First Time Home Buyer

Why Purchasing A Home Is An Important Investment For Your Financial Future

July 7, 2018
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In regards to the housing market, one of the biggest debates is whether or not you should buy a home or continue renting. As your local Red Deer mortgage broker, I explain why purchasing a home is an important investment for your financial future.

Not only does homeownership give the buyer a sense of pride, but it can also be great for long-term and short-term investment.

Long-Term Investment

In Canada, owning a home is a long-term investment because you can build equity over time. Equity is the difference between your Red Deer mortgage balance and your home’s overall value. Therefore, the more you pay towards your loan balance, the more equity you will have.

Homeowners may have the option to access this equity once by refinancing their mortgage or by selling their house. This can give you access to a large sum of money that can be spent any way you would like. It is common for homeowners to use the equity to pay off large amounts of debt, such as their credit card balance, or car loans. Others use their equity to renovate their home or purchase more real estate. You could even use this cash to go on a dream vacation or to help fund education. Many clients will set up a Home Equity Line of Credit in order to invest. This is a great way to get your equity working for you while you still own your home.

Another reason homes are a good long-term investment is that home’s appreciate in value over time and can deliver capital growth.

For more information on long-term investment in housing, please contact your local Red Deer mortgage broker Tania Grozelle at 403-392-5808.


Short-Term Investment

Homes also provide great short-term investment by you paying yourself every month instead of paying a landlord. You may also receive a tax credit up to $750 if you purchase a home for the first time.

If you have had to renovate your home to become more safe and accessible due to illness or injury you may be able to claim up to $10,000 on your taxes under the Homes Accessibility Tax Credit (HATC).

Another short-term tax benefit is if you buy a new home under $450,000 as your primary residence, you could submit a claim for the GST/HST new housing rebate. Contact your local broker for more information.

Contact Us

For more details on long-term and short-term investment benefits of owning a home, please contact your mortgage broker in Red Deer Tania Grozelle at 403-392-5808, or visit our website

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Red Deer Market Update

May 14, 2018
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Tania Grozelle, your Red Deer mortgage broker, understands how big of a commitment it is to become a homeowner. As your local Red Deer mortgage broker she recognizes that buying a house may be the biggest expense you ever make, therefore, she and her team will work hard to find you the best rates out there. To make this happen, we first need to understand the trends of the current residential market.


Central Alberta Update

According to the Canadian Real Estate Association, the January 2018 sales have significantly increased from the previous year. In January 2018, there were 224 units sold, which is a 21% increase from 2017. This year was the highest month of sales since 2014. By the end of January, there were 3,032 active listings, which is the most listings Central Alberta has had in winter since 2011. All property types sold in January 2018 equaled 224 units, which was about a 21% increase from the year prior.In addition, the total value of sales have increased 18.5%, totalling $78.2 million.


Over the next few months, however, the total sales are expected to drop. Due to the new Canadian Mortgage Rules, a mandatory stress test has been implemented on all Red Deer Mortgages. The purpose of the stress test is to see if homeowners can still afford their loan payments if there were an increase in interest rates. This new rule has said to affect Canadian’s affordability by as much as 15%. For more information on the new mortgage rules, or to see if this rule affects your affordability, please contact 403-392-5808.


Current Red Deer Pricing

According to, the current median asking price in Red Deer is $400,000 for a detached home, $253,000 for a townhome, and $200,000 for a condominium. The total price of homes have decreased 1.52% since April 2017, and the median monthly cost for a Red Deer mortgage is $1,338.


If you are looking for a home in Red Deer, now would be a great time to buy due to the recent decline in listing price. Start looking now before the prices increase again.


Contact Us

As your local mortgage broker in Red Deer, Tania Grozelle would love to work with you and help finance your dream home! For more information on the current Red Deer residential market, or to get started on your mortgage application today, please contact the Tania Grozelle at 403-392-5808.

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Red Deer Mortgage Broker – Typical Closing Costs to Expect

December 11, 2017
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The very last step in the process of purchasing your home is closing. At this point, all final documentation will be signed, funds will be distributed and keys will be exchanged.

