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What you probably don’t know about renewing your mortgage – National

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Around half of Canada’s mortgages are up for renewal this year. If yours is one of them, you’d be justified for feeling blue.

As of Jan. 1, everyone getting or refinancing a mortgage has to undergo a federal mortgage stress test. That, generally, means they have to qualify for a loan with an interest rate that is higher than the rate the bank is willing to give them. If you’re renewing your existing mortgage, you can avoid the stress test — but only if you stick with your current lender, which denies the possibility to shop around for a better rate.

READ MORE: New mortgage rules 2018: A practical guide

On top of that, interest rates continue to climb, which moves the stress-test threshold higher and higher.

But things aren’t as bleak as they may look, mortgage professionals say.

WATCH: Is rent-to-own the solution if you can’t get a mortgage?






You might actually be able to renew at a lower rate

If you have a five-year fixed rate mortgage, as the vast majority of Canadian homeowners do, renewing now doesn’t mean having to switch to a higher mortgage rate. In fact, you might even be able to get a lower rate, according to financial products comparisons site Ratehub.ca.

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The best five-year fixed rate in September of 2013 was 3.29 per cent. Today, you might be able to get a five-year fixed for as low as 3.14 per cent, according to Ratehub data.

A borrower who started out in 2013 with a $400,000 amortized over 25 years would see her monthly mortgage payments drop from $1,953 over the last 5 years to $1,759, a decrease of $194.

READ MORE: Could you pass the mortgage stress test? Here’s how to find out

That’s why you should give yourself plenty of time to shop around for the best rate, according to James Laird, co-founder of Ratehub Inc. and president of CanWise Financial mortgage brokerage.

“Giving yourself a head start on comparing rates also gives you time to consider switching providers,” he said in a statement.

WATCH: Weighing the costs and benefits of reverse mortgages






You will probably pass the stress test

Changing lenders to get a lower rate isn’t in the cards for borrowers who don’t pass the stress test. But Laird said the majority of mortgage-renewal applicants won’t have to worry about that.

“At renewal a borrowers mortgage balance is lower, and it’s likely that the borrowers household income has increased as well. The majority of consumers can expect to pass the stress test at renewal,” Laird told Global News via email.

READ MORE: 3 tips that could save you thousands on your mortgage, as interest rates rise

And even for those who don’t pass the stress test, there may be at least one workaround.

“If you don’t pass the stress test simply because you have a lot of higher-interest non-mortgage debt … and you have sufficient equity in your home, refinancing may be your best play,’ said Rob McLister, founder of rate-comparisons site RateSpy.com and mortgage planner at intelliMortgage.com.

That’s because consolidating your debts into a lower-interest loan might help you “come in under the mortgage industry’s maximum debt-ratio limits,” McLister said.

An application to refinance a mortgage is also subject to the stress test, but some borrowers might be in a better position to pass the test if they refinance than if they simply renew their mortgage, according to McLister.

READ MORE: The deal hunter’s guide to getting the lowest mortgage rate

Refinancing can significantly lower your so-called total debt service ratio (TDS), which measures how much of your income goes toward covering all your monthly debt payments. For example, if you have significant credit card debt at 20 per cent interest and are able to fold that debt into your mortgage at a much lower rate, your monthly payments will shrink significantly, bring down your TDS.

Lenders also look at something called gross debt-service ratio (GDS), the percentage of your pre-tax income needed to pay your housing costs. In addition to the stress-tested (i.e. higher) monthly mortgage payment, your bank will look at the monthly cost of your property taxes or half of your condo fees and your heating costs.

READ MORE: Here’s the income you need to pass the mortgage stress test across Canada

Refinancing your mortgage will increase your mortgage payments, which will push up your GDS. But your GDS will go up much less than your TDS came down, which will likely allow you to pass the stress-test bar, McLister said.

Still, “any spare cash this creates should ideally be applied to your debt principal so you can dig out of your debt hole quicker,” he added.

WATCH: Should you save for retirement or pay down your mortgage as fast as you can?






Variable rates are looking good

Variable rates are also looking better these days than they did in 2013. The average well-qualified borrower can count on variable rates around 2.68 per cent today, compared to 2.75 per cent in September of 2018, according to data from RateSpy.

