Welcome to the January issue of the News & Rate Advisor.

Welcome to the January issue of the News & Rate Advisor.

Current Discount Mortgage Rates	Jan 2014
Variable Rate	2.60%
1 Year	2.99%
2 Year	2.89%
3 Year	3.09%
4 Year	3.39%
5 Year	3.55%
7 Year	3.99%
10 Year	4.49%
Prime Rate	3.00%
* Rates subject to change and OAC.

Canadian Qualifying Rate	Jan 2014
Rate	5.34%

Source: Bank of Canada

Current Posted Mortgage Rates	Jan 2014	Jan 2013	Jan 2012
1 Year	3.14%	3.00%	3.50%
3 Year	3.95%	3.65%	4.05%
5 Year	5.34%	5.24%	5.29%

Source: Bank of Canada

Nationwide Building Permits	Nov 2013	Nov 2012	Nov 2011
Residential	$4,092,555,000	$3,763,739,000	$3,851,714,000
Commercial	$2,661,915,000	$2,692,478,000	$2,311,642,000
Total	$6,754,470,000	$6,456,217,000	$6,163,356,000

Source: Stats Canada - preliminary figures

Current Bank of Canada Rate & Prime Rates	Jan 2014	Jan 2013	Jan 2012
Bank Rate	1.25%	1.25%	1.25%
Prime Rate	3.00%	3.00%	3.00%

Source: Bank of Canada

Average House Prices by City	Nov 2013	Nov 2012	Nov 2011
Yellowknife	$341,343	$392,904	$362,650
Vancouver	$774,932	$682,215	$728,118
Victoria	$454,703	$491,326	$499,676
Edmonton	$339,703	$331,526	$319,559
Calgary	$445,114	$413,921	$398,722
Saskatoon	$334,440	$330,125	$314,541
Regina	$306,631	$309,219	$273,243
Toronto	$538,881	$485,328	$480,421
Hamilton-Burlington	$368,947	$369,201	$342,005
Ottawa-Carleton	$359,082	$350,211	$347,675
Quebec City	$261,123	$260,783	$250,888
Montreal	$320,693	$333,324	$322,808
Fredericton	$159,892	$175,122	$161,279
Saint John	$170,126	$168,623	$159,101
Halifax-Dartmouth	$267,717	$266,740	$262,714
Winnipeg	$261,832	$263,786	$236,127

Source: CREA - Most Recent Month Reported

Average House Prices by Province	Nov 2013	Nov 2012	Nov 2011
National	$391,085	$356,687	$360,396
Yukon	$353,498	$306,590	$313,064
Northwest Territories	$341,343	$392,904	$362,650
British Columbia	$557,586	$480,891	$529,141
Alberta	$385,217	$365,999	$356,535
Saskatchewan	$290,859	$277,487	$255,580
Manitoba	$255,636	$253,995	$229,934
Ontario	$408,251	$376,806	$373,781
Quebec	$264,690	$275,656	$267,342
New Brunswick	$156,787	$157,488	$156,126
Prince Edward Island	$151,363	$146,646	$139,740
Nova Scotia	$209,997	$208,681	$213,334
Newfoundland	$282,123	$274,485	$260,902

Source: CREA - Most Recent Month Reported   www.philrom.com

Committing to a mortgage with your honey? Consider these house hunting essentials

(NC) House-hunting couples have many important decisions to make together – from deciding on a new-build condo or century-old bungalow to agreeing on the ideal neighbourhood and the type of mortgage that will work best for them.

According to research from TD Canada Trust, 73% of Canadians bought or expect to buy their first home with their significant other. Since a home is the biggest purchase most couples will make, Farhaneh Haque, director of mortgage advice at TD Canada Trust, provides her top three tips to ensure couples are on the same page before hitting any open houses.

Air out financial closets – Couples should be open and honest about their current financial situation and financial history. If anything could affect the ability to secure a loan together, afford monthly mortgage payments or interest rate increases, be upfront about it.

Start on the same foot – From a home office to a kitchen made for entertaining, couples should set a budget and discuss the key characteristics they want in a home, and what they are and are not willing to compromise on.

Saying 'I do' to a mortgage – Couples need to give as much thought to their mortgage as they do to their dream home. This includes discussing the size of the down payment, amortization period, type of mortgage and payment schedule.

“The last thing couples want is an unwelcome surprise when they're about to sign on the dotted line,” Haque said. “By speaking with a mortgage specialist well before you've entered the pressure-cooker of the house hunt, couples can make informed decisions that can save money and stress in the long run.”

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Divorced retirees tap their house for extra income

(NC) Financial settlements from a divorce can have a big impact on a person's security – and that concern doubles when a marriage suddenly ends later in life.

If divorce in retirement is happening to you, you're not alone. The so-called 'grey divorce' has been identified as a growing 21st century trend.

Although divorcing later in life poses some unique challenges, it also means that you may have access to some unique financial tools that are not readily available to people in their 30s and 40s.

For instance, if the house is settled on your side of the ledger, you may be able to shore up your finances and enhance cash flow by tapping into the equity of your home. This is done by arranging a reverse mortgage.

“Instead of selling your house and downsizing or even renting, why not stay in it and receive payments based on its real estate value?” says Arthur Krzycki, a director with HomEquity Bank. “Accessing the equity in your home with a reverse mortgage like a CHIP Home Income Plan is a simple and sensible way to reduce the financial burden normally associated with divorce.”

Here's how CHIP works:

• If you're aged 55 and over, you can convert up to 50 per-cent of your home equity into tax-free cash.

• Unlike other loans on the market, you are not required to service the interest, or repay the principal until you choose to move or sell.

• You also have the option to take a lump sum to pay off your debts, or for home repairs and modifications. Or you can schedule monthly advances to enhance your cash flow on a regular basis. Some homeowners do both.

“It's never too late to bolster your finances by taking money out from your house while continuing to live there. For example, using a reverse mortgage to provide additional cash income could save homeowners from having to sell non-registered investments, or prevent the need to withdraw money from a RRIF above the annual minimum. Both of these strategies will likely have tax implications, so be sure to work with a financial advisor for solutions that fit your needs.”

Additional information is also available online at www.chip.ca and www.philrom.com

www.newscanada.com

Protect your home against winter's wrath

 

(NC) As Canadians, we are fortunate to experience nature's splendour through all four seasons. However, extra steps need to be taken to protect your home against damage that could be incurred with cold temperatures, ice and snow.

“Preparing your home for old man winter's arrival will help you to protect your investment,” says Royal LePage broker Carla Bouchard. “A few simple steps can restore your peace of mind and have your home winter-ready.” Bouchard recommends the following tips for winter home preparation:

1. Clean out your gutters and install gutter guards. Reduce the chance of an ice dam by removing debris from your gutters. Ice dams form when indoor heat melts the ice on your roof. If there is nowhere for the melted ice to flow, it will collect in your gutters and re-freeze, causing potential water damage when warmer temperatures return. The Canadian Mortgage and Housing Corporation also recommends using electrical de-icing cables or low-corrosion chemical de-icers.

2. Use a chimney sweep service at least once per year. Many Canadians enjoy a crackling fire on cold winter nights. Chimney sweep services remove soot, blockages and any accumulating creosote, a highly flammable substance, from your chimney, thereby reducing the potential for a chimney fire.

3. Protect pipes located near the exterior of your home. Frozen pipes are one of the most common problems caused by freezing temperatures. It is important to ensure that pipes running through your garage or other exterior areas are well insulated. If you plan to be away, set your thermostat at 65 degrees Fahrenheit and open cupboards under your sinks to allow heat to flow through. You can find more information at 

www.philrom.com

www.newscanada.com

Tap your home ownership for a cash flow

(NC) The prospect of retirement can be a double-edged sword. On the one hand, it appears to be a future filled with fun and freedom. On the other hand, it may seem like the day of reckoning is here. When you leave the workplace, will you have enough money to see you through the retirement you've always wanted?

Indeed, as many as 50 per cent of all seniors surveyed recently said they believe their retirement savings will be exhausted within 10 years. This means that, for many, finding a creative solution will be critical for maintaining financial independence.

How about this one?

Stay in your home for as long as you like and, based on the real estate value, receive a cash flow to supplement your income. Here's how it could work for you:

• If you have reached age 55, you may be eligible for the CHIP Home Income Plan from HomEquity Bank. It allows you to convert up to 50 per cent of the equity into tax-free cash.

• Unlike other loans on the market, there are no credit or income qualifications and you are not required to service the interest, or repay the principal until you choose to move or sell.

• It is also guaranteed that you will never have to repay more than the fair market value of the house at the time of the sale.

When considering if this solution is right for your financial circumstances, you may be interested to know that a typical CHIP customer has an annual household income under $75,000 and 79 per cent of them had less than $250,000 saved for retirement. If this sounds a little like you, the CHIP reverse mortgages may be a good way to enhance your day-to-day cash flow.

Ask a financial advisor or a mortgage broker for details – and additional information is also available online at www.chip.ca.

www.philrom.com