Blog #1 : 25-Year vs. 30-Year Mortgage Amortizations.

When shopping for a mortgage, you’re probably most concerned with the interest rate and term. However, an equally important decision is the amortization period, which is the length of time it takes to fully pay off your mortgage.
25-Year Amortization
A recent Canadian Association of Accredited Mortgage Professionals (CAAMP) survey found that nearly two-thirds (68 per cent) of new homes purchased in 2012 have amortization periods of 25 years or less. A 25-year amortization is a good choice if your goal is to become mortgage-free sooner. Not only will you have your mortgage paid off five years sooner than you would with a 30-year amortization, you’ll also save thousands in interest.
With 5-year fixed mortgage rates at an all-time low, it makes sense to go with a shorter amortization period. When interest rates eventually rise, you’ll be better prepared by having paid off more of your mortgage principle at a lower rate. Not only does paying off your mortgage sooner promote positive savings behaviour, it helps you build up equity in your home sooner. Paying off your mortgage sooner also helps to provide a guaranteed rate of return. However, even though you’ll save thousands in interest, a shorter amortization period also means your monthly mortgage payments will be higher, than if you chose a longer amortization period. If you got sick or lost your job, you would need to be prepared to continue to pay larger mortgage payments.
30-Year Amortization
Although Finance Minister Jim Flaherty reduced the maximum amortization period from 30 years to 25 years, 30-year amortizations are still an option if your down payment is at least 20 per cent of the purchase price of your home. Not only will putting down more than 20 per cent help you avoid costly CMHC insurance, it also puts more equity into your home and gives you the option to choose a 30-year amortization period.
If you’re financially disciplined, a 30-year mortgage can make sense. If your lender has generous pre-payment privileges – including double-up payments, payment increases and lump sum payments – you can have your 30-year mortgage paid off in 25 years and pay no more total interest than the 25-year mortgage. If you’re a single first-time homebuyer, or you’re worried about losing your job, a longer amortization gives you the flexibility to make only the minimum mortgage payment should you run into financial difficulties. The key to saving with a 30-year mortgage is showing financial restraint and taking advantage of pre-payment privileges – if you only pay the minimum mortgage payment, you’ll end up paying a lot interest.
Which is Better?
If you were to only make the minimum payments on both, for the duration of the amortization period, a 25-year mortgage is the better option. Not only would you save $33,861 in interest, you’d also have your mortgage paid off five years sooner. But if you were diligent about making pre-payments, a 30-year mortgage could help you pay a little less each month and save more for the times you can put large sums of money towards your principle.

Blog #2 : COVID Concern within GTA.

There is concern a second wave of COVID-19 could cause another lockdown, which is also driving up the price of cottage and recreational properties. “There is incredibly strong demand in the Muskoka area here in Ontario,” Forbes added. “Prices are up substantially about 20 per cent year over year in price gains for recreational properties." The survey found Toronto will continue to be a sellers’ market due to a low listing inventory and high demand. With so few properties on the market it's creating bidding wars, which is also causing prices to go higher with agents saying most homes are now sold for the full price or over asking.
TORONTO -- The Toronto Real Estate Board says the average price of a home sold last year hit a new record as the number of sales climbed 8.4 per cent compared with 2019. The board says the average selling price in Greater Toronto was $929,699 in 2020, up 13.5 per cent from $819,279 compared with 2019. The number of homes sold in 2020 in the Greater Toronto Area totalled 95,151, up from 87,751 in 2019, and the third-best year on record, according to the board. The board says after a steep drop in the spring due to the pandemic, the market took off in the second half of the year.
The results for the full year came as the Toronto board reported home sales in December soared to 7,180 compared with 4,364 in the final month of 2019. The average price of a home sold in December was $932,222, up from $838,662.

Blog #3 : COVID Current Market.

TORONTO -- The Canadian real estate market was at a standstill during the height of the COVID-19 pandemic, but now due to pent-up demand, lack of supply and historically low interest rates prices continue to rise.
A real estate survey by Remax Reality predicts that Canadian housing prices will rise 4.6 per cent this year. In Ontario, it's expected to increase by 5 per cent.
The price for condominiums is flat and sales are down. Cam Forbes with Remax says what buyers really want and are willing to pay for are detached homes with more space.
Now that more people are working from home and may be for the foreseeable future, it allows buyers the opportunity to live outside the city.
The survey found that 32 per cent of Canadians no longer want to live in urban centres and instead would like to relocate to the suburbs or small towns.
“Now people have a little more flexibility and we've see some real strength in markets outside Toronto particularly like the Newmarket and Durham areas," Forbes said.
The survey also found that 48 per cent want to live closer to green spaces and the same number want to live in a community near hospitals and clinics.
As well, 33 per cent want more square footage and more space while 44 per cent want more outdoor space with a balcony or pool.