READ MORE: Here goes another interest rate hike. Time to consider variable-rate mortgages

Also, the spread between fixed and variable rates has been widening, making a floating rate a more attractive option.

“Consumers should consider a variable rate mortgage even in a rising rate environment,” Laird said. “This is particularly true for [those] who have a smaller mortgage balance and/or … who plan on paying down their mortgage rapidly.”

WATCH: How an interest rate hike affects your mortgage






You can lock in a fixed rate four months in advance

If you want to renew with a fixed rate, the bad news is that rates are likely headed nowhere but up.

“Fixed rates move with government bond yields. Right now, those yields are near a seven-year high. There’s a very good chance yields, and hence five-year fixed rates, could break out to the upside,” McLister said.

The good news, though, is that borrowers who need a mortgage within 120 days can lock in a guaranteed rate, he added.

If you’re mortgage is up in the next four months, you should lock-in “tout suite,” according to McLister.

If you’re worried about rising rates, another option is to renew your mortgage before the end of your term.

That, though, comes with a penalty, Laird noted. If you’re considering renewing early, make sure to weigh the trade off between paying those added costs and your expected savings from being able to clinch a lower rate — and note that those calculations will be based on your forecast of how much higher rates will go at your renewal rate.

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© 2018 Global News, a division of Corus Entertainment Inc.

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Anglais

Nostalgia and much more with Starburst XXXtreme

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Get a taste of adventure with Starburst XXXtreme based on the legendary NetEnt Game. The nostalgic themes are sure to capture fans of the classic version as they get treated to higher intensity, better visuals, and features. The most significant element of the game is its volatility. Patience will not be an essential virtue considering the insane gameplay, and there is a lot of win potential involved. It retains the original makeup of the previous game while adding a healthy dose of adrenaline. 

Starburst Visuals and Symbols

The game is definitely more conspicuous than before. The setting happens over a 5-reel, 3-row game grid with nine fixed win lines, which function if a succession from the left to the right reel is present. Only those players that that attain the highest win per bet line are paid. From a visual standpoint, the Starburst XXXtreme slots illustrates lightning effects behind the reels, which is not surprising as it is inherited from the original version. Available themes include Classic, Jewels, and Space. The game is also available in both desktop and mobile versions, which is advantageous for players considering the global pandemic. According to Techguide, American gamers are increasingly having more engaging gaming experiences to socialize to fill the gap of in-person interaction. Starburst XXXtreme allows them to fill the social void at a time when there is so much time to be had indoors. 

Starburst XXXTreme Features

Players get to alternate on three features which are Starburst Wilds, XXXtreme Spins, and Random Wilds. The first appears on reels 2,3, or 4. When these land, they expand to cover all positions while also calculating the wins. They are also locked for a respin. If a new one hits, it also becomes locked while awarding another respin. Starburst XXXtreme offers a choice between two scenarios for a higher stake. In one scenario with a ten times stake, the Starburst Wild is set on random on reels 2,3, or 4, and a multiplier starts the respin. The second scenario, which has a 95 times stake, starts with two guaranteed starburst wilds on reels 2,3, or 4. it also plays out using respin game sequence and features. The game also increases the potential with the Random Wilds feature to add Starburst Wilds to a vacant reel at the end of a spin. Every Starburst Wild gives a random multiplier with potential wins of x2, x3, x5, x10, x25, x50, x100, or even x150.

The new feature is sure to be a big hit with the gaming market as online gambling has shown significant growth during the lockdown. AdAge indicates the current casino customer base is an estimated one in five Americans, so Starburst XXXtreme’s additional features will achieve considerable popularity. 

What We Think About The Game

The gambling market has continued to diversify post-pandemic, so it is one of the most opportune times to release an online casino-based game. Thankfully Starburst XXXtreme features eye-catching visuals, including the jewels and space themes. These attract audience participation and make the gameplay inviting. The game also has a nostalgic edge. The previous NetEnt iteration featured similar visuals and gameplay, so the audience has some familiarity with it. The producers have revamped this version by tweaking the features to improve the volatility and engagement. 

That is characterized by the potential win cap of 200,000 times the bet. Starburst XXXtreme does not just give betting alternatives for players that want to go big. The increase of multipliers also provides a great experience. If the respins in the previous version were great, knowing that multipliers can go hundreds of times overtakes the game to a new level. 

