Getting It Straight: Conforming Loans vs. Non-Conforming Loans

Although mortgage translations are less than obvious, it’s palpable that most Canadians demand an elevated level of clarification when it comes to the pivotal commitment. A genuine comprehension of mortgage systems is trying enough, and when combined with deciphering a plethora of terminology, the task to many seems daunting. One strong example is distinguishing conforming loans from non-conforming loans. Getting it straight, once and for all, is vital.

Conforming Loans

A conforming loan is indicative of loan limit restrictions and, simultaneously, a number of unique preconditions are enforced. The Federal National Mortgage Association (FNMA or Fannie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) are government-sponsored entities that prompt and administer the market for home loans. These agencies have definitive protocols and decrees that mortgages must observe. Statutes describe and define maximum loan amounts, advisable properties, preconditions for down payments, and credit stipulations to name a few. In essence, there are a plethora of details that are premeditated, which ultimately are most advantageous and unique to you and your capacities.

The fundamental appeal of a conforming loan is that they award a lower interest rate, analogous to non-conforming loans. This constitutes lower monthly mortgage payments and, ultimately, less spending throughout the life of your investment.

Non-Conforming Loans

A non-conforming loan does not observe Fannie Mae or Freddie Mac and, consequently, cannot sell to these divisions of government. Judged as tricky and encompassing a higher level of risk, they are a challenging sell with banks imposing higher interest rates. In essence, banks write the bulk of mortgages, then conclusively settle on the portfolios of FNMA or FHLMC after being purchased from financial institutions. They are then packaged into mortgage-backed securities (MBS), which sell on the secondary market. An MBS is quite akin to a bond that is comprised of an array of purchased home loans from banks, also receiving payments reflective of bond coupons.

Non-conforming “jumbo loans” include any lending above the conforming limit; these loans are geared toward high-income earners who have good credit and productive assets. Lenders will characteristically assume a more significant risk with these mortgages by virtue of the loan size and lack of government insurance.

The appeal of a non-conforming loan is very clear cut. Although these types of loans are substantially riskier and less prevalent, they allow you to borrow more sizeable amounts, not feasible with their counterpart conforming loans. Typically, to diminish any hazard, lenders demand a significant down payment or require mortgage payments in an asset account for added security. The risk to the lender is offset through generally higher interest rates, more sizable upfront fees, and stricter underwriting requirements.

From the sale of mortgages, financial institutions use the profit of sales to invest in offering new loans at the current interest rate. But Fannie Mae and Freddie Mac are restricted from purchasing indiscriminate mortgage products. Their federal rules conform to loans synonymous with protection and security. They are most advantageous to banks, as they are sales that are deemed less complicated and conclusively more appealing to borrowers.

Our expert team at Northwood Mortgage has many more answers to simple or more intricate mortgage questions, and we look forward to connecting with you. As one of the most venerated brokerages in the GTA, our team exemplifies prized services and choice products to our clients, lenders, and investors alike.

We invite you to visit us for more insight at Northwood Mortgage.com or talk to us one-on-one for a more personal assessment, fitting your needs, at 1-888-495-4825.

source: northwoodmortgage.com

Things You Should Know Before Going for a Second Mortgage in Toronto

If you own a home in Canada then you have probably have heard of a second mortgage at some point in your life. A second mortgage is similar to a first mortgage, in that it is a loan secured by your property. As time passes you will accumulate more and more equity on your property. A second mortgage is primarily intended to use the equity that you’ve accumulated over the years.

According to a report by Business Insider, almost 2 million Canadians have a second mortgage, and nearly as many that have a HELOC. Some Canadians will use their second mortgage in order to avoid having to declare bankruptcy. In any event, a HELOC, for those unaware, is also another form of a second mortgage, because it serves as a line of credit for home equity. In other words, the person will supplement a second loan over their first in order to access their equity. Below are some things that you should know before going for a second mortgage in Toronto.

Different Types of Second Mortgages

A revolving HELOC works similarly to a credit card. That is, the borrower will have access to equity in perpetuity as they continue to pay off the principal (what they owed previously) over the upcoming months and years. Moreover, a HELOC can be modified to become a closed second mortgage, which functions much like a loan for a vehicle. That is, the borrower will receive only one lump sum of money from their equity and they must pay it off in a gradual manner.

It should also be noted that it is difficult to qualify for a HELOC of any kind, because they tend to only be offered to those with an impeccable credit profile and who happen to live in a prosperous urban area. Hence, those who have a poor credit profile or have a meager income will only likely have one option at their disposal—a private mortgage.

The Two Main Reasons Why Second Mortgages are Used

The most popular reason why a second mortgage is used is to pay off a consumer debt that has high interest. Many homeowners will also use a second mortgage in order to upgrade their home for resale or to renovate it for their own recreational purposes. Leveraging a second mortgage is highly recommended at the moment because credit card interest rates are presently 15%. As such, you can save a large sum of money by opting for a second mortgage.

For instance, let us imagine that you owe $30,000 on your credit card. In such a scenario you would have to pay roughly $600 in minimum payments every month; This is of course assuming that a 3% minimum payment is required. Now, if your interest rate was 15% APR then you would owe $4,500 in interest charges after just one year has elapsed. This is before you even get to the principal amount that is owed. As can be seen, interest charges can make or break first time homeowners who aren’t too careful with their fiancees.

Due to the aforementioned problems, many Canadians turn to a second mortgage in order to pay off their credit card debts. The end result is that their interest rates will be reduced because their second mortgage is secured by their home, which serves as the primary asset in this case.

Remember that Your Home Will Be Used as Collateral

If you have decided to take out a second mortgage on your home you must remember that your home will actually be used as collateral to secure the loan. As a result, if you fail to pay it off then the lender can foreclose on your property the same way they could with your first mortgage. However, the tradeoff is in the significantly lower interest rates that you will be charged, as your home will serve as an asset that will back your loan.

