Low rates, high flexibilitySpring 2015 an ideal time for renewal

MORTGAGESTHE GLOBE AND MAIL FR IDAY , APR IL 24 , 20 1 5 SECTION M

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The barbecue grills are out, lawnmowers have been dustedoff, and snow tires have been

swapped for all-season radials. Formany Canadians, the arrival of springmeans it’s time to start making plansfor the warm days ahead.There’s something else on theminds

of many Canadians these days: theirmortgage. According to a recent surveyby RBC, about a third of mortgageholders in the country have alreadystarted thinking about renewing theirmortgage. Among this group, almosthalf think about this subjectmore thansix months before their mortgagerenewal date, and about the samepercentage actually know the exactdate for their mortgage renewal.“Canadian homeowners tend to

have a high awareness of their mort-gage,” says Erica Nielsen, vice presi-dent, products and segments, homeequity financing at RBC. “For mostCanadians, their home represents theirbiggest investment, so theywant to bevery active in planning andmaking theright choices with this investment.”While renewing a mortgage can be

as quick and easy as coming into thebank to sign some papers, mortgageholders should take the time to reviewtheir life plan so they can choose amortgage arrangement that alignswith their goals, says Ms. Nielsen.“Think about what you expect to

happen in your life over the nextthree to five years,” she says. “Do youanticipate that you’re going to stay inyour current home, or are you likelyto move? If you plan to stay, is therea chance you’ll be renovating? As youthink about mortgage renewal, it’simportant to consider the factors thatmight impact your mortgage.”The outcome of this life plan review,

says Ms. Nielsen, will help mortgageholders determine the renewal termsthat suit them best. For example,a couple whose children have allrecently left to go to college or univer-sity may select a shorter-term mort-gage if they are thinking of downsizingtheir home.

Mortgage holders shouldn’t waituntil their mortgage maturity datebefore visiting their bank to discussrenewal options, says Barry Gollom,vice president, mortgages and lendingat CIBC. He notes that most lendersprovide an early renewal window.CIBC clients, for instance, can renewas much as five months prior to theirmortgagematurity datewithout facinga prepayment fee.Ideally, says Mr. Gollom, clients

should be reviewing their mortgageonce a year with their financial advisertomake sure it still works for them andso they have a clear sense of whatactions they need to take as theirmortgage maturity date approaches.“If you have unsecured debt with a

potentially higher rate of interest, thenhave a conversation with your adviserabout whether or not you should con-solidate that debt with your mortgageat time of renewal,” says Mr. Gollom.

Dream homes mean added complexity,higher stakes

PLANNING

They’re the stuff of glamorousmagazines spreads and viralonline listings – sumptuous

houses and condos in Canada’s mostdesirable neighbourhoods. But whatdoes it take to become an owner of aluxury home?A recent Sotheby’s report put the

typical price range of luxury propertyat $2.5-million in Vancouver, $1.4-mil-lion in Calgary, $2.4-million in Torontoand $1.5-million to $2-million in Mon-treal. And a growing number of buyersare looking to invest. Luxury homes

This content was produced by RandallAnthony Communications, in partnership

with The Globe and Mail’s advertisingdepartment. The Globe’s editorial depart-

ment was not involved in its creation.

Online? Visit globeandmail.com/adv/springmortgagespecial for more information.

A proactive approach to renewing your mortgage makes it possible to alignyour financing with your goals.ISTOCKPHOTO.COM

It’s especially important for luxury homebuyers to have advisers in place to help integrate the broader tax, legal andestate impact with their overall financial plan. ISTOCKPHOTO.COM

Source: 2015 Genworth Canada First-Time Homeownership Survey conducted by Environics Research. Image: Genworth Canada

are being swept up by professionals,expats and new Canadians, to namea few, says David Kuo, head of branchnetwork-Ontario, HSBC Bank Canada.Even successful baby boomers aretrading up, selling family homes thathave increased significantly in valueand looking for something moreluxurious for retirement.HSBC’s 2014 Expat Explorer Report

found that Canada “takes the crown”as the world’s most popular destina-tion for retirees, with the proportionof retired expats here almost three

times the global average (31 per centcompared with 11 per cent globally)and compared to the 26 per cent whochoose to reside in the United States.A luxury home is a dream-come-

