Obtaining a mortgage or secured line of credit in Canada at the best rates is often a daunting task. We can help! Read the articles below for more info.
Latest News
The Latest in Mortgage News: Ontario Teachers’ Pension Plan to Buy HomeEquity Bank Sep 26th
The Ontario Teachers' Pension Plan Board has taken a major investment stake in Canada's rapidly growing reverse mortgage market with its acquisition of HomeEquity Bank..... More »
The bond risk many investors overlook Jul 5th
When you buy a bond, there’s a chance the borrower might not be able to pay you back, but bonds also carry a different kind of risk. Duration, or interest rate risk, is related to a bond’s sensitivity to changes in interest rates.
When interest rates go up, you won’t be able .... More »
“Should we refinance our mortgage?” + MORE Dec 23rd
We’re thinking about breaking our existing home mortgage to take advantage of low interest rates and would appreciate some guidance. This is our scenario:
Mortgage principal: $572,000Weekly payments: $746.00Interest rate: 3.78% fixed and locked in until December 2024Penalty fee for breaking mor.... More »
The importance of effective listening to your success as a broker + MORE Dec 16th
As mortgage brokers look for ways to stand out in a competitive industry landscape, it’s increasingly important to consider the impact that clear and concise communication can have on service levels..... More »
How to grow your reverse mortgage business by partnering with realtors + MORE Jun 5th
Bring flexible financing solutions to the table to help realtors close more deals..... More »
These 3 clients broke their mortgages, paid a penalty, and still saved between $9,000 and $26,000!
– canadamortgagenews.ca
While I originally posted this article in September of 2015, I think now is a good time to take another look.
Fixed mortgage rates are at an all-time low. If you have a mortgage that is over 3.09%, then you should consider breaking it, paying the penalty and getting into today’s lower rates.
That’s the short answer… the full answer is a little more complex, but it’s really just simple math. If the savings is greater than the cost to break, then the answer is obvious. You should do it! I’ll give you some real life examples of clients whose savings could be huge $$s today if they paid their mortgage and the penalty and went into a new lower rate mortgage. Check out these success stories…
EXAMPLE 1: $710,000 balance @ 3.59% with 8 years to go.
These clients took a 10 year fixed rate mortgage 2 years ago. Today, they can turn that into a 5 year fixed rate at 2.59%. So, here’s what this looks like….
Current monthly payment is $3773 with 23 year amortization remaining…
Federal Equity-Split Program Begins Monday
– ratesupermarket.ca
The First-Time Home Buyer Incentive (FTHBI) will officially begin on Monday, September 2. The program was initially announced during the Federal Government’s budget launch in March. The down payment assistance program will be administered by the Canada Mortgage and Housing Corporation (CMHC), and has been touted by the feds as a partial solution to the current housing affordability crisis across Canada.
Despite promising to make homeownership more affordable, industry experts are concerned that the program will only help a handful of homebuyers.
How does the FTHBI work?
As the name suggests, it’s available only to first-time homebuyers, and applicants must also meet the following criteria:
earn a household income of less than $120,000 a year
qualify for and purchase mortgage default insurance
make a 5.00 to 14.99 percent down payment from your own resources
limit your mortgage amount plus incentive amount (combined) to no more than four times your household income
purchase a home priced less than $565,000…
Mortgage Amortization: Should You Go Long or Short?
– ratesupermarket.ca
If you’re in the market for a new home you probably understand the different mortgage options. But what about amortization? Should you go short or long on your amortization, and what impact does it have on your finances?
The most common amortization is 25 years. If you have at least a 20 percent down payment, however, you can go higher—up to 30 years, and sometimes longer.
Shorter amortizations are also available. Their benefit is helping you accumulate home equity faster. If you can afford the higher monthly payments of a shorter amortization, you can save thousands in interest payments.
Why Go for a Long Mortgage Amortization?
After the 2008 recession, the Canada Mortgage and Housing Corporation (CMHC) progressively lowered the maximum amortization period on default insured mortgages. Formerly, homebuyers could amortize their mortgage over 40 years. Now, homebuyers who do not have at least 20 percent equity are limited to a maximum amortization of 25 years.
If you do have 20 percent-plus equity, you have the option of choosing a 30-year amortization…
The Latest in Mortgage News: Home Vacancy Rates Skyrocket
– canadianmortgagetrends.com
Tens of Thousands of Empty Homes in Canadian Cities There’s an empty house problem in this country—1.34 million empty and temporarily occupied homes to be exact, with 66,000 in Toronto, 64,000 in Montreal and 25,000 in Vancouver. And the main culprits behind these high vacancy numbers are investor speculation and short-term rentals, according to a […]