Take Advantage of Interest Only Payments

It is possible to only make interest payments with many of the second mortgage products that various lenders offer their clients; this will allow you to have easier and more affordable access to your home before you opt to sell your house to the highest bidder. Your monthly payments will also be significantly lower.

To further illustrate, if you were interested in renovating your home before resale or are interested in renegotiating your first mortgage, then you could remodel your home using the funds procured from the second mortgage. You could also have the option to pay off the interest charges. Then after you are done giving your home a makeover you could then resell it at a higher price and then use some of the money that you’ve made to pay off your second mortgage.

Avoid Private Mortgage Insurance

When a person applies for a standard mortgage in Canada they need to acquire private mortgage insurance if they are unable to put a minimum 20% down payment on their house. The end result is that they will have to pay fees, known as Canadian Mortgage and Housing Corporation fees, which can actually be quite exorbitant.

For instance, if you were to take out a half a million dollar mortgage with a 5% down payment then you would have to pay 4% worth of Canadian Mortgage and Housing Corporation fees. In other words, you would need to pay almost $20,000 in fees because you weren’t able to make the minimum 20% down payment.

The good news is you can take out a second mortgage in order to avoid private mortgage insurance. Of course this also means that you will have to add additional expenses to your monthly budget but it can still be a more affordable alternative to having to pay private mortgage insurance fees.

If you would like to learn more about obtaining a second mortgage in Toronto, please visit our website or call us at 1-888-495-4825.

source: northwoodmortgage.com

Motive elusive after van driver kills 10 on Toronto sidewalk

TORONTO — Police in Canada’s biggest city are piecing together witness accounts and surveillance video trying to determine why a driver plowed a rented van along a crowded sidewalk, killing 10 people and injuring 15 in what many said seemed a deliberate attack.

A 25-year-old suspect was quickly captured in a tense but brief confrontation with officers a few blocks away from where his van jumped the sidewalk Monday and continued for a mile, leaving people bloodied and dead in his wake. But authorities so far had not disclosed a possible motive or cause even as the police chief agreed with witnesses that it seemed intentional.

“The incident definitely looked deliberate,” Police Chief Mark Saunders told reporters at a late-night news conference.


Saunders said the suspect, Alek Minassian, who lives in the Toronto suburb of Richmond Hill, had not been known to police previously. An online social media profile described him as a college student.

Officials would not comment on a possible motive except to play down a possible connection to terrorism, a thought that occurred to many following a series of attacks involving trucks and pedestrians in Europe and the presence in Toronto this week of Cabinet ministers from the G7 nations.

Asked if there was any evidence of a terrorist link, the chief said only, “Based on what we have there’s nothing that has it to compromise the national security at this time.”

A senior national government official said earlier that authorities had not turned over the investigation to the Royal Canadian Mounted Police, a sign that investigators believed it unlikely terrorism was the motive. The official agreed to reveal that information only if not quoted by name.

Authorities released few details in the case, saying the investigation was still underway, with witnesses being interviewed and surveillance video being examined.

“I can assure the public all our available resources have been brought in to investigate this tragic situation,” Toronto Police Services Deputy Chief Peter Yuen said earlier.

The incident occurred as Cabinet ministers from the major industrial countries were gathered in Canada to discuss a range of international issues in the run-up to the G7 meeting near Quebec City in June. Canadian Public Safety Minister Ralph Goodale called the incident a “horrific attack” and said the G7 foreign ministers extended their condolences.

The driver was heading south on busy Yonge Street around 1:30 p.m. and the streets were crowded with people enjoying an unseasonably warm day when the van jumped onto the sidewalk.

Ali Shaker, who was driving near the van at the time, told Canadian broadcast outlet CP24 that the driver appeared to be moving deliberately through the crowd at more than 30 mph.

“He just went on the sidewalk,” a distraught Shaker said. “He just started hitting everybody, man. He hit every single person on the sidewalk. Anybody in his way he would hit.”

Witness Peter Kang told CTV News that the driver did not seem to make any effort to stop.

“If it was an accident he would have stopped,” Kang said. “But the person just went through the sidewalk. He could have stopped.”

Video broadcast on several Canadian outlets showed police arresting the driver, dressed in dark clothes, after officers surrounded him and his rental Ryder van several blocks from where the incident occurred in the North York neighborhood of northern Toronto. He appeared to make some sort of gesture at the police with an object in his hand just before they ordered him to lie down on the ground and took him away.

Witness Phil Zullo told Canadian Press that he saw police arresting the suspect and people “strewn all over the road” where the incident occurred.

“I must have seen about five, six people being resuscitated by bystanders and by ambulance drivers,” Zullo said. “It was awful. Brutal.”

Police shut down the Yonge and Finch intersection following the incident and Toronto’s transit agency said it had suspended service on the subway line running through the area.

Prime Minister Justin Trudeau expressed his sympathies for those involved.

“We should all feel safe walking in our cities and communities,” he said. “We are monitoring this situation closely, and will continue working with our law enforcement partners around the country to ensure the safety and security of all Canadians.”

source: newsinfo.inquirer.net

Canadians a bit less happy, but satisfied with their jobs

OTTAWA, Canada — Canadians are less likely to find a good balance between work and family, but are mostly satisfied with their jobs, according to a survey released Tuesday.

In the eight years to 2016, the number of Canadians who reported being satisfied or very satisfied with their work-life balance fell by 10 percentage points to 68 percent, according to the Statistics Canada study.

This downward trend, said the government statistical agency, “may have implications for the well-being of Canadians.”

Women were slightly less likely than men to be satisfied with their work-life balance — 66 percent versus 70 percent, respectively.

Just over one in five Canadians said they “always or often had difficulties fulfilling family responsibilities because of the amount of time they spent on their job.”

Happy or not with their work-life balance, however, Canadians are overwhelmingly satisfied (84 percent) with their jobs.

For others, a bad “work environment” or “too low” pay were the two top reasons cited for having soured their work experience.

