Time for a Mortgage Checkup?

Having regular checkups by a doctor is critical to ensuring good health. The same concept holds true for one of your most important financial investments: your mortgage.

Plenty can change in someone’s life during the standard five-year mortgage a lot of Canadians sign up for. You may need to change your mortgage because of a career change, having kids, or entering retirement.

Canadians tend to become complacent about their mortgage payments when they could be saving a lot of money. For example, the more adverse you become to risk, the less likely a variable mortgage will be right for you. Using online tools, such as a mortgage calculator and a mortgage penalty calculator, you can determine how much you can expect to pay if you break your existing mortgage.

What is a Mortgage Check-Up?
It is a process used to compare your current mortgage rate and product to today’s rates and available products. It will help you determine the product that is best suited to your needs. It will also assist you with making the choice between a Variable Rate Mortgage or a Fixed Rate Mortgage?

The process takes into account your current mortgage rate, outstanding mortgage amount, and remaining time left in your term, and compares it to today’s rates and products. It will give you the information you need to make a smarter decision with your mortgage and help you pay it off faster.

With the large variety of mortgage products available today, there is a good chance that there is one that suits your needs better than the one you have now.

How often you should make a mortgage checkup?
Many financial advisers recommend that you do a mortgage checkup once a year, and several Canadian mortgage companies offer this service free on their websites.

It may be worthwhile to renegotiate your mortgage or increase your payments. An extra payment of $100 a month on a standard $200,000 mortgage could save almost $18,000 in interest and shorten the amortization period by about four years. Many banks allow people to pay a lump sum of the principal on the mortgage’s anniversary and increase their monthly payments. This is a golden opportunity that you should take if, for example,  you received a tax refund, applying that refund to your mortgage, rather than making a personal purchase, can save you significant money.

How to Avoid Overspending

Do you have significant debts as a result of overspending? If you do, you are not alone. Modern society makes it particularly easy to spend more than we really should. However, if you want to clear your debts and have greater peace of mind, it is important to tackle the root cause, which is overspending.

Overspending can be an indicator of a deeper issue as well and therefore, it should be addressed properly. This article suggests some useful tips to help you know how to avoid overspending.

1. Accept that a problem exists
In order to seek a solution to something, you must accept that the problem exists. Try to decipher the reasons behind your overspending. Identify situations that make you overspend. Understanding the root cause of your behaviour will assist you in finding a workable solution to your extravagant ways. People tend to hide and ignore such issues as if they don’t exist at all. Your refusal to admit that you overspend will never let you conquer your shopping impulses.

2. Be aware of how much money you spend
Many chronic spenders live in denial about how much they spend. If you realize how much you spend on various items, this alone may be sufficient to reduce your spending. Keep a log of your daily spending, or go through your bank accounts, and credit card statements and add up how much you spend on different items and decide whether you really want to spend that much money.

3. Set a financial limit
If you really have trouble controlling your spending it will be very effective to give yourself strict amounts of spending per week. This will work most effectively with cash because it is easier to monitor. If you learn to live on a limited amount per week, you will value money more and learn more frugal habits.

4. Plan your purchases ahead of time
Planning ahead can really help with grocery shopping and buying gifts. You can take actually take advantage of sales and by buying things that you really need.

5. Avoid impulsive purchases
Make an effort to have a moment of reflection before buying anything. If you see something you would like to buy, try waiting a day before actually committing yourself to make the purchase. If you really want it, you will come back. This also gives you the chance to find other things that may be better.

6. Do your comparison shopping
As prudent spenders, comparison shopping is a prerequisite to smart spending. With great tools online, it is getting easier and faster to compare shops. Make a habit of searching your newspaper flyers for your weekly grocery items.

7. Use cash – avoid credit cards
Avoiding credit cards helps in overcoming the impulse of overspending. You should carry only the amount you intend to spend. This in turn prevents you from indulging in unnecessary purchases and expenses.

8. Avoid spending by habit
Quite often a lot of our spending is a daily habit. However, this spending could easily be unnecessary. For example, if you buy a takeaway coffee every day, why not invest in a coffee machine. Just because you spend $10 a day on lunch doesn’t mean this habit has to continue forever. Try taking your own lunch. Re-evaluate all your habitual spending patterns and decide whether it is necessary.

9. Reward yourself for every success
Make sure that you reward yourself with a lucrative incentive every time you control an urge to shop. Encourage yourself to exercise restraint. Every success over compulsive spending calls for a pat on your back and is worth an enticing reward so that you can bring yourself to avoid overspending the next time. Make sure you don’t hit off to the market to reward yourself, or the entire purpose will be defeated.

