Paying down debt is a top priority for 2016.

New CIBC poll finds paying down debt is a top priority for 2016.

One in four Canadians say paying down debt is their key financial goal for 2016, making it their top financial priority for six years in a row.¹ Christina Kramer, CIBC Executive Vice President, offers advice for those who struggle to make headway in paying down debt.

1  Draw up a realistic budget

2  Assess your debt

3  Set your priorities

4  Consolidate debt

5  Talk to an advisor

Contact Romy Alegria
Your Mobile Mortgage Advisor
416.278.2540

International Student can buy a Toronto Condo

Summer Sizzle Update - Toronto Mortgage Specials

June Sunrise in Toronto

Mortgage Best rate: 2.7% 4y fixed.  Variable 2.45%

Td Offers: $500 to offset fees associated with switching or refinancing and/or to rebate the In-house registration (IHR) fee or solicitor/notary fee (SOL) up to $500 for any new HELOC with an specific drawdown.

Td collateral mortgage: a refresher

The Collateral Charge is the security that the bank has in exchange for lending you the money set out in the Mortgage loan Agreement (MLA).  It is registered against the real estate you are either buying or refinancing.   You may have decided to have your Collateral Charge registered for more than the amount of money you are actually borrowing at this time.   You’ll notice that the interest rate in the Mortgage Loan Agreement is different from the interest rate on the Collateral Charge. The MLA sets out the specific terms and conditions of your loan. The Collateral Charge secures your loan and is registered at TD Prime Rate + 10%. This is the maximum rate of interest for which TD Canada Trust is secured. As you’ll see, this rate can give you greater flexibility and cost savings in the future.

Having a Mortgage Loan Agreement and a Collateral Charge can be useful if :

·         you ever want to change your loan if you wanted to switch from a mortgage loan to a home equity line of credit in the future, you could reuse the existing Collateral Charge as security for the new line of credit without incurring any new registration fees.

·         you have registered the Collateral Charge for a higher amount than your current loan agreement, then if you want to borrow a higher amount in the future, you may be able to reuse the existing Collateral Charge, subject to credit approval.

·         You could also save money at that time by not incurring the cost of registration fees for a new collateral charge on the property.

The Bank's All-Purpose Collateral Land Mortgage may be used to secure all present and future indebtedness and liability of the customer (the "Mortgagor") to the Bank. Such indebtedness and liability may be evidenced by loan agreements, promissory notes, Visa Cardholder Agreements, overdrafts, guarantees etc. The Bank's regular forms contain the clauses necessary to safeguard the Bank in the operation of an account after the Mortgage has been taken.

From Td Economics:

• Both the Bank of Canada and OECD highlighted stretched home prices and elevated household debt as a key vulnerability to the Canadian economy in two separate reports.

• Housing data released this week pointed to a moderation in housing activity. The Teranet Home Price In­dex showed a deceleration in annual home price growth to 5.1% y/y in May, from 5.5% in the prior month. meanwhile, on a trend basis, housing starts have averaged 184,000 units over the last year, a pace that is consistent with underlying economic fundamentals.

• The Wynne government took a majority in Ontario’s election this week, bringing political stability to the province. Even with this victory out of the way, the Government still has some major challenges ahead. Today’s manufacturing data were yet another reminder Ontario is still facing international competitive is­sues.

Romy Alegria

Manager, Mobile Mortgage Specialist

Toronto,

T:416 278 2540

F:1-866-222-5708

W: http://mms.tdcanadatrust.com/romy.alegria/

Insured Second Home Borrowing available

TD will continue to offer: Insured Second home and Insured Business for self however approval will be done through Genworth.  If you recall, effective May 30, CMHC has discontinued their Second Home and Self-Employed without Standard Income Confirmation products. In addition, changes limit customers to one CMHC insured mortgage on an owner-occupied residential property at a time.  (for additional info  http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/rean/rean_047.cfm)

I'm so proud !!!J  For the second time in a row TD has been named the #1 brand in Canada by Interbrand, the world’s leading brand consultancy. We proudly beat out our competition among the Canadian financial institutions as well as iconic brands such as Tim Hortons, Canadian Tire and Lululemon. 

