Mortgage Corner

It’s the first and only thing anyone usually asks when you talk about your mortgage: What’s your rate? While everyone can recall their rate off the top of their head, it’s the only detail of the mortgage they remember or care to know. Though the rate is obviously important, your mortgage is so much more…

When – Jan 1st, 2018 – Lenders may adopt new policies sooner due to the date selected Who is affected by these upcoming changes? #1 Nobody renewing an existing mortgage. #2 Nobody purchasing a home with LESS than a 20% down payment. OK, so who then? People with more than 20% to put down on…

1. Fixed-rate mortgage holders are not affected by Bank of Canada rate changes during their current term. Only those in either adjustable-rate or variable-rate mortgages need read on 2. On July 12 lenders increased variable-rate borrowing costs by 0.25% to match the Bank of Canada increase of the same amount on the same day. 3.…

The question: ‘Is my mortgage portable?’ The answer most often given: ‘Yes.’ This answer is increasingly wrong. In reality, you may qualify to move 80% or less of the current balance. The proper question: ‘Do I need to re-qualify for my current mortgage to move to a new home?’ The proper answer: ‘Yes, your mortgage…

Although going through the pre-approval process is more important than ever, the actual term ‘pre-approval’ is often misleading. It really addresses just a few variables that may arise once in the middle of an actual offer. The pressure in many markets has never been greater to write a condition-free offer, yet due to recent changes…

Although going through the pre-approval process is important, the actual term ‘pre-approval’ is often misunderstood. An important point to be clear on is that while you may be pre-approved for a certain mortgage amount, there are several variables that can derail a final approval once you write an offer on a property. As such it…

Term Fixed Closed Rate 6 months 3.95% 1 Year 2.29% 2 Year 2.09% 3 Year 2.34% 4 Year 2.49% 5 Year 2.39% 7 Year 2.98% 10 Year 3.89% Prime = 2.70% Variable Closed (5 yr) = Prime minus 0.70% = 2.00% Variable Open = Prime plus 0.80% = 3.50% Secured Credit Lines = Prime plus…

It is no surprise to anyone that the Bank of Canada maintained its target overnight rate at 1/2 percent yesterday, judging that although the global economy has strengthened, uncertainty continues and is damaging business confidence and dampening investment in Canada’s major trading partners. Since the Trump victory, US interest rates have risen sharply with the…

There are two types of amortizations: the paper, and the effective. The paper amortization is the number written on your initial mortgage payment contract, and the effective amortization is the actual, real-world version of your payments. These two numbers can significantly vary over time. It is worth considering setting, or re-setting at renewal or refinance…

Term Fixed Closed Rate 6 months 3.95% 1 Year 2.29% 2 Year 2.09% 3 Year 2.34% 4 Year 2.49% 5 Year 2.29% 7 Year 2.98% 10 Year 3.89% Prime = 2.70% Variable Closed (5 yr) = Prime minus 0.50% = 2.20% Variable Open = Prime plus 0.80% = 3.50% Secured Credit Lines = Prime plus…