Wait and see for better rates*

Early mortgage renewal notices may seem sincere, but they often have less to do with saving homeowners money and more to do with banks heading off their competition.

In fact, convincing mortgage holders to renew early is not a new tactic. Yet banks are using it more frequently today given the competitive market.

The process is simple yet deceiving. A bank representative will contact the mortgage holder with a special limited-time renewal offer to protect them from rate increases.

Alberta registration changes are another story*

Canada Mortgage and Housing Corp. (CMHC) recently announced it would be implementing  higher premiums for borrowers who have less than a 10 per cent down payment.

The move means Canadians seeking a mortgage with a loan-to-value ratio of up to 95 per cent will see their premiums jump about 15 per cent from 3.15 to 3.6 per cent. For those with a loan-to-value ratio from 90.01 to 95 per cent, their premiums will climb from 3.35 to 3.85 per cent.

The Crown corporation's move, which takes effect June 1, has since been matched by private-sector insurer Genworth Canada. Canada Guaranty, the country's third main mortgage insurer, had not made an announcement as of press time.

Save long-term pain by reading the fine print

Consumers taking advantage of low mortgage rates from banks and brokers may not realize  what they are truly getting – or in some cases what they're not getting.

Last week, Mortgage360 received three inquiries from homeowners whose respective mortgages went wrong with other brokers or banks. In all three cases, the homeowners had attempted to refinance their previous low-rate five-year fixed mortgages into new, lower-rate variable mortgages.

Not all things are created equal

 The Latin phrase Ceteris peribus, or "all else being equal," is used extensively in economics to  guide relatively simple predictions – the price of a candy bar, for example.

Yet it's a virtually useless tool in predicting the path of an economy. All else is very rarely ever equal.

Hillard MacBeth's recent crystal-ball-smashing predictions the Canadian housing market will crash by as much as 50 per cent appears to hold several things equal, when in fact they are far from the same. In fact, his assessment of affordability is not only flawed, but essentially useless, and seems to be more sales pitch than forecast.

Genesis launches new campaign for REALTORS, buyers

Genesis Builders has launched a new campaign designed to provide REALTORS® and their buyers with more information about the benefits of buying new.

The award-winning land developer recently launched its We Love REALTORS® campaign — through social media blasts and an email newsletter — in its ongoing effort to partner with industry professionals who corporate marketing manager Jesse Coderre sees as partners in giving homebuyers pertinent information about all their purchase choices.

More than 100 Calgarians have no attended the seminar

The success of Cash Flow Club has not been a surprise.

Mortgage360's innovative, yet simple approach to real estate investment has been a huge  success, with more than 100 Calgarians having already taken the course, and more than a dozen property investments made as a direct result.

The market conditions in Calgary are perfect for smart long-term investing in real estate. The fundamentals are sound and the Calgary real estate market is showing the expected volatility in the market was more media hype than factual forecasting.

Five reasons to buy rentals in Calgary

Despite media headlines and continued sensationalism from economists both domestic and  foreign, Calgary continues to be one of the best places for real estate investment in Canada.

Here are five reasons why:

Vacancy rates remain low: According to the fall 2014 edition of the CMHC Housing Market Outlook for Calgary, vacancy rates remain low at 1.4 per cent and are not expected to exceed 1.8 per cent in either 2015 or 2016. Vacancy rates are deemed favourable for real estate investment when they are below five per cent.

But don't go to your bank for a variable rate

Variable-rate mortgages are once again returning to popularity thanks to low interest rates  and the expectation the Bank of Canada will lower the overnight rate again in the near future.

For the last several years, consumers have favoured fixed-rate mortgages primarily due to the expectation rates would rise before they fell. Those expectations however, have not been fulfilled. In fact, the opposite has ensued and rates have gone lower not higher.

Many who recently took out five year fixed mortgages are now realizing they would have fared better with a variable-rate mortgage.

Low interest rates are already a deal

 Last week was a busy one for Mortgage360. The long weekend and positive housing reports from several  sources, including CMHC, seems to have thrust buyers back into the real estate market, with many of our  clients writing offers.

While some buyers are sensing the market is calmer than many of the over-hyped media reports would have you believe, there are still a large number of Calgarians sitting on the sidelines waiting to see how the recent blip in our economy plays out.

What many of these fence-sitters fail to realize, however, is that waiting and seeing could end up costing them more money in the long run, even if prices were to drop 10 to 15 per cent.

Savvy buyers seeing increased opportunities
With oil prices still low compared to several months ago, real estate investors might be  inclined to wait on the sidelines to see what happens. Yet that hasn't happened.

Instead, investors are salivating at the increased selection of revenue-producing properties coming to market and selecting the best ones to add to their portfolios.

Take, for example, a set of clients who were dipping their toes into the world of real estate investment when they attended Mortgage360's first Cash Flow Club meeting earlier this year.