Players should get excited about this offering. All of the features can be triggered within a single spin. Whether one plays the standard game or takes the XXXtreme spin route, it is possible to activate all of the features. Of course, the potential 200,000 times potential is a huge carrot. However, the bet size is probably going to be restricted and vary depending on the casino. It is also worth pointing out that a malfunction during the gameplay will void all of the payouts and progress. Overall, the game itself has been designed to provide a capped win of 200,000 times the original bet. 

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Anglais

‘We’re back’: Montreal festival promoters happy to return but looking to next year

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In downtown Montreal, it’s festival season.

In the city’s entertainment district, a musical act was conducting a sound check on stage Friday evening — the second day of the French-language version of the renowned Just For Laughs comedy festival. Tickets for many of the festival’s free outdoor shows — limited by COVID-19 regulations — were sold out.

Two blocks away, more than 100 people were watching an acoustic performance by the Isaac Neto Trio — part of the last weekend of the Festival International Nuits d’Afrique, a celebration of music from the African continent and the African diaspora.

With COVID-19 restrictions continuing to limit capacity, festival organizers say they’re glad to be back but looking forward to next year when they hope border restrictions and capacity limits won’t affect their plans.

Charles Décarie, Just For Laughs’ CEO and president, said this is a “transition year.”

“Even though we have major constraints from the public health group in Montreal, we’ve managed to design a festival that can navigate through those constraints,” Décarie said.

The French-language Juste pour rire festival began on July 15 and is followed by the English-language festival until July 31.

When planning began in February and March, Décarie said, organizers came up with a variety of scenarios for different crowd sizes, ranging from no spectators to 50 per cent of usual capacity.

“You’ve got to build scenarios,” he said. “You do have to plan a little bit more than usual because you have to have alternatives.”

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MELS new major movie studio to be built in Montreal

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MONTREAL — MELS Studios will build a new film studio in Montreal, filling some of the gap in supply to meet the demand of Hollywood productions.

MELS president Martin Carrier said on Friday that MELS 4 studio construction will begin « as soon as possible », either in the fall or winter of next year. The studio could host productions as early as spring 2023.

The total investment for the project is $76 million, with the Quebec government contributing a $25 million loan. The project will create 110 jobs, according to the company.

The TVA Group subsidiary’s project will enable it to stand out « even more » internationally, according to Quebecor president and CEO Pierre Karl Péladeau. In the past, MELS Studios has hosted several major productions, including chapters of the X-Men franchise. The next Transformers movie is shooting this summer in Montreal.

Péladeau insisted that local cultural productions would also benefit from the new facility, adding that the studio ensures foreign revenues and to showcase talent and maintain an industry of Quebec producers.

STUDIO SHORTAGE

The film industry is cramped in Montreal.

According to a report published last May by the Bureau du cinéma et de la télévision du Québec (BCTQ), there is a shortage of nearly 400,000 square feet of studio space.

With the addition of MELS 4, which will be 160,000 square feet, the company is filling part of the gap.

Carrier admitted that he has had to turn down contracts because of the lack of space, representing missed opportunities of « tens of millions of dollars, not only for MELS, but also for the Quebec economy. »

« Montreal’s expertise is in high demand, » said Montreal Mayor Valérie Plante, who was present at the announcement.

She said she received great testimonials from « Netflix, Disney, HBO and company » during an economic mission to Los Angeles in 2019.

« What stands out is that they love Montreal because of its expertise, knowledge and beauty. We need more space, like MELS 4, » she said.

There is still not enough capacity in Quebec, acknowledged Minister of Finance, the Economy and Innovation Eric Girard.

« It is certain that the government is concerned about fairness and balance, so if other requests come in, we will study them with the same seriousness as we have studied this one, » he said.

Grandé Studios is the second-largest player in the industry. Last May, the company said it had expansion plans that should begin in 2022. Investissement Québec and Bell are minority shareholders in the company.

For its part, MELS will have 400,000 square feet of production space once MELS 4 is completed. The company employs 450 people in Quebec and offers a range of services including studio and equipment rentals, image and sound postproduction, visual effects and a virtual production platform.

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