It’s the talk of the town, mortgage rates are falling… and falling fast. In fact, fixed mortgage rates have plummeted by as much as 1.50% since they reached their recent peak in October 2023.  Meanwhile, the Bank of Canada has cut its overnight rate by 0.75% since their rate cutting cycle began on June 5th [...]

The Bank of Canada has just made another move, dropping the overnight rate by 0.25%—the third cut in a row. While it might not have been a nail-biting wait, it was exactly what most experts predicted. Any other outcome would have been a surprise.  This is fantastic news for those with variable rate mortgages, as [...]

When it comes to managing your mortgage, understanding prepayment privileges can make a significant difference in how quickly you can pay down your loan. These privileges are often represented by numbers like 10/10 or 20/20, but what do they really mean? Let’s break it down and explore how these numbers can impact your mortgage strategy. [...]

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 [...]