Contact Romy Alegria today at 416 278 2540
Toronto GTA and the Surrounding 905.

Lowest Rate 1.99% Mortgage

The Best Mortgage to have is No Mortgage at all.  Romy's Mortgage Minute 5.2014



The offering of 1.99% Mortgage is enticing but is very strict to qualify for. There are penalties to exit early, should you need to or your circumstances change.

Why not meet, in the comfort of your residence and everything can be explained to you.

Romy Alegria
416 278 2540

Personal Service Always wins out

Everyone has a unique situation. Their circumstances are different.

O’Leary Mortgages is No More … Canada’s most outspoken capitalist has pulled the plug on brokering. After a little over a year in the business, Kevin O’Leary’s mortgage operation has closed. <http://www.canadianmortgagetrends.com/.a/6a00d8341c74cb53ef01a3fcec0ee6970b-pi>  O’Leary’s model was to make mortgages “simple”… As we all know in the mortgage business, however, terms, legal disclosures and lender commitments are anything but simple. (MBN) Don’t trust your client somebody you don’t trust…
 From Td Economics
• Shockwaves were sent by the sudden and track loss of former Finance Minister Jim Flaherty, who was a key architect of Canada’s economic outperformance in recent years.
• Housing starts fell to 156,000 annualized units in March, down from 190,000 in the month prior. On a three-month moving average (175,000 units), housing starts have moved more in line with a pace of construction that is consistent with both our forecast for housing starts this year, and underlying economic fundamentals (like job gains and population growth).
• In the Bank of Canada outlook survey released this week, businesses pointed to a depreciation in the Canadian dollar and improving economic conditions in the U.S., as key reasons for improved sentiment in the first three  months of this year

While the concept of O'Leary Mortgages is great; there is no one size fits all program with your mortgage. Each lending opportunity requires personal input and attention.

Call Romy Alegria today at 416 278 2540 

CMHC changes are Modest

Mortgage rates: went down last week, best offer is 2,97 for 4 year fixed rate or an amazing 2.55% for 5y variable rate. (see attachment)

Mortgage news: as you may have heard, the Canada Mortgage and Housing Corporation (CMHC) and Genworth Canada announced that mortgage loan insurance premiums will increase on May 1, 2014. CMHC estimates that the average Canadian home buyer requiring insured financing will see an increase of approximately $5 to their monthly mortgage payment.  Who is impacted?  This change is applicable to owner occupied, self-employed, rental properties up to 4 units, and low-ratio refinance premiums. The mortgage loan insurance premiums for home owner and 1 - 4 unit rental residential properties will increase by 15% on average; here it’s a small chart showing increments:

Loan to Value Ratio	Current	New Premium starting May 1st.
Up to and including 80%	1.00%	1.25%
Up to and including 85%	1.75%	1.80%
Up to and including 90%	2.00%	2.40%
Up to and including 95%	2.75%	3.15%

·         As you may understand, stated income will be charge even more (ask me for details)

·         In order to be eligible for the current (lower) mortgage loan insurance premiums and surcharges, I need to submit your client’s application prior to May 1.

·         Pre-approvals that aren’t converted to live deals will be charged on the new premium.

From Td Economics:

·     All eyes were on Ukraine this week, as high tensions and mounting geopolitical uncertainty tempered global economic optimism heading into 2014.

·     As was universally expected, the Bank of Canada held firm on its overnight rate, keeping it at 1.00%.

·     Imports declined by 1.6% in January. Exports edged up by a marginal 0.2%, primarily on energy prices – in real terms, exports were down 5.3%.

·     Employment contracted by 7K net new positions in February, surprising markets who had been expecting a 15K gain. Meanwhile, the unemployment rate held steady at 7.0%.

·       GTA Housing update- Td Economics http://zh.scribd.com/doc/211767131/GTAHousing-2-2014

Purchase Plus Improvement Mortgage

Purchase plus improvement

This product helps qualified home buyers to make renovations, upgrading, changes, etc. to make their new home just right for them. Extra funds are provided after taking possession and presenting receipts or the work done. No added insurance premiums.  Depending on the renovation costs CMHC/ GE may determine an extra appraisal or not required.

