2.99% 5 Year Fixed -Until July 9th

Just an FYI. If you are closing on a home within the next 30 days or considering refinancing, we are offering 2.99% for a 5 year fixed mortgage. This applies to high ratio mortgages only (less than 20% down-payment). This offer is valid until July 9th. Contact me today if you are interested. Mark Kupina | 1.888.955.9011 | mark@kmortgage.ca

You still don’t need a lot of cash to buy a house, unless you’re rich

A fourth-round of mortgage rules unveiled by Jim Flaherty, the finance minister, didn't touch the one issue the real estate industry is most scared of — increasing the minimum down payment for loans covered by mortgage default insurance which is backed by the federal government. The rule is still that you need just a 5% down payment in Canada to buy a home. It's actually less when you consider you can add the cost of your mortgage default insurance onto your mortgage taking you up to 97%-98% of the value of your home. "They just keep going around this. What is the goal here? Not to have a crashing housing market. To protect banks from having huge losses or to protect people from losing their house," said Ted Rechtshaffen, president of TriDelta Financial. "The elephant in the room is why they didn't increase the down payment." Most of the real estate industry has been loathe to see that down payment level increase and some banks will actually help you get that 5% with what is called a cash back. You get 5% of the value of your mortgage up front in exchange for a higher mortgage rate over the life of the contract. But the statistics are out there that an increase in the down payment would have had a dramatic effect, far more than the 5% of the market Mr. Flaherty suggested would be impacted by his latest changes. A study this month from the Canadian Association of Accredited Mortgage Professionals estimated half a million sales since 2007 would have been lost if the minimum down payment level was doubled. CAAMP asked respondents what would happen if they were asked for a 10% down payment. Of those who purchased since 2007, 45% say it would take them out of market and another 14% were not sure — about 100,000 lost deals a year. 'Do you really want people using their homes like an ATM?'One group of people who will have to come up with more cash are the rich, though they are not really that wealthy by today's housing standards. There will be no more government-backed insurance on homes worth more than $1-million. "You have the guy with $2-million home who might not want $400,000 tied up [in equity]," said Mr. Rechtshaffen. "You might be a doctor, 30, making $300,000 who doesn't want to start with a crappy house who wants to buy a house that will be good for 10 years." The government is going to force you to pay down your mortgage at a faster pace, reducing the maximum amortization to 25 years which is where it was when this housing boom began. It had ballooned to 40 years at one point. The impact will be that consumers will qualify for less mortgage because of a larger monthly payment, but save thousands in interest. The banks had already been encouraging consumers to amortize over 25 years by enticing them with low rates, with Bank of Montreal leading the charge with a 2.99% mortgage earlier this year for a five-year term as long you took the shorter length. Vince Gaetano, a principal at Monster Mortgage, applauded the new rules and expects it will cut back on bidding wars on the high end because people who go over $1-million will not be able to get insurance. He added that new rules on the maximum gross debt service ratio to be set at 39% will hamper how large a mortgage a consumer can get. It was 44%. "What does it mean in real dollars? If I had a client with $100,000 household income, I can no longer use 44%, that's five grand. In mortgage amount, based on 3.19%, that's about $90,000 less mortgage they can get," said Mr. Gaetano. He added that reducing the percentage level for refinancing from 85% to 80% will further impact that market. "When they reduced from 90% to 85% [last year] it killed the market," said Mr. Gaetano. "But do you really want people using their homes like an ATM?"

Important Announceme​nt - Mortgage Rule Change

At 8:15am this morning Mr Flaherty made the attached announcement so please read this as you are likely to get questions about it today. These changes only impact insured mortgages at this time and the next few days we will hear more but this takes effect July 9, 2012 so only a few short weeks away. 1 Max Amortization down to 25 years not 30 2 Refinance to 80% not 85% 3 GDS Max 39% and TDS 44% (not 44/44) 4 No default insurance above $1mil. Click to Read More

Weekly Rate Minder

June 12, 2012: This edition of the Weekly Rate Minder has the latest, best rates for Canadian mortgages. At Dominion Lending Centres, we work on your behalf to find the mortgage that suits your needs. Best of all — our service is free.* It's the selected lender that pays us and YOU get the best rate. Please note that rates shown are subject to change without notice. The rates shown are  posted rates and the actual rate you receive may be different, depending upon your personal financial situation. Check with us for full details and to determine what rate will be available for you.*(O.A.C., E.&O.E.) Explore Mortgage Scenarios with Helpful Calculators at http://www.KupinaMortgage.com

Current Mortgage Rates

Term	Bank rates	Our Rates
6 Month	4.45%	4.45%
1 YEAR	3.20%	2.89%
2 YEARS	3.55%	3.09%
3 YEARS	3.95%	2.89%
4 YEARS	4.64%	3.25%
5 YEARS	5.24%	3.09%
7 YEARS	6.35%	3.99%
10 YEARS	6.75%	3.99%

Rates are subject to change without notice. *OAC E&OE Prime Rate is 3.00% Variable rate mortgage from as low as Prime

Money Saving Renovation Tips

Everyone has a different reason for wanting to renovate their home. You may be looking to make a change in the way your home looks or feels, or you may want to fix a maintenance issue or make your home more comfortable or energy efficient. Whatever your reason, undertaking a renovation involves a number of important decisions. To help you make more informed decisions, Canada Mortgage and Housing Corporation (CMHC) offers a number of tips, tools and resources like the Before you Renovate: Renovation Guide. Consulting these resources before you begin can help you save time, money and a lot of frustration – resulting in a better overall renovation experience. First, always take the time to thoroughly plan your renovation before you pick up a hammer (or the phone). Mistakes on paper are much easier and less expensive to fix than mistakes on the job. Taking the time upfront to identify your priorities and how you want to achieve them can save you a great deal of expense (and more than a few headaches) further down the road. Next, decide whether your planned renovation is practical. For instance, that addition may look great, but can your home's systems handle the additional heating, lighting and plumbing requirements? Learn to draw the line between what would be nice and what's really essential, and consider hiring a qualified professional early in the process to help guide you toward what's practical for your home. It's also a good idea to think about the long-term impact of your renovations. For example, renovations that make your home more energy efficient could pay for themselves through years of lower monthly utility bills. In addition, think about your family's future needs by making sure your design is flexible enough to adapt to changes as time goes by. To avoid going over budget, have a clear idea in advance of how much your renovation will cost. CMHC's Household Budget Calculator is designed to help you understand what you can afford. Get written estimates from at least two reputable local renovators, architectural firms or materials suppliers and, if they ask for a deposit, make sure it's a nominal amount and request a signed receipt. If you need help financing your renovation project, it may be beneficial to refinance your mortgage at today's great low rates! And if the renovation will make your home more energy efficient you may even qualify for financial assistance. Answers to your questions are just a phone call or email away! Mark Kupina | Mortgage Agent

Canadians Comfortable with their Mortgages

Canadian homeowners are comfortable with their current mortgage, focusing on reducing their mortgage faster by making lump sum payments, reducing amortization periods and refinancing with lower interest rates, according to the Canadian Association of Accredited Mortgage Professional's (CAAMP) most recent survey report released May 30th – Confidence in the Canadian Mortgage Market. Following are just a few key highlights from the report:

• 74% of mortgage borrowers who renewed in the last year saw their new interest rate decrease. On average, the interest rate was reduced by one-half percentage point
• Borrowers are making significant efforts to accelerate mortgage repayment, such as voluntarily increasing their regular payments (23%) and making lump sum payments (19%), with some borrowers (10%) doing both
• Approximately 50% of borrowers pay $100 per month (or more) above their required payments
• Recent buyers indicate that their expected amortization period will be about 20% shorter than their contracted length
• Mortgage brokers account for 26% of all mortgages. For borrowers who took out a new mortgage in 2011, 31% obtained it from a mortgage broker
• 83% of Canadians have at least 25% equity in their home
• "Despite daily warnings in the media about mortgage indebtedness – or maybe because of them – Canadians are making responsible decisions about their mortgages and they're exhibiting confidence in their own situations," said Jim Murphy, AMP, President and CEO of CAAMP. "We should feel encouraged by this behaviour – it means Canadians are well positioned to weather a potential rise in interest rates"

As always, if you have any mortgage-related questions, I'm here to help! Katarina Kupina | Mortgage Agent

Variable Rate News

As you know, your variable rate mortgage, lines of credit and/or student loans are all based on the Prime Rate and as promised, here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate. At 9:00 am EST, Tuesday June 5th, 2012, the Bank of Canada again did what we expected them to do… they maintained their overnight rate.  What this means to you is that the prime rate on your mortgage or line of credit will not change and remains at 3.00%.  This is great news as you still have a great low rate and so continue to make the most of the low payments you will still have and maybe chat with a financial advisor about a Tax Free Savings Account or some RRSP contributions to trigger a potential income tax refund next year!  If you don't have a financial advisor, let me know and I'd be happy to recommend one to you. Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision: "The outlook for global economic growth has weakened in recent weeks. Some of the risks around the European crisis are materializing and risks remain skewed to the downside. This is leading to a sharp deterioration in global financial conditions. While the U.S. economy continues to expand at a modest pace, economic activity in emerging-market economies is slowing a bit faster and a bit more broadly than had been expected. More modest global momentum and heightened financial risk aversion have reduced commodity prices." The overall economic momentum in Canada is still sluggish but the Bank expects that growth will slowly continue.  Based on this outlook, they have indicated they are unlikely to increase their rate in the foreseeable future although very much dependent on the continued trend.  A change is likely to occur in 2013, it is expected to be gradual and controlled in line with economic recovery, both in Canada and globally.  Remember any change to the prime rate since 1992 has only been by 0.25% at any ONE time. Fixed rates haven't changed much at all since the last announcement, at around 3.19% to 3.39% for a five year fixed term. Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I'd recommend that you remain with your current variable rate product as the interest is very much lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. The next announcement on any change to the prime rate is July 17^th, 2012 at which time I'll be in touch again. I wonder if I can ask a favour – rates are still so low right now and so it is a great time for first time homebuyers, buying an investment property or consider refinancing especially as I can hold rates for up to six months, if you know of someone that is looking for advice on their mortgage options, with no obligation, would you mind passing my contact information on to them – this is very much appreciated. Yours truly,

Kupina Mortgage Team | info@kmortgage.ca

First Time Home Buyer Report

Request our First Time Home Buyer Report at www.kmortgage.ca/firsthome

See how easy buying a home can be. Share it with your clients, family and friends! The Kupina Mortgage Team will guide you through the home buying and mortgage process allowing you to concentrate on the excitment of finding a home!