true for many, but buying a home inthe multimillion-dollar range meansthat the complexity is greater andthe stakes are higher. It’s especiallyimportant for homebuyers in thismarket to be clear on the impact oftaxes and other closing costs, and toensure that they have advisers in placeto help integrate the broader tax, legaland estate impact with their overallfinancial plan.While there is no tax specific to

luxury homes, all homebuyers pay aone-time land transfer tax upon pur-chase, says Jafar Hussain, a charteredprofessional accountant with Century21 Active Realty in Toronto. Homeown-ers have to pay capital gains tax on anynet increase in value if the home is nottheir primary residence, a gain that canbe significant in this market sector.Homebuyers who are not Canadian

residents may also be subject to awithholding tax of 25 per cent or apercentage mandated by tax treatywith the resident’s home country, saysMr. Hussain.

DATA

Canadians increasinglyopting for peace ofmind when it comes totheir mortgage: CIBC

A new CIBC survey finds Canadiansnot banking on further rate cuts andelecting to lock in the benefits of afixed-rate mortgage

Highlights of the poll include:

57 per centof Canadians would choose afixed-rate mortgage if they wereto acquire, refinance or renew amortgage today

30 per centwould pick a variable-ratemortgage

11 per centwere undecided between fixed andvariable, down from 19 per cent in2014 and 25 per cent in 2011

44 per centexpect higher mortgage rates nextyear, down from 47 per cent lastyear and 61 per cent in 2011

42 per centexpect rates to stay the same in thenext 12 months

9 per centbelieve rates will be lower in thenext 12 months

“That decision can have a materialimpact on your cash flow and allowyou to put more money into an RRSP,RESP or TFSA.”An impending mortgage renewal is

also a good time to explore the rangeof options offered by various provid-ers, says Angela Calla, a licensedmortgage professional at Domin-ion Lending Centres, which helpshomeowners find the best mortgageoffered by Canada’s largest banks,credit unions, trust companies andother financial institutions. She notesthat licensed or accredited mortgageprofessionals are required by law topresent the best mortgage optionsto their clients.Ms. Calla cautions against making

mortgage renewal decisions basedsolely on interest rates, especiallywhen there’s a possibility that themortgage will need to be modifiedpartway through the term, due to ahost of reasons ranging from a reloca-tion, change in health or income, ora change in the interest rate market.“Fixed-rate mortgages generally

incur the highest penalties for futuremodifications,” she says. “Now somelenders are changing their terms toinclude high exit fees on variables.”Waiting until the last minute – or

even past thematurity date – tomakea decision about mortgage renewal isnot a good idea, she says. Most lend-ers will automatically put mortgagesthat have not been renewed into asix-month closed mortgage, “andyour payments can suddenly triple,”says Ms. Calla.“That creates pressure for you to

sign something quickly,” she says.“The sooner you start thinking aboutyourmortgage renewal – fourmonthsis ample time – and exploring all theoptions available to you, the better.”

When financing a home in this pricerange, it’s important to build a strongrelationship with your lender, says Mr.Kuo. “When you’re securing financingfor a luxury home, you’re typicallyborrowing a higher amount comparedto the average mortgage consumer.The qualification process becomesmore about your overall wealth, soit’s less transactional and more rela-tionship-focused.”This relationship can also help

homeowners down the line if theyneed to make changes to their origi-nal plan, and can provide access topreferred pricing options, he says.“If you do need to make changes toyour plan, it is a lot more convenientbecause you don’t have to start over –you can carry on from that pre-existingrelationship.”He advises potential luxury home-

buyers to connect with a bank that isexperienced in dealingwith an affluentcustomer base and with luxury homefinancing, and suggests consideringa mortgage or financing product thatoffers flexibility.For the bank, understanding the cli-

ent’s overall needs is crucial to creatinga plan that works for his or her needs,now and in the future, says Mr. Kuo.

Renovate to suit with purchase-plus. M 2

The benefits of professional advice. M 3

Canada’s first-time homebuyers. M 4

INSIDE

“When you’re securingfinancing for a luxury home...[the] qualification processbecomes more about youroverall wealth, so it’s lesstransactional and morerelationship- focused.”David Kuois head of branch network-Ontario,HSBC Bank Canada

Our very first homeThree-quarters of first-time buyers(FTBs) in 2015 are millenials(34 years old or less). Theyare finacially fit, well informed andeager to get into theirfirst homes. HERE ARE SOMEFACTS ABOUT FTBS IN 2015...

