The Saturday Weekend Review #34: Canadian mortgage rates on the rise

Mortgage Rates Going Up Again They say nothing lasts forever but it should come as no surprise to Canadians when they read that mortgage rates are on the rise. This rise apparently may have a negative impact on the Canadian housing market but I’m going to sit back and see how far they are willing to take this and how many Canadians are still ready to buy. Still, I believe many Canadians are on the fence about whether they should rent vs buy because of their debt load and inability to save up as much as they want or need for a down payment. I know we have friends who aren’t sure what to do because they are still saving up for their down-payment. Owning a home is great but with it comes along plenty of work and upkeep that a new homeowner must be prepared for with time and finances. I see more Canadians reaching out for help when it comes to setting up a budget, grocery shopping and just generally want to get out of debt so they can buy a home or life a debt-free lifestyle. My hope is that with all the information available to people […]

What Is the Difference Between a Mortgage Lender vs a Mortgage Broker?

What’s the Difference between a Mortgage Lender vs a Mortgage Broker? There are so many terms thrown around in the finance world that it can be hard to figure out what means what. A mortgage lender lends money, while a mortgage broker finds money. Here we’re going to talk about the differences and roles that these two play when you’re trying to finance or refinance your home, and you’ll be able to enter the process with your eyes wide open. You’ll be able to see through the curtain and different tactics so you make the right decision for your financial future instead of theirs. Let’s get started. What Does a Mortgage Lender Do? Unlike your local Toronto mortgage broker, a mortgage lender lends you money. This could be a bank, a credit union or a private mortgage lender. You’ll have to fill out a mortgage application with them, then you’ll have to go through a whole process where they tell you they either want to work with your or not. This can be a stressful process, but in the end you’ll either get the financing that you need to buy a home or you won’t. It’s a very binary procedure. Depending […]

Should You Be Breaking Your Mortgage?

Are you thinking about breaking a mortgage early? Most people assume that when they sign up for a 5 year fixed rate that they have to stay in that mortgage for the next 5 years…that isn’t true in most cases.  While there are a few lenders out there who have “closed” mortgages that are not breakable without a bona fide sale of the property, the vast majority are breakable. So how does that work?  If you decided that the rate you were paying was too high or you wanted to add funds in a refinance or various other situations that made you want to break the mortgage you were in, how can it be done?  If your current mortgage rate is less than lender’s rate on the equivalent remaining term, you simply pay a 3 month interest penalty…for example: Current mortgage of $150,000 @ 3.25% with 3 years remaining Lender’s 3 year rate is currently 3.45% 3 Months interest = $1,219 approximately ($150,000 x 3.25% /12 x3) What if the opposite is true, the current rate you have on your mortgage is higher than the current available from the lender?  Now we enter the world of IRD, or Interest Rate […]

%d bloggers like this: