MCC Communicator June 2019 – Matthew Daversa – Medium
MCC Communicator June – Matthew Daversa – Medium

MCC Communicator June 2019

Welcome to the June issue of your monthly home & mortgage news offering tips to keep you in the know! Please feel free to contact me with questions or feedback regarding this issue. Thanks again for your continued support and referrals.


Matthew Daversa
I Direct Mortgages Inc. 
 281 Woodbridge Ave.,Unit 28 
 Woodbridge, Ontario L4L 0C6
 Office Licence # 10584


Whether you’ve just bought your first home or you’ve been a homeowner for years, there’s good news for you. You can feel confident you made the right decision for your long-term economic wellbeing according to the findings of a study by Mortgage Professionals Canada (MPC), the national association that represents the mortgage industry.

MPC decided to take a deep dive to compare owning versus renting and concluded homeownership is the best financial decision in the long run for most Canadians.

The cost of ownership is lower than the cost of renting for more than 75% of the 266 cases studied, which included locations and dwelling types. As of the second quarter of 2018, the monthly cost of owning was lower than the cost of renting.

The study noted however, costs of homeownership include considerable amounts of repayment of mortgage principal. This is a form of saving. When this saving is considered, the “net” or “effective” cost of homeownership is correspondingly reduced. On a net basis, the cost of ownership is lower than the cost of renting according to the study.

On average, the monthly cost of owning exceeds the cost of renting an equivalent dwelling by $541 per month. But, when the principal repayment is considered, the net cost of owning is actually $449 less than the cost of renting.

MPC’s study also found the largest element of the ownership cost (the mortgage payment) is fixed for some time, whereas the cost of renting will increase more rapidly than the cost of homeownership. The analysis projects the costs of owning and renting for 5 years and for 10 years, assuming that all of the cost components (apart from the mortgage payments) rise by 2.5% per year. The study concluded that homeownership becomes increasingly advantageous over time.

By the time a mortgage is fully repaid, the cost of owning a home will be vastly lower than the cost of renting. On average the cost of owning is projected at $1,549 per month versus $4,655 for renting equivalent dwellings over a 25-year mortgage amortization.

Getting a mortgage can be a daunting task. There is so much to know and understand including some pretty confusing language. Borrowers are often confused by mortgage terminology, so in an effort to keep you educated we welcome you to the monthly edition of Mortgage LINGO defined.

Secured and Unsecured Debt

There are two types of debt: secured and unsecured.

Unsecured debt has no collateral attached meaning it requires no security, as the name implies. If a borrower defaults on this type of debt, the lender must initiate action to collect what is owed. Unsecured loans are generally based on a borrower’s creditworthiness and the promise to repay. Lenders typically charge a higher interest rate on these types of loans.

Secured debts are those in which the borrower uses collateral, along with a promise to repay in exchange for the loan. With a secured debt, in the event of default the lender can seize the asset to repay the funds it has advanced the borrower. The most common types of secured debt are mortgages and auto loans.


1. When it’s cooler outside than inside, open your windows instead of using air conditioning. Use a window fan, blowing toward the outside, to pull cool air in through other windows and to push hot air out. When it’s hotter outside than inside, close your windows and draw window coverings against direct sunlight.

2. On hot days, delay heat-producing tasks until the cooler evening or early morning hours, such as dishwashing, baking or doing laundry.

3. Caulk around window and door frames and use weather stripping on exterior doors. Have a professional seal any gaps where air can travel between the attic and your living space.

4. Use energy-efficient lighting in your home. CFL and LED light bulbs operate cooler and cost less to use because most of their energy produces light instead of heat. Incandescent light bulbs, on the other hand, lose 90% of their energy as heat.

5. Leafy shade trees planted on the east and west sides of your home can improve comfort and decrease cooling needs by blocking heat and sunlight. You’ll still have the benefit of heat from the sun in the winter, after the leaves fall. Check with your local garden centre for recommendations.

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About The Mortgage Centre ®
The Mortgage Centre has decades of experience providing Canadians with mortgage financing through a team of nationwide independent Mortgage Centre offices. Because we are local business professionals with roots in our communities, we are dedicated to helping our clients make well informed financing decisions.

Each Mortgage Centre office is independently owned and operated. The information and any statistical data contained herein were obtained from sources that we believe to be reliable, but we do not represent that they are accurate or complete, and they should not be relied upon as such. All estimates and opinions expressed herein constitute judgments as of the date of this report and are subject to change without notice. Registered trademark of MCC Mortgage Centre Canada Inc.

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