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 »

NO SET UP COSTS!! Secured line of credit at Prime plus 0.50%!

canadian-money-giftA few months ago, I announced a special promotion.  A secured line of credit, at Prime plus 0.50% (2.85% plus 0.50% = 3.35%) with NO set up costs.  The response has been so overwhelming that I’m publishing this promotion once again.

FREE legal fees and FREE appraisal fees.  The Bank is covering both these costs.   You pay nothing.  $0.00.  It’s just that simple.  AND, this Bank will go in 2nd position behind your existing 1st mortgage if necessary.

You must qualify, of course.  Good credit, stable income, qualify real estate, etc.   If you are interested in this product, contact me for details.   This is a limited time offer.  We do not have an expiry date but it can be terminated at any time.

Brokers and Agents, please do not call.  I am not able to share this offer with you.  Sorry.

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

Will Variable rates increase as Bank Prime drops?

where to invest  Here’s a warning to all….   Watch out for the BANKS to increase their Variable rate mortgage pricing.  History tells us that when the Bank of Canada lowers their Target Rate, and the Bank Prime falls, Variable rate mortgage pricing increases.

If you have a mortgage coming due in the next 4 months, speak with a mortgage broker to get you a rate hold immediately!

Today, you can get Prime less 0.65% on a Variable rate mortgage.  That’s 2.85% – 0.60% = 2.20%. THIS PRICE COULD DISAPPEAR!  2.20% is a great rate!   No one would argue that.  The BANKS are counting on you to be content with that 2.20% rate. On March 4th, the Bank of Canada meets again to set the Target Rate.  And all indications point to another 0.25% reduction.   Read the rest of this entry »

Record low Bond yields means even lower fixed mortgage rates

graph trend downFixed mortgage rates are tied into Govt of Cda bond yields.  As the yields go done, so does the fixed mortgage rates.. well, usually.. more on that later..These bond yields have hit all-time lows in the past week… Yesterday, they were as low as 0.55%...  To put that into perspective, the 5 yr bond yield is lower than the Bank or Canada overnight rate, which now stands at 0.75%.  Another historical event.  That almost never happens.

Check out these 2 historical charts to compare the Bank of Canada rate from 1935 to Dec 2014 and 5 year Govt of Cda bond yield from 1980 to Dec 2014….

If you’re wondering what this means for you, a Canadian consumer, it means mortgage rates should go even lower.   Institutional investors are pricing in a further Bank of Canada rate cut at their next schedule meeting on March 4th, 2015. Read the rest of this entry »

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