Tag Archives: mortgage terms

Mortgage Experts in Demand

In a report released by RBC Capital Markets, its estimated that 55% of Canadians get their mortgage from a mortgage expert while the remaining 45% choose to secure their mortgage through a bank branch representative.  Although bank branch representative are authorized to offer mortgages, it’s only one of a multitude of products they are expected to know and offer.  Mortgage experts on the other hand, focus solely on mortgages, a … Read More

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Let the Mortgage Rate Wars Begin

The clear sign of a mortgage rate war is when Bank of Montreal (BMO) starts advertising a 2.99% 5 year fixed mortgage rate.  Although current bond yields don’t support such a low mortgage rate we are entering the critical spring season that can make or break a bank’s annual lending target. The tightened mortgage rules have done their job and pushed many potential buyers out of the market and scared … Read More

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5 Steps to Pay-Off Your Mortgage Sooner

Owning your own home is a fundamental dream for Canadians, but with a large mortgage looming it can feel like the bank is the real owner.  Owning your home free and clear is a more ambitious goal.  Here are 5 steps to get to that mortgage burning party sooner. 1)      Set a Realistic Timeline – It’s important to set an ambition goal, but make sure it’s achievable.  Just saying that … Read More

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Are Non-Bank Mortgages Safe?

There are dozens of mortgage companies across the Country providing consumers with a broad array of choices.  Although there are only a small number of banks, they dominate the market due to their strong brand names and their vast branch networks.  But that doesn’t mean they’re better. Non-bank mortgage lenders offer mortgages with similar and sometimes better pre-payment privileges, features and benefits.  More importantly they often offer lower mortgage rates.  … Read More

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BMO’s 2.99% Mortgage Rate Eliminates another “Frill”

It came back with a twist.  The BMO 5 year fixed 2.99% no frills mortgage rate came back on the weekend, but was only available to on-line customers.  It initially caused quite a stir with the minister of finance because of concerns that it will lead to more consumer debt.  BMO’s retort was that their no-frills mortgage limits the amortization to 25 years so borrowers must pay-off their mortgage faster.  … Read More

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Interest Only Mortgages

An interest only mortgage is simply a mortgage that only requires periodic interest payments.  While borrowers will enjoy better cash flows, the obvious downside is that they may never pay down their mortgage. A typical mortgage requires a constant payment of both interest and principal.  The longer the amortization (the time it takes to pay-off the mortgage) the lower the payment and the less principal paid each month.  Recent department … Read More

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Flaherty Tightens Mortgage Rules

The department of finance ambushed the financial services industry late Wednesday with the announcement that they are tightening mortgage rules.  Just 2 weeks ago the Office of the Superintendent of Financial Institutions (OSFI) released mortgage rule changes after weeks of deliberation and industry feedback.  Apparently the government didn’t like the process or the results and heavy handed a few changes of their own. The changes announced are a reduction in … Read More

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Mortgage Penalty Loophole

Mortgage penalties are a fact of life for mortgage holders. When it comes time to sell your house or refinance your mortgage you’ll rarely find yourself near your renewal date.  Mortgage penalties are not always a bad thing though.  They can be associated with the better option, especially if you are breaking your term to get a better mortgage rate. After all, it’s about saving money over the life of … Read More

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Eliminate Your Mortgage Sooner

Mortgage pre-payment privileges not only allow you to make annual lump sum payments, they also allow you to increase the amount of your mortgage payment each year.  These pre-payment privileges are usually described as 15% + 15% or 20% + 20%.  The greater the percentage the more you are allowed to increase your regular payments.  There are two numbers given because the first is the annual lump sum percentage and … Read More

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Is Your Mortgage Prepayment Privilege 20/20?

Mortgage pre-payment privileges are an important component of any mortgage, but they are often confusing and misunderstood.  A major challenge is that although each mortgage company is familiar with their mortgage terms they are unclear with the rest of the market and how they compare.  In an effort to simplify their meaning mortgage lenders will advertise terms like 15% / 15% or 20% + 20%.  If these terms meant the … Read More

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