News Flash! BMO and TD’s 2.79% is great but it ISN’T the lowest rate!

Bmo wide thumbs downIt’s become an annual tradition.  Every year around this time, BMO announces, what appears to be a great mortgage for a 5 year fixed rate.   Last week, BMO announced they were lowering their 5 yr Fixed rate to 2.79%.  TD jumped in and did the same thing.  Wow!  That’s the lowest advertised rate by a BIG SIX BANK, in history. (excuse me while I yawn..pause for long yawn here)

Hey! Guess what?  It’s NOT the best rate available!  Read on….

HERE’S 7 FACTS BMO AND TD DON’T WANT YOU TO KNOW, BUT I’LL TELL YOU: Read the rest of this entry »

Historical low mortgage rates mean RECORD HIGH penalties for BIG SIX BANK clients!

greedy bankerMortgage penalty calculations continue to mystify Canadian consumers.  For years, I’ve posted numerous articles on penalties…  how they affect us… how they are calculated…..why you need to understand them.. and most importantly, HOW TO AVOID THEM!!

Today, I’ll give you explicit details on the great mortgage penalty mystery…

I’ve shared dozens of horror stories about average Canadians being hit with mortgage penalties of $12,000, $15,000, $20,000, $30,000 and more.   These examples aren’t from some obscure small financial institution. It’s your BIG SIX BANK.   Yet, the attitude from Consumers is that it won’t or doesn’t affect them….until it’s too late.

I’ve also shared the solution on how to avoid this… and I’m going to share that with you once again..  If you want to know how to avoid monster penalties, then take a few minutes and read this.. It could save you untold $$thousands…. Read the rest of this entry »

$22,500 savings by breaking mortgage and getting into today’s low rates!

break your mortgage A few weeks ago, I posted an article about one of my readers that had the potential to save $15,000 by breaking the mortgage and getting into a new 5 year fixed rate.   This was a net savings.  The actual savings was just over $20,000 less the penalty of $5,000.

This week, we had an even bigger savings.  My clients are in a 10 yr term at 3.59%, with a $710,000 balance and 8 yrs to go.   The penalty to break is $6500.   The savings is $29,000.   Result is a net savings of $22,500.   Wow!  $22,500 savings over the next 5 years!  That’s $4500/ year in savings! 

This type of savings opportunity is extremely rare.  I’ve only seen this level of savings a few times before.  We can thank the record low interest rates for that.

If you are in a mortgage with a rate that’s above 3.20%, then you could be missing an opportunity to save $$thousands.  You should at least consult with a Mortgage Broker to do the math.   Remember, I haven’t even listed the lower rate product options available, such as Variable rate, or a 3 year fixed rate.   It’s worth looking into.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Collateral Mortgages… a different 50 shades of grey!

handcuffs In 2010, TD announced they would begin registering ALL new mortgages as a collateral charge.  The sale pitch was that it was good for the consumer.  It would allow TD clients to borrow more, in the future, without having to incur new legal fees.  Yes, that part is true.

But they’ve left out a lot stuff, too!   For years, Mortgage Brokers and other unbiased financial professionals, cautioned the public about collateral mortgages.    And in 2013, CBC Marketplace did an expose on TD and their retail branch’s lack of knowledge and disclosure.   Is this where you want to go for your mortgage?TD

By the way, TD wasn’t the only Bank to go with collateral charge only.   ING made the same move in Dec 2011.  And they used a similar sales pitch.   But my readers have been hip to this and aren’t getting fooled.

The federal govt was pressured into taking action to protect consumers.  In Sept 2014, the federal govt announced ‘more disclosure.  But have the Banks really given us more disclosure?   Read the rest of this entry »

Rate shopping sites…tested again.. and failed again.

which mortgageA few years ago, I published a study on Rate shopping sites.   These sites were gaining popularity with consumers as a  place to go if you wanted to get the best rates.  And they attracted a lot of attention.

You know the sites… they have catchy ads like ‘shopping for the Best Mortgage rates in Canada’ or ‘comparing Canada’s mortgage brokers for the best rates’.  
Hey, who doesn’t want the best rate?  These ads work. Canadians were clicking these links to get more info.

Sounds great, right? Yet, it’s not.  
Read the rest of this entry »

Mortgage Rates hit Record lows again!

record low rates This isn’t 2010, 11, 12, 13 or even 2014…  It’s 2015, and once again, we are making this announcement.  5 year Fixed Mortgage rates are an new all-time lows!  Today, you can get a 5 yr fixed rate for 2.79%, even 2.74%, with some conditions.  (and by the way, yes, I am seeing slightly lower rates advertised, and I have access to these, but I won’t recommend these to my clients as they contain inferior terms, limited privileges, product restrictions and inflated prepayment penalty calculations… I won’t promote these.)

Just 2 years ago, the Federal Minister of Finance’s office picked up the phone, and called a Bank because they were advertising a 5 yr fixed rate at 2.99%.    The federal govt was concerned that the record low rate, at the time, would promote more consumer spending and make the already hot real estate market, even hotter. Read the rest of this entry »

$15,000 savings by breaking his mortgage early and getting into today’s low rates.

break your mortgage  Look, I don’t advocate paying penalties, however, if there is an obvious savings to be had, then you have to do it.   We’ve reached a point where interest rates are so low, it’s worth a review.  Here are some recent experiences with real people…. Enjoy.

I had one of my readers contact me about breaking his mortgage…  His current mortgage with a good lender.. a Non-bank lender..  his rate is 3.59%.   He took a 10 yr term last year.  Balance was over $500k.  So with 9 yrs remaining, we reviewed his options.

This was a no brainer.  Penalty to get out was under $5,000 (lucky he was with a non-BIG SIX BANK). But the savings over the next 5 yrs would be $20,500.   His net savings is $15,000.    Would you I recommend he break the mortgage?  Absolutely! Read the rest of this entry »

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