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/

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/

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/