If your mortgage renewal is approaching, you might be facing higher payments due to increased interest rates. Most mortgage holders had to qualify for their mortgage based on a higher "stress test" rate. This means they had to prove they could afford payments even if rates increased—ensuring payments remain manageable despite rising rates. While payments [...]
When you select your mortgage product, you’re entering into a contractual agreement with the lender for a specific closed term. Should you find yourself needing to return the mortgage early, you’re essentially breaching your contract with the lender. Consequently, the lender will then impose a penalty for breaking it early. Think of this as the [...]
When purchasing a property with less than 20% down payment, mortgage default insurance (CMHC for example) is required. The advantage is that you’ll likely receive a lower mortgage rate. Possibly, much lower. The maximum amortization is limited to 25 years on insured mortgages. However, as of August 1st, 2024, 30-year amortization will now be available [...]
This morning’s rate announcement from the Bank of Canada was music to the ears of anyone currently in a variable rate mortgage. They came through with another 0.25% cut, which means that we can expect mortgage lenders to drop their prime rate accordingly. The drop was what we were expecting. While it’s possible that the [...]
Since the Bank of Canada initiated the rate-cutting cycle with a 0.25% reduction on June 5th, there has been speculation about a subsequent cut during the next scheduled announcement on July 24th. In the interim, several key jobs and inflation reports were expected from both sides of the border. Now that we have the results [...]
Every mortgage comes with a maturity date, which marks the end of your mortgage term. This can informally be referred to as your renewal date. If you’re fortunate enough to have a zero balance on this date, then that’s it! You’re now mortgage-free and no further action is needed. But if you’re like most people, [...]
While variable rate mortgages used to be a popular choice for many, they have since left a bad taste in the mouths of many given the substantial increases to prime rate in 2022 and 2023. Economists were forecasting increases by as much as 1.25% in 2022, but the actual number ended up being 4.00%, with [...]
The Bank of Canada rate cut on June 5th was the first in more than four years. With four straight months of declining inflation, the Bank of Canada had the confidence to move forward with the chop. As there was still some uncertainty as to whether we would see the cut in June, bond yields [...]
Following the substantial rate increasing madness we experienced in 2022 and 2023, the 0.25% rate cut from the Bank of Canada on June 6thth was a huge relief. Particularly to those in variable rate mortgages… giving them the much-needed break they have been waiting for. Now we get to enjoy the fun part! A downward [...]
The mortgage arrangement process can seem simple and effortless, or it can become exhausting with one document requirement after another. If you have a better understanding of what a mortgage lender is looking for, and why they require certain documents, then the majority of those applying for a mortgage will find the process a breeze. [...]