80%of FTBs were born in Canada,and the rest are coming from:

2% Western Europe1% Africa4% South Asia6% China/Taiwan7% Other

See more on page M 3...

75% wererenters

12% immigratedto Canada in

the last decade

89% havepost-secondary

education

62% boughtwith partner/

spouse

2%

1%4%

6%

Well-planned renovations transform “meh”into “It’s perfect”

When a friend told Lorne andMarnie Ingramabout an apart-ment for sale within steps of

Vancouver’s Stanley Park, theydecidedto takea look–even though it hadnoneof the ‘must-haves’ on their list. Builtin 1948, it needed a new kitchen andbathroom to make it livable – someof the appliances didn’t work, and theoriginal bathtub was held togetherwith putty.But the couple fell hard for the spa-

cious rooms and the windows thatopened onto blossoming cherry trees.“With just two months between clos-ing and the day we had to move in,it seemed more than a little crazy totake on a home that needed extensiverenovation,” saysMs. Ingram. “But wehad to try – it was easy to see what itcould become.”A recommendation from their realtor

led them to Pacific Solutions Contract-ing, a firm that hasmade itsmarkon thecity’s restaurant scenewitheye-catchinginteriors at hotspots such asNook,Meat& Bread, Tacofino and Cinara. “Hiringa great residential contractor that is

also experienced with commercialdeadlines – where delays of even afew days can cost a business hundredsof thousands of dollars – made all thedifference,” saysMs. Ingram. “Wewereso fortunate.”Even with careful attention to detail

and custombuilt-ins in theoffice and liv-ing room, the renovationwascompletedon time andonbudget. “I’m sogladwedidn’t let our misgivings stand in ourway,” saysMs. Ingram. “The apartmentis absolutely perfect for us now, and itwas well within our budget, even withthe renovations.”As long as your renovation costs are

within your overall home purchasebudget, remodelling before move-incan make great sense from a financingperspective, says Brandon Scott, anEdmonton-based accreditedmortgageprofessionalwithBenchmarkMortgages.Homeowners who decide to wait to

renovate until they’ve settled in andbuilt some equity in their home mayfind themselves waiting longer thanexpected because of the most recentregulatory changes, he points out.

“You’re only allowed to refinance upto a maximum of 80 per cent of thehome’s value, compared to amaximumof 95 per cent financing of the originalpurchase price.”Thatmeans that, with a home valued

at $400,000, themortgagewould haveto be down paid down to $280,000before an additional $40,000 refinancewould be considered, he explains.“Purchase-plus” mortgages that in-

clude renovation financing have ad-ditional qualifying requirements, soit’s important to allow adequate timeand get professional advice, says Mr.Scott. “It’s always a good idea to talk toamortgagebrokeror financial adviser inorder to helpmake sense of the financ-ing options in advance.”He also advises taking improvement

plans toahomeappraiserbeforegettingstarted. “We’re inundated with homeshows that imply that any amountof money we put into our home willequate to an equal increase in thehome’s value – but youwant tomakesure you’re not over-improving a homefor the neighbourhood.”

M 2 • SPONSOR CONTENT THE GLOBE AND MAIL • FR IDAY , APR IL 24 , 20 1 5

MORTGAGES

UPGRADESADVICE

We asked experts BrandonNobbs and Darren Elliott ofPacific Solutions Contractingin Vancouver aboutthe five most common wayshomeowners blow theirbudget and timeline.

Here’s what they told us:

1: Start the job before youknow exactly what youwant. One of the most im-

portant parts of a project is the prepwork that goes into its planning. Ifyou’re still trying tomake up yourmind or waiting for materials tocome in when the project is in fullswing, you’re losing time. Whenyou know exactly what you wantand everything is pre-ordered,there’s nowaiting – and no chang-ing things halfway through.

