Fixed or Variable Rate Mortgage
Fixed Mortgage Rates vs. Variable Mortgage Rates – What is the difference and which one is better? READ MORE
How to Compare Mortgage Rates
The Bank of Canada confirms it: “those who shop around really do get better deals on mortgage rates.” Here’s why comparing mortgage rates can saves you money. READ MORE
Mortgage Documents
There’s a lot of paperwork involved in sorting out a mortgage. Instead of pulling it all together at the last minute, slowly start to organize your documents now, so that you’ll be better prepared when it comes time to close the deal. READ MORE
Pre-Approved vs. Pre-Qualified
There are different stages of approval process when you apply for a mortgage and it’s important to know what they are and what they really mean. READ MORE
Mortgage Insurance CMHC
In order to buy a home (or to get a mortgage to buy a home) you need to have a down payment, which has to be at least 5% of the home’s purchase price. Lenders typically group mortgage shoppers with deposits between 5 – 20% of the home purchase price, into the ‘slightly higher risk’ category. In order for the lender to protect against this increased risk, mortgage default insurance is required. READ MORE
Your First Mortgage
It’s time to negotiate your first mortgage, a process which done right, could save you tens of thousands of dollars. Here’s what you need to do. READ MORE
What is a Mortgage Broker?
What is a mortgage broker and why you should use one. READ MORE
Can I Afford a Mortgage?
When it comes to a mortgage, the first thing most people want to understand is how much can I borrow, or how much can I afford. Nobody wants to make the mistake of biting off more mortgage debt than they can chew! Here’s how much you can afford. READ MORE
Open or Closed Mortgage
When shopping for a mortgage you might have noticed that closed mortgage products offer lower interest rates compared to open mortgage products. Why is that? Here’s the difference between open and closed mortgage rates. READ MORE
Our First Time HomeBuyer's Guide is a series of 14 daily emails that will take you through each step of this exciting process. Think of it like a two week boot camp to get you into shape for buying your first home.
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BANK OF CANADA RATES
A reference interest rate used as a basis for other lending rates, such as variable-rate mortgages and personal loans. Each bank will have their own Prime Rate (they all tend to be fairly similar), the Bank of Canada will discount the lowest and the highest of these rates, then take an average of the three remaining to calculate Canada's Prime Rate.
Qualifying Rate: 5.14%
When you are looking for a variable rate mortgage or a fixed mortgage with a term higher than 5 years, you will likely need to qualify at a rate often higher than the actual rate you are applying for. This helps the lender ensure that if rates go up, you will still be able to afford your mortgage payments. All variable and 1- to 5-year fixed mortgages with a down payment of less than 20% will be qualified using the Bank of Canada posted 5-year fixed rate.