Another part of the survey that looked at new technologies found that most Canadians viewed being virtually connected as positive and that technology improved life. /cbb

source: newsinfo.inquirer.net

8 Things To Know About Mortgage Insurance

If you’re in the process of applying for a mortgage or starting to shop around for one, you’re probably thinking about how you can get a low mortgage rate. However, there’s more to getting a mortgage than the rate. There’s also mortgage insurance, which is an important part of getting a home loan if you’re having trouble coming up with a decent down payment. Many Canadians are not aware of what mortgage insurance is. Below you’ll find eight important things to know about mortgage insurance.






    1. This type of insurance protects the lender against default and not the homeowner. Mortgage insurance is designed to ensure the lender is able to recoup costs should you default on your loan.

    2. Mortgage insurance is mandatory for borrowers who can only come up with a down payment for their home of less than 20% of the total. Furthermore, down payments cannot be less than 5%.

    3. The cost of mortgage insurance depends on the type of loan you’ve applied for and the amount of your down payment.

    4. Mortgage insurance is not the same as homeowner insurance. Homeowner insurance is put in place to protect your home and possessions against damages such as fire, theft, etc. Also, mortgage life insurance is different than mortgage insurance. Mortgage life insurance in designed to repay any outstanding mortgage payments should the homeowner find themselves on long-term disability or in the event of death.

    5. Insurance has nothing to do with getting you a low mortgage rate. To get a low mortgage rate you need good credit and a good mortgage broker because he or she will shop around for you to find a low rate. However, having mortgage insurance doesn’t hurt your chances of getting a low mortgage rate.

    6. There are only three places you can get mortgage insurance in Canada: CMHC, Genworth Financial and Canada Guarantee. Any other place offering mortgage insurance is a scam.

    7. Mortgage insurance costs the homebuyer 2.80%-4.00% of the total mortgage amount, but it does allow you to purchase a home with a lower down payment.

    8. You don’t have to pay the premium on mortgage insurance up front. The cost gets lumped in with your mortgage payments.

The best way to learn about mortgage insurance is to talk to your mortgage broker. While you’re at it, you can inquire about getting a low mortgage rate.

source:  northwoodmortgage.com

Home Equity vs. a Loan: How to Choose the Best Option

For many Canadian homeowners, their home is the biggest investment they will make in their lifetime. There are several options for loans for homeowners, and in this article we’ll look at two options: an equity mortgage versus a mortgage loan.

Home Equity Mortgage

A home equity mortgage is different than a regular mortgage loan in that it acts more as a line of credit. If you take out an equity mortgage, the bank will agree to lend you a certain amount, but with the equity in your home acting as collateral.

An equity loan will usually have lower interest rates than a line of credit, and these rates will usually be variable, fluctuating with the market.

An equity mortgage does not require a monthly payment like a traditional mortgage loan does. Rather, it works like a credit card where you will need to make a minimum monthly payment. Taking out only what you need rather than having to make a set monthly payment can help homeowners save money on interest rates.

Many homeowners prefer the flexibility of an equity mortgage. However, it can be riskier than a traditional mortgage in that if you cannot make your payments, your home is at risk.

Mortgage Loans

A traditional mortgage loan can come as a fixed rate mortgage or variable rate mortgage. First, you will need to be approved by your lender. Once you have been approved, your mortgage is calculated based on your income, any existing debt, and the price of the property. Mortgage rates are based on the mortgage market.

Whether you have a fixed or variable rate mortgage, you will make the same monthly payment for the duration of your mortgage term. With a variable rate mortgage, the interest rate fluctuates based on the rates set by the bank. A variable rate mortgage, though riskier than a fixed rate, can save homeowners money if interest rates fall, and offer greater flexibility.

The biggest factor in deciding which loan is right for you is your financial planning. A mortgage loan is best for people who want to pay off their mortgage in a specific amount of time and make the same payment each month. A home equity mortgage allows greater flexibility and can be more adaptable, especially if you have unexpected expenses.

There are many complex factors when it comes to choosing the right loan. Consult one of our professional, experienced mortgage agents today to discuss which option is right for you!

source: northwoodmortgage.com

How Mortgage Rates Are Determined in Canada

For many Canadians, their home is the biggest investment they will ever make, and their mortgage the most significant loan. When shopping for a mortgage, people generally look for ways to get low mortgage rates.

A mortgage rate doesn’t refer to the size of the mortgage loan, but rather the interest rate on your mortgage. Obviously before you buy, you’ll want to search for a low mortgage rate. There are many factors that affect mortgage rates in Canada, and a fuller understanding of these factors can be an immense help to the inexperienced buyer when applying for a mortgage.

In this article, we’ll look at a basic outline of how mortgage rates are determined in Canada, including some ways to get a low mortgage rate.

Fixed vs. Variable Rate Mortgages

There are two kinds of mortgage loans available to Canadians: fixed or variable rate mortgages. A fixed rate mortgage, as the name suggests, keeps the same interest rate and monthly payment for the duration of the term. A fixed rate mortgage is ideal for those who want more stable financial planning, and want to avoid any surprises due to sudden inflation.

A variable rate mortgage adjusts based on the lender’s prime rate, which is determined by the Bank of Canada’s overnight rate. This means the interest rates can change day to day. While obviously there is some risk involved with a variable rate mortgage, they can often save Canadian homeowners money. While the monthly payment remains the same, lower interest rates mean that more of your monthly payment goes towards your principal. While some homeowners fear sudden increases in mortgage rates, banks generally avoid this so as not to incur any backlash.


The Mortgage Market

Mortgage rates are set based on a number of factors. These factors, or steps, are referred to as the secondary mortgage market. When you are granted a mortgage loan, the following steps occur:

• Your mortgage is sold by the bank/lender to a third party investor, known as the aggregator.
  
• Your loan is combined with other loans by the aggregator to form a mortgage-backed security.
  