2:Don’t communicate withyour contractor to stay ontop of the budget. A lot

of people can visualize what theywant but don’t understand theprocess that’s involved in gettingto that end goal. Communicationbetween the client and the contrac-tor is hugely important, becausethere are oftenmore cost-effectiveways to achieve a similar end result.You may be looking on Houzz orPinterest and seeing great thingsthat are also expensive – bywork-ing together, we can often find asolution that looks similar but costssignificantly less.

3: Break the budget withthose “small finishingtouches.” As the renova-

tion’s going on, homeowners canget excited and start shoppingwithout keeping track of the bud-get or communicating with theircontractor. It may be only $100here and $200 there, but it’s soeasy to get carried away. The nextthing you know, the overall cost ofyour renovation has skyrocketed.

4:Don’t start with a com-prehensive budget.When budgeting for a

kitchen reno, for example, it’srelatively easy to add up the cost ofcabinets, appliances, countertopsand flooring. Butmany homeown-ers forget to also include the costof hardware, adhesives and othermaterials required to do the instal-lation, as well as the labour costs.Remember too that buying the

cheapestmaterials can sometimesmultiply labour costs because es-sential parts aren’t included or theinstallation is more complicated.

5:Manage the project your-self. Experienced contrac-tors have built loyal rela-

tionships with suppliers and withskilled, reliable tradespeople. Fortradespeople, there is an evengreater sense of pride in theirwork, because they’re workingwith professionals they’llworkwithagain and again in future.We were recently asked to do

some carpentry for someonewhohad decided tomanage his kitchenrenovation project himself in orderto save somemoney. But becausehe didn’t have those relationshipsand supplier discounts, it tookweeks longer than it had to andcaused hima lot of stress – and thefinal costwas essentially the same.

Renovating on a tighttimeline? Don’t makethese mistakes

“Purchase-plus” mortgages can make it possible to transform a home to suit your needs, before you move in. PACIFIC SOLUTIONS CONTRACTING, GREG GEIPEL

SUPPLIED“We’re inundated withhome shows that implythat any amount of mon-ey we put into our homewill equate to an equalincrease in the home’svalue – but you wantto make sure you’re notover-improving a homefor the neighbourhood.”

Brandon Scottis a mortgage professional withBenchmark Mortgages

THE GLOBE AND MAIL • FR IDAY , APR IL 24 , 20 1 5 SPONSOR CONTENT • M 3

Don’t buy a home alone – a mortgage professional can help

Jim Murphy, AMP, President andCEO of the Canadian Associationof Accredited MortgageProfessionals (CAAMP),answers questions aboutmortgage brokers and theservices they offer

What are the benefits of using theservices of a mortgage professionalwhen buying a home or renewing amortgage?Mortgage brokers offer expertise toassist with the biggest financial deci-sions most Canadians will make intheir lifetime.They’re educatedandknowledgeable

about the various mortgage productsand rates, as well as the issues andtrends that may affect you and yourmortgage over the longer term.Once a mortgage broker sits down

with you in order to fully understandyour income, type of work and totalassets, as well as whether you’re newto Canada or self-employed, they’reable to then negotiate on your behalfwithmultiple lenders– includingbanks,credit unions and trust companies – toensure you are matched with the bestproduct to meet your specific needs.And it’s a service that is generally

free to the homeowner. In the vastmajority of cases,mortgage brokers inCanada – including AMPs – are paid bythe lender once they successfully placeyourmortgage. So it’s in a broker’s bestinterest to ensure you receive the bestpossible mortgage product and rate,tailored to your unique requirements.

What distinguishes Accredited Mort-gage Professionals, or AMPs?The AMP is a designation granted byCAAMP – the mortgage brokeringindustry’s national association – tomortgage brokers who have been inthe industry for at least two years,have taken additional courses and

have passed a national proficiencyexam. Recently, CAAMP undertookmeasures to strengthen thedesignationby enforcing more stringent require-ments for qualifying and renewing.This ensures that those who obtainthe designation have met the higheststandard of education and ethics in theCanadian mortgage industry.

When is the right time to connect witha mortgage professional?It’s never too early, especially if youare a first-time homebuyer. If you’rethinking about buying a home, youwant to know the mortgage amountfor which you qualify before you head

out on your search. That way, you canlook at optionswithin your budget andavoid the disappointment of becomingattached to a home that’s beyond yourfinancial means.If you don’t have a mortgage broker

yet, youcanvisitwww.caamp.org to findamember in your community throughour online directory – or talk to family,friends and other referral sources.

