CategoryInterest rates

Posted August 31, 2015 Interest rates

Rates usually drop leading up to a Federal election!

History 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. Continue reading “Rates usually drop leading up to a Federal election!”

Posted August 4, 20151 Comment Interest rates

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

Remember 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. Continue reading “Hey, what happened to the BMO “Low Rate Mortgage”?”

Posted June 4, 2015 Bank News

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

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

Posted May 14, 20151 Comment Interest rates

Bond Yields are up… will Fixed Mortgage rates follow?

Fixed mortgage rates are tied closely to the Govt of Cda bond yields. And bond yields are up… Since mid April, the 5 yr Gov of Cda bond yield has gone from 0.75% to 1.07%. That’s a 0.32% jump. Normally, we would see fixed mortgage rates go up.

So far, no increase. But that’s probably more to do with a competitive Spring housing market. This is when most house sales and mortgage transactions take place. The Banks need to maintain certain market share levels in order to keep shareholders happy. They are willing to sacrifice a little profit margin (and I do mean little… they seem to make up for this with higher service fees as was recently reported, but let’s not get into that now…).

If the bond yields continue to increase, we will see fixed mortgage rates rise. That’s an automatic. The real question is how long will the bond yields continue their climb? It will be interesting to watch the next few months. We can expect to see some rate increases as the Spring market ends and Banks look to increase their profit…. A pattern that repeats itself year after year.. but here’s what you can do to protect yourself… Continue reading “Bond Yields are up… will Fixed Mortgage rates follow?”

Posted March 27, 2015 Interest rates

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

It’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: Continue reading “News Flash! BMO and TD’s 2.79% is great but it ISN’T the lowest rate!”