“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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Should you get a fixed-rate or variable mortgage? In these strange times, fixed has a rare edge Nov 23rd

With rates this low, the usual advantages of renewing with a variable mortgage are diminished or gone, writes David Aston..... 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 »

Latest in Mortgage News – Industry Announcements Nov 26th

There’s been a number of big mortgage industry announcements in recent weeks, ranging from reverse mortgage offerings to a new broker tech partnership and a key appointment at one of the country’s top brokerages. Here’s a look at each… Equitable Raises Allowable Equity Takeou.... 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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