Is there anything else homebuyersshould keep in mind when looking fora mortgage professional?If youdon’t understand somethingyourmortgage professional has explainedto you, be sure to ask questions until

you feel comfortable. And althoughrate is important, there aremany otherquestions that are just as importantwhen it pertains to your mortgage.Are there penalties for breaking themortgage early?What are the prepay-ment options?Also, there is no substitute for being

prepared. Educate yourself and getthe facts you need to make the rightmortgage decision and increase yourhome-buying confidence. Althoughbuying a home is a sound investmentidea, it is critical to understand whathomeownership entails. Understand-ing each step of the home-buyingprocess is key to ensuring you willmake a wise decision that suits youremotional needs and your financialsituation.

Should borrowers stay in touch withtheir mortgage professional after themortgage is finalized?CAAMP research shows that homeown-ers like to hear from their mortgageprofessional five or six times a year.That may include a spring, fall andwinter newsletter with basic tips aboutspring cleaning or homemaintenance.There are always things going onwiththe Bank of Canada, the real estatemarket and the government thatmay affect a homeowner, depend-ing on what type of mortgage theyhave. Because a home is usually yourlargest financial investment, it’s wiseto stay on top of that activity, and amortgage professional can help keepyou informed about your mortgageoptions throughout the home-buyingprocess and beyond.

INTERVIEW

Visit globeandmail.com/adv/springmortgagespecial

DATA

In 2014, the share of outstand-ing mortgages that were placedthrough the broker channelreached its highest point sincewe began measuring:

30 per centof outstanding mortgages wereobtained through a broker (55%were placed through a bank).

67 per cent(up 10% from last year) cited thetop reason to consult a mortgagebroker as “to get the best rate.”

Just 1 in 10broker customers choose ONLYrate as the reason for choosingbrokers, showing that most cus-tomers are looking for brokers toprovide a variety of benefits overthe direct-to-bank channel.

Of first-time homebuyers,

73 per centrated mortgage brokers/spe-cialists as important sources formortgage info (31% consulteda broker and 66% consulted alender’s specialist).

Past mortgage broker custom-ers are

44 per centmore likely than average to bein the housing market in thenext year.

Homebuyers average a

20 per centdown payment, and nearly

80 per centof Canadians say they could haveafforded a larger down payment.

Mortgage brokers will negotiate on your behalf with multiple lenders to ensure you receive a mortgage tailored toyour unique requirements. SUPPLIED

In the vast majority ofcases, mortgage brokers inCanada – including AMPs– are paid by the lenderonce they successfullyplace your mortgage.

Source: 2015 Genworth Canada First-Time Homeownership Survey conducted by Environics Research. Image: Genworth Canada

HERE’S WHAT FIRST-TIME BUYERS AREBUYING ACROSS THE COUNTRY:

Detached House

Townhouse

Condominium

See more on page M 5...Median Cost: $420K Median Cost: $370K Median Cost: $425K Median Cost: $250K Median Cost: $185K

Vancou

ver

Atlant

ic

Mon

tréal

Toront

o

Calgar

y

25% 49% 28% 26% 71%47% 24% 39% 40% 5%

24% 20% 19% 12% 7%

M 4 • SPONSOR CONTENT THE GLOBE AND MAIL • FR IDAY , APR IL 24 , 20 1 5

MORTGAGES

There are often a lot of different spotsin a budget where it’s possible to lookand say, “I can save somemoney here,and I can save some money there.”It’s also wise to set up a pre-autho-

rized contribution, putting aside aset amount of money into a separatedown-payment account each month.We have a great tool on our website

called the Money Finder Calculator. It’sa way to see how those small savingstranslate intoa largerpoolof fundsdownthe road. It canhelp first-timehomebuy-ers visualize how easy it is to get there,what their time frame is, andwhat theyneed to do to achieve their goal.

