Here are two examples that show the power of accelerated payments and adding an extra few bucks to your mortgage payment.  Most people think they need to pay thousands against there mortgage each year to pay it down aggressively and therefore never do anything.

Here is a typical situation.  Let’s take a $500,000 mortgage over 25-year amortization period with an average rate of 3.25%.  (we know through the terms rates will change.).   A regular monthly payment of $2430.83 over 25 years your total interest paid will be $229,248.96.

So, let’s say you took out a biweekly or weekly accelerated payment which means you pay every two weeks or every other weekly.   It is still the same monthly payment broken down into 2 payments or 4.  Your total interest paid is $200,056.46 and you pay down your mortgage in 23 years.  So, 2 years sooner.

Let’s take a biweekly accelerated payment and add $100.00 to each payment or if you took weekly that would be $50.00 to each payment.  Your total interest paid $176,742.08 and you pay down your mortgage in 18 years or 7 years sooner.  WOW.  So, by taken an accelerated payment and adding an extra $100.00 every 2 weeks you pay down your mortgage in 18 years and pay $52,506.00 less in interest then if you stuck with a regular monthly payment.

Click on link for quick reference. We are still waiting on a number of mortgage lenders to jump on board but would expect all to do soon. It is not as amazing program and will be limited mainly to buyers under the $500,000 property value range so not much use to buyers in Toronto. Main points to take away are you have to put down at least 5%, CMHC will then match this, the loan has to be registered behind the first at the buyers expense, the loan has to be paid back within 25 years or when the home is sold, CMHC will partake in any profits on the home, you are limited to 4 times income with maximum combined income of $120,000.00, so for someone with 5% down and making $120,000.00 that would put a purchase price in the low 500s. Read more Read more .. ps://www.canadianmortgagetrends.com/2019/09/first-time-home-buyer-incentive-now-available/

Read more https://renx.ca/what-toronto-condominium-market-look-like-next-five-years/

It does not look like the housing bubble will pop at any time Read On ….

For the first time on record, the average asking price of a pre-sale unit in the GTA has reached $1,000 per square foot, according to a new report from Urbanation, which has been tracking the local condo market since 1981. Continue https://www.livabl.com/2019/08/single-square-foot-condo-toronto.html

There are many misconceptions surrounding reverse mortgages. Since the most common misconceptions center around interest rates, here are some “interest-ing” facts to help educate your clients:

Interest rates are only slightly higher than a home equity line of credit.
For those having trouble qualifying for a line of credit through a financial institution, this difference in rates can become negligible. Income requirements are often a barrier when seeking approval for a HELOC – since the CHIP Reverse Mortgage is specifically designed with retired Canadians in mind, qualifying is much easier.

Interest rates on credit cards are significantly higher.
Not only do these products charge significantly higher interest rates, but regular payments on principal and interest are required. With a CHIP Reverse Mortgage, no monthly mortgage or interest payments are required – payment is only due when the clients no longer live in their home.

Interest is compounded. While the interest is compounded semi-annually, HomeEquity Bank also provides homeowners with the option to make interest payments to help keep interest from accruing.

Compounded interest will mean owing more than the home’s value when the loan is due. This is not true. The CHIP Reverse Mortgage has a no negative equity guarantee. Should the loan amount exceed the property sale amount, HomeEquity Bank covers the difference between the sale price and the loan amount.

After reviewing the new B-21 rules, the real estate industry as a whole can relax a little more, for now. Most of these new rules apply to insurers and do little to tamper with the housing market as a whole.
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A reverse mortgage is a very unique product in that it allows you to access the equity in your home without the monthly payments of a typical mortgage. This product is ideal for seniors to use the equity how they please for retirement.
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According to a recent survey conducted, almost half of Canadians that participated, feel they will still be in debt by the time of retirement (approximately age 65). This information coming from Manulife Financial, stating Canadians are worried they will still be in debt, including their mortgage by the time they hit the retirement age. In addition to this, over half of Canadians said they were disappointed with how they managed their money over the years and felt they could have saved and delegated better.
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Reports are increasingly showing that parents are helping their children purchase their first home in the GTA. This phenomenon of parents helping their children purchase their first home is not a new trend by any means, but the numbers they are willing to fork out are. This is becoming a common trend due to the increase of the cost of living (rent), debt amount (student loans), and saving money in general becomes harder and harder.
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