Borrower Qualification:

• Existing requirements related to income, down payment and credit worthiness apply
• Gifted down payments from immediate family member can be used, provided they are properly verified, non-repayable and all other characteristics of the borrower are acceptable
• Government grants may be considered if pre-approved by Genworth

From TD Economics:

·         The Bank of Canada kept the overnight rate constant at 1.00% this week, in a communiqué which was interpreted as more dovish than the last. Markets reacted swiftly and the Canadian dollar plunged to a three-year low.

·         Canada’s trade balance tipped into surplus in October, as imports fell further than exports. The trade surplus was a razor thin $75 million, up from a $303 million deficit in September.

·         Employment was solid in November, advancing by 22,000 positions, while the unemployment rate held firm at 6.9%. So far this year, employment growth has averaged 13,400 per month, down from 25,400 over the same period in 2012.

Romy Alegria

Manager, Mobile Mortgage Specialist

Toronto,

T:416 278 2540

W: http://mms.tdcanadatrust.com/romy.alegria/

This could also apply for seniors and their desire to Age in Place rather than moving to a Retirement Home. A Mortgage that could be used to cover Improvements could solve many problems like lowered kitchen cabinets that are wheel chair accessible, chair lifts and ramps, elevators that aid mobility and roll in bathrooms / showers.

What do you need to be done in the home that will give you another 10 or 15 years of being on your own?

New To Canada 2014 update

Mortgage news:

Risk fee plus 10 basis points extra on the low-ratio bulk insurance will be charge to CMHC and Genworth by the federal Government starting January 2014.  Apparently there will be no impact on the cost of buying a house or the cost of mortgage funding

Product ”NEW TO CANADA”, qualified homebuyers who have immigrated or relocated to Canada within the last 5 years are eligible under Genworth's/CMHC New to Canada program to purchase a property with as little as a 5% down payment

Borrower Qualification:

• Must have immigrated or relocated to Canada within the last 60 months
• 3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
• Must have a valid work permit or obtained landed immigrant status
• For 95% LTV, down payment must be from own resources. For LTV's less than 95%, the remainder may be gifted from an immediate family member or from a corporate subsidy
• All debts held outside of the country must be included in the total debt servicing ratio(Rental income earned outside of Canada is to be excluded from the GDS/TDS calculation)
• Guarantors are not permitted
• Foreign Diplomats who do not pay tax in Canada are ineligible for this program

Rates:  2.99% 3Y FIXED MORTGAGE

From TD Economics

The Canadian economy turned out a decent performance in the third quarter of the year. Real GDP grew by 2.7% annualized – the fastest pace of growth in over two years.

• Some of the strength in the quarter can be attributed to temporary factors, including a rebound in oil and gas production following supply disruptions during the first half of this year and a sharp inventory build.

• Still, there were some encouraging underlying details in the GDP report released today. Household and business spending moderately supported economic activity. While net trade was a drag on growth, improvements in exports towards the end of the third quarter spell good news for economic growth in the fourth quarter.

• The Q3 performance is unlikely to move the Bank of Canada’s monetary policy stance. We expect the

Bank of Canada will be on hold at least until the end of 2015

Bridge Financing - When ?

Bridge Financing

·       Bridge financing assists a customer with the sale and purchase of their residence. When the sale of their current residence closes the loan is paid off with proceeds from the sale.

Examples: 

·      The purchase date their new home closes on is 15 days before the closing date of their current residence. The net equity from the current residence is not available on the closing date of the new home.  A Bridge Finance Loan provides the customer with short-term assistance to meet this shortfall.

** TD Canada Trust does not provide Bridge Financing to customers who have not committed to take a TD Canada Trust mortgage product.

From TD Economics

* Local real estate boards have begun to release September housing data, and the numbers issued thus far are all of double digit magnitude. Toronto (+30%), Calgary (+19%) and Vancouver (+64%) have reported solid year-over-year sales increases.

* In a speech earlier this week, Senior Deputy Governor of the Bank of Canada, Tiff Macklem, focused on the prospects for Canada’s exports. This segment of the economy accounts for one-third of Canada’s national income, but prevailing global economic uncertainty will likely mean a delay in the rotation of growth drivers in Canada from consumers and governments towards exports and investment.