2:KNOWHOWMUCHHOMEYOUCAN AFFORDWorking with a financial ad-

viser to develop an overall plan ensuresthat you’re making a fully informeddecision about your home purchase,and eliminates some of the anxiety.We have a lot of online tools to helphomebuyers, and one of them – the

Buying your first home? Focus on these five key steps

Research showspotential first-time buyersproceeding withcaution

Buying a first home can be anoverwhelming experience, saysJanet Boyle, the newly appointedvice president of Real EstateSecured Lending at Scotiabank.“It’s exciting and it’s scary,wrapped up together.”She provides five key steps thatcan make the process easier andhelp achieve a positive outcome.

1:UP YOUR SAVINGS GAMESaving for a downpayment is anessential first step, and a financial

adviser can help you create a financialplan and find ways to save money.

What can I afford? tool – is designedto answer the question of affordability.It asks for information around incomeand other factors, and can help providea sense of themortgage for which youcould qualify.

3:GET PRE-APPROVED BEFOREYOU MAKE THAT OFFERWhile it’s helpful to have a

rough idea of what you might qualifyfor in a mortgage, we also encour-age first-time homebuyers to geta pre-approval before starting theirhome search, so that they’re awareof what their goalposts are aroundaffordability.It helps ensure you don’t get into a

situation where you feel stretched –we provide a realistic plan as to whatyou can afford when you’re out therelooking for a home.

4:UNDERSTAND YOUROPTIONSThere is so much conversa-

tion out there aroundmortgage rates,and rate is obviously very important.But it is just as important to considermortgage features and flexibility. First-time homebuyers typically focus onthe rate and payment schedule, butit’s really crucial that you also con-sider other important options, suchas prepayment schedules.Are you going to be able to make

an extra payment or two during theyear?With certain products, that’s notallowed – and prepayment can shaveyears off your mortgage.Is the mortgage portable? One of

the things we know is that first-timehomebuyers often start to think aboutmaking a change after two or threeyears, maybe upsizing, downsizingor moving. Being able to move themortgagewith you to your next homeis an essential point of discussion.

5: BUILD YOUR TEAMA home is the biggest pur-chase most of us will make

in our lifetime, so you want to makesure that you’re making good deci-sions, supported by qualified andknowledgeable people.It starts with your financial adviser,

so you know what you can afford.You’ll want a really solid real estateagent, someone who understandsyour needs. Get a lawyer, or a notary ifyou’re in Quebec, because you’ll needlegal assistance to close that deal.You’ll also need a home inspector, anappraiser and an insurance broker tomake sure that you’re getting insur-ance on the property.

ADVICE

REPORT

BY THE NUMBERS

The 22nd Annual RBC HomeOwn-ership Poll found that 44per cent ofCanadians who say they are likelytobuyahomewithin twoyears saythey will be first-time buyers, upfrom 40 per cent in 2014.

Of potential buyers who reportthey have not purchased a homebefore now:

50 per centsay they don’t have enough ofa down payment;

48 per centcite their income level as theirprimary concern; and

27 per centare delaying their purchasebecause of concern about per-sonal debt.

To learn more, visitrbcroyalbank.com/firsthome.

Know your options, and ask your mortgage professional how Genworth Canadacan help you realize the dream of homeownership sooner.What’s mortgage default insurance?

A conventional mortgage inCanada normally requires adown payment of at least 20per cent of the purchase price.

When homebuyers have less than20 per cent for a down payment,mortgage insurance allows themto secure a mortgage for theirhome purchase.

Tailored mortgage insuranceproducts can help youachieve the dream of home-ownership sooner and with aslittle as five per cent down.

Recent RBC research found thatthe intention to buy a home isstable, slightly up over 2014.

Among potential first-time homebuy-ers, however, “we are seeing somehesitation, largely because first-timehomebuyers are ensuring they areemotionally and financially preparedfor the leap,” says Trisha Fineza Forbes,the senior manager of Strategic Seg-ments, HomeEquity Financing at RBC.One in four Canadians plan to purchasea homewithin the next two years, and51 per cent say it makesmore sense towait until next year, according to theRBC research.The research suggests that this group

is waiting or delaying their purchasebecause of some concern around jobsecurity and income levels, makingsure they have enough of a downpayment and will be able to keep upwith the overall total cost of being ahomeowner, she explains. “One thingwe find among many homebuyers,and in particular among first-timehomebuyers, is the general fear andanxiety about homeownership.“For new buyers, it’s a new experi-

ence, and likely the biggest purchaseof their life. It can be an overwhelmingprocess. It’s clear they want to haveextra time, and need extra care andadvice as theyembarkon the journey,”says Ms. Fineza Forbes.Online research can help first-time

buyers becomementally prepared andunderstand their financial situation aswell as the impact of homeownership,she adds. “There are lots of resourcesonline, from calculators to budgettools. RBC also hosts amonthly Twitterchat to connect first-time homebuyersdirectly with the experts. They canask their questions in the comfortof their own home, which is a reallygood way to ease into the processand get answers to some of thosebig questions.”

For Quebec offer and terms and conditions, visit rbc.com/mortgagesavings. For rest of Canada – 1 Eligible mortgage applications must be started March 30 – July 3, 2015. 2 Offer limited to new 4 and 5 year fixedterm closed residential mortgages and to eligible applicants. 2 Other terms and conditions may apply. Subject to Royal Bank of Canada lending criteria for residential properties. Employee rates may be changedor withdrawn at any time. Visit rbc.com/employeemortgage for details. ®/TM Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.

TM

1-866-864-0420 or visit rbc.com/employeemortgage

EMPLOYEEMORTGAGE

PRICING

IT’S BACK! Get the same great mortgage rate as our employees, complete

with our flexible prepayment options and expert advice.

Save like an RBC® Employee.2

LIMITEDTIMEONLY1

Dr. Raouf Rafik El Batanony andhis familymoved toCanada fromEgypt two and a half years ago.

Last year, after more than two years ofrenting, they decided they were readyto buy their first home here.Both Dr. El Batanony and his wife

Sylvia were dentists in Egypt, butthey had to go through a long processinvolving many examinations beforebeing licensed to practice here. As aresult, he says, “I’d just startedworkingin Canada less than a year before westarted looking for a home.Without T4sor payroll documents,we tried applying

The family found a two-year-oldhome in Burlington, where one of Dr.El Batanony’s dentistry practices islocated, andwhich is reasonably closeto his primary practice in Brantford andhis office in Toronto.With the help of ‘SuperSue,’ as the

family calls Ms. Danychuk, they wereon their way to homeownership inCanada.“It’s like a dream home for us,”

he says. “It has everything we werelooking for: five bedrooms, beautiful,spacious, very bright – and on thestreet we wanted to be on.”

for amortgage almost everywhere andit didn’t work.”Theywere ready to give up, but their

realtor JaniceTononsuggested they firstsee Sue Danychuk, a Scotiabank homefinancing adviser based in Burlington,Ontario.“Coming to a new country and

purchasing your first home can be anexciting but overwhelming experi-ence,” says Ms. Danychuk. “When Imet the El Batanony family, I knewwecould work together to find a homefinancing solution that would be rightfor them.”

PROFILE

THE GLOBE AND MAIL • FR IDAY , APR IL 24 , 20 1 5 SPONSOR CONTENT • M 5

Visit globeandmail.com/adv/springmortgagespecial

‘SuperSue’ helps family buy their dream home in Canada

Good advice helped Raouf and Sylvia El Batanony achieve their home-buyinggoal. ISTOCKPHOTO.COM

If the right home for you hasa purchase price of $300,000,then lenders would normallyrequire you to provide a downpayment of at least $60,000.

For homebuyers, thismeans access to homeownership sooner.

With mortgageinsurance, you cansecure a mortgagewith as little as$15,000 down.

Source: Genworth Canada

Source: 2015 Genworth Canada First-Time Homeownership Survey conducted by Environics Research. Image: Genworth Canada

57%Have nottaken any

additional debt sincebuying their first home

63%of first-timebuyers

(FTBs) put a down paymentof less than 20%

One quarter of FTBs either doubled-up or made a larger, once-a-yearlump-sum payment to pay off their mortgage faster

For more details, visit

genworth.ca

13%Took ondebt to

make unanticipatedrepairs or renovations

63%

x2

® Registered trademarks of The Bank of Nova Scotia. All mortgages are subject to applicable credit approval, Scotiabank residential mortgage standards and maximum permitted loan amounts.

www.scotiabank.com/homeownership

We’ll help you makeyourself right at home.Purchasing a new home is an exciting time and, at Scotiabank, we can help you get there. With the right mortgageand invaluable advice from your Scotiabank advisor, you can start your new beginning in your new home.

