for commecial mortgages has dryed up and construction financing has become increasingly more difficult to find.
The net result of this is that some building owners are going to have to sell something to raise additional equity, take in a partner or look at offering other properties as additional security if they want to obtain mortgages.
The scaled-back lending is a result of the loss of commercial mortgage-backed securities along with Canada’s pension funds mortgaging properties they bought to restore balance to their asset-allocation demands.
Despite this, Canada is still in a much better condition than most countries. This industry moves slowly and there is still time for property owners to make internal changes that will make their individual situation more attractive to lenders.
Contact Mary Wozny, www.MaryWozny.com for your residential and commercial mortgage financing needs.
Household Debt Burdening Canadians August 12, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: finances, home investment, household income, housing costs, mortgage, mortgage financing, mortgage rates, Mortgages, qualifying for a mortgage, refinancing a mortgage, renewing mortgage, women and mortgages
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Canadians are carrying a larger household debt load than ever before, a total of $1.3 trillion in 2008 according to a survey by the CGA Association of Canada.
The study showed outstanding mortgages took up $900 billion worth of the debt load total, but the more concerning number to the association was the $400 billion in consumer debt carried by Canadians. Anothe red flag was that 49 per cent of families with one or more children under age 18 reported their debt had increased in recent years.
In the boom years, the housing market helped Canadians to maintain a slightly improving balance between mortgage debt and residential assets but it didn’t offset the run up in consumer debt which was not well supported with accumulation of consumer durables or financial assets.
Canadians have to the more aware of and accountable for their spending habits, most particularly the use of credit cards and lines of credit and have to maintain their financial responsibility to maintain a healthy economic environment.
With mortgage rates at record low levels and assuming some equity in your home, now is an ideal time to refinance high cost credit card debt and bring your financial home to order. Contact Mary Wozny at www.MaryWozny.com today.
First Time Homebuyers In the Market August 11, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: British Columbia real estate market, buying a home, finances, first home buyer, home financing, home purchase, housing costs, mortgage, mortgage agent, mortgage financing, mortgage rates, Mortgages, real estate markets, residential sales, women and mortgages
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According to a report published by Royal LePage Real Estate Services, low interest rates and house prices are the driving forces for potential first-time homebuyers across Canada.
Although first-time homebuyers appreciate government incentives such as tax credits, it is the markedly improved affordability that is proving to be the powerful drawing card bringing them to the market and encouraging them to purchase. The survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.
When asked what the top incentive to purchase was for them, 86 per cent cited low interest rates followed by 81 per cent who said lower housing prices were the top motivating factor. Job security and a stable economy were the next ranked incentives.
Interesting to note - the survey also revealed regional differences when it came to the importance of certain incentives. Job security was more important in Western Canada compared to Atlantic Canada, which has seen a relatively resilient local economy. Ontario and Quebec buyers rated the recently implemented Home Renovation Tax Credit as having a bigger impact on their buying decision compared to the Canadian average.
Contact Mary Wozny today for your mortgage financing and make your dream of home ownership come true! www.MaryWozny.com
CMHC Says Mortgage Rates to Remain Stable August 10, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: buying a home, finances, first time buyers, home investment, housing costs, housing market outlook, housing markets, housing starts, mortgage, mortgage financing, mortgage rates, Mortgages, new home sales, women and mortgages
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CMHC in their second quarter Housing Market Outlook says that Mortgage Rates are expected to remain with 25 to 75 basis points of their current level for the remainder of 2009, keeping them very low in a historical context.
Movements in mortgage rates are difficult to predict due to volatile economic conditions however rates are expected to remain steady this year and edge higher in 2010.
Along with mortgage rates, CMHC listed employment, net migration and low birth rate as having key effects on residential construction, and forecast housing starts to decline to 141,900 in 2009 (most notably in Alberta and Saskatchewan) before rebouding to 150,300 in 2010.
2009′s decline in housing starts can be attributed to several factors, including the current economic climate, increased competition from the existing home market and the impact of strong house price growth between 2002 and 2007, states their chief economist.
Housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period.
Growing Numbers Boost B.C. Housing Market August 9, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: British Columbia real estate market, buying a home, finances, first home buyer, first time buyers, home investment, housing markets, mortgage, mortgage financing, Mortgages, real estate investing, residential sales, women and mortgages
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British Columbia saw its first year-over-year increase in residential sales in May 2009, with the B.C. MLS reporting a three per cent rise compared to May 2008.
The chief economist at the British Columbia Real Estate Association states that homes sales have bounced back from the extraorinarily low levels recorded during the winter months. Improved affordability and less uncertainty about the future are the main factors driving home sales higher.
Stronger consumer demand combined with fewer home listings is stabilizing prices in the province. MLS predicts residential prices in B. C. to decline eight per cent in 2009 to $420,600.
The majority of the decline in home prices has already occurred and balanced markets are emerging in Victoria, Vancouver and the Fraser Valley. There’s now little downward pressure on home prices in these particular areas.
by Mary Wozny
Ottawa Housing Market Hot! August 8, 2009
Posted by Mary Pougnet in Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: buying a home, commercial real estate investing, finances, first time buyers, home investment, home purchase, Housing, housing costs, housing markets, mortgage, mortgage financing, Mortgages, new home sales, real estate, real estate investing, women and mortgages
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Ottawa saw its best May on record for housing sales, with the capital city’s Real Estate Board reporting a 19 per cent increase in sales from the previous month and a 5.3 per cent increase in house prices over May 2008.
Homes in every price range are sell well, right from starter homes to luxury properties, according to the president of the Ottawa Real Estate Board. Homebuyers and sellers are showing a lot of confidence in the Ottawa real estate market.
They reported that 1,969 residential properties were sold in May at an average price of $312,045, a slight rise in mortgage financing has been noted for the same time period. Ottawa hasn’t seen as much of a slowdown as the rest of the country because it is more isolated than the rest of the country and there is more guaranteed income due to the large number of government jobs the capital city has to offer.
by Mary Wozny
Have Housing Starts Hit Bottom? August 7, 2009
Posted by Mary Pougnet in Finance, Housing, Mortgage Backed Loans, Mortgages, Real Estate in Canada, Women and Finance.Tags: buying a home, commercial real estate investing, finances, first home buyer, first time buyers, home investment, home purchase, Housing, housing costs, housing markets, housing starts, mortgage, new home sales, qualifying for a mortgage, real estate, real estate markets, women and mortgages
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Canada Mortgage and Housing Corporation (CMHC) reported recently that national housing starts increased by 9.2% in May compared to April. This leads some economists to think that a bottom might be forming in the country’s homebuilding activity.
March saw a jump in overall nationals housing starts, that jump was largely due to condo development in Ontario, the Prairies, the Atlantic provinces and Quebec. The only region to see a decrease was B. C. where the market is still moderating. It is believed that housing starts will bottom out slightly below 120,000 before stabilizing throughout next year.
This is a good indication that homebuilding activity will cease being a drag on economic growth and employment heading into next year, however this being the case, housing starts are not expected to head back to previous levels of 150,000 before 2011.
Warmly,
Mary Wozny
