Kristy Partridge - Flare Mortgage Group

I know it’s not the best vibe to come around talking about marriage breakups but in my line of work, it’s just a fact of life. And it’s better to know your options ahead of time and hope you never need to recall the knowledge, right?

You may (or may not) be shocked to know that about 2.78 million people obtained a divorce last year - a figure that has been rising steadily over the years. With the emotional weight of such a big life change, the last thing you probably want to think about is what your options are in regards to your matrimonial home.

There are a few different avenues we can explore; one spouse retains the home and refinances, one spouse retains both the home and the mortgage, or you can sell the house, split the profits, and purchase a new home altogether.

So, give me a call and we can always dive into a deeper discussion regarding your options!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

There’s no better way to kick-start a weekend than receiving an email like this! 🥰

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

Last month the Office of the Superintendent of Financial Institutions (OSFI), Canada’s banking regulator, announced that it would be keeping the polarizing mortgage stress test in place for the time being. As a refresher, the current stress test required uninsured mortgage applicants to qualify at the greater of either the qualifying rate of 5.25% or their mortgage rate +2%. In a climate where rates are surpassing 5%, this has forced most buyers to qualify at a rate of 7% or higher.

Of course as rates have continued upward there has been some pressure on the regulator to bring down or do away with the stress test completely. However, in its announcement OSFI stated that it does not consider the test to be a tool for managing housing supply and that, with so much uncertainty remaining in the market, it is prudent to continue to test buyers for possibly adverse conditions. This essentially tells us that they (like most of us) are unsure of where the market will head in the coming months, so removing this added protection would be ill advised.

That’s not to say that it’s here to stay, however. This month the regulator is set to review its guideline B-20 which includes the qualifying rate as well as standard underwriting practice to ensure that borrowers are being fairly and soundly evaluated for their ability to service mortgages within a changing market.

If you are considering buying a home in 2023, let’s connect and discuss how the stress test and potential changes to underwriting practice could affect your options. And remember that there is more than one way to buy a home, so don’t let all of the headlines deter you from reaching out!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

If you’ve been considering getting into the market this winter or as we head into 2023, to take advantage of lower prices and less competition, that’s great! There will no doubt continue to be some great deals to be found, and if you know that you can qualify for the mortgage you need with rates as they are then you should absolutely start the hunt!

But there are also a few factors that you’ll want to consider about what the housing landscape will bring in the next 12 months. Swipe to learn more and, as always, please reach out if you have any questions, or if you are ready to get pre-approved!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

As interest rates have continued their climb and home ownership has become less and less affordable, some real estate and mortgage professionals have been advocating for the return of the 40 year amortization. This long amortization was available once upon a time, but was pared back in late 2008 following the deep crash in the US in an attempt to curb the same from happening north of the border. Currently, the longest amortization period available for insured mortgages (those with less than a 20% down payment) is only 25 years, while those who put more than 20% down to have the option of amortizing up to 30 or even 35 years at some lenders.

But as payments become less affordable for current owners and more prospective buyers are forced to the sidelines, many are advocating for bringing the longer period back. After mortgage insurer Sagen announced last month that it would allow for borrowers to extend their amortization to 40 years at renewal or if they are coming close to their trigger points that push has ramped up further.

There would be a few key benefits to amortizing over 40 years - namely lower payments, as principal is spread further. But there are also some downsides - being that the longer you take to pay your mortgage down, the more interest you pay over time. While your monthly payments would be smaller, you could ultimately end up paying as much as tens of thousands of dollars in extra interest over those added years.

As we get deeper into 2023 and witness where the market heads, I don’t doubt that we will hear more conversation around amortization periods as well as changes to other underwriting standards that could make home ownership more affordable.

We would love to know your thoughts! If the 40 year amortization came back, would you take advantage of it?

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

As we head into the new year, there is much speculation about when (or if) the Bank of Canada will begin cutting its benchmark rate again after 7 back-to-back hikes in 2022. But with so many variables at play both here at home and internationally, it’s truly hard to predict. So what’s a homeowner to do? Opt for a 5-year fixed term now to lock in a reliable payment, but risk potentially missing out on lower rates should the BoC cool things off this year? Or take the “riskier” route and opt for a shorter fixed term, taking the gamble that rates may have either not come down when the time comes for renewal?