While this part of the process can be the most exciting, because it means you will finally be able to move into your new home, it can also be quite intimidating. There are several steps that need to be taken for a closing to be successful, and each of these steps will require careful planning and lots of documentation.

Knowing what to expect ahead of time, especially where additional costs and fees are concerned, can help you avoid any hiccups that could prevent you from closing on time. The costs and fees that are typically associated with closing can include, but are not limited to:

  • Appraisal, Inspection and Survey Costs
  • Legal Fees
  • Title and Homeowner’s Insurance Payments
  • Title Insurance

In addition to the list above, one of the largest costs that you should plan to pay at closing is the down payment you will be making on your mortgage.

The process of closing on your mortgage should be an exciting time, and I want to make sure you get to experience that excitement as you finalize the purchase of your new home. As a trusted Red Deer mortgage broker, I am here to help you figure out what costs you will be responsible for at closing and the best way to make sure you are prepared for that responsibility.

Whether you have questions about how much you should expect to pay in closing costs or you are ready to get your mortgage process started, give me a call today! As a trusted Red Deer mortgage broker, I am always happy to answer questions or to help in any way that I can!

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New Mortgage Rules

October 5, 2016
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Tania Grozelle - bank secretsIf you or anyone you know is thinking of buying a home, now would be the time to take action. New mortgage rules may affect your buying power effective October 17th. Our finance minister has announced that all insured mortgages must qualify using 5 year benchmark rate currently 4.64% instead of the actual interest rate currently around 2.39% for 5 year fixed. What this means is that you could potentially have a significantly lower pre-approval amount.For example: Suppose your pre-approval amount today is $450,000 purchase price. AFTER October 17th your new pre-approval amount would be closer to $360,000. That is a HUGE difference. You must be lender and insurer approved before October 17th for current guidelines to apply. Contact me to find out more.

