mortgage rates

/Tag: mortgage rates

January 2016

Banks to make it harder for investors to get mortgages

By | 2016-01-02T10:46:27+00:00 January 2nd, 2016|Hot Tip|

1. With our central banker, lowering rates – even planning to go negative – in order to stimulate exports it makes it easier to afford larger and larger mortgages.

As a result CMHC will be ordered to tighten rules more and more for investors.

It is already dramatically more difficult to get approved for an investment mortgage – rental income are less and less counted and if you do not have other employment income you likely will be refused.

Worry? 

  • Banks will focus more and more on home owners – giving them more and more money
  • Banks will get tighter and tighter for investment type mortgages
  • ANYONE THAT HAS A INVESTMENT MORTGAGE […]

December 2015

July 2015

Banks keep almost half of the rate reduction!

By | 2015-07-26T12:24:49+00:00 July 18th, 2015|Hot Tip|

Ask your bank why!

When the Bank of Canada cuts interest rates, it does so in an effort to jumpstart the economy by making it cheaper for consumers and companies to borrow money.

The central bank cut its rate by a quarter percentage point last Wednesday, the second such increase this year for a total of .5%.

It passed on that cut by only .3% … so a total of a .50 reduction by the Central bank to our fine banks … resulted in only a .30 reduction in mortgage and credit lines and all variable loans – the rest into profits for banks.

So: on a $400,000 mortgage in Vancouver you should […]

May 2015

It is not always the lowest rate that is the most important aspect of your mortgage

By | 2015-07-26T12:24:50+00:00 May 30th, 2015|Hot Tip|

Discuss a list of items you should ask about your broker or bank when negotiating your next mortgage:

– How much can I prepay per year with no penalty?

– When can I make these payments?

– How much can I increase my payments per year?

– What is the penalty to break my mortgage? (most are 3 month penalty, with fixed terms having a potential Interest Rate Differential Penalty)

– How is my IRD penalty calculated? (major banks have a really nasty calculation for their penalties that could cost you 2.5 times more than a “non-bank” lender)

– Am I guaranteed your best rate when I lock […]