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
Mortgage borrowers to see payments increase by 20-40% at renewal: Bank of Canada May 19th
The Bank of Canada says it it concerned about the ability of households to service their debt, particularly as mortgage holders are facing payment increases of up to 40% at renewal..... More »
Three ways mortgage brokers can reassure concerned borrowers Feb 12th
Many mortgage brokers are fielding calls from clients concerned about rising interest rates and an uncertain economic outlook..... More »
Trump fires Federal Reserve Governor Lisa Cook - The Globe and Mail Aug 26th
Trump fires Federal Reserve Governor Lisa Cook The Globe and MailWhat Trump’s firing of Fed governor means for central bank’s independence The GuardianTrump seeks to fire Fed governor, triggering fresh independence crisis Sky NewsTrump has accused Fed Governor Li.... More »
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When most people think of Calgary, they picture cowboys and oil. They’re not wrong, but they’re about a decade behind. Since 2018, Calgary’s tech sector has grown by 78%.
The city’s food scene spans everything from Ethiopian and Korean spots to farm‑to‑table restaurants,.... More »
70% of Scotiabank’s mortgage originations in Q1 were multi-product deals + MORE Mar 1st
Scotiabank is reporting success in its efforts to grow its deposits and increase profitability by doing more cross-selling to new mortgage clients..... More »
“Should we refinance our mortgage?”
– moneysense.ca
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.
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…