• The mortgage backed security is divided into shares, which are sold to other investors.
  
  

Therefore, your mortgage rates are based on what the aggregator will pay for the mortgage, but also by the worth of the mortgage-backed security and what investors are willing to pay. This creates a competitive mortgage market, with homeowners benefitting from low mortgage rates and investors benefitting from higher mortgage rates.

It can be complicated to understand everything that goes into determining mortgage rates in Canada. The best way to understand mortgage rates is to consult with one of our mortgage professionals. They understand the market thoroughly and will be able to explain how everything works, and help you find a low mortgage rate! Contact us today to schedule a consultation.

source: northwoodmortgage.com

What Is A Variable Rate Mortgage?

When mortgage shopping, many buyers think that a fixed rate mortgage is the only way to go. However, a variable rate mortgage may actually save buyers money in the long run, although it can be riskier. Here’s how variable rate mortgages work:

 As opposed to a fixed rate mortgage, which is a flat rate paid throughout the mortgage term, without fluctuating interest fees, a variable rate mortgage is based on lender prime rates, and will fluctuate with the bank’s interest rates. If you are considering a variable rate mortgage, it’s best to speak to a mortgage expert as they will have a thorough understanding of the current interest environment.

While a fixed rate mortgage allows for better financial planning and eliminates the chance of any surprise, there are some reasons why a variable rate mortgage may be a better option. For one, if you know the lender’s rates are currently low, and you’re planning to only own the property for a short time, a variable rate mortgage may help you save money. Other possible perks of variable rate mortgages include:

    -If interest rates are expected to fall, you could capitalize on that in the future.

    -More flexibility: The penalty and extra interest fees are much harsher on a fixed rate mortgage if the mortgage is broken. The interest will be less on a variable rate mortgage.

    -Although it’s not without risk, variable rate mortgages have been proven to save Canadians money over time.

    -With a fixed rate mortgage, your payment won’t change even if interest rates drop significantly.

There is really only one risk to variable rate mortgages, which is the risk that interest rates will rise suddenly. This is, however, unlikely, as banks will try to avoid raising rates in order to avoid public backlash.

If you are considering a variable rate mortgage, you should be able to still cover your payments should there be a raise in interest rates. If you are able to afford the risk, then a variable rate mortgage can definitely save you money. If interest rates are currently low, and you want greater flexibility with your mortgage, then a variable rate mortgage can give you that.

Since there is risk and more complexity involved with a variable rate mortgage, it’s important to seek out the advice of mortgage experts to guide you in the right direction. Northwood Mortgage can help you with all your mortgage needs, whether you choose a fixed or variable rate mortgage. Contact us today with any questions about how we can help you, or apply now!

source: northwoodmortgage.com

Fixed Rate Mortgages: Should You Choose A 15-Year Or A 30-Year?

Once you’ve decided that you want a fixed rate over a variable rate mortgage, you then have to determine if you want 15 or 30 years. Taking on a loan for 15 years may seem impossible to some people, while others may think that’s just the right amount of time needed to pay it off. Generally, Canadians opt for anywhere from 25 to 30 years for their mortgages, but that doesn’t mean you have to too.

Fixed rate mortgages: 15 years

With 15-year fixed rate mortgages, you have the advantage of paying off the loan faster. Once you’ve paid off your mortgage, you can focus on putting money aside for other things like your retirement, children or grandchildren’s educations, vacations, etc. You’ll also save money on interest since you’ll pay more interest over 30 years than you will over 15. For example, 4% interest on a $200,000 home is $66,288 over the course of 15 years. The same amount of interest on the same property for 30 years is $143,739. Finally, with a 15-year loan you can build up the equity in your home quicker because you’re taking less time to pay off your loan.

Fixed rate mortgages: 30 years 

For fixed rate mortgages at 30 years, you’re looking at increased time to pay back your loan. You’re also looking at a lower monthly payment but, as aforementioned, more interest to pay over the 30 years. However, when you have lower monthly mortgage payments to make, you can save more money to put towards retirement, credit card payments, etc. With a 30-year mortgage you get to keep more cash in your pockets, but you will be putting less towards your mortgage. You can also make extra mortgage payments over the course of the 30 years to reduce the balance, but watch out for prepayment penalties.

Are the monthly payment amounts really that different?

With fixed rate mortgages at 15 years, you’d think that the monthly payments would be double those of 30 years. This isn’t usually the case. Let’s use the same example as before with the $200,000 mortgage at 4% interest. The 30-year monthly payments would be about $950. The same mortgage with the same interest at 15 years would see a monthly payment of about $1,450. That’s less than double with a difference in monthly payments of approximately $500.

Which one is right for you?

When it comes to choosing a 15- or 30-year fixed rate mortgage, you must evaluate your financial situation. Sit down with your mortgage broker and lay everything on the table. Your broker can help you make the decision as to which one is right for you by reviewing your financial situation and explaining in detail what your monthly payments will be, the interest and how you can manage a 15-year vs. a 30-year loan.

source: northwoodmortgage.com

Trump and Trudeau will meet face to face for the first time

OTTAWA, Ontario — The first face to face meeting between Prime Minister Justin Trudeau and US President Trump could be the most important meeting for Canada in decades between leaders of the two neighbors.

Trudeau will be at the White House on Monday at a time many Canadians fear Trump will enact protectionist measures that could hurt their economy and worry the new president could be as combative as he was with the leaders of Mexico and Australia.

Trudeau, 45, and Trump, 70, have vastly different outlooks on the world. Trudeau is a liberal who champions global trade and has welcomed 40,000 Syrian refugees. Trump is a protectionist and his moves to restrict entry of refugees and immigrants are expected to come up Monday. But Trudeau is expected to emphasize common economic interests.

“We’re going to talk about all sorts of things we align on, like jobs and economic growth, opportunities for the middle class – the fact that millions of good jobs on both sides of our border depend on the smooth flow of goods and services across that border,” Trudeau said.

