Rates usually drop leading up to a Federal election!

Election 2015History tells us that mortgage rates usually drop leading up to an election. And 2015 has followed that trend.   It started in January of this year, when the Bank of Canada (BOC) Governor, Stephen Poloz, shocked Economists with his surprise 0.25% Bank Rate cut.

(CanadaMortgageNews.ca readers will remember, not all were shocked, as I had predicted a rate drop just days earlier).

Then in July, the BOC Govr did it again..  this time, it wasn’t as much a shock.  The Bank Prime was cut by another 0.25% after months of negative Economist data showed the Canadian economy was slowing.  Read the rest of this entry »

Hey, what happened to the BMO “Low Rate Mortgage”?

Bmo wideRemember the BMO “Low rate mortgage”?  It seems to have disappeared…  Well, not really.   BMO has quietly changed the label and now calls it the ‘Smart Fixed Rate Mortgage’.  

Sounds impressive…but it’s not.   I’ll save the suspense.  This is the same product that’s full of limitations, restrictions and an inflated prepayment penalty calculation…. It isn’t the best rate…   Certainly NOT the best mortgage product. Read the rest of this entry »

BIG SIX BANKS aren’t passing along the Bank of Canada rate cut to consumers?

banksters monopolyToday, the actual BANK PRIME rate should be 2.50%, not 2.70%.   What am I talking about?… follow me on this and let’s see if this makes sense.

It’s been a few weeks since the Bank of Canada cut the rate.  I’ve been waiting to see how this would play out… First, let’s get the terminology clear.    Bank of Canada overnight rate, or Key rate as it’s referred to, directly affects the Retail Bank Prime rate and Variable rate mortgages.   This does not have a direct impact on fixed rate mortgages.

Last January, the Bank of Canada Governor, Stephen Poloz, surprised most economists and financial experts when he cut the rate by 0.25% (well, not all experts, I called for a rate cut just a week earlier).
Read the rest of this entry »

Rogers Communications shutting down Zoocasa.com on June 22, 2015

zoocasa  They launched back in 2008 in a beta version.  In 2011, they began offering property valuations through Zoopraisal.  And in the coming years, they provided the public with property sales data.   Surprisingly, Rogers Communications announced they will close the site as of June 22nd, 2015.

There is much speculation about why Rogers would close this online real estate site.  This was not some small business.  This site had a huge following and was ranked number 1181 in top websites in Canada…  That may not sound impressive, but that’s actually incredibly high.   Remax.ca is ranked #484, Royallepage.ca is #535, Sutton.com (Sutton Group) is just #3559… according to Alexa rankings. Read the rest of this entry »

Down payment verification… a quick checklist to ensure your purchase goes smoothly.

CanadianBillsWhat you need to know about your downpayment.

You’ve got your downpayment and you’re ready to go. Congratulations! Soon, you’ll need to verify that downpayment for your mortgage approval. It’s required by all lenders to protect against fraud and to prove that you are not borrowing your downpayment, which changes your lending ratios and potential approval.

Here’s how to prepare:

  1. Provide a 3-month history of any bank account(s) where you have been assembling your downpayment. It’s critical that your name is linked to the account; some internet print outs don’t show a name.
  2. If you had any large deposits, show its source i.e. if you sold your car, show a copy of the bill of sale. If you transferred money in from another account, bring the records for that account too. Read the rest of this entry »

New 2nd mortgage options at 3.50% with no legal fee or appraisal fee!

canadian-money-gift

I’m reposting this article due to the tremendous response and numerous inquiries..  

We recently came across a lender that is offering an unheard of offer.   Secured lines of credit in 2nd position at Prime plus 0.50%.  That’s 3.50% today!   We haven’t seen this sort of offer in quite a while for 2nd mortgages.  Here’s the qualifying details:

  • you have to have good credit
  • you need provable income to qualify along
  • there must be adequate equity in your home.   The product allows you to borrow up to 80% of the appraised value of your home.
  • the appraisal fee and legal fees are covered by the lender (that’s a $1200 savings)!!
  • a small broker fee may apply …. see me for details.

This rate is truly incredible for such a product.  But having the legal fees and appraisal covered is truly amazing! I rarely get this excited about a product but this one has me pumped!   For those that don’t know, most 2nd mortgage options begin at 10% to 12% plus fees.

For those that can’t provide traditional income confirmation, such as self-employed or commissioned employees, there are other options for you.  The rates are higher but there are options.  And for those with slow or poor credit, you also have some options available for mortgage funds.. provided there is adequate equity in your home.   Remember, each situation is reviewed on a case by case basis.  Pricing and cost will vary.

If you are looking for some extra funds or access to a line of credit, this product could be a great option.

Happy Holidays!

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

RBC Q2 earnings hit new record $2.5billion… and they raised their bank fees.. Enough already!

greedy bankerRBC-Bank You gotta love the BANKS.  Putting out forecasts of troubled economic times, too much personal debt, housing bubbles, etc.    They seem to think it’s all bad news….  well, not for them.   They keep posting record profits year after year after year…

Yet, somehow they justify increasing our bank fees....  Well, that was going too far!   Talk about flaunting and rubbing it in our face!   This was probably one of those rare times in history when the normally reserved, conservative, polite Canadians had just about enough!   A major public and political backlash has forced the RBC to retract those fees.

But why did it take so much to for RBC to do the obvious?   I mean, come on.  You jack up fees after you report RECORD EARNINGS?  Hello!?   This is like that commercial for Hotels.com.   Captain Obvious!

RBC HIRES TEMPORARY FOREIGN WORKERS

Remember when RBC hired Temporary Foreign Workers (TFW) to replace existing Canadian jobs?  Check this out… they had their Canadian employees train the TFW and then they fired the Canadian employees!   This was just 2 years ago!

NEWS FLASH!  The BANKS are concerned about shareholder profits.  End of story!   Their loyalty is to the shareholder, not you or I.   And once you understand this, your expectations and outlook will be much different.  You will begin to question things more….. that’s a good thing.   Questions are good… there are only bad answers..  or here’s another saying…  The only bad question is the one you didn’t ask!

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

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