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July 19, 2016
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  1. Tania Grozelle - bank secrets Make a double mortgage payment whenever you can. Doing this once a year can shave over 4 years off the mortgage! Sometimes you can skip a payment later on too…if you really, really need to. Try not to. If your payment is $2,000 a month, four years of no payments is $96,000!!
  2. Increase frequency of payment. For Example going from monthly to bi-weekly accelerated can shave over three years off your mortgage! $2,000, three years of no payments is $72,000!!
  3. Increase your payment. For example a one-time 10% increase can shave 4 years off the mortgage. That’s $96,000! Imagine if you bumped the payment 10% every year from the get go!!! You would be mortgage free in 13 years! Start to finish! Can’t do it? How about 5% every year….you would be mortgage free in 18 years! How about increasing the payment by the amount of your annual raise?
  4. Lump sum payments…same idea…mortgage is gone way faster! Even just one payment a year equivalent to 1 monthly payment will give you similar results as #2 above! How about using your annual work bonus?
  5. Renegotiate whenever rates drop to save interest and pay mortgage faster! Generally a good idea however *Caution* get independent professional advice (a cost benefit analysis) to make sure it makes sense for you at that time. I can help. A 1% reduction on a $300,000 mortgage will save $250 a month…times 5 years…that’s $15,000!!
  6. Keep your credit rating high for best rate. Always pay on time. Never let payments slip past their due date. Always keep balances low in relation to credit limits on credit cards, lines of credit, etc. 50% or less is best even if you pay the balances in full every month. What generally reports to the credit bureau is the statement balance each month. So if your credit limit is $3000 and you are running $3000 a month through the card each month (to collect all those points you never spend or can’t use in blackout periods) and paying in full, it will look like you are maxing out your credit limit and your credit score will drop accordingly.
  7. Increase your mortgage! Yeah I know sounds backwards! Do it to roll in your credit cards, line of credit, car loan etc for a better rate and a set payment plan. Oh you say you don’t want to extend the repayment period of that stuff by rolling it into your mortgage or you have a low or promo rate credit card (those never end well) I agree! Then keep the total payment amount the same but pay it in one neat monthly payment to the increased mortgage.
  8. Make an RRSP contribution and use the refund to pay down your mortgage.
  9. Go variable rate with your mortgage but keep payments as if fixed rate. Variable rates usually win out over fixed rates. By paying a higher payment you will pay off the mortgage faster. It’s also a buffer in case the rate rises above the fixed rate for short periods of time. *Caution* variable rates are not for everyone. Get independent professional advice to find out what is best for you. I can help!
  10. Take your mortgage with you when you change properties to avoid penalty or higher rate on a new mortgage. This is called “porting”. Make sure that your mortgage has this feature. It is not widely known and could save you a ton of dough.
  11. Set up auto savings every paycheque, even $10, when it reaches the amount of one mortgage payment, apply it to the mortgage. This concept goes nicely with #4 above.
  12. Unhook from the money drip…stop paying with your fancy points credit or debit card. Way too easy to overspend! Go old school, go off the grid…PAY CASH, it works!
  13. Don’t ever buy on layaway, you know, six months don’t pay schemes. You think…No problem I’ll just pay it in six months, it will be okay. Yeah right!
  14. Downsize your house. Two good friends and clients of mine, having followed many of the tips here, are in great shape except they have a six bedroom house! Two people, six bed house – go figure! They are nearly debt free so no biggy, but can you say the same? Circumstances change, make the adjustments along the way!
  15. Don’t want to move? Convert the basement/rooms to rental and use the income to pay down debt.
  16. Convert your mortgage to tax deductible. If you are self-employed, own rental property or have investments, this is likely possible. I won’t go into details here, just ask me how.
  17. Have a payment priority.
  18. Pay off the highest interest rate first.
  19. If you have tax deductible loans, pay them off last, slowest. Pay the non-tax deductible loans first and fastest.
  20. Pay off ugly debt first. Stuff like credit card purchases.
  21. Payoff bad debt next. Stuff like car loans, boat loans. Things that depreciate in value.
  22. Pay off good debt (or shall I say “not so bad debt”) last. Stuff like mortgages, investment loans. Things that hopefully appreciate in value.
  23. Buying a car? Finance it if you have to, don’t lease! *Exception* If you are self-employed it might make sense.
  24. You have $20,000 in a secret bank account for a rainy day fund and $20,000 owing on a line of credit. Seriously? The bank account is paying you next to nothing (which is taxable income to boot) and the line of credit rate is way higher (and not tax deductible). You know what to do. You can keep the line of credit open and on standby for rainy day funds. Make it the secret line of credit that you have but never use.
  25. Give your Banker more money. No really. Keep enough in your chequing account to meet the minimum requirement to waive your service charges. My bank charges $10 a month for 25 transactions and nothing, zero, zilch, zip if I keep $2,500 in the account. Let’s see $10 x 12 is $120 a year to pay off debt. I’d have to earn 5% with the $2,500 in my savings account to come out ahead. No brainer here. Oh yeah, if you need more than 25 transactions a month…see #12 above.
  26. #26? BONUS TIP and MOST IMPORTANT. Let’s face it, you’re not the Government and you’re not a Bank, you can’t run deficits forever and you won’t get a bailout….stop procrastinating already! See 1 through 24 above and take action now!
    Sidenote: *Caution* beware of some too good to be true ultra-low rate mortgages. These “no frills” mortgages are often loaded with restrictions like pre-payment limitations, fully-closed terms, stripped-out features, or unusual penalties. You really need to compare product to product. If you’re not looking at what you’re giving up, you may regret it in the future. This alone could prevent you from taking advantage of tips #1, 2, 3, 4, 5, 7, 8, 9, 10, 14, 16 and 22!
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Real Estate vs Mutual Funds – Which is Better?

May 30, 2016
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Tania Grozelle Red Deer Mortgage BrokerI’m not a financial advisor, nor am I an expert in investing, but in these turbulent economic times it’s more important than ever to discuss this important and controversial topic…

Even today, both mutual funds and real estate still offer
investment potential.

Wondering which is better?

Here are a few things to consider….

Your trusted mortgage broker for life!

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Now Offering Manulife One!

May 13, 2016
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Manulife One ImageNow Offering Manulife One!

We do offer options and one of these options is something that is now offered with Sky Financial Corporation The Mortgage Centre.  It is called Manulife One.

Manulife One is an innovative all-in-one banking account that puts all your money to work all the time in order to outsmart your debt. Click here to see how it works. Then contact me today for more information.

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