Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Family legacy: How to pass along the family cottage—and 3 things to avoid + MORE Nov 22nd
The iconic Canadian cottage stands as a symbol of family traditions, summer getaways and cherished memories. Yet, as the years pass and generations shift, the future of a family cottage can become uncertain, thanks to things like family conflicts, financial implications and differing expectations am.... More »
Frustrated with mortgage tech? You’re not alone + MORE Feb 14th
For the past few years, mortgage brokers have been presented with a seemingly non-stop barrage of new mortgage technology..... More »
Latest in Mortgage News: New Immigrants Driving Housing Demand Oct 28th
The growing demand for real estate in Canada is being driven largely by newcomers, who are making one out of every five home purchases in the country, according to a new survey. New immigrants to Canada (defined as those who have arrived within the last 10 years) represent 21% of homebuyers and are .... More »
Breaking down bank fees + MORE Jul 16th
The COVID-19 pandemic has hit a lot of Canadians hard—emotionally, physically and financially. So it isn’t surprising that many are calling out banks that raised their fees to consumers at a time when so many people are struggling. Given the number of banks that have also reported record profits.... More »
My advice is simple: Over 50? Get a secured line of credit while you can qualify. + MORE Nov 15th
Contrary to media reports about our ‘record personal debt levels’, it’s extremely prudent to ensure you have access to emergency money.
The line of credit popularity that took place in the ’90s wasn’t a bad thing. It allowed us to borrow at low rates to invest or spend.... More »
Motusbank Online Bank Launches With Low HELOC, Competitive GICs
– ratesupermarket.ca
Motusbank, a subsidiary of Meridian Credit Union, has launched in Canada. First announced in February, a full range of banking and borrowing services are now available on its website, motusbank.ca.
As an online-only bank, Motusbank can be accessed via its mobile app on the Apple App Store and Google Play. App users can check balances, transfer funds, and deposit cheques; Apple Pay and Google Pay, however, are not supported. Statements and other documents are available only on desktop.
The main appeal of Motusbank lies in its competitive mortgage rate and simple online application. Fixed-rate mortgages are available with terms ranging from six months to five years; variable-rate mortgages all have five-year terms. The bank is currently advertising a 3.09 percent interest rate for closed fixed-rate mortgages with terms ranging from one year to five years; the same rate also applies to its closed variable-rate mortgages.
Given the current crop of online-only banks, which offer many of the same services and advantages, Motusbank is making a direct play for home buyers who are shopping for the lowest rates and don’t want to spend time haggling…
Taking on a “Fraction” of the Cost; Vancouver Start-Up Promises a Better Incentive for Home Buyers than CMHC
– ratesupermarket.ca
An incentive for first-time home buyers offered through the Canadian Mortgage Housing Corporation (CMHC) was only announced a week ago, promising to provide $1.25 billion over three years to help lower mortgage costs for eligible Canadians.
However, a new company is now also promising to provide an alternative form of relief for potential home buyers.
If a home buyer chooses to work with Fraction, the Vancouver-based start-up says it will take up to a 40 percent stake in the buyer’s property, securely reducing mortgage payments by up to 35 percent.
Since Fraction is putting up 40 percent of the purchase price, the home buyer is then only required to take out a mortgage for the remaining 60 percent.
“It’s almost like selling shares in a home,” said Fraction’s Chief Technology Officer Josh Baker, as you’re essentially selling equity in your home and paying it back to Fraction upon resale at its future value.
For instance, if your home is worth $500,000 and you want to sell 40 percent of your property, Fraction will take on that $200,000 share…
