Home Capital Group Shares Freefall Last Week – Why?

Last week, Home Capital Group shares plunged 65% in one day as the company revealed it was securing a $2 billion line of credit to secure its finances after depositors rushed to pull money from their savings accounts.

Home Capital’s subsidiary, Home Trust, is Canada’s largest alternative lender, providing subprime loans to people who don’t qualify for traditional bank mortgages. So when the news broke; clients, friends and family bombarded me with questions asking ‘what does this mean?’ Since these question were more from an investor’s angle rather than a mortgage, I enlisted a colleague’s help on this one for deeper insight. Here’s his/her view as a Investment Associate for a private capital group… Leave us a comment with your thoughts!

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Bank of Canada’s Overnight Rate Remains Unchanged. What’s that, and how does this affect Mortgages?

Yesterday the Bank of Canada (BoC) held their key overnight rate at ½ percent a rate has remained unchanged for years now. Something that hasn’t changed in years, yet makes big news with each announcement begs the question, ‘what is the overnight rate and what’s all the big fuss about?’

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GOOD NEWS for First Time Homebuyers! Ontario Doubles It’s Land Transfer Tax Refund

If you are planning on buying your first home in the near future, you will be happy to hear that yesterday, the Ontario government announced they will be doubling their land transfer tax refund for first time homebuyers from $2,000 to $4,000. Now I know this isn’t a ‘make-it-or-break-it’ deal for most of you, but it is a welcomed change! The other announcement, was an increase in land transfer taxes for properties sold over $2M. Both these changes will come into effect on January 1st, 2017. Read on as we explore together. Continue reading “GOOD NEWS for First Time Homebuyers! Ontario Doubles It’s Land Transfer Tax Refund”

Mortgage Rules are Changing, and they have a BIG effect on Everyone

Here’s What you NEED to Know

Over the last couple of weeks, the most common question I hear from clients has been, “what are the new mortgage changes, and will it affect me?”. To which I am always happy to explain. But perhaps more concerning to me, has been the number of people who have told me, “Because I have 20% [or more] in down payment, the new rules will not affect me”. If you’re looking for the generalized black and white answer, this might be true. However, if you’re interested to learn a bit about how these changes will affect every current or new home owner, read on. I’ll start from the beginning and we’ll explore it together.
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Introducing ‘Knowledge for Success’

Introducing ‘Knowledge for Success’! Developed as a simple blog with a singular mandate; To provide readers with simple educational articles keeping you up to date on changes in the world of real estate and mortgages.

When helping our clients through the complexities of buying a home and securing the right kind of mortgage; We thoroughly enjoy educating and teaching throughout the process, and always make sure our clients understand the ‘HOW’ and ‘WHY’. We do this because we firmly believe that the more you know, the better the decisions you can make.

We quickly realized that more people could benefit from the lessons that we go through everyday with our clients. We want to reach out to everybody!

The more you know, the better the decisions you can make

That is the first and biggest step towards ensuring SMART AND SUCCESSFUL HOME OWNERSHIP!
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