Talk to us about the mortgage that’s right for you.

M 6 • SPONSOR CONTENT THE GLOBE AND MAIL • FR IDAY , APR IL 24 , 20 1 5

MORTGAGES

Lender programs designed to help newcomersbuy their first home in Canada

RESOURCES

It’s the Canadian dream, one thathas been achieved by seven outof 10 households in the country:

owning a home.For many of the 260,000 immi-

grants who arrive in Canada each year,homeownership is a major goal andmilestone in their life journey as newCanadians.“For most immigrants, owning a

house is so important; it’s almostlike saying ‘I’ve arrived; this is myland,’” says Nick Noorani, author ofthe newcomers guide book ArrivalSurvival Canada, andmanaging partnerat Destination Canada Information Inc.,a Toronto-based company that offersprograms designed to help prospectiveimmigrants prepare for life in Canada.Mr. Noorani’s advice to newcomers

looking to buy a home: Take the timeto assess what you really need, and toprepare for homeownership.Location is an important consider-

ation for all prospective homeowners.For many newcomers, it’s especiallycritical, says Mr. Noorani.“Most immigrants will choose to

buy their first home in a place wherethey have a familymember,” he notes.“But then they find another job that’sbetter suited to their skills and all of asudden they have to sell their houseand relocate somewhere that’s closerto work.”Newcomers sometimes decide on

the size of a new homewithout takinginto account how their family structuremight change over the coming years,says Mr. Noorani. They might fail toconsider, for instance, that their olderchildren could go away to universityor college, or get married in the nexttwo to five years.Mr. Noorani says he often encour-

ages new Canadians to build up somesavings before shopping for their firsthome.“As soon as you can, start putting

money away into an RRSPbecause youcan put these funds towards a downpayment for your first home,” saysMr.Noorani, referring to the HomeBuyers’Plan,which allows first-time homebuy-ers towithdraw up to $25,000 of RRSPmoney to put towards their purchase.

Christine Shisler, director, clientstrategy at RBC, says newcomerssometimes think homeownershipis out of reach for them becauserecent immigrants can’t qualify for amortgage.“Don’t assume that because you’re

new to Canada that you don’t qualify,”she says. “We have programs that aredesigned specifically to help newcom-ers manage their finances and settlein Canada.”These programs include a “welcome

to Canada” package with productssuch as a banking account with nomonthly fees for six months, avail-able to immigrants who have beenin Canada for less than three years;and an unsecured card with no credithistory required for those in Canadafor one year or less. RBC also offers

a newcomer mortgage program fornewcomers who have been in Canadafor five years or less, including thosewith no credit history.RBC isn’t the only lender with pro-

grams designed to help newcomersget into their first home in Canada.Scotiabank, for instance, has its Start-Right mortgage program for immi-grants who moved to Canada withinthe last five years. At HSBC, existingclients from abroad can have theircredit history from a previous countryof residence transferred to Canada andused for their mortgage application.For example, “If someone has just

returned to Canada after working inthe U.K. for three years and wants tobuy a new home, we recognize over-seas income as part of the qualificationfor financing,” says David Kuo, head

of branch network-Ontario for HSBCBank Canada.Building a good relationship with

your bank is important, says Ms.Shisler. She advises newcomers tocome in and sit down with their bankor account manager.“Tell us about your short- and long-

term goals so we can help you puttogether a plan,” she says. “Maybeyou’re not ready to buy a home – butif you’re wondering how to best savefor a down payment, talk to us andwe will help you.”Having a strong relationship with

your bank can also help homeown-ers maintain a comprehensive wealthmanagement strategy, so you cancontinue putting money into a sav-ings or retirement plan while payingoff your new home, says Mr. Kuo.

For newcomers, homeownership is a major goal and milestone in their life journey as new Canadians. ISTOCKPHOTO.COM

“Don’t assume that be-cause you’re new to Can-ada that you don’t qualify.We have programs thatare designed specifically tohelp newcomers managetheir finances and settle inCanada.”

Christine Shisleris director, client strategy at RBC

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