Do you need it? Do you want it? What does it really cover? What happens if I need to use it? These are questions that I answer on every mortgage I write. What are my answers? Well, generally, it is absolutely a good idea to have some form of Mortgage Insurance/Life Insurance. On an individual basis, the answer is: “It depends on your situation”.

Are you preparing to purchase a home?  Many people make 3 common mistakes right before applying for a mortgage.  In this video, we define these mistakes and give you tips on how to avoid them.  By avoiding these mistakes, you will make your home buying process smoother and your mortgage application stronger!

For the detailed report, please click RBC Housing Affordability Report!

The Bank maintained its forecast that stronger growth will likely be reported for the final quarter of 2009, after a disappointing third-quarter performance, with the economy forecasted to build momentum throughout 2010. Most experts maintain that 2010 will see stronger growth including an improved employment outlook, increase in investment in machinery and equipment, and large gains in the leading indicators index.

However, the strengthening in the Canadian dollar and weak  U.S. demand may cause a slight risk to Canada’s recovery. Last week’s reiteration that overall risks are “tilted slightly to the downside” as a result of policy operating at the lower bound indicates that the bank’s policy plan remains intact and it is unlikely that there will be a change in the overnight rate before the end of the second quarter of this year. However, this cannot be written in stone.  Huge employment gains and strong 2009 fourth quarter numbers could change the timing of the rate increase.

Many forecasters are still expecting Canada’s economy to gain strength; perhaps though, more slowly than earlier recoveries.  This may in turn likely delay raising the overnight rate until the summer of 2010.

There are a couple of ways to do this effectively.  First, commit to the lowest amortization period you can while still being able to make the payments and qualify for the mortgage amount you require. The lower your amortization period is (25 years versus 35 years), the higher your payments, but the less you will pay in interest over the life of your mortgage.

Secondly, you can accelerate your monthly mortgage payments into bi-weekly or weekly payments, thus paying down your mortgage with less interest.  For accelerated bi-weekly payments, you make a payment every two weeks (monthly payment divided by two) but because there are 52 weeks in the year, you end up making an extra 2 payments in the year.

Of course, accelerated payments don’t necessarily do anything for erasing debt unless there is a change in spending habits made. By rolling your debt into your mortgage (by refinancing) allows you to pay lower interest rate on your debt (no 18% credit card debt), but doesn’t stop you from re-accumulating that debt by continuing to overspend.

There are a couple of main points that have to be looked at when first inquiring as to whether you can use your mortgage to help your credit crunch.  First, what is the penalty to break your current mortgage and refinance your debts into your mortgage.  Typically lenders charge a penalty to break a current closed mortgage; however call your lender and inquire.  They may allow you to increase the amount of your mortgage, free of penalty as long as you stay with your current lender.  If switching lenders, it is important to weigh the costs and benefits to paying the penalty.

The second point is whether you have an adequate amount of equity in your home to draw out and pay your other debts.  This will be assessed by an appraisal of your current home versus the mortgage amount you will need to pay-out your current debts.

If you find yourself looking at high-interest credit charges, rolling your debt into your mortgage and taking advantage of the low mortgage rates may just be the leg up that you need!  Talk to your mortgage advisor for more information!

These unsteady changes in the job statistics are signaling more of a roller coaster recovery than was expected and are causing economists to scale back their predictions in rate hikes. The job loss numbers for December are mirroring the recovery of the recession of the 1990’s which saw large job growth, followed by consolidation.

Despite this hiccup, Economists estimate growth in Canada in the final three months of 2009 to register between 3% and 4%.  Many Economists are still looking to the third quarter for the Bank of Canada to raise its benchmark lending rate; however, this remains to be seen.