Mortgages Made Easy Blog

As the Globe and Mail (and countless other Canadian news outlets) have recently reported, the ratio of Canadian household debt to disposable income has hit a new record high. Statistics Canada says that, on average, households hold $1.65 in debt for every dollar of disposable income. As is always the case, a lot of that new debt comes in the form of mortgages, but consumer credit is also at an all time high.

So what now? Well, if your mortgage rate is greater than 3% or if you’re looking to manage high interest credit debt at much lower rates, this just might be the best time in our history to refinance.

It’s a Great Day to Refinance

Mortgages are at record-lows today, but if you’re paying into a 5-year fixed rate mortgage and still have a few years left on the mortgage, you might not be feeling so great. You might want to explore the possibilities of a new mortgage, because it could save you a bundle – especially if you have enough equity to let you eliminate some high interest personal debt you might be carrying.

Of course, every situation is unique so do your research.  Before you refinance you’ll need to be sure that the savings you’ll gain will trump any penalties connected with breaking an existing mortgage.  A good mortgage broker can easily give you the answers you seek.

Leverage your home equity

Housing prices continue to rise everywhere, so you may have more equity in your home than you think you do. That’s important because it can change your ratios, and give you more borrowing power, which opens up all kinds of new opportunities. Just imagine repackaging high interest debt or paying off a credit line or starting that major renovation or taking that trip you’ve always dreamed of. If you find yourself house rich and cash poor, borrowing money at today’s incredibly low interest rates could change your world.

Consolidate your high-interest debt

I touched on it above, but if you find yourself fighting off high interest debtors, debt consolidation can solve your personal debt situation while letting you keep your home. When you roll your existing debt into a single low interest loan, your life greatly improves. Knocking your high credit score down to low single digit interest rates means your new mortgage pays off your existing debts and you get a clean start. And once again, you get to keep your home.

Do the real math on mortgage penalties

The simple truth is that if you have a closed mortgage, you’ll have to pay a penalty to escape your existing deal with your bank. If you have a variable rate mortgage, the formula is simple: It will cost you three months’ interest on the existing mortgage. If your current mortgage rate is fixed, you’ll have either pay three months’ interest or something called the Interest Rate Differential (IRD); whichever is higher. Interest Rate Differential can be scary in some instances, so make certain you and your mortgage broker do the real math for your current mortgage to make certain that refinancing makes sense in your situation. What’s the point if it’s going to cost you money instead of saving you?

It’s pretty clear: today could be a great day to refinance.

Get started & give us a call.

Looking for a mortgage? Wondering if you qualify? Interested in refinancing? Our secure and completely confidential “no obligation” quick-form can give you answers, fast. Find it here.

With summer off to a great start, this is no doubt the most hectic time of the year for real estate agents and mortgage brokers.  The busiest closing months for new purchases are at the end of June and July.  The great weather during the preceding months makes it very easy for clients to list and show off their homes for sale.  With the increased number of homes listed and so many potential purchasers competing for properties, it can be difficult for clients to find their dream home with all their desired features. This is where our PURCHASE-PLUS IMPROVEMENT MORTGAGE can be very beneficial.

...Why not choose both?

Online mortgage searches and options are becoming more popular than ever. So the question that sometimes comes up is, should I work with a good mortgage broker or go it alone myself with online options.

A lot of young adults are eager to break out of their parents’ houses as soon as they finish school. Most rent, but more and more young adults are intrigued by the idea of owning and either renting or sharing costs and accommodations. It’s an exciting idea that begins to build asset wealth early, but first time home ownership comes with a set of challenges that you need to plan for if you are going to be successful.

The best place to start is by understanding how lenders think and act, and what they expect from an applicant.

Buying your first home is an exciting event. In fact, for most of us, it’s the most significant purchase we may ever make. As a new homeowner, you put a lot of work into buying the right home for you at the right price and getting the best first mortgage possible, but there are other costs you need to plan for. If you don’t, you could be in for a bit of a rude awakening. I’m going to show you how to avoid this additional financial stress.

The Bank of Canada met again yesterday September 9, 2015 to discuss another possible rate drop:

After much anticipation and talk about the rates dropping by another quarter percentage point, The Bank of Canada met today and decided to keep the prime interest rate the same.

http://www.cbc.ca/news/business/bank-of-canada-interest-rate-1.3220395 

Variable rates may be more expensive than you think...

It’s hard to go wrong with today’s fixed or variable rates but here is a great article on variable rate mortgages that most consumers do not think about when picking the lowest rate:

http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/why-variable-rates-are-more-expensive-than-you-think/article25898959/

Would you consider an interest rate at 2.00%?

With the prime interest rate dropping many people are taking advantage of our new variable rate at prime -0.70%. 

This rate is available for all types of mortgage transfers, refinances or purchases for both high ratio and conventional deals.  This rate can be held for 60 days - real deals only. *OAC.