Mortgages for New Canadians
Over the last few years access to banking products and services has become even more complex given new laws and regulations designed to prevent money laundering. For newcomers to Canada, securing a mortgage can be a bit tricky. Here’s what you need to know. READ MORE
Mortgage Life Insurance
Similar to the extra warranty they try to sell you when you buy a laptop or refrigerator, mortgage life insurance is the ‘add-on’ product that helps to boost the lender’s profits. Here’s the background information that you need to make sure you don’t get taken for a ride. READ MORE
Fixed Mortgage vs. Variable Mortgage
Fixed versus variable is one of the most important decisions when shopping for a mortgage. Here’s a quick summary of the main differences between these types of rates. READ MORE
Preparing for Mortgage Rate Increases
There’s a lot of talk about mortgage rate increases in Canada. After years of ultra-low interest rates there’s only one direction for rates to go – up. Here’s a few tips to help you prepare for the rate rise. READ MORE
Why do Mortgage Rates Change?
Let’s take a look at the factors that influence fixed and variable mortgage rates in Canada. READ MORE
How to Pay Off Mortgage Faster
If you’re a member of the Debt Club (i.e. you have mortgage that will take you quite a while to pay off), you need to start planning for your ‘graduation day’ – the day when you become Debt Free.
Although your amortization says 25 years – there and a few simple steps that you can take to make sure you become debt free faster and spend less money on interest along the way. READ MORE
How Mortgage Brokers Work
Getting on the infamous property ladder and buying your first home is a life changing experience that can be both an exciting and exhausting process. Your home will be not only one of the biggest purchases of your life (unless you’re one of the lucky few jetting around in your customized Boeing 747-8 Jet). It’s one of the more important decisions you’ll make as well. READ MORE
No Frills Mortgage
Put your hand up if you have so much money left after you pay your monthly bills that it becomes a burden. Does anyone have that problem? Anyone? We most definitely don’t have spare $100 bills clogging up our jean pockets either.
If you’ve done your mortgage homework, you might know by now how important lump sum payments can be in reducing your overall interest and allowing you to pay off your mortgage faster. But sometimes the benefits of lump sum payment options can result in higher fixed term interest rates. If you know you’re not going to take advantage of these features, why pay more for them? 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.
