“Should we refinance our mortgage?” Nov 19th

Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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Car-buying case study: Melissa and Dave A car is the second-largest purchase you’ll ever make in your life, and you’re likely to make it many times over. Yet, unlike the home-buying process where you might have the professional assistance of a Realtor, mortgage broker, lawyer, and Certified Fina.... More »
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Because not everyone fits into the same box Dec 11th

You might have seen the headline “HSBC crushes mortgage records with 0.99% variable rate”. No doubt about it, this is a great rate. However, it’s not for everybody. It is important to remember, like most deals, there are some restrictions. Among other things this offering is li.... More »

Q3 Lender Earnings: The Unexpected Recovery Dec 2nd

The country’s key mortgage lenders recently released their third-quarter earnings, and it’s safe to say results were better-than-expected all around. Equitable Bank had its best-ever third quarter, while First National had its own record quarter. “For customers and partners, we ori.... More »

How financially viable is your rental property? Apr 13th

After rising steadily in many cities across Canada for many years, real estate has been on a particular tear over the past year—and rental property investing has become an area of interest for plenty of people as a result.  But a soaring market isn’t a guarantee of success. If you’re thinking.... More »
Q. We’re thinking about breaking our existing home mortgage to take advantage of the low interest rates we’re seeing now, and would appreciate some guidance. This is our scenario:
Mortgage principal: $572,000
Weekly payments: $746.00
Interest rate: 3.78% fixed and locked in until December  2023
Penalty fee for breaking mortgage: $33,000
If we decide to pay the penalty, we could lock into a four-year mortgage at 1.74% fixed, which looks like it would save us approximately $2,500 to $3,000 worth of interest payments.

Here’s where I think it gets interesting. If we decide to continue paying the same weekly amount of $750 that we do now, and put the extra money towards principal, the difference between that at the new weekly mortgage payment of $570 would be $175—giving us $8,400 per year to put directly towards principal. Over four years, that should allow us to reduce our principal by $33,600. 
It seems like if we should consider breaking our mortgage to take advantage of the lower rate…

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