For some homeowners - namely those with some risk tolerance - opting for a shorter fixed term could be ideal. Although shorter term rates are most often a few basis points greater than their longer counterparts, they also afford owners the flexibility of restructuring their mortgage sooner and without penalty. This means that should rates start to see some decreases in the next 2 years (as most anticipate they should) then they will be able to refinance and take advantage. The risk lies in rates not coming down, or even seeing more increases at the end of their term, which could mean paying even more at the end of that term.

But on the flip side, we know that opting for a longer term could mean that if rates do decrease by 2024, owners will be faced with either continuing with their higher locked-in payment or paying a steep prepayment penalty to take advantage of the decrease.

You’re likely used to us saying this by now but, as with most things mortgage, there is no one-size-fits-all approach when choosing the best term for you. If you’re feeling tapped out and need to lock into a mortgage that will ensure your comfort and stability for a longer term, let’s chat and decide together what the best option will be for you!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

For most of us, the Registered Retirement Savings Plan is the first real investment vehicle we learn about. We remember so clearly when our first “real” job offered RRSP matching and I had to clarify with the internet to understand exactly what the money was for - I know you do too! But for a lot of younger Canadians, our old friend is being quickly replaced as the fan favourite savings tool by the Tax Free Savings Account (TFSA).

But there is actually a lot more to the RRSP than simply saving for retirement. There are pros and cons to consider but overall it can be an extremely valuable tool for growing your wealth for retirement and then some!

Swipe to learn a bit more about the trusty RRSP!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

Earlier this year a Manulife report found that about 1 in 4 Canadians said they would be forced to sell their homes if interest rates increased much further. Since then rates have continued to rise and the cost of simply living in Canada has remained sky-high, so we know that undoubtedly there are thousands of homeowners worried about where their next mortgage payment will come from.

That is why one of Canada’s mortgage insurers, Sagen, recently announced updates to its Default Management program which is designed to help prevent borrowers from having to give up their mortgages in times of economic turmoil. Under the new guidelines, borrowers who meet certain criteria will be able to extend their current amortization up to 40 years, stretching the balance owing and shrinking monthly payments.

Who can qualify for this program?

1. Adjustable and variable rate holders who will be negatively impacted by increases either during the term or at renewal.

2. Variable rate/fixed payment holders who have hit their trigger point and require a reset to begin paying principal.

3. Any mortgage holder, regardless of type, at the time of renewal.

If you’re concerned about your payment, either now or at renewal, this program could be a fantastic option for you. Let’s connect to discuss whether your mortgage would qualify and what it could look like for you!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

A November report showed that the top two types of investments favoured by Canadians are the stock market (at about 55%) and real estate (at about 35%). As with any financial decision, the way you invest your money to grow your wealth is a very personal decision and depends on a number of factors that affect your finances, your goals, and your needs. In reality, a selection of both types of investment make for a well-balanced portfolio.

But of course in our line of work we are partial to real estate as a sound investment (yes, even now), and here are a couple of reasons why:

SECURITY. Sure, stocks might generate a larger return, faster, but the stock market is also generally much more volatile and subject to economic ebbs and flows. Real estate experiences fluctuation, but over the long term always trends upward.

LEVERAGE. Many people are quick to point out that real estate investments are not as liquid as stocks, which is true. However, the ability to leverage the equity in a property (borrow cash from your home), is a steadfast tool to continue growing your portfolio and purchasing more property without having to save more cash.

PASSIVE INCOME. Rental income (short or long term) are reliable ways to increase your monthly income, offset the costs of your own homeownership, and increase cash flow each month.

I could go on and on about how much I love real estate as a possible investment, but I’ll leave it here. If you have any questions about what growing an investment portfolio could look like for you, I’m always happy to chat!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

Even though the general sentiment is that the increasing rate cycle is coming to a slow end, it certainly has not stopped yet. As a result, the roughly 15% of Canadian homeowners with variable rate mortgages have been feeling the pinch. While many have opted to lock into a fixed rate for the security, others have chosen to hold strong and ride out the rate hike cycle in order to hold onto the relative benefits of being in a variable product.

For those in a variable rate with a fixed payment, the long-awaited threat of reaching their trigger rates have come to fruition this winter. The Bank of Canada reported that as many as half of all of these mortgages reached the point at which their payments are no longer covering any principal by mid-November. It’s also estimated that up to 65% could reach this point by the middle of 2023.

Now, if you’ve been following the rate news, then you’ll be no stranger to headlines threatening trigger rates as if they would bring guaranteed financial ruin. In reality, most homeowners in this position are able to either increase their payment by a couple of hundred extra dollars each month or lock into a steady variable rate.

If you are one of the thousands of homeowners with a variable rate/fixed payment mortgage still awaiting the arrival of your trigger rate this winter, we should connect now. As with all things mortgage, it’s best to know your options and start making decisions long before any burden arises!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

The average consumer holiday spending has been around $1500 per person for the past few years. Last year, on the other hand, that average was boosted to about $1800, likely as a result of wanting to spoil the ones we love a little extra after a few years of being stuck inside and far from one another.

This year, it should come as no surprise that consumer spending projections are coming in a bit lower, as most Canadians are feeling the pinch of inflation, rising rates, and uncertainty about what the economy will bring in the new year. In a recent survey, around 50% of respondents stated that they would spend a bit less this year. However, around 30% also said that they would be using cash back credit cards for the spending that they do.

So how do we shower our people with the things we think they deserve without adding more financial stress to our plates? Here’s a few things to keep in mind:

1. Set a spending limit for yourself early in the shopping season and stick to it.

2. Make your own Santa list - got 20 people to buy for outside of your immediate family? Perhaps it’s time to pare that back!

3. Secret Santas! The art of the Secret Santa is perfect all the time, but even more so in times when money is tight. There are so many fun ways to come together and make gifting this age-old game with friends or family - a perfect combination of your time and getting to rip into some presents!

4. Prioritize time and connection over material things. That should go without saying, but sometimes we need a little reminder that a simple snowy walk or a cozy chat over a warm drink is all we really need.

We know it’s easier said than done, but keeping those high interest credit cards at bay is key this year. Of course, debt does happen, and we have tools to help you that we can discuss in the new year. But keeping it fun and prioritizing joy are going to be your best friends this season!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

We’ve been expecting variable rate/fixed payment mortgages to start hitting their trigger rates for months now. As a refresher: every mortgage payment is made up of 2 parts - principal and interest, and a true variable rate mortgage is one in which the rate fluctuates but the monthly payment stays the same. Trigger rate is the rate at which a variable rate holder’s monthly mortgage payment is covering only the interest and not paying down the principal. With the last several Bank of Canada rate hikes forcing variable rates up at a rapid pace, the BoC estimates that roughly half of all homeowners with variable rates had hit this critical mass by November.

If you are currently in a variable rate but haven’t quite reached your trigger rate yet - it’s important that you both know and start considering your options now. To ensure you don’t your trigger point (the point at which the outstanding balance on your loan exceeds the original amount of your mortgage) you can:

1. Make a lump sum payment toward your principal to drop it well below your trigger point.

2. Increase monthly payments so you are back to paying down interest and principal each month.

3. Discuss locking into a variable rate with your mortgage agent.

Remember that there is no one-size-fits-all answer when it comes to trigger rate. The best thing you can do before making any decision is to give us a call so we can review your needs and help make the best choice for you!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

It's the most wonderful time of the year! The last Bank of Canada rate announcement of 2022! Okay so maybe it's not wonderful, but at least it's the last one and we can see the increase cycle slowing down. This morning the Bank announced that it would be increasing its overnight rate once again to finish the year on trend, with an increase of 0.50%. While many economists had predicted a smaller increase of 0.25%, today’s announcement doesn’t really come as much of a surprise. With inflation not budging between September and October, we know that the Bank is serious about cracking down.

Many economists predicted this announcement as governor Tiff Macklem has said since the last announcement in October that the Bank is slowing down its rate increase cycle, but not yet ready to end it entirely. Market consensus for the past several months has been that the Bank will continue to increase to a high of 4.25% by early 2023, and we landed there today. As we inch into the new year we will begin to see if this new rate has a big enough impact on inflation.

So what does today’s announcement mean for you? Well, if you are in an adjustable rate mortgage then this is old hat for you by now, and you will know that you can expect another payment increase of about $25 for every $100,000 left on your mortgage balance. And if you have come this far through the rate hike cycle, then you are probably ready to hunker down and hold out in your variable rate until things start coming back down, likely next year.

What can we expect next? Since the Bank reached the top of what the threshold the market has been anticipating today, it’s safe to assume that they will be waiting to see how it impacts inflation before making any further moves.

As always, I'm here to help you through! The last thing any of us need is additional financial stress around the holidays, so give me a call and we can chat.