But Trudeau also said they are “going to talk about things that I’m sure we disagree on and we’ll do it in a respectful way. Canada will always stay true to the values that have made us this extraordinary country, a place of openness.”

After Trump signed the executive order pausing entries to the US from seven Muslim-majority nations, Trudeau tweeted that Canada welcomed people fleeing persecution, terrorism and war. Trudeau said “diversity is our strength.” His spokeswoman said Trudeau was looking forward discussing Canada’s immigration and refugee policy with Trump.

But Trudeau isn’t expected to poke the new president like his headstrong father, late Prime Minister Pierre Trudeau, did to previous presidents during the almost 16 years he was in office.

Tall and trim, Justin Trudeau channels the star power of his storied father but is less confrontational.

American relations are crucial for Canada as more than 75 percent of the country’s exports and 98 percent of its oil exports go to the US. About 18 percent of US exports go to Canada. There are fears Canada could be sideswiped if Trump targets Mexico in a re-negotiation of the North American Free Trade agreement.

But Wall Street tycoon and Trump adviser Stephen Schwarzman has said “things should go well for Canada” if the president reopens NAFTA because the northern neighbor has a balanced trade relationship with the United States. Schwarzman, who leads Trump’s economic advisory group, said other countries have large trade unbalances and markets that aren’t as open to American trade as Canada’s.

There’s no indication Trump views Canada as a problem or an economic adversary but Trump is unpredictable, said Roland Paris, a former senior foreign policy to Trudeau. Paris called it a very important moment in U.S.-Canada relations and said he’s cautiously optimistic the two will can have a constructive relationship focused on increasing economic ties.

“Canadians expect their prime minister to do two things: uphold Canadian values and to have an effective constructive relationship with the president of the United States. That’s a balancing act and it’s not necessarily going to be easy,” Paris said.

Canada has not been the subject of a Trump tweet but fears remain about Trump’s impulsiveness.

“We’re dealing with someone who has abused the Mexican president and the Australian prime minister,” said Robert Bothwell, a professor at the University of Toronto.

Bothwell said Trudeau should avoid confrontation considering the stakes and how delicate the situation is.

“Most American presidents have been pretty level headed. You have to go back to the monarchs of the Middle Ages or Roman Emperors. How does Nero feel today? Is his stomach acting up? What does the emperor decree?” Bothwell said. “We’re back in the Roman empire. We haven’t had anything like this.” –Rob Gillies

source: newsinfo.inquirer.net

Canadians cheering up Americans with #TellAmericaItsGreat

NEW YORK— America’s neighbors to the north — so often the butt of their jokes — are taking to social media to try to keep spirits up in the U.S. during this divisive election season.

Using the hashtag #TellAmericaItsGreat, Canadians have swamped Twitter with compliments about American music, culture, technology and even tailgating. The outpouring of love triggered a reply — #TellCanadaThanks.

It’s all an effort started by the Toronto-based ad agency The Garden Collective, which chose its hashtag as a play on Republican presidential candidate Donald J. Trump’s campaign slogan, “Make America great again.” The firm’s video launching the social media push has gotten over 752,000 YouTube views and the hashtag has been trending on Twitter for several days. Many Canadians have made their own mini-videos, too.

Dic Dickerson, managing director of the firm, called it a pet project they devised for no other reason than to just spread love. “We put it out there and I don’t think any of us expected to get as much traction as it did but we’re really, really excited by all the positivity,” he said. “A lot of people are talking, which is exactly what we wanted.”

The agency was founded about 18 months ago and usually focuses its attention on businesses. Dickerson said they’d never done anything like this.

“Every day we come in and the founders and myself and our team, we sit around and sort of talk about what’s new, what’s everybody reading, what are we looking at, and it always sort of came back to this notion of just how negative everything was about this upcoming election,” he said. “You can either pile on with the negativity or try to look at the positive side of things.”

Some of the things Canadians say they admire about the U.S. are its federal parks, its diversity, its missions to Mars, jazz and Tupac Shakur. One Canadian from Halifax on Tuesday complimented Americans for baseball, “The Catcher in the Rye” and first lady Michelle Obama.

Canadians, who have long been mocked by their southern neighbors for their accents (“aboot”), their creation of Justin Bieber and an apparent abundance of moose, have enjoyed some good press recently, largely thanks to their telegenic new prime minister, Justin Trudeau.

Americans, meanwhile, have been in the doldrums as Trump and Hillary Clinton face accusations of running a squalid campaign for presidency, not to mention several dispiriting Hollywood breakups, including the demise of Brangelina. The land that gave the world Ryan Gosling has now proven as seemingly warm and kind as that sensitive actor in America’s time of need.

“Don’t worry neighbors, if the election goes haywire, you can all come and live up here with us, plenty of room!” wrote one Canadian on Twitter.

Only the most cynical people would suspect this, but might the cheer-up ad campaign be really a massive attempt to troll Americans? Is this just a big mocking of the Yanks? Dickerson said no.

“It’s only coming from a place of love,” he said. “We’ve kind of been joking around about it like it’s a collective group hug from your neighbors to the north. It just felt right at this moment to share the love.”

source: technology.inquirer.net

Dating website matches Canadians to Americans escaping ‘Trump horror’

A new dating site aims to ‘match’ single Canadians with single Americans who want to break free from the impending terror of a “Trump Presidency” after Republican Party Presidential nominee Donald Trump continued to storm primaries in the United States (US) presidential race.

Joe Goldman, the CEO of love matchmaking site maplematch.com, told Canadian news site Global News that the site was bombarded with heavy traffic and countless signup numbers days after its commencement.

“At this time, we are currently waitlisting users and will begin matching as soon as we are able,” Goldman said. As of this date, 4,150 have signed up for the waitlist. The dating site will soon match people from both countries.

The matchmaking company told the press that no anti-Trump organization or party funded their operations.