* The Ivey PMI edged higher to 51.9 in September following what was a modest recovery in August. The reading is con­sistent with an economic rough patch over the past few months

Romy Alegria

Manager, Mobile Mortgage Specialist

Toronto,

T:416 278 2540

F:1-866-222-5708

W: http://mms.tdcanadatrust.com/romy.alegria/

Collateral Mortgages

Td Collateral Charge /Collateral Mortgage A collateral mortgage is a security agreement registered against a borrower’s property that allows them to secure the initial loan and possibly future loans.

Benefits

• With a collateral charge mortgage, TD mortgage customers can switch from a mortgage loan to a home equity line of credit (HELOC) in the future without incurring any new registration fees.
• Where they choose to register the collateral charge for a higher amount than their current loan agreement (to a maximum of 125% of the current property value), they may be able to reuse the existing collateral charge for future borrowings and avoid incurring additional costs of registering a new charge on the property. 

From Td Economics

• This week TD Economics released our latest Quarterly Economic Forecast for Canada (attached) which outlines how Canadian households continue to drive growth, while exports and business investment are stuck in the backseat.
• A rebound in July retail sales confirmed the resiliency of the Canadian consumer. The retail data rounds out our expectation for July GDP, which is expected to recover after a decline in June.
• On the other hand, the CFIB Business Barometer for August showed that the mood among small busi­nesses remains quite flat. Stronger business investment is required to help kick start Canada’s economy, but businesses need to become more confident about the future before that takes hold

Romy Alegria

Manager, Residential Mortgages

Line of Credits, Refinances

Toronto Core

C. 416.278.2540

P. 416.614.5446

Having a collateral mortgage permits you to use part as a credit line in addition to fixed financing.  This is good but in a declining value condo market a few percentage points, advance to value, could result in your spending your equity.

Be ever mindful of market conditions

Cash Back on Closing is still around

I thought this was gone from the Toronto Real Estate Market;  You cannot use this as part of your closing disbursements but it is there for certain buyers who are doing a 95% down and getting the 5% back after closing.  

You need to have and front all the deposits, expenses and fees related to your purchase  for 60 - 90 days prior to the closing.  

Cash back mortgage product

Did you know that Cash Back is available on 2 - 10 year term up to a system maximum of $35,000. Cash Back amounts set as follows:

Term	CashBack	System Maximum
2 years	1%	4,000
3 years	1.5%	6,000
4 years	2%	8,000
5 years	5%	20,000
6 years	5%	25,000
7 years	5%	35,000
10 years	5%	35,000

Money is deposited into clients account the next day after activation and might be spend as clients wish; maybe they want to make small renovations, buy new appliances, pay out some debts, pre pay the mortgage or simply have some extra money in their account. 

Rates: My best rate: 2.99% for 3y fixed; Variable 2.6% (see attachment)

From Td Economics:

·         The housing market has proven more resilient in 2013 than we had anticipated. The outperformance has been particularly notable on the price side.

·         The recent strength in Canadian housing needs to be kept in perspective. Sales are still well below historical peak levels. Four rounds of insured mortgage rule tightening have worked to temper home sales, which are still 11% below the peak reached in late 2009.

·         After Bank of Canada Governor Stephen Poloz gave an economic pep talk on Wednesday, U.S. Federal Reserve Chair Ben Bernanke killed the buzz by not beginning the widely expected “taper” of its asset purchases

Romy Alegria | Manager, MMS 

P: 416.278.2540 | F: 1-866.222.5708

E: Romy.Alegria@td.com

W: http://mms.tdcanadatrust.com/romy.alegria/

Home Equity Line of Credit - HELOC

HELOC - Customer Level Pricing (CLP)

• CLP is being introduced to provide customers with a competitive HELOC (Home equity line of credit) variable interest rate.
• The CLP Rate is generated by evaluating a number of attributes that incorporate customer relationship, credit worthiness and HELOC application details such as appraised property value, collateral charge position, Equity Lending, credit worthiness etc.
• If client is not satisfied with the CLP Rate, we still can submit a HELOC Pricing Exception Request.
• Heloc is a good option for an equity take out for future investments. Send your inquiries now. 

