Have the recent government changes effected your home buying choices?

Call it the gap between what you have to pay and what you can afford to pay — it’s going to be considerable when you qualify for your next mortgage. Now the question is what should you do with that money?

Ottawa tightened mortgage rules in October and the one requirement that has disrupted the lending world is the stipulation that consumers qualify based on the Bank of Canada posted rate for a five-year fixed-rate mortgage.

That rate — it’s based on the most common posted rate of the big six banks for a five-year fixed rate mortgage — has been stuck at 4.64 per cent since the government announced the new measures in October 2016. Qualifying with that rate is a heavy burden and

Here's what you should – and shouldn’t – buy

by Rob Carrick -Personal Finance Columnist - The Globe and Mail

The downside of bank upselling is that customers get talked into buying junk products they don’t need.

According to the bank tellers pouring their hearts out to CBC in a series of recent reports, upselling is rampant because of pressure to meet sales targets. A customer’s best defence is to know which sales pitches are worth listening to, and which to shut down. To help promote more informed banking, the Personal Finance column presents this guide to bank products.

Buy this

• Overdraft protection: Essential for households where money is constantly flying in and out of chequing accounts to cover automatic payments, mortgages,

Taking current economic and fiscal realities into account, it would be far more sensible to pay the initial 20 per cent down payment for a home purchase in full instead of saving the money for later, according to a veteran industry analyst.

In a March 10 piece for The Globe and Mail, markets observer Rob Carrick argued that the mortgage environment of today does not favor those who carefully save and spend their hard-earned funds.

“Home buyers who put less than 20 per cent down are seen as risky enough to require that they pay the cost of default insurance for their lender. But the best mortgage rates are in some cases going to people with small down payments,” Carrick wrote.

“The indignities for diligent savers are piling up. You’ll earn next to no

The U.S. Federal Reserve raised its key interest rate from 0.75 per cent to 1 per cent today, in a move widely anticipated by economists and investors.

The hike is the second increase since December and reflects growing confidence at the central bank that the U.S. economy is now on solid footing.

Meanwhile, Canada’s key interest rate has remained at 0.5 per cent since July of 2015. What does this mean for Canadians and their finances?

1. The spread between fixed-rate and variable-rate mortgages could grow wider

The Fed’s move could lead to higher interest rates for fixed-rates mortgages in Canada, but it won’t have an effect on variable-rate mortgages.

Traditionally, a hike in the U.S. benchmark interest rate will also push up long-term

Thinking of buying your own place? It’s normal to feel a little overwhelmed.

After all, it’s the biggest purchase you can make. In an effort to remove some stress from the equation, here are a few tips from the experts.

What to do when you’re a first-time home-buyer:

1. Get pre-approved.

Some real estate agents won’t even work with you until you’ve been pre-approved for a mortgage. This is an important first step in the home-buying process. You don’t want to start house-hunting and fall for a home you can’t afford.

Plus, there may be problems with your credit that you don’t know about.

“Sometimes people are just unaware that they may have like a Sears card that they forgot to cancel and it’s caused a problem on your credit rating,”

Looking to move to Kamloops? Want to know more about the city?

Here is an article first published on a lawstudents.ca website highlighting the experience of a couple moving from Calgary to Kamloops.

When we moved to Kamloops from Calgary, I thought for sure that I would miss the hustle and bustle of the big city, along with its zany politics and daily happenings. We lived in Hillhurst (inner city) and took advantage of Calgary's many festivals, farmers' markets, restaurants and night life. While I was sure I would make friends and that law school would provide more than enough entertainment, I expected Kamloops life to be otherwise pretty boring. Probably a fairly natural big city perspective. Those coming from Vancouver had much the same

Becoming a landlord can seem very appealing. 

There is a large influx of people to BC, Alberta and Ontario and they all need a place to live.  But before you dive headfirst into this potentially lucrative pool, there are some things to consider. Aren’t there always?

Down Payment

You will need at least 20% of your own resources to put down.  That can be a lot of money.  On a $300,000 property you will need $60,000.  On top of this, you have the other costs to complete the purchase such as legal fees, title insurance and potential mortgage insurer fees.  Some lenders will still utilize the mortgage insurers to lessen their overall risk on a rental property and that cost is passed onto the purchaser.

Ongoing Costs

Being a Landlord is not a

There are a number of advantages and disadvantages to buying a property and then renting it out. Talk to an accountant, lawyer, mortgage broker or other financial expert about how it may affect your taxes and financial situation. As always use a great local Realtor to help you make the right decision in locating a property that would work for the purposes of renting out and making sure the zoning is correct.

3 key advantages

1. You pay less tax

You can deduct certain expenses from your income – reducing the taxes you owe. The list includes:

• mortgage interest
• property taxes
• insurance
• maintenance/upgrades
• property management
• utility bills (if you include them in the rent).

2. You may be able to deduct losses for tax

Buying a home may be one of the biggest investments you ever make. But it differs from other types of investments in a number of important ways. Before you buy, make sure home ownership is the right choice for you.

4 key differences

1. May be hard to get your money out

Some investments lock in your money for a while. But you can usually pay a penalty and get your money out if you really need it. Buying a home may tie up most of your savings. Turning it into cash means selling it or renting it out — and that can take a lot of time and effort, especially in a slow market.

2. Difficult to plan for all the costs

Most investments have costs like commissions and fees. The costs to maintain a home are different, and many are hard to plan for.

Turns out 2017 might be the year when B.C. home buyers will finally get a break. But don’t bother throwing a party, yet.

Price drop is due to a lack of supply 

The Canadian Real Estate Association (CREA) predicts prices will drop by about 7.8% in 2017 in B.C., primarily due to a lack of supply of higher-priced single family homes in the Lower Mainland and Vancouver areas.

CREA’s Chief Economist, Gregory Klump, likens this forecasted price decline as the equivalent of removing the basketball team from a Grade 8 class. “Throw in the basketball team and the average height shoots up. The same applies to markets with higher-end homes.” He continues by saying that, “The forecasted drop in B.C. home prices largely reflects an anticipated decline in