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Posted 2 Comments on Mortgage penalty calculations.. More important than the interest rate. Money saving tips

Mortgage penalty calculations.. More important than the interest rate.

greedy banker

WHY ISN’T ANYONE TALKING ABOUT THIS?

You bought a home…  you need a mortgage.. what’s the first question you ask your Banker?  “what’s your best interest rate?”.  And the second question is usually, “what product should I choose?”.

Almost no one asks about Mortgage Penalties or how they are calculated.  After all, how often does anyone have to pay a penalty, right?   WRONG!   $10,000, $20,000, $30,000 and higher.  This is how much