Great article from Bloomberg.net: People who chose to default typically have lost $100,000 or more in property value. Photographer: Jacob Kepler/Bloomberg
Harvey Collier, a mortgage broker in
Real estate professionals call it “buy and bail,” acquiring a new house before the buyer’s credit rating is ruined by walking away from the old one because it’s “underwater,” or worth less than the mortgage. It’s an attempt to escape payments on a home whose value may never recover while securing a new property, often at a lower price with a more affordable loan.
Yesterday a $12-million mortgage fraud was discovered by police in Calgary that involved 22 homes and eight banks.
The answer is it didn't. First-time home buyers start the search long before most even realize it.
Here's what you can expect from your home shopping experience.
You should buy a home. That's what you've been hearing from friends and family, right? So, by now you have likely already weighed the benefits and decided that home ownership was the best decision for you. That's a major hurdle now passed. You are focused and certain. Good.
Great article posted by Fiona Anderson! And with bank rates likely heading up, is a variable contract still a good idea?
Article: "With mortgage rates low and more likely to go up than down, some borrowers may want to think long and hard about whether they want a long and hard -- fixed, that is -- mortgage rate.
The variable rate is based on the lender's prime lending rate, which today is 2.75 per cent for the major banks and credit unions. The best variable rate available according to Invis -- a national brokerage company who negotiates mortgages on behalf of clients with various lenders including banks, credit unions and wholesale lenders -- is prime less 0.6 percentage points, or 2.15 per cent. But banks change their prime rate from time to time, usually whenever the Bank of Canada changes its overnight target rate, which it has done twice since the beginning of June and is expected to do again in the fall.
Read moreThings to consider: Variable rate and fixed rate mortgages both have their advantages and disadvantages. Historically speaking, homeowners tend to pay lower rates with variable mortgages, but these mortgages are also vulnerable to fluctuations because they're tied to the Bank of Canada's prime rate (which is announced eight times per year).
Read moreMortgage brokers are independent, trained professionals licensed to represent and provide you with the best advice for your mortgage needs.
Canadians were the top foreign buyers for U.S. properties from March 2009 to March 2010.
The Chicago-based National Association of Realtors released a study that showed Canadians bought 23 per cent of homes sold to citizens of other countries, as reported in The Globe and Mail. Canadians spent about $9.5 billion on U.S. real estate.
Read moreVictoria home prices during the second quarter rose, but the large inventory, particularly for condominiums, is driving prices down, a recent survey has found.
If the number of sales continues to stall in the city, along with the rest of the country, prices could level out, according to the Royal LePage House Price Survey and Market Survey Forecast released on July 7.
"Homes are generally selling below asking price, and significantly so in some condominium cases," says Carol Geurts, of Royal LePage Coast Capital Realty. "It appears prices may have reached a plateau for the moment, in that much of the price growth we expected for 2010 has already happened."
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