The topic “Move to Canada” became a sizzling topic on the internet after Trump’s hiking fame transpired due to his stance on illegal immigration. Gianna Francesca Catolico

source: technology.inquirer.net

Massive Alberta wildfire expected to burn for months

WANDERING RIVER, Alberta — The images are ones of devastation — scorched homes, virtually whole neighborhoods burned to the ground. It began to rain a little Sunday morning just south of Fort McMurray, but Canadian officials say they expect to fight the massive wildfire that has destroyed large parts of Alberta’s oil sands town for months.

There’s fear the growing wildfire could double in size and reach a major oil sands mine and even the neighboring province of Saskatchewan.

The Alberta government said the massive blaze in the province will cover more than 200,000 hectares (495,000 acres) by Sunday and continue to grow because of high temperatures, dry conditions and high winds. Chad Morrison of Alberta Wildfire said it’s not uncommon to fight such an inferno in forested areas for months.

Morrison said the fire was burning away from communities this weekend. He expected cooler temperatures and expected some rainfall Sunday, but significant rainfall is needed.

Officials had hoped to complete the mass evacuation of work camps north of Fort McMurray on Saturday. Thousands of displaced residents got a drive-by view of some of the burned-out neighborhoods as convoys continued. No deaths or injuries have been reported since the fire started last Sunday.

Notley said about 12,000 evacuees have been airlifted from oil sands mine air fields over the past two days, and about 7,000 have left in highway convoys escorted by police. She said the goal was to complete the evacuation from northern work camps by Sunday.

The fire could reach the edges of the Suncor oil sands facility, about 15 miles (25 kilometers) north of Fort McMurray. Non-essential staff have been evacuating and efforts to protect the site were underway.

Notley, however, said that the facility was highly resilient to forest fires. Oil sands mines are cleared and have no vegetation.

Morrison said the fire wasn’t expected to reach the oil sands mines north of Suncor.

The fire and mass evacuation has forced a quarter or more of Canada’s oil output offline and was expected to impact an economy already hurt by the fall in the price of oil. The Alberta oil sands have the third-largest reserves of oil in the world behind Saudi Arabia and Venezuela. Its workers largely live in Fort McMurray where some neighborhoods have been destroyed.

Police said many parts of smoke-filled Fort McMurray are burnt and visibility is low. Officers wore masks as they checked homes to make sure everyone was out.

More than 80,000 people have left Fort McMurray in the heart of Canada’ oil sands, where the fire has torched 1,600 homes and other buildings. Gas has been turned off, the power grid is damaged and water is not drinkable. Officials said there is no timeline to return residents to the city, but the Alberta government has begun preliminary planning, though it stresses fighting the fire is still the first priority.

About 25,000 evacuees moved north in the hours after Tuesday’s mandatory evacuation, where oil sands work camps that usually house employees were used to house evacuees. Officials are moving everyone south where it is safer.

Syncrude, a major oil sands mining company, also shut down operations and evacuated. The company said in a statement that while there is no imminent threat from fire, smoke has reached its Mildred Lake site.

The 200,000 hectares (494,211 acres) includes burned areas and those areas still in flames. The fire started last Sunday and has destroyed about than 2,000 square kilometers (772 miles) of northern Alberta forest.

Lac La Biche, Alberta, normally a sleepy town of 2,500 about 175 kilometers (109 miles) south of Fort McMurray, was helping thousands of evacuees, providing a place to sleep, food, donated clothes and even shelter for their pets.

Jihad Moghrabi, a spokesman for Lac La Biche County, said that 4,400 evacuees have come through The Bold Center, a sports facility in town. At the center, tables were piled with clothes, towels and other items. The center was offering three free meals a day and other services, including mental health services. A kennel housed people’s pets on site.

Philip Wylie, wife Suda and 13-month-old daughter Phaedra, were among those staying at the center after evacuating their apartment in Fort McMurray on Tuesday.

“Trees were blowing up against our vehicles,” Philip Wylie said of the caravan drive out of town. “We don’t know what we’re going to go back to, or when we can go back.”

Nicole Cormier, a photographer from Fort McMurray, is staying with family in Lac La Biche but brings neighbors that she evacuated with her to the center every day for services.

She showed cellphone photos she shot from her backyard of the advancing fire, and photos of flames on the side of the road while they were evacuating.

Cormier said she checks the security doorbell camera on her house several times a day just to see if it’s standing. For now, it is.

“It’s weird, you feel a big sigh of relief but you feel totally guilty because of what others have lost,” she said. TVJ

source: globalnation.inquirer.net

Duterte: Beheadings must stop; Roxas: Extinguish Abu Sayyaf, save captives

MANILA — Beheadings must stop.  This was the curt reaction of Davao City Mayor and presidential candidate Rodrigo Duterte on the beheading of Canadian John Ridsdel by his Abu Sayyaf kidnappers on Monday (Apr. 25).
Duterte, who was in North Cotabato, to facilitate the release of a soldier from the New People’s Army, refused to comment at length on the beheading.

“It’s too early to comment,” he said. “I’m not yet the president of the Philippines. But this has to stop,” he added.

In Negros Occidental, Liberal Party presidential candidate Mar Roxas expressed his outrage over Ridsdel’s beheading.

“The Abu Sayyaf Group must be extinguished,” he told a press conference in La Carlota City, Negros Occidental.

“I am outraged by the horrific murder of Mr. John Ridsel  at the hands of the terrorist Abu Sayyaf. The full force of the state and of the law must be applied to apprehend and bring the perpetrators to justice,” he added.

He said that since the abduction of Ridsel and the other hostages was reported, all means have been sought to free them.

“Let us double our efforts. Let us not give up hope that the others can be rescued,” he said,  as he appealed for the cooperation and support of all in this mission.

“Terrorism is bullying at its most worst  form,” he said. “Why kill a defenseless man just to make a point.”

“Terrorism preys on the weak and defenseless. Where is the courage in hurting let alone killing a defenseless person. It does not make you strong. It does not further your cause. It only leads to fear and subjugation which we know is your true purpose and we will not be cowed by that,” he said.