10. Get help
If you are unable to control your spending impulse, then you must admit this drawback and accept help from your spouse or relatives. Ask them to help keep control over you so that you do not spend more than required.

In addition, you need to start valuing money and the hard work that goes into earning it. This thought and understanding will help you spend money in a responsible way.

The Path to Real Estate Investment Success

Residential property can be a great investment selection – but you need to buy well to secure the best return.

Property is widely considered a great investment and a powerful wealth creation strategy. But as with anything in life, there are no guarantees.
 
Yet if you back yourself with the power of knowledge and employ the right investment strategy, there is no reason why property investment can’t be a powerful wealth creation strategy for you and your family.

If real estate investment is on the horizon for you, try to keep the following tips in mind, and you’ll be well on track to securing yourself a great investment.

Know your limits
Overstretching your budget is a sure-fire way to cripple your chances of doing well in the property market.

Whether you are a seasoned investor or new to the market, there is nothing more important than determining your budget and understanding how much you can afford to borrow.

A mortgage broker can work with you to assess your borrowing capacity and ensure you embark on an investment strategy that fits your budget. With pre-approved finance, you’ll also be ready to strike when the right property comes along.

Location, location, location
When investing in property, the location of your potential purchase should always be front of mind.

Be sure to consider areas that are backed by strong population growth, employment opportunities, development prospects and solid infrastructure projects.

A great idea is to take a drive around any areas you’re interested in and note all local schools, transport hubs, and shopping centers.
 
A property that is within proximity to such key amenities is usually in higher demand for both tenants and future buyers, which should maximize your prospects of achieving solid capital growth and stable rental income.

Understand the tenant
The location and type of property you purchase will be a strong motivating factor in the type of tenant you are likely to attract.

If you are seeking a long tenancy agreement with a family, it may be wise to consider areas that support such a demographic.

Once again, consider a safe area surrounded by a range of schools and shopping centers to support the needs of your target market.

While there are no guarantees with any investment strategy – understanding these three essential aspects of successful property investment should get you closer to ensuring good returns on your next purchase.

How to Freshen Up Your Home for Spring

The Spring season invites changes to your home with fresh decorating ideas. Now that we have a sneak peek at spring, it is the perfect time to kick off the season by adding a little freshness to your home. Here are a few tips that will have you and your home feeling renewed in no time.

Pare down and organize
No need for excess, spring is the perfect time to thin things out. Start with closets by pulling out clothes and shoes you have not worn in a while, and donating them so that someone else may get some joy out of the items. The same goes for books and magazines and anything else that's been accumulated. Remember to tackle the pantry, fridge and medicine cabinet too, and discard or recycle what is no longer needed.

Once everything is pared down, organize what is left. Baskets, decorative boxes and bowls are a great way to keep a sense of order to everyday things. After a good clean up, your space will get an instant lift and you will feel refreshed and lighter too.

Rotate art and rearrange furniture
Separate art into summer and winter piles. Hang the lighter, pastel colours for spring and summer, and put the deep, oil paintings in storage. Every six months, rotate your pieces. This way, you enjoy your art with new vigor, and it’s something you can do in minutes.

Simply switching the placement of a sofa set, or repositioning the TV can make you feel like you have a whole new room. If you don't have much room for movement, change and update the smaller things, like pillows, throws, and lamps. Remember, even a small change will do you good and help brighten up your home.

Give your home new colours
Nothing brings the feel of spring in like the colours and textures of the season. Keep a spring garden in mind and pick the colours and flowers you like the most from the spring garden colour palette. Choose the ones that look best with your overall colour schemes that are already in place.

Nothing says spring more than fresh flowers. Make sure to be consistent with creating arrangements. Choose a colour scheme, like all white, instead of mixing bouquets. Use the same type of flower in one glass container with a beautiful white satin or grosgrain ribbon wrapped around it.

The infusion of brighter colours and fresh flowers and plants reinforces your seasonal changes and give your home a new relaxing look and feel.

Brighten up the windows
New updated window treatments can make one of the most profound changes to the look and feel of a room. Spring calls for delicate colours and soft fabrics. Choose something light and airy, like a soft drapery or sheer window shading.

Let the sunshine in, and if you are worried about privacy, can place room-darkening blinds that you can adjust for a look and feel that is tailored to your unique needs. In addition, sunscreen window shades are especially popular options that will prepare your home for the glare of the sun and the heat of the upcoming summer.