From TD Economics
Housing starts fell to 180K units on an annualized basis in August, a 6.6% decrease from the month prior. Yet, the six-month moving average remained steady at 187K units. 

• Home prices rose for the sixth consecutive month as the 11-city Teranet House Price Index (HPI) increased by 0.6% month-over-month in August. 
•  Household leverage, as measured by household credit market debt to disposable income, increased to 163.4% in Q2, up from 162.1% in Q1. The showing snapped the streak of two consecutive quarterly declines, but in level terms, the ratio has stabilized over the past year. 
• The National Household Survey (NHS) release confirmed what we had previously observed only anecdotally – one-quarter of Canadians devote more than 30% of their total income to shelter costs, surpassing the threshold at which housing becomes unaffordable. 

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708
E: Romy.Alegria@td.com
W: http://mms.tdcanadatrust.com/romy.alegria/

Business for Self Mortgage Guidelines

Here’s a refresher when dealing with “buyers” that are business for self:

ü  Maximum LTV (loan to value) 90%

ü  Self employed for more than 2 years but less than 3 years

ü  No previous bankruptcy

ü  No tax arrears as per most recent Notice of Assessment (NOA)

ü  Minimum 3 years on Credit Bureau with 3 trade lines.

ü  Beacon Score Requirements (defined by the lowest score from all borrowers average score):   LTV </= 90% - minimum beacon score of 650

ü  Maximum TDS 42% - based on stated income.

** Latest statistics from Bank of Canada indicates that the total mortgage amount is $879 billion in the year to July.

** In its interest rate announcement, the Bank of Canada held the overnight at 1.00% and reiterated its forward looking language. The Bank acknowledged that the rotation in economic growth drivers has not been as quick as many had hoped – a theme that was reinforced by data releases this week (From Td Economics)

Romy Alegria is a Mobile Mortgage Specialist with TD Bank who specializes in Residential and Commercial Real Property Mortgages in the Greater Toronto Area.

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708
E: Romy.Alegria@td.com
W: http://mms.tdcanadatrust.com/romy.alegria

2013 CMHC Housing Outlook

TD ECONOMICS
*One year following the federal government tightened mortgage insurance regulations, the existing home market has fully recovered 
• In July, existing home sales were up 9.0% from year ago levels and home prices raised 8.1% from year ago levels. From a regional perspective, strength in Greater Toronto, Greater Vancouver, Calgary and Edmonton was offset by weakness in Montreal and most major urban areas in the Atlantic Provinces. 
• Overall, while the housing market has shown some signs of revival in recent months, activity is likely to be tempered by rising interest rates and the market is still expected to achieve its soft landing. 
• In other news, manufacturing shipments fell 0.5% in July – a fourth decline in 6 months. In real terms, sales were down an even larger 1.3%. 

Housing Market Outlook - CMCH  third quarter review (attached) – here’s couple of key factors affecting housing starts at a glance …
• Mortgage rates:  Mortgage rates are expected to increase gradually and steadily, over the forecast horizon.  However, they will remain low by historical standards. Current mortgage rates are supportive of housing demand. 
• Employment : The labour market has gotten off to a slower than expected start in 2013, with employment growing in the first six months at a little over half the rate in 2011 and 2012. Nevertheless, employment is expected to improve during the course of the year and is forecast to grow 1.4 per cent in both 2013 and 2014, which will support Canada’s housing sector.  
• Population:  Lower population growth among the 25 to 34 year age group is expected to lead to a slight moderation in demand from first-time home buyers this year and over the longer term. Furthermore, Canada’s low birth rate should lessen the demand for additional housing stock in the medium and longer term. Population aging, however, is likely to impact the type and tenure of housing demanded.

Housing Market Outlook 3rd Q 2013 by David Pylyp

Romy Alegria is a Mobile Mortgage Specialist with TD Bank who specializes in Residential and Commercial Real Property Mortgages in the Greater Toronto Area.

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708
E: Romy.Alegria@td.com
W: http://mms.tdcanadatrust.com/romy.alegria