admin April 8th, 2011
Despite the fact that the European Central Bank has decided to raise the prime interest rates in Europe, Canada will not be doing anything to change the prime rate here for now. For one thing, the bank does not want to be seen as having any kind of impact on the outcome of the upcoming Federal election. Secondly, they feel that we are still coming out of the recession and things are still a little fragile; therefore, they don’t want to jeopardize that in any way either.
If you are in need of financial information or want to do some creative financing for renovations, additions or changing residence, please call me and I will provide the resources so you can make an informed decision.
admin January 24th, 2011
This month Jim Flaherty announced 3 changes to the lending practices banks will have to follow. This comes in an effort to stem the increasing burden of debt that we are seeing in Canada. The following are the basic changes announced.
1. A reduction of maximum amortization from 35 to 30 years for insured mortgages, or in other words mortgages that normally exceed 80% of the property’s value. Effective date March 18, 2011.
2. Lowering the maximum amount Canadians can borrow in refinancing their homes to 85% from 90% of the value. Effective date march 18, 2011.
3. Withdrawing the backing of government insurance on home equity lines of credit (HELOC’s). Effective date April 18, 2011.
A representative for MorCan Financial had the following to say about the new changes…
Although these measures are designed to tackle Canadians’ recent surge in debt, they fail to tackle the real problems and effectively punish those who need the most help. These measures play into the hands of increasingly rapacious credit card companies, which charge exorbitant interest rates to people who are most in need of help and decrease Canadians’ ability to use their homes as a secure avenue for low interest-bearing credit. It brings to mind the phrase “rearranging the deckchairs on the Titanic”, an idiom which would perhaps be more apropos if rearranging the deck chairs caused the Titanic to sink faster. The solution to our debt problems lies in effectively managing our debt and eliminating the burden of high debt bearing credit. Mortgages are the solution and not the problem.
Please contact Marcus Tzaferis for your mortgage needs or to answer any questions you may have.
MorCan Financial
1006 King Street West
Toronto, Ontario M6K 3N2
Marcus Tzaferis
416-214-9000
marcus@mortgagemarcus.com
admin March 3rd, 2010
I wonder if the average consumer knows that there are 3 levels of Real Estate Boards that constantly lobby the government on the consumer’s behalf. For instance when the City of Toronto proposed the extra Municipal Land Transfer Tax, Toronto Real Estate Board continuously lobbied against it. It’s members also encouraged their clients to let City Hall know that they were against this legislation. We are the only city in the Province of Ontario that pays the Land Transfer Tax twice. I don’t think most people realized what this tax would be until they bought a home and were faced with paying the Land Transfer Tax to the Province of Ontario and then again to the City of Toronto.
This tax adds an extra $20,000 and often much more to the price of buying a home in Toronto. We are being penalized, in essence, for wanting to own a home in Toronto. Add to that the fact that our real estate is the most expensive in all of Canada and it is making it increasingly difficult for young people to purchase their first home and certainly adds a debt load in excess of where most young people would like to be. The great thing about democracy is that there is power in the people and if we make enough noise, we will be heard. If you still believe that this is a punitive and unjust extra tax, you can keep telling your local councilor to make your views known at City Hall. You never know, they just might repeal the tax if we do. What are your views?
admin July 16th, 2009
The Globe and Mail posted an article that suggests how the sale of white paint (or the key ingredient that makes white paint white) could indicate a turn around in the economy…
Is the data valid? You be the judge