Soothe the senses
Spring is not only a colourful season but a fragrant one too. Bring the aroma indoors. Scents have a profound effect on mood.  Infusing scent into your décor with diffusers, candles, fresh cut plants/flowers, or incense can change the overall feeling of a space. Purchase an inexpensive bouquet of flowers.  Split flowers up by colour, and place each bunch in small vases around your home.

Update accessories
Just as you’d add a scarf or necklace to enhance an outfit, do the same with your home. Dress your home as you would yourself. Look for great accent pillows in bright colours. Put away the winter throws and drape light, bright throws on your sofa. Pick out spring-hued vases or candles to boost a cocktail or dining room table.

Beautify your bedroom
Bright new bedding can do wonders for your personal space. Tuck away the heavy, winter flannel comforter and pull out crisp linens with a decorative bedspread. Bring in the spring with floral-designed spreads or colourful solids. Don’t forget accent pillows for added style and comfort.

Spring Home Sales Market Report

Although the number of sales in March decreased from last year at this time, it was still a robust and busy start to the spring season. March tends to be the early indicator of the spring resale market pace, so we anticipate April’s numbers will be a better indication of just how the spring market will perform, which tends to be the peak time of year for resales.

 

Ontario - Strong Spring Market

Toronto, 04 April 2022 - There were almost 11,000 Greater Toronto Area (GTA) home sales reported in March 2022, capping off the third-best March and second-best first quarter on record. Tight market conditions continued to support a double-digit annual pace of price growth, with an average selling price of $1.3 million. The average selling price dipped slightly month-over-month, bucking the regular seasonal trend.

“Now is the time for governments to govern and focus on measures that are proven to increase housing supply. The GTA population will experience rapid growth in the coming years as our region’s economic strength and diversity continue to attract people from around the world. In order to sustain this growth, we need an adequate housing supply and choice. This needs to be the focus of policymakers rather than short-term and ineffective measures to artificially suppress demand. Evidence-based decision-making should inform government policies, and we encourage representatives at all levels of government to think big and act decisively to improve needed housing supply in a significant way,” said TRREB President Kevin Crigger.

GTA REALTORS® reported 10,955 sales through TRREB’s MLS® System in March 2022, representing a 30% decline compared to the record result of 15,628 in March 2021. While sales were down year-over-year for all major market segments, condominium apartment transactions dipped by a much lesser annual rate.

New listings were also down on a year-over-year basis, but by a much lesser annual rate than sales. This suggests that while market conditions remained very tight, home buyers did not experience the same level of competition from other buyers compared to a year earlier.

The MLS® Home Price Index Composite Benchmark was up by 34.8% year-over-year in March 2022. This annual rate of increase was down slightly from February. The average selling price was up by 18.5% year-over-year. The annual growth rates for the MLS HPI® and average selling price differed, in part, because the mix of homes sold in March 2022 shifted in favour of condominium apartments which generally sell for a lower average price compared to other home types.

“Competition between home buyers in the GTA remains very strong in most neighbourhoods and market segments. However, we did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year,” said TRREB Chief Market Analyst Jason Mercer.

 

Ottawa - March Resales Indicate Strong Spring Market

Ottawa, April 5, 2022 -- Members of the Ottawa Real Estate Board sold 2,011 residential properties in March through the Board’s Multiple Listing Service® System, compared with 2,274 in March 2021, a decrease of 12%. March’s sales included 1,493 in the residential-property class, down 12% from a year ago, and 518 in the condominium-property category, a decrease of 10% from March 2021. The five-year average for total unit sales in March is 1,792.

“Although the number of sales in March decreased from last year at this time, it was still a robust and busy start to the spring season. Transactions increased 42% over February (590 units) and were 12% higher than the 5-year average. Last March was unseasonably warm in comparison, and the lion-like weather that pervaded most of this March may have played a role. More likely, the lifting of some restrictions and opportunity for unfettered travel during the spring break had peoples’ attention turning towards other activities during the month,” states Ottawa Real Estate Board President Penny Torontow.

“March tends to be the early indicator of the spring resale market pace, so we anticipate April’s numbers will be a better indication of just how the spring market will perform, which tends to be the peak time of year for resales,” she adds.

The average sale price for a condominium-class property in March was $479,405, an increase of 10% from 2021, while the average sale price for a residential-class property was $853,615, increasing 13% from a year ago. With year-to-date average sale prices at $831,122 for residential and $467,915 for condominiums, these values represent a 14% and 13 percent increase over 2021, respectively.*

“Average prices continue on their upward trend, albeit only increasing 2-3% over February’s figures, the year over year percentage increases of 13-14% validate that the housing supply shortage will continue to put strong upward pressure on prices until that is remedied.”

