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
Metro Vancouver home sales jump 32% in October amid lower mortgage rates + MORE Nov 6th
Higher inventory provides more options for buyers as demand picks up, fuelled by recent Bank of Canada rate cuts..... More »
Bank CEOs weigh in on “vulnerable” mortgage clients + MORE Jan 12th
Canada's Big-Bank CEOs weighed this week in on the current state of their mortgage clients, including those they consider "vulnerable" in the event of a recession..... More »
B.C. Rules Create Challenges for Creditor Life Insurance Apr 27th
About a year and a half ago, FICOM made a subtle but impactful rule clarification in B.C. The regulator stated that lenders must “play an active and substantial role” in creditor life insurance in order for mortgage brokers to be able to sell it to B.C. consumers. Basically, this means that th.... More »
CMHC reports further slowing of housing starts with no turnaround in sight Feb 16th
The pace of homebuilding in Canada continues to slow with no near-term signs of a turnaround, said Canada Mortgage and Housing Corp. on Monday..... More »
Six Months was What it Took to Absorb Latest Mortgage Changes! Aug 19th
Ever since the US 2008 sub-prime mortgage crisis, we’ve seen a never-ending string of change. Mortgage lending rules have become tougher and tighter. Underwriting is stricter and more thorough. (As usual, the government has not missed an opportunity to stick their nose into your business by m.... More »
Pick the best mortgage
– moneysense.ca
(mstay/Getty Images)To pick the best mortgage you need to understand your options. The first step is to determine the best type of mortgage for your situation. For instance, if you think you’ll be relocated elsewhere in Canada before five years, a portable mortgage may be your best option. Or if you want to avoid extra fees you’ll want to get a conventional mortgage.
But once you’ve selected the type of mortgage, then you’ll need to shop for the most competitive option available to you and that means making some decisions on how the housing market is doing? Whether or not you’ll move quickly or stay a long time in the home? And if interest rates will remain low or start to rise?
Why do all this work? Because it will have a direct impact on your bottom line. Since a mortgage is made up of two parts—the principal and interest—you need to pay attention to how and when these parts get paid down. Ideally, you want to minimize the interest payments and maximize the principal payments…but many roads lead to this destination…
Should You Renew Your Mortgage Early?
– ratesupermarket.ca
Do you have a mortgage up for renewal in a few months? You may have received a letter from your bank offering you a chance to “renew early and save” or some similar wording. With the extremely low rates on offer, it could be a good idea to renew your mortgage early and take advantage of the savings – but make sure you investigate all your options before signing on the dotted line.
How You Save By Signing Early
The idea with renewing early is that you can lock into today’s current low rates before they go up. And, if you renew with the same financial institution that currently holds your mortgage, you can essentially break the old one without any penalty and start making payments at the lower rate. (If you do break your mortgage early and switch to another bank, you’ll have to pay a penalty, typically three-months’ worth of interest on the outstanding balance or the interest rate differential, whichever is higher.)
Thinking of breaking your mortgage? Use our Penalty Calculator to see how much you can expect to pay…
