How exactly do my variable rate mortgage payments work?

If you have a variable rate mortgage, it’s important to note that some lenders change mortgage payments when prime fluctuates while others don’t. For example, when the Bank of Canada raised the prime rate in March, some lenders reflected the new rate by increasing the required mortgage payments.   These lenders sent out a notification that their rate was increasing and …

Bank of Canada announces rate increase

In a move that has been widely anticipated by economists, the Bank of Canada has raised their Key Overnight Rate by 0.25%.  Though we are waiting to hear how the banks will respond, it is likely they will increase their Prime Rates by 0.25% as well.  The last time the Bank of Canada raised their rates was October 23rd, 2018!  …

Upcoming changes to the qualifying rate for uninsured mortgages

Effective June 1, 2021, the qualifying “stress test” rate for uninsured mortgages will increase from the current 4.79% to 5.25%. Even though this is an artificially high rate just for qualification purposes, it still takes a bit out of your borrowing power. Here is what we know so far: Does this apply to both uninsured and insured mortgages? As of …

The difference between a Mortgage Broker and a Bank Rep

Mortgage Broker Will be available for advice for the life of your mortgage Knowledgeable about a wide range of mortgage solutions to best suit your needs Paid a commission by the mortgage lender after the mortgage closes Are experts in mortgage & creditor insurance One-Stop shopping for multiple mortgage banks and lenders Reduces the need for multiple credit bureau inquiries …

What is a “sliding scale”?

The larger a mortgage is, the larger the risk to the lender so to offset this risk, lenders will use something called a “sliding scale” to calculate the minimum down payment required.  If the purchase price is over $1-million, the minimum down payment will be 20%. However, once you get around the $1.25-million mark, most lenders implement this sliding scale …

How do mortgage brokers get paid?

When Borrowers DON’T pay:   Mortgage Brokers are often paid by the lender – probably about 98% of our client’s mortgage application has the fee paid for by the Financial institution.  For the consumer it means FREE access to independent advice and access to all sorts of lenders – including Banks, Credit Union, Mortgage and Trust Companies. With a streamlined process …

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General Information relating to Deferred Mortgage Payment Programs

This is not free money – it’s a postponement of your payments – You are still expected to ultimately pay all of the money you owe, with interest. True Financial hardship must be demonstrated – These programs are for customers who are genuinely struggling to make their next mortgage payment. They may have lost their jobs and/or a portion of …

Spousal Buyout Mortgage

Are you going through a separation or divorce? You might not be aware that there are mortgage products designed to allow you to refinance up to 95% of your property in order to buyout your ex-spouse. To qualify for this program, you must have good credit and you must be able to afford the mortgage on your income alone.  Please …

what it costs

Ever wondered what it costs to SELL your home?

When you’re deciding to sell your home and make your next move, it’s smart to sit down and crunch the math on what the actual costs of selling will be – especially if you plan on using the equity in your home for the down payment on a new one. Here’s a basic list of some of the common costs …