“Last month saw 2,632 new listings enter the MLS® System, and although 6% lower than March 2021, this is still 4% (or 100 units) above the 5-year average. Residential-class property inventory is approximately 10.5% higher than last year at this time, with condominium-class inventory down 12%. Overall, we are just slightly over (.6%) a half month’s supply of inventory and require at least four months of inventory to be considered within a balanced market.”

“It is encouraging to see new inventory entering the resale market. However, these properties are being quickly absorbed due to the unrelenting high demand, and more listings are crucial to meeting this need,” Torontow advises.

“We appreciate the provincial government has introduced the first phase of its More Homes For Everyone Act to tackle the housing shortage by implementing measures, including working with municipalities to get homes built faster and increasing the Non-Resident Speculation Tax. This is a good start, and we are hopeful that with the application of these and further measures, Ottawa’s many potential home buyers waiting on the sidelines will finally be able to get a foothold in our local market.”

In addition to residential sales, OREB Members assisted clients with renting 1,291 properties since the beginning of the year compared to 1,079 by March 2021.

 

Alberta - "March sees a large number of listings hit the market"

Edmonton, April 4, 2022 -- Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for March 2022 increased 45.4% compared to February 2022 and increased 34.7% from March 2021. New residential listings increased both 7.6% year-over-year and 47.7% month-over-month from February 2022. 

For March, single-family home unit sales are up 21.2% from March 2021 and up 37.7% from February 2022 at 1,920. Condo unit sales increased 67.1% from March 2021 and were up 62.9% from February 2022. Duplex/rowhouse unit sales were up 54.2% year-over-year and increased 45.1% month-over-month.

Single-family homes averaged $503,711, a 9.9% year-over-year increase and a month-over-month increase of 2.0%. Condominiums sold for an average of $245,070, seeing an increase of 6.7% year-over-year as well as an 8.4% increase compared to February 2022. Duplex prices increased 11.8% from March 2021, selling at $389,321, a 3.8% increase from February 2022. 

The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $369,700, a 9.4% increase from March 2021, and up 4.5% from February 2022. 

“The Greater Edmonton and Area market continues to surprise us as we enter into what is normally the start of the busy season of real estate,” says REALTORS® Association of Edmonton Chair Paul Gravelle. “Although we are seeing slightly lower increases for average sale prices across all categories, there has been a huge increase in the number of listings hitting the market as well the number of sales in the month of March.”

Single-family homes averaged 27 days on the market, a 15-day decrease from February 2022. Condos averaged 51 days on the market, decreasing by 10 days month-over-month, while duplexes averaged 29 days on the market, a 13-day decrease compared to last month. Overall, all residential listings averaged 34 days on the market, decreasing by eight days year-over-year and down 13 days as compared to February 2022.

 

British Columbia - Continued growth in new listings a hopeful sign for home buyers in the Fraser Valley

 SURREY, April 4, 2022 – For the third consecutive month, new listings in the Fraser Valley continued to climb in March giving buyers more to choose from, helping to increase overall active inventory to levels not seen since last July.

Property sales remain robust, as Benchmark prices, the price of a ‘typical’ home, continued to increase month over month.

In March, the FVREB processed 2,580 residential and commercial sales on its Multiple Listing Service® (MLS®), a decrease of 22.5% compared to March 2021 and 41.4% more than were processed in February.

Sandra Benz, President of the Board, said of this month’s statistics, “Sales were strong again in March as more new listings continued to come on stream. We’re hopeful this will contribute to a slowing in price growth, which is good news for the home-buying public. Other encouraging signs, such as less open house traffic and fewer multiple offers, may help us get to a more balanced market, however until the fundamental issue of lack of supply is addressed, we won’t see that happen anytime soon.”

The Board received 4,580 new listings in March, a decrease of 10.0% compared to March of last year, and 22.4% more than were processed in February. Total active inventory for March was 4,699, a decrease of 6.2% compared to last year’s 5,012 active listings, however 24.0% higher than last month. 

Baldev Gill, Chief Executive Officer of the Board, added, “We may not see the impact of recent interest rate hikes on the market trends until later in 2022. With fixed rates nearly double what they were a year ago, new

homebuyers will likely be more impacted than other segments of the home-buying public, as mortgage stress test conditions become more stringent. We hope to see equal efforts from the government to address inventory issues to help make housing more affordable.” 

Across Fraser Valley, in March, the average number of days to sell a single-family detached home was 12 and a townhome was 14 days. Apartments took, on average, 11 days to sell.

