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Why Are Mortgage Rates Rising?

Over the past month, the Bank of Canada has lowered its overnight rate by a whopping 1.5 percentage points to a mere 0.25%. Many people expected mortgage rates to fall equivalently. The banks have reduced prime rates by the full 150 basis points (bps). But, since the second Bank of Canada rate cut on March 13, banks and other lenders have hiked mortgage rates for fixed- and variable-rate loans. That’s not what happens typically when the Bank cuts its overnight rate. But these are extraordinary times. The Covid-19 pandemic has disrupted everything, shutting down the entire global economy and damaging business and consumer confidence. No one knows when it will end. This degree of uncertainty and the risk to our health is profoundly unnerving.   Most businesses have ground to a halt, so unemployment has surged. Hourly workers and many of the self-employed have found themselves with no income for an …
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Extraordinary Coordinated Policy Actions To Ease the Economic Impact of Pandemic In Canada

Prime Minister Justin Trudeau said Canada would introduce a “significant” fiscal stimulus package, as part of a coordinated effort with other Group of Seven countries to counter the virus-driven global economic slowdown and calm markets. In an exceptional press conference held at 2 pm today, Finance Minister Morneau sat at the side of the Governor of the Bank of Canada, and the head of the Office of the Superintendent of Financial Institutions (OSFI) to announce measures to soothe financial markets, boost confidence and support the Canadian economy. Only nine days after the Bank of Canada cut the overnight policy rate by 50 basis points to 1.25%, Governor Poloz announced another 50 bps reduction in the policy rate to a level of 0.75%. Here is the Bank of Canada’s official statement: “The Bank of Canada today lowered its target for the overnight rate by 50 basis points to ¾%. The Bank Rate is correspondingly …
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First-Time Home Buyers Incentive Program!

The new First-Time Home Buyers Incentive allows eligible first-time homebuyers, who have the minimum downpayment for an insured mortgage, to apply to finanace a portion of their home purchase through a form of shared equity mortgage with the Government of Canada. Lower monthly mortgage payments Interest-free incentive program No pre-payment penalty Newly constructed homes eligible for 5% or 10% Exisiting homes eligible for 5%   Ready to get started? Contact us today

Income Properties – 570 News Ask The Experts, August 11, 2018

Check out Tracy and Marina’s interview with Dave Callender, focusing on flipping properties, rental homes and what it takes to finance these investments. A special thank you to EMpression: A Marketing Services Company for providing this image.  

Do you need a financing condition?

by Sandra Rohfrietsch   Let’s talk about financing conditions. The financing condition is a challenge for everyone purchasing in today’s market.  Everyone wants their offer to be the most attractive, especially when the market that has yet to slow down.  What you may not know, is that there can be some significant factors why your Mortgage Broker or Financial Advisor is pushing you to keep that financing condition in place; they have your protection in mind.  We’re going to look at three main reasons why your financing condition is important: Property – There may be something about the property that you or even your Realtor are unaware of.  Lenders and mortgage insurers (Canada Mortgage Housing Corporation or Genworth Canada) have access to details and information that can make or break the approval.  For example, if the property is built on land in a flood risk zone, or the condo board …
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What are the different types of lenders?

One of the biggest aspects of a mortgage is figuring out the best lender. Since every file is unique, a good mortgage broker will likely tell you there’s no “best” lender. Instead, it will be those unique qualities in your mortgage that will determine which lender you’re going to use. In a typical mortgage, there are three potential types of lenders: the big banks, credit unions and monolines. A Bank A bank is a financial institution that accepts deposits, lends money and transfers funds. They are listed as public, licensed corporations and have declared earnings that are paid to stockholders. A key point: they are regulated by the federal government-Office of the Superintendent of Financial Institutions. Everyone knows the big banks and they are considered to be trusted. If you decide to use a fixed-rate mortgage from a big bank, keep in mind the penalty to break the mortgage will …
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Flex Down Mortgages

  A flex down down payment isn’t your typical mortgage scenario. Let’s say you have the credit score and income to buy an additional property but you haven’t managed to save up the down payment.  You may choose to borrow money from a third party or somebody may even gift it to you.  Not every lender will just accept that as payment.  You’ll need a flex down mortgage program and it’s something you really need to talk about with your mortgage broker.  It may even be possible to pull the down payment from a secured line of credit but paying back that money will be considered like any other bill payment on your application. Keep in mind that flex down mortgage programs will also typically require you to put in some of your own money or put down 25% or more.  Flex down programs have better interest rates than you …
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Credit Scores

Your credit score is a big factor when you apply for a mortgage.  It can dictate how good your interest rate will be and the type of mortgage you qualify for. We’re experienced helping clients with a wide range of credit scores so we can find you a mortgage product even if your credit is far from perfect. The good news about your credit score is that it can be improved: Stop looking for more credit.  If you’re frequently seeking credit that can affect your score as can the size of the balances you carry. Every time you apply for credit there is a hard credit check.  It is particularly important that you not apply for a credit card in the six months leading up to your mortgage application.  These credit checks may stay on your file for up to three years. If your credit card is maxed out all …
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Mortgage Rule Changes Explained

By now, we’re all aware of the major mortgage rule changes that have started to come into effect at the start of the year. To recap, in October, the Office of Superintendent of Financial Institutions, or OSFI, introduced tighter rules on mortgages set for Jan. 1, 2018. While there were several changes announced, the biggest affects consumers with uninsured mortgages, who must now undergo a qualifying stress test. More specifically, under the new rules, non-insured mortgage consumers (buyers using a conventional mortgage with a down payment worth 20 per cent or more of the purchase price) must now qualify using a new minimum qualifying rate. The minimum rate will be the greater of the five-year benchmark rate published by the Bank of Canada or the lender’s contractual mortgage rate plus two percentage points. The stress test for non-insured mortgages applies to both fixed- and variable-rate mortgages. The new qualifying rules …
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How mortgage brokers help you get approved by ‘A’ lenders

Every year Canadian families are caught in unexpected bad circumstances only to find out that in most cases the banks and the credit unions are there to lend you money in the good times, not so much during the bad times. This is where thousands of families have benefited over the years from the services of a skilled mortgage broker that has access, as I do, to dozens of different lending solutions including trust companies and private lending corporations. These short-term solutions can help a family bridge the gap through business challenges, employment challenges, health challenges, etc. The key to taking on these sorts of mortgages is always in having a clear exit strategy, which in some cases may be as simple as a sale deferred to the spring market. Most times, the exit strategy involves cleaning up credit challenges, getting consistent income back in place and moving the mortgage …
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Why use a mortgage broker?

While the banks can only offer you their own mortgage products, we have access to hundreds of options from Canada’s largest banks, credit unions, trust companies, and financial institutions.

Plus countless other reasons, let us explain more.

Why a Broker?

We are highly recognized and awarded.

We take great pride in our commitment to our clients and we have been recognized for it! See why we are the leaders in the mortgage industry.

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