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

With so many good deals hitting the market this season, there is an increased thirst for that elusive first real estate investment opportunity, especially among younger investors. But perhaps you have your eye on that prize and want to start growing your wealth in real estate now, but don’t quite have access to the full upfront capital necessary. Or maybe the funding is there but you don’t have the knowledge or skill set to make necessary upgrades. This is where a partnership purchase could come into play, and get you into the market sooner.

Essentially purchasing a property with a business partner is like any other business. From a financing perspective, the structure of the mortgage will vary depending on each partner’s personal financial situation. From your perspective, there are several things you will want to have laid out and agreed upon well before making a purchase including:

What is each partner’s contribution and how will proceeds be allocated as such? How long do you intend to hold the property? How will financing/property management be handled? Mechanisms to handle any disputes or should one party wish to sell? How will you grow a return on your investment?

This creative strategy for getting into the market is not for everyone, but with the right partner and a solid plan, it could mean the chance to start building your portfolio far sooner than you anticipated!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

Home ownership can be super fun! Renovations, answering to no one (except your lender, I suppose), painting your walls hot pink if you want to and collecting lawn ornaments come to mind. But with all the fun comes the boring, grown up responsibilities like mortgage payments, maintenance that we don’t have a landlord for anymore, and keeping up with the seasons to be sure that our investment stays in great shape for years to come.

Here are a few key things to remember as we shift into the colder months to help avoid more expensive fixes, elongate the life of fixtures and give you peace of mind this winter:

❄️Check window and door seals. Adding insulation or repairing caulking can help ensure that heating costs stay down and you stay cozy!

❄️Make sure roof ventilation is in check so that moisture can escape your attic. This will help prevent mildew and rot in your attic and roof.

❄️ Check smoke and carbon monoxide detectors. It’s great to do this quarterly, but especially heading into the cooler months when heaters and fireplaces are on in full force. Replace batteries, test, and make sure everything is in working order!

Other little chores like trimming branches that could become heavy with snow, stocking up on de-icer and restocking your emergency kit in case of a weather emergency are great to remember as well! One of the best things about home ownership is when cozy season rolls around - just make sure you’re prepared!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

Is buying property during a downturned market a good idea? Jury is out. Or, more specifically, jury really depends on who you are, what your needs are, and your financial situation. There is no one-size-fits-all answer to this question.

However, there are a few objectively positive aspects of purchasing in this market that are compounded if you are selling a current home to upsize in this market.

Swipe to learn a bit more and if you are thinking of upsizing this winter, be sure to reach out to both a mortgage professional and realtor that you trust!

780-991-8085
Kristy Partridge - Mortgage Broker
[email protected]
Flare Mortgage Group
www.flaremortgagegroup.com

It's hard to believe that just a couple of weeks ago we had no snow!

Thank you K & T for sending in this photo. Nothing makes me happier than seeing smiles on my client's faces and knowing I helped secure their dream home!

Kristy Partridge
Mortgage Broker - Flare Mortgage Group
Text or call: 780-991-8085
[email protected]
www.flaremortgagegroup.com

Happy Halloween!

It's the best day to remind you that mortgages don't have to be scary. Our job is to make the entire mortgage process breezy, comfortable, and perfectly suited to your needs all year long!

780-991-9085
Kristy Partridge
Mortgage Broker - Flare Mortgage Group
[email protected]
www.flaremortgagegroup.com

It feels so good to finally have the tens of thousands of dollars you'll need for a down payment at your disposal. So that's it! Time to go and buy your first home, right? Actually, there are a few more payments you'll need to consider!

Eager first time buyers often overlook (or are just not aware of) the costs of closing a real estate purchase. Unfortunately that often means having to dip into savings, reach out to the bank of mom and dad, or even taking some of their hard-earned down payment to cover them which ultimately shrinks the size of the mortgage - which is no fun.

I recommend that buyers save at least an additional 1.5-2% of your purchase price to be safe and cover all of the costs above. But of course when making a real estate purchase, cash in hand is like gold, so the more you can save is always better!

If you're interested in learning more about how much you will need to have on hand to buy the type of home you dream of or want tips on how to get prepared, reach out to me today. I'm so happy to help!

Kristy Partridge
Mortgage Broker - Flare Mortgage Group
Text or call: 780-991-8085
[email protected]
www.flaremortgagegroup.com

Have you ever wondered what the difference between a variable rate and an adjustable rate is?

