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
US MBS Selloff – The Canadian Impact + MORE Apr 15th
In 2008, when the housing crisis in the U.S. was threatening to bring down the global economy, one of the moves the U.S. government made to temper the damage was to buy up an unprecedented $1.25-trillion worth of mortgage-backed securities (MBS). The taxpayers footed the bill for the purchase, whic.... More »
Variable-rate mortgages regain popularity as Morningstar flags rising risks + MORE Feb 1st
Morningstar DBRS says mortgage portfolios should hold up in 2026 despite a soft housing market, while warning that rising variable-rate use and Alt-A exposure are key areas to watch..... More »
Half of Canadians Would Rather Renovate than Relocate Mar 24th
A recent RateSupermarket.ca survey revealed over half of Canadians would choose to renovate their current home, instead of moving to a new home, if they had a budget of $50,000.
With the current high-interest-rate environment and introduction of stricter mortgage regulations, there has been great f.... More »
Best Practices to Verify Your Clients’ Down Payments May 25th
Proving the source of your clients’ down payments can sometimes be the most time-consuming part of arranging a mortgage. Even when handled well, the process may sour the buyer experience. Your client will need to provide a comprehensive history of all the money earmarked for their down payment.... More »
Here’s how much a GST break could save first-time home buyers + MORE Jun 11th
The Liberal plan to give first-time home buyers a tax break on a newly built home could have substantial impacts on housing affordability—with a few caveats—a new analysis finds.
The Liberal government introduced legislation on June 5 to eliminate the GST portion from new home sales of up to .... 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…