MLS® HPI Benchmark Price Activity

• Single Family Detached: At $1,726,900, the Benchmark price for an FVREB single-family detached home

increased 3.4% compared to February 2022 and increased 39.5% compared to March 2021.

• Townhomes: At $886,400, the Benchmark price for an FVREB townhome increased 5.4% compared

to February 2022 and increased 41.9% compared to March 2021.

• Apartments: At $643,000, the Benchmark price for an FVREB apartment/condo increased 4.6%

compared to February 2022 and increased 38.2% compared to March 2021.

Average Home Sale Price Dips 5% from Last Month, Across All Property Types

 KITCHENER-WATERLOO, ON (April 4, 2022) —The 725 residential homes sold through the Multiple Listing Service® System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) in March 2022 is a decrease of 27.1 per cent compared to March 2021, which continues to hold the record for most home sales in a single month. On a month-over-month basis, sales in March were up 19.4 per cent compared to February 2022. The previous ten-year average number of residential sales for March is 599.

 

“The skyrocketing prices of the last two months took a bit of a breather in March, with the overall average price dipping five per cent compared to what we saw in February,” said Megan Bell, President of KWAR. “While it is too soon to draw conclusions from just one month of home sales, I know many will be comforted to see a leveling off on the average price, no matter how incremental.”

 

Total residential sales in March included 416 detached (down 29.7 per cent from March 2021), and 114 condominium units (down 9.5 per cent). Sales also included 64 semi-detached homes (down 17.9 per cent) and 131 townhouses (down 33.8 per cent).

 

In March, the average sale price for all residential properties in the Kitchener-Waterloo area was $960,181. This represents a 25.5 per cent increase over March 2021 and a 4.6 per cent decrease compared to February 2022.

 

• • • The average price of a detached home was $1,132,637. This represents a 25.9 per cent increase from March 2021 and a decrease 6.4 per cent compared to February 2022.
  •  
    • The average sale price for an apartment-style condominium was $565,782. This represents an increase of 33.4 per cent from March 2021 and a decrease of 1.2 per cent compared to February 2022.
  •  
    • The average sale price for a townhouse was $796,696. This represents a 27.4 per cent increase from March 2021 and a decrease of 7.6 per cent compared to February 2022.
  •  
    • The average sale price for a semi was $876,371. This represents an increase of 34.5 per cent compared to March 2021 and a decrease of 5.0 per cent compared to February 2022.

 

 

KWAR cautions that average sale price information can be useful in establishing long-term trends but should not be used as an indicator that specific properties have increased or decreased in value. The MLS®® Home Price Index (HPI) provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.

 

The MLS® HPI composite benchmark price for all residential properties in Kitchener-Waterloo was $960,100 in March. This represents a 29.6 per cent increase over March 2021 and a 1.5 per cent decrease compared to February 2022.

 

• • • The benchmark price for a detached home was $1,046,200. This represents a 28.1 per cent increase from March 2021 and 4.0 per cent decrease compared to February 2022.
  • • The benchmark price for an apartment-style condominium was $484,000. This represents a 32.9 per cent increase from March 2021 and a 4.2 per cent increase compared to February 2022.
  • • The benchmark price for a townhouse is $765,500. This represents a 41.3 per cent increase from March 2021 and a 4.9 per cent increase compared to February 2022.

 

 

 

“Even though the average price decreased across all property types on a month-to-month basis, the MLS® HPI showed continued monthly gains for both townhouse and apartment property types,” notes Bell.  “As the province feels its way out of the pandemic, we are beginning to see some very preliminary signs of a potential cooling. We are not seeing quite as many multiple offers and some offers are coming in with conditions. Of course, when we say cooling, we’re talking about a market that has been scorching hot which is why we are pleased to see this happening.”

 

There were 1,131 new listings added to the MLS® System in KW and area last month, a decrease 16.8 per cent compared to the record topping number of listings added in March of last year, and a 28.0 per cent increase compared to the previous ten-year average for March.

 

The total number of homes available for sale in active status at the end of March was 441, an increase of 1.1 per cent compared to March of last year, and 59.0 per cent below the previous ten-year average of 1,072 listings for March.

 

The number of months of inventory nudged up to 0.7 months in March from 0.5 months in February. Inventory has been under the one-month mark since October 2020. The number of months of inventory represents how long it would take to sell off current inventories at the current rate of sales.

 

The average number of days to sell in March was 8 days, the same as it was in March 2021. The previous 5-year average is 16 days.