A variable rate mortgage is where the mortgage payments stay the same when the Bank of Canada prime rate changes. If the prime rate decreases, more of the mortgage payment will go towards paying off the principal; if the prime rate increases, more of the mortgage payment will go towards interest costs.
Some lenders have a trigger rate/point at which a borrower is required to either make a lump sum payment, increase their payments, or switch to a fixed rate.

An adjustable rate mortgage is where the payments change when the Bank of Canada prime rate changes. If the prime rate decreases, the payment amount also decreases. If your interest rate increases, the mortgage payment amount will also increase.

Want to learn more about variable versus adjustable rates, connect with me today!

Kristy Partridge
780.991.8085
Mortgage Broker - Flare Mortgage Group
[email protected]
www.flaremortgagegroup.com

The Bank of Canada announced this morning that it will be increasing its overnight rate by 0.5% basis points to a total of 3.75% and bringing the prime rate to 5.95%. This is actually a slightly smaller increase than a lot of us in the space were expecting. But with concern rising about teetering into a recession, it seems the central bank has opted to make a smaller shift for now.

After the most recent inflation report we've seen several projections expecting that the overnight rate will continue to increase to 4.5% by 2023 - higher than the previously anticipated ceiling of 4% - in response. However, we are also starting to hear increasing conversation regarding the possible fallout of such an aggressive rate hike cycle. We know that a recession is all but inevitable at this point, but some experts are concerned that this cycle may force the hand too hard, and too soon. What does this all mean for you?

If you are in a variable rate mortgage (or hold a line of credit at prime) then you are already accustomed to the changes in your payments. But to break down a quick example:

If you are in a variable rate mortgage (or hold a line of credit at prime) then you are already accustomed to the changes in your payments. As a rule of thumb, assume that for every $100,000 you owe, your payment will increase by roughly $25/month. If you bought around this time last year then you likely started out with a rate of something like 2.15% (Prime [2.45] - 0.3), and today’s announcement could amount to an increase of about $900 per month to date if your mortgage is around $500,000.

If you find yourself in this scenario, you have options. With further increases likely to come, the time could be right for you to look at locking into a fixed option. Opting for a shorter term may give you some of the flexibility of a variable rate but with the peace of mind of a static payment.

No matter your situation, I'm here to help!

Kristy Partridge
780-991-8085
[email protected]
Mortgage Broker - Flare Mortgage Group
www.flaremortgagegroup.com

If you've been on the market for a new home, you've probably toured more than your fair share of "just okay" spaces. Ones that have great bones but an ancient kitchen, ones that could use an extra bathroom, or even ones that you would love if they had a suited basement that you could use for income. But the cost of renovations is rarely small, and you just don't have the cash on hand (especially after the upfront costs of buying a home).

Well, there is a great answer that might work for you! A Purchase Plus Improvements mortgage allows you to borrow the cost of expected renovations and roll it into the cost of your home. The terms necessary to qualify for these special mortgages sometimes require more paperwork (such as quotes and expected timelines) but can be a great option to get your dream home moving faster!

It's simple - take possession, renovate, submit invoices and have a lender representative come check out your gorgeous new space, receive cash to pay contractors, live happily ever after!

I love helping clients with Purchase Plus mortgages because they are such a great ticket to making your house a home even faster. Give me a call today to learn more!

780-991-8085
[email protected]
Mortgage Broker - Flare Mortgage Group
www.flaremortgagegroup.co

Did you know that the average Canadian adult is carrying a consumer debt load of about $21,000. That includes any unsecured credit facilities such as credit cards, lines of credit, car and student loans. Plus as the cost of living has continued to skyrocket over the last couple of years, our use of credit cards has increased, bringing that total up by around 8% over last year.

For most of us, some level of consumer debt is just a fact of life. But in this moment we are in, when the market is slowing and we are always being warned of the recession to come, it's becoming increasingly important to keep an eye on where our money goes. And for most of us - a lot of that money will go to the interest we incur while paying down those debts. But there is a way to cut those costs down and save thousands!

Swipe to see an example of an average consumer debt load's interest totals when paid down over 10 years, and that same debt's interest when consolidated into a mortgage loan at today's rates.

If this situation resonates with you, you are absolutely not alone. I'm here to guide you through the process and find all of the very best options available to you to make home ownership as simple (and affordable) as possible! Give me a call today!

780-991-8085
[email protected]
Mortgage Broker - Flare Mortgage Group
www.flaremortgagegroup.com