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TD & RBC raised the POSTED rate… but not their REAL rates

Rate Image, May 2018

Much has been written about last week’s Posted rate hikes by TD and RBC. Don’t panic! This is just their posted rate – it’s not the actual rate they give to clients.

I do, however, think we’ll see a minimal rate hike in the coming weeks due to five-year Government of Canada bond yields increasing slightly. Fixed rates are priced closely to bond yields.

Continue reading “TD & RBC raised the POSTED rate… but not their REAL rates”

Mortgage Penalties: You could pay thousands to break your mortgage depending on your lender!

Young family discussing family finances

I originally posted a breakdown of how mortgage penalties are calculated by different lenders on January 4, 2011.

This remains relevant today and, since this has been my most popular article to date, it’s worth a repost!

WE TOOK THE MYSTERY OUT OF HOW PENALTIES ARE CALCULATED

We decided this needed a more detailed explanation… but a strange thing happened when we started to answer these questions. We made a startling discovery. We caution you – the results could get your blood boiling if you’ve had to pay a penalty!

We found that the banks have shrunk or reduced the spreads between their Posted and Discounted rates on shorter-term mortgages over the past few years… and this has had a huge impact on Interest Rate Differential (IRD) penalty calculations. Continue reading “Mortgage Penalties: You could pay thousands to break your mortgage depending on your lender!”

Got a mortgage? Good news: Bank of Canada didn’t raise rates yesterday!

Blog Image, Your Best Mortgage is About More than Rate, Feb Mar 2018

Yesterday, Bank of Canada (BoC) Governor, Stephen Poloz, left rates unchanged. This kept the bank prime rate at 3.45%.

This also, indirectly, affects fixed mortgage rates. Great news for anyone with a mortgage. Go ahead, it’s okay to feel good about paying a low interest rate on what’s probably the biggest debt of your life!

ARE ECONOMISTS RIGHT?

For months we’ve heard economists forecasting 2-4 BoC rate hikes for 2018. So far, we’ve had one increase – in January. Should we be expecting three more increases? Only time will tell, since the BoC raises its rate when inflation rises above the target inflation rate… currently the range is between 1% and 3%, and sits at an acceptable 2.10%. Some believe inflation has increased temporarily, in part, due to increased minimum wage.

Continue reading “Got a mortgage? Good news: Bank of Canada didn’t raise rates yesterday!”

BIG SIX BANKS exposed and called out by Financial Consumer Agency of Canada!

big-six-banks1

The BIG SIX BANKS have been caught. For those who still think the banker is your friend and is only looking out for your best interests, guess again. They’re in the business of selling and making money. The FCAC has finally reported what Financial Experts have known for years!

This report was recently released… but I wonder how soon it will be forgotten? And how much media attention will this important story really get?

Don’t forget, the BIG SIX BANKS are among the Top 10 Largest and most profitable corporations in Canada. They spend billions in marketing each year. That sort of advertising budget can make us forget about these types of announcements.

Continue reading “BIG SIX BANKS exposed and called out by Financial Consumer Agency of Canada!”

Yes, you can still buy a home in Canada… Keeping the dream alive

Homeownership Image, March 2018

Canada’s a nation of immigrants. It truly is the land of opportunity. Chances are, your parents, grandparents or great grandparents came here from another country.

There are many reasons why people left their homeland. Some left by choice to pursue a better life. Others had to leave for safety reasons. Whatever the reason, most of us have a common goal: A better life.

Homeownership has always been an important part of that dream. We want to own something. We want to plant roots. There’s a pile of statistics to support this claim. In my 28 years in the financial services industry, I can attest to this claim.

Continue reading “Yes, you can still buy a home in Canada… Keeping the dream alive”

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