Roxas extended his condolences to  the family, loved ones and fellow citizens of  Ridsel.

“The terrorists Abu Sayyaf should be should be neutralized and face the immeasurable consequences of their brutality and inhumanity,” he said.

He said the 400 Abu Sayyaf members reported to have massed up on Sulu Island, should not be allowed to escape, and should be finished off.

“There is no room for the brutality exercised by the Abu Sayyaf…they must be extinguished,” he said.

The Abu Sayyaf killed Ridsdel on Monday and dumped his head on a Jolo street, Sulu.

The Abu Sayyaf is still holding another Canadian, a Filipina and a Norwegian resort manager.  SFM

source: globalnation.inquirer.net

5 Benefits Of Mortgage Insurance

Mortgage insurance is an insurance vehicle designed to protect the lender in case the owner of the mortgage is unable to pay for their monthly costs. But mortgage insurance can also work to benefit the homeowner as well. And in this latest article, our expert team highlights five of the top benefits of mortgage insurance.

1. Access to Better Interest Rates

    Because of the protection mortgage insurance offers lenders, it then allows the lending company to offer homebuyers access to better interest rates. This works to consolidate the cost of the home for the buyer.

2. Offers Access to the Marketplace for Many Buyers

    Homebuyers who are self-employed or don’t otherwise have access to steady income may also benefit from mortgage insurance. Mortgage insurance ensures that buyers outside the traditional marketplace can qualify for a low cost mortgage while keeping the lender’s interests protected.

3. Mortgage Insurance can be Transferred

    Another advantage of mortgage insurance is that it can be transferred from one property to another. This means that owners looking to purchase a new property can simply save their premiums over time and transfer their insurance to the new property. By maintaining this payment record over time, owners can show lenders they’re trustworthy, potentially limiting their future purchase costs.

4. Allows Buyers to Purchase with a Smaller Down Payment

    The use of mortgage insurance also now means that buyers with only a small down payment can enter the marketplace. Buyers can use insurance through the CMHC and will only have to pay 5% down on their property. This gives first-time buyers and others with limited resources the flexibility to enter the marketplace.

5. May Protect Buyers in Case of Job Loss

    The consistent payment of mortgage insurance premiums can help protect the homeowner in case they lose their income for a short period of time. This could be vital for Canadians with growing families, and offers a way to avoid the stress and financial hardship associated with a period of unemployment. Lenders now offer a series of insurance options to help specifically manage time when homeowners are out of work, ill or otherwise unable to pay their financing costs.

The mortgage insurance product is now offering millions of Canadians access to the wider real estate marketplace, by protecting lenders and safeguarding homes. To learn more on insurance and the benefits it provides to homeowners, contact our expert team today.

source: northwoodmortgage.com

4 Myths About Down Payments

A leading challenge preventing many buyers entering the home ownership marketplace is their misunderstanding on down payments. Many potential buyers feel that the cost of down payments is too high for their budget. This may mean they wait to purchase a property. But by analyzing down payment options, buyers may find they have more flexibility than they first thought on the road to home ownership. In this article, our expert team will highlight four myths of down payments.

Myth 1: A 20% Down Payment is Required

One of the most widely disseminated myths concerning down payments is the idea that a 20% down payment is required to complete a home purchase. This simply isn’t true. Within the current Canadian real estate marketplace, buyers can begin the purchase process with a 5% down payment on their new home. To avoid having to pay insurance fees, a 20% down payment is required, but a 5% down payment can offer many buyers the ideal path to purchasing real estate.

Myth 2: Down Payment Assistance is Only for First-Time Buyers

While there are many marketplace programs designed to help first-time buyers enter the marketplace, there are a multitude of options for all homeowners seeking assistance for their down payment. For example, many local lenders will offer cash-back down payment mortgages, through which they will pay for the 5% down payment and then offer buyers a mortgage directly, to streamline the purchase process.

Myth 3: There are no Local Programs

The Government of Canada has ensured that down payment financing programs are now available to Canadians across the country, with the goal of helping more people find their ideal home. Consider for example, Ontario, which offers residents in the province up-to $60,000 through its CalHome program. The CalHome program offers loans at a 1% interest rate, and the loan is deferred for 30 years, which means buyers are required to pay back the loan plus the interest 30 years after completing the loan paperwork.

Myth 4: It is Too Expensive to Buy in the Marketplace

A common myth in the current Canadian market is that it’s too expensive to buy a home in Canada. This is simply not true, as lenders offer a range of programs to help buyers enter the marketplace and find homes that meet their budgetary parameters. There are many unique paths to homeownership for the proactive and committed buyer.

To uncover more on the myths of down payments in Canadian real estate, contact our mortgage experts directly!

source: northwoodmortgage.com

How Student Loans Can Affect Your Mortgage Application

The latest figures show that almost $30 billion is owed by Canadian students in student debt. With many people going back to school in their adult years, this increasing level of student debt brings with it numerous challenges for the average Canadian student. This is clear when examining how student loans can impact your ability to buy or sell a home. And so within this article, we’ll look at how student loans might impact a buyer during their mortgage application process.

Your Debt to Income Ratio

When buying a home, your lender will calculate your debt to income ratio by adding up your monthly payments, along with your expected mortgage, and dividing the total by your monthly income. To qualify for a loan with most companies, your debt-to-income level should be less than 43%. For those with a $20,000 student loan looking to buy a house for $300,000 or more, this debt-to-income ratio could prevent lender approval.

You May Need a Higher Down Payment

In order to decrease their mortgage amount, and thus the amount they’ll be comparing with their income, buyers might consider using a higher down payment for their property. This might mean waiting a little longer to buy their dream home or selling another asset such as a business or a vehicle in order to increase their down payment amount.

Options to Decrease Mortgage Application Challenges

While student debt can have a significant impact on the mortgage application process, buyers do have numerous options available to help overcome these challenges. Let’s look at several steps buyers can take to mitigate the impact student debt has on their mortgage application:

• Consolidate Loans Into One

For those with numerous loans in addition to their student loan, such as a credit card, it can help to consolidate the loan into one loan repayment. This can reduce the overall cost thereby reducing the debt to income level for the mortgage applicant.

• Choose a Longer-Term Mortgage

Another way a person with student debt can reduce their long-term debt to income ratios is to choose a longer mortgage term. This will provide a longer period to pay off the mortgage, thereby decreasing month-to-month costs.

It’s important not to let student debt prevent you from moving forward on your home purchase! There are multiple avenues towards buying a new home for those with student debt. To learn more, speak with our trusted experts directly today.

source: northwoodmortgage.com

4 Tips To Pay Off Your Debt Faster

Debt can have a significant impact on a person’s lifestyle and stress levels. It can become a cloud that prevents them from achieving their dreams and reaching their long-term objectives. But for those currently struggling with debt problems, there are multiple fast debt relief options available. In this latest post, our team highlights four tips to pay off your debt faster.

1. Pay More on High Interest Debt
Tackling the debt with the highest interest rates is the best way to make significant progress in relieving debt. This means that those debts to multiple institutions should review the debt with the highest accumulating interest rate and place their available capital into this debt first and foremost. Because the highest interest rate accumulates the fastest, focusing on this accruing debt first will help prevent further financial issues.


2. Evaluate Your Vehicle Choices
One of the leading reasons Canadians take on debt is to pay for vehicles and vehicle repair. These two expensive items in the average family’s annual expenditures can lead to significant debt levels. Families with multiple cars should consider their public transit options. Is there a bus route for traveling to the office? Is the extra vehicle costing more in insurance that its true value on a weekly basis? By reviewing their vehicle choices carefully, families can cut their expenditures significantly.


3. Become a Part of the 5-to-9 Generation
The 5-to-9 trend has seen a growing number of people take additional part time work between the hours of 5pm and 9pm. Whether they use the time to work at a local retail location or to pursue a paid position within their field, it’s a great way to alleviate debt problems. By simply earning a few hundred dollars a month outside of regular working hours, those in financial strife can use the money to cut down on their long-term debt.


4. Track Spending
Tracking spending is vital when attempting to enhance the family’s financial position. It’s important that each meal out is catalogued, grocery lists are analyzed and amended, utilities and cable bills reviewed carefully. Many people are astounded at the amount of money they’ve been spending when they look at their expenditures more closely. By simply tracking spending and using money only for the essentials, debt can be quickly eliminated.

Eliminating debt is not a short-term, one step process. It’s a process that requires a long-term commitment and a clear-headed approach. By following the tips in this article, families can quickly begin to reduce the debt levels and start on the road to assured financial freedom. To learn more, speak with our experts!

source: northwoodmortgage.com

What Options do Brokers Offer that Banks Don’t?

Brokers versus Lenders

A broker’s job is not just to provide a mortgage; it is to find the best possible mortgage for a client’s situation among multiple lenders.

A good broker will shop around between many different banks and credit unions to find the best mortgage product for the client. This is a fundamentally different service from banks or other lenders.

While a broker’s purpose is to find the best mortgage for a client, a bank’s purpose is to sell the client on the bank’s products.

Advantages of Going through a Broker

Mortgages are complicated affairs with many hidden costs. Many first-time home buyers choose mortgages strictly based on rates. However, they end up getting fleeced by fees, pay restrictions, and refinance policies.

This is especially true for people with variable income or bad credit, who need more flexible mortgage options. A broker can help find a mortgage product specifically designed for any needs.

Best of all, a mortgage broker has a good understanding of value, and can find the best new offers from a variety of lenders. Every time a new mortgage product is rolled out by a lender, brokers across the country analyze and evaluate its value for their clients.

Additional Options through a Broker

Specifically, the options provided by a broker, as opposed to a bank, include:

    Choice between different lenders
    Negotiation of rates with lenders
    Neutral consultations and assessments

Rising Popularity of Brokers

The recession may be over, but capital is still tight. Bank rates have continued to increase for the past few years. CRBC and TD in particular have both hiked their rates across the board. This has made homeownership very difficult for many Canadians.

The good news is that many brokers can still find the deals among the rising rates.

Lesser-known monolines, or dedicated mortgage lenders, have tried to gain an advantage over the big banks by providing lower rates. It’s difficult for laypeople to find the right monoline for them, but brokers have the skills to find monoclines with both lower rates and appropriate terms.

The public is noticing the better mortgages obtained by brokers. Brokers now account for about one third of new mortgages. Among people who have already gone through the mortgage process with a bank, most choose to refinance using a mortgage broker.

source: northwoodmortgage.com

Canada approves Burger King's bid for Tim Hortons

OTTAWA – Canada's government approved Burger King Worldwide's C$12.64 billion ($11.10 billion) takeover of coffee-and-doughnut chain Tim Hortons Inc., which will create a new company based north of the border.

Burger King had agreed to buy the iconic Canadian company in August in a transaction that would create the world's third-largest fast-food restaurant group, but the cash-and-stock deal was subject to approval by regulators.

"The result of this transaction is this new global company... which will now be based in Canada," Industry Minister James Moore said in a statement.

"Our government is pleased to see companies like Burger King investing in Canada's economy and looking to benefit from our low taxes and open markets."

Moore said that after a review of the deal, Burger King had agreed to a number of commitments, including setting up the headquarters in Oakville, Ontario, and listing the company on the Toronto Stock Exchange.

Tim Hortons will be managed as a distinct brand, and at least half of the members of the brand's board will be Canadians.

Burger King has also agreed to expand Tim Hortons by opening new restaurants at a significantly greater pace than currently planned both in the United States and globally.

Canada's Competition Bureau gave its stamp of approval to the deal in October. – Reuters