Boychuk Mortgages

So why do we keep hearing that it’s a good time to buy?
 
With higher interest rates, many Canadians are waiting to purchase a home. However, if you’re looking to buy now, there are a few advantages!
 
First being that there is less competition in the market – with higher interest rates, many people are still waiting to buy, allowing you as the purchaser more negotiating room and an overall less competitive purchasing process.
 
Likewise, home prices are more approachable when interest rates are higher. Remember, your interest rate will change many times over the course of your mortgage, however you cannot change the price you pay for a house! For context, house prices rose nearly 27% in Canada in 2021 when interest rates were at record lows. As interest rates decrease over the next few years, and immigration continues to increase housing demand, we will likely see an increase to home values again.
 
That being said, its only a good time to buy if you’re set up financially to do so and have confidence in your current and future employment. Reach out anytime to see what you can currently qualify for 🙂.

👨🏼‍💻www.boychukmortgages.ca

📲 788•808•9944

Benefits of Debt Consolidation with Boychuk Mortgage Group
Lower Interest Rates: Secure a consolidated loan with reduced interest rates, lightening the burden on your wallet.
Simplified Payments: Bid farewell to the chaos of multiple due dates; consolidate your debts into a single, manageable payment.
Improved Credit Score: A well-executed debt consolidation plan can positively impact your credit score, opening doors to better financial opportunities.
Mortgage Refinancing: Shaping Your Financial Future: Transform your financial portfolio with Boychuk Mortgage Group's expertise in Mortgage Refinancing. Tailor your mortgage terms for current needs and future goals, unlocking financial empowerment.

Explore Debt Consolidation and Mortgage Refinancing with us. Contact us at https://www.boychukmortgages.ca/

Purchasing an investment property can be a great way to increase your monthly income, net worth and help set yourself up for retirement.

However, here are four common mistakes that can be made:
 
1.  Limiting yourself to your own backyard – there are so many other places outside the lower mainland that are more affordable or profitable.

2. Skimping on your economic due diligence – before deciding where to purchase, check vacancy rates, crime rates, unemployment rates, average rents, and market trends.

3. Relying solely on appreciation – an ideal property will have monthly cash flow & principle pay down. Property appreciation is a nice bonus!

4. Not budgeting enough for vacancy and repairs – even with a thorough home inspection, repairs come up and appliances need replacing. Budget for this monthly! Likewise, a few weeks of vacancy while finding the right tenant can impact your annual return on investment.
 
If you’re interested or curious about purchasing an investment property, reach out! This is something I’m passionate about and always love strategizing for! 🙂

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Great news! This is the fourth consecutive rate pause since July 2023. The overnight policy rate remains held at 5%, with prime rate at 7.2%.

Rate cuts are presumed to begin in the latter half of this year assuming economic activity continues to align with the banks projections. Core inflation measures will continue to be closely monitored and will influence their decison of when to begin initiating rate cuts.

The next rate announcement is scheduled for March 6th.

Reach out anytime to discuss what your options are if you’re looking to purchase or renew your current mortgage ☺️.


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Understanding the Power of Debt Consolidation: Debt consolidation orchestrates financial harmony by merging multiple debts into one, simplifying payments and often lowering interest rates. It's a virtuoso conductor alleviating the burden of managing diverse financial obligations.
Strategizing Debt Consolidation: Every financial situation is unique, requiring a customized approach to debt consolidation. Boychuk Mortgage Group understands the significance of tailored solutions. Our experts analyze your financial landscape, creating a consolidation plan that aligns with your goals.

Explore Debt Consolidation and Mortgage Refinancing with us. Contact us at https://www.boychukmortgages.ca/

Little family get together to meet the newest & cutest member of the Boychuk family ☺️💓

In a world where financial stability is crucial, navigating the intricate web of mortgages and debts can be a daunting task. As we strive to build a secure future, the Boychuk Mortgage Group - Mortgage Broker stands as a beacon of expertise, committed to guiding you through the realms of Debt Consolidation and Mortgage Refinancing. Join us on this insightful journey as we unravel the nuances, offering practical wisdom and real-world solutions. Read the blog.

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Canada’s annual inflation numbers for December increased from 3.1.% to 3.4.%. 📈

When examining numbers on a month-to-month basis, we are still seeing some improvements in certain categories. Key drivers of this increase include gasoline prices, rent, groceries, and air travel. Unfortunately, the largest expense for Canadians continues to be shelter and food. Although gasoline prices have decreased on a monthly basis, we are still seeing an increase from a year ago. Overall, prices increased across several categories, yet there was a noticable decrease to discretionary spending.
 
There have been discussions of interest rate cuts happening this year, but the timing of the first interest rate cut will be impacted by how fast inflation falls in addition to other measures of a softening economy.

✨Fortunately, we have seen decreases to 6 out of 8 components of the CPI categories over the last year, leaving the annual average inflation rate at 3.9% which is a notable decline from a record high of 6.8% in 2022. Therefore, most economists are predicting another rate hold at the next Bank of Canada interest rate announcement on January 24th.✨

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Although we often focus on securing the lowest rate, (which is usually accompanied by a longer term mortgage), mortgage flexibility should also be closely considered when deciding what mortgage product is best for you.

Banks profit a ton off fees and penalties, so the length of your mortgage term, whether your mortgage is open or closed, and mortgage portability are important considerations that can save you a ton of money in the end.

📲Riley 778•808•9944

A new year is the perfect time to plan & reassess your current financial goals. Whether these goals are short term or longterm, I’m always happy to chat on how to make them a reality 😊 .

Wishing everyone a very happy holiday season from my growing family to yours 🎄🎅🏼

Canada’s inflationary numbers rolled in at 3.1% for November, signifying no major change from October’s inflationary numbers that also measured at 3.1.%.
 
This may seem like a disappointing headline, as economists were hoping to see inflationary rates fall closer towards the 2% mark; however, we still saw improvements to many core categroies. Specifically, we saw grocery and gasoline/energy prices slowing for November, along with restaurant dining, and cellular services.
 
When looking at targeted categories that have contributed to the matching of October’s inflationary rate – shelter costs, and mortgage interest rates continue to remain the largest contributor, rising 7.4% from a year ago. We also saw a significant increases to travel tour categories which flew up 27% on a year over year basis. This is expected to decrease in December and resulted mainly from more events being held in destination cities.
 
Overall, core measures of price growth still slowed and improved in November, and therefore many economists are continuing to predict that the Bank of Canada will begin interest rate decreases in mid 2024. 🙂

The Bank of Canada has 8 scheduled rate announcements dates for next year! 🗓️

Mark these dates down in your calendar & let’s hope we see some rate decreases coming our way 🙂

Thank you J & D for allowing me the opportunity to work with you! & congrats on your beautiful new home 😊

>> Let’s talk home appraisals!!

🔸A home appraisal is almost always required when purchasing a new home, or when refinancing your current mortgage with a different lender. It ensures the lender that they are not loaning out more money than what the value of the home is worth.

🔸 A home appraisal varies in price depending on the size and type of property being appraised. However, on average most regular home appraisals range between $300-$500.

🔸The appraised value of the home is often based off of a combination of market value, comparable sales in the area, location & home amenities (both exterior and interior details).

>> What happens if your appraised home value comes in lower than expected?

🔸In this case, sometimes lenders will make exceptions if the appraised value of your home is close to what was expected. However, often the home owner will be required to put more money down to make up the difference.

For example: if you purchased a home for $850k, but the appraised value of the home was $810k, the lender will not provide funds above the appraised values of the home, leaving you as the buyers to supplement that difference or renegotiate the purchase price with the current home owners.

Reach out anytime if you’re thinking of purchasing, or due to renew your mortgage in the coming months 🙂

778•808•9944 - Riley
www.boychukmortgages.ca

The Bank of Canada has announced that there will be no changes to the overnight policy rate. This is following a decline to GDP growth, inflation and a rise in unemployment.

✨Prime rate remains at 7.2%, with the overnight rate at 5% ✨

This is the last rate announcement of the year. While fixed rates are already on the decline, many economists predict that the BoC’s prime rate will hold steady into the beginning of next year, followed by the start of a slow decline in the spring.

✨What is currently happening in our economy & how will this impact rates?✨

🔻The latest GDP (Gross Domestic Product) report has indicated that our economy has weakened far more than expected in the third quarter, with a 1.1% annual decrease. Technically this would mean we are in a recession with two consecutive quarters of GDP decline; however, the second quarter numbers were significantly revised from 0.2% decline to a rise of 1.4%.
 
🔻Likewise, we are seeing the impact of the last year’s rate increases, resulting in limited household spending. In fact, household spending has not been this low in over a decade with exception to when the pandemic lockdowns took place.
 
🔻Business investments and non-residential construction has also declined in addition to employment rates – all of which indicate a much softer economy.
 
✨So how does this impact you? ✨
 
Then next Bank of Canada rate decision meeting is scheduled for December 6th, with most economist predicting that we have reached the peak of interest rate hikes. It is likely to expect rates to hold steady into the new year where we may begin to see rates coming down sooner than initially expected, even as early as April.
 
Additionally, we are currently seeing fixed rates beginning to drop which is good news if you are up for renewal soon or looking to purchase.
 
Reach out anytime to chat about what your options are, always happy to help! 😊

778•808•9944 📲

Leverage Your Homes Equity Today & Watch Your Income Grow!
For all you property owners, what if we were to say you could save on your current monthly mortgage payment AND acquire a cash flow generating asset that provides you with a second stream of income... all without having to grind each day for that down payment? If you own your home today, there is a good chance that over the last number of yours, your equity has grown substantially. Maybe you have also considered owning a rental property, but you are unsure of how you will afford the cost of purchasing that investment property.
Whether you’re a savvy investor or have no experience outside of owning your one home, you should consider utilizing the equity in your home to maximize potential earnings for your future.

Visit us at https://www.boychukmortgages.ca/pages/services/investment-property-mortgages to know more about Investment property mortgages.

We’re seeing some promising headlines this morning! 🙌🏼

October’s Inflation measured in at 3.1%, down from September’s 3.8%.

This is largely due to gasoline prices declining on a month-over-month basis. If we were to remove gasoline from the picture, inflation would measure in at 3.6% which is still a decline from the month before.

We have seen food prices decline for the fourth consecutive month; however we are still being hit hard with shelter costs increasing, specifically rental prices, mortgage interest and property taxes increasing 4.9% this last year!

Overall, we are seeing a decline to discretionary consumer spending which further indicates a cooling economy. Therefore, it is likely that the Bank of Canada will continue to hold interest rates at their next decision meeting on December 6th. With 45% or mortgage holders up for renewal over the next two years, it is also likely that decreased consumer spending will trend into the new year.

Reach out anytime if you’re coming up for renewal this next year and are curious about what your best options are going to be 🙂.

📞778•808•9944
📧 [email protected]

Visit our website https://www.boychukmortgages.ca/blogs/boychuk-mortgage-group-blog to read our latest 3 blogs.

We hope this is helpful for you!

Annual muscular dystrophy fundraiser with a couple helping paws 🐾 🚒

When is it worth it to break your mortgage ? 🏡

Unfortunately when breaking your mortgage term early, you’re often hit with hefty penalties that total thousands of dollars. Depending on your financial goals and priorities it may still be worth it.

Here are a few examples of when it would potentially make sense to end your mortgage early:

🏡 To consolidate debt: consumer debt, including your car payments - often have higher interest rates than that of your mortgage. Depending on what you’re paying in interest monthly, it may make sense to combine all debt into an easy lower monthly payment to pay it off sooner.

🏡 You want to buy an investment property. Buying a successful investment property often involves taking advantage opportunities when they arise, if your down payment is tied up in the equity of your home, it might make sense to restructure your mortgage early to take advantage of current market conditions.

🏡 To secure a lower mortgage interest rate. If the savings you would accrue from a lower interest rate is significantly greater than your mortgage penalty, it would make sense break your mortgage early to refinance.

🏡 To improve or upgrade your home. Depending on the season of life you’re in, sometimes updating and adding value to your home is a greater priority than waiting to do so when your mortgage term is up.

📲🏡 To purchase a new home. Ideally in our current market, if your mortgage rate is much lower than what is available today, it’s ideal to port your mortgage to your new purchase. However, when that is not doable, it still may make sense to break your mortgage to purchase a new home in a more desirable and less competitive market .

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What to know about porting a mortgage & why this is a smart financial move right now…

♦️Porting your mortgage involves moving your current mortgage over to a new property.

♦️It’s likely that your current interest rate on your home is lower than what is available today, so this is a great way to save.

♦️This method can also be a great way to avoid hefty penalties for breaking your mortgage term early.

♦️You will have to re-qualify to port your mortgage if your purchase amount is greater than your mortgage.

♦️Not all mortgages are portable. This is lender specific.

♦️If you are constructing a new mortgage and have plans to move again within the term of your mortgage, be sure to let your mortgage broker know so we can find a product that accommodates this option and allows for minimal fees.

If you currently own a home and are looking to purchase in today’s market, reach out and we can discuss this option 🙂

📲 Riley - 778•808•9944

The Advantages of Setting a Realistic Budget: Setting a realistic budget based on pre-approval has numerous advantages. We'll discuss how a well-defined budget narrows down your home search, saving you time and effort. Additionally, a realistic budget provides a competitive advantage in the housing market, especially in fast-paced and competitive environments. Moreover, it instills confidence in sellers that you are a serious buyer, potentially strengthening your negotiating position.
Exploring Debt Consolidation: For those with existing debts, pre-approval can also shed light on the potential benefits of debt consolidation. By refinancing high-interest debts into a mortgage, you can streamline your finances and potentially reduce your overall interest expenses. We'll explore how debt consolidation can be an effective financial strategy, especially for those looking to improve their budget and overall financial health.

Ready to make your dream home a reality? Let us help you navigate the homebuying journey with a realistic budget. Contact us at https://www.boychukmortgages.ca/pages/contact-mortgage-broker-burnaby-bc today!

✨As if buying a house isn’t a big enough decision on its own, there’s a lot that goes into deciding what type of mortgage suits you best! ✨

Here are a few things we discuss before finding you different potential mortgage options:

✔️ Term: you have the option of choosing a term between 1-5 years. Right now, the longer term mortgage rates are lower and therefore, more appealing.. however it’s important to take into consideration economic factors like inflation rates, gdp growth, unemployment etc. as these are strong predictors of where our economy is heading and this heavily influences the Bank of Canada’s decision to raise or lower rates.

It’s important to put thought towards where rates will likely be a year from now, two years from now and so on before committing to a longer term.

✔️ Amortization: the maximum amortization you can choose varies between 25-30 years. Extending your amortization is a strategic way to bring down your monthly payment if that is your current priority. However, keep in mind you need to have a minimum 20% down to qualify for a 30 year amortization, and often rates that accompany longer amortizations are slightly higher.

✔️ Rate Type: you will need to choose between a fixed rate, variable rate, or adjustable variable rate. This choice often comes down to comfort level with fluctuations of payment changes.

✔️ Open vs. Closed Mortgage: Depending on your plan with your property you have the option of choosing an open or closed mortgage.

Open mortgages don’t have penalties to pay out, however they have much higher interest rates, whereas if you were to pay out a closed mortgage early, you would be required to pay penalties which are usually calculated based off three months of interest or the interest rate differential, and can equate to thousands of dollars.

There’s lots to consider & I’m always happy to chat! 🙂

📲778•808•9944 |

The Significance of Pre-Approval: Before diving into the homebuying process, obtaining a pre-approval from a lender is a crucial step. We'll explain the meaning of pre-approval and how it differs from pre-qualification. Pre-approval involves a comprehensive assessment of your financial situation, creditworthiness, and borrowing capacity. By obtaining pre-approval, you gain a clearer understanding of the loan amount you qualify for, allowing you to set a practical budget for your future home.
Understanding Your Debt-to-Income Ratio: One of the primary factors lenders consider during pre-approval is your debt-to-income ratio (DTI). We'll break down the DTI calculation and its significance in determining your budget. By analyzing your monthly income in relation to your existing debts, lenders can gauge your ability to handle mortgage payments. Understanding your DTI empowers you to make informed decisions about your budget, ensuring that you can comfortably manage your mortgage payments along with other financial responsibilities.

Ready to make your dream home a reality? Let us help you navigate the homebuying journey with a realistic budget. Contact us at https://www.boychukmortgages.ca/pages/contact-mortgage-broker-burnaby-bc today!

Buying a home is one of the most significant financial decisions we make in our lives. As a Mortgage Broker in Burnaby, British Columbia, we understand the importance of setting a realistic budget before embarking on the homebuying journey.
Read the blog to know more about the concept of pre-approval and how it plays a crucial role in determining your budget, ensuring a smoother and more efficient homebuying process.

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This unique program takes into account the many different investments and assets that you may own to help you qualify for more than what you traditionally would qualify for based off of income !

To qualify for this program you must meet the following criteria:

▪️Be a Canadian resident who claims taxes

▪️ Have a minimum down payment of 20%

▪️ All assets must be held by those who are on the mortgage application

▪️If your are applying for a mortgage through a Hold Co, all owners of the Hold Co must be on the mortgage application.

▪️ You must have a minimum of $250k in liquid assets to utilize this program in addition to the down payment. You will also have to be able to match every dollar leant in assets beyond the standard amount you would have qualified for. For example if you were to need an additional $300k to complete your purchase beyond what you would have traditionally qualified for, you would need to have that same amount in liquid assets.

Types of assets that you can use to qualify:

▪️TFSA
▪️GIC
▪️Chequeing / Savings Accounts
▪️Canadian savings bonds
▪️Stocks from a publicly traded US or Canadian company
▪️Retirement accounts
▪️Liquid Assets held in Holding Companies
▪️Properties that have a firm sale in place
▪️& Many more

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✨Some promising news came out today! ✨

The Office of the Superintendent of Financial Institutions (OSFI) has conducted research and proposed some significant changes.

✨These changes are promising for many of us who are up for renewing our mortgage in the coming months and are worried about the increase we will have to our payment. ✨

Currently if you are an insured borrower (meaning you required CMHC insurance and put less than 20% down) you are required to re-qualify at your contract rate plus the added 2% stress test rate when you are renewing your mortgage with a new lender.

This has made it very difficult for current mortgage holders to switch lenders at renewal and secure a more competitive rate than what their current lender has offered due to the higher interest rates we see today.

In fact, many lenders are aware of this and therefore have offered renewal rates that have been noticeably higher than than the current rates offered by alternative financial institutions!

Due to the qualifying restrictions - many people have only been able to renew with their current lender instead of shopping around for a better better rate as they do not have to re-qualify when doing so, which has resulted in a much higher monthly payment.

The OSFI is proposing changes to their current lending requirements that exempt insured borrowers from having to once again qualify with the addition of the 2% stress test rate at renewal. This is because the OSFI views borrowers credit risk to be transferred to the life of the loan, allowing them to qualify at the current rates being offered by different lenders, which in turn allows for more competition and for insured mortgage holders to have better opportunities to achieve lower and more competitive rates at renewal than what’s been offered by their current financial institution.

If you are up for renewal in the next 6 months, reach out anytime and let me know what rate your current lender has offered so we can take a look at what some of your better options may be. 🙂

📲 778•808•9944
📧 [email protected]

Once you have an accepted offer and your financing is approved there are still a few things to do before starting to pack those boxes:

1. Obtain home insurance. This is important and required by most lenders as it protects their investment as well as yours. Sometimes lenders will list specific requirements like earthquake coverage for example. It’s beneficial to arrange this right away so you have time to shop for the best and most affordable coverage.

2. Maintain your employment. Your approval is based off your current earnings. Lenders may call for work references and updated employment before transferring funds.

3. Notify your lawyer and realtor to complete necessary paper work. Lawyers or notaries are required to finalize your home purchasing transaction and to ensure that any outstanding mortgages are paid out and discharged from the title of your property.

4. Remove subjects. Once we are confident that financing is secure and in place, it’s time to remove subjects and commit to your new home purchase.

5. Before receiving a full mortgage contract you will receive a commitment letter that signifies that financing has officially been approved. This letter outlines the terms and conditions of the loan, so it is important to review this thoroughly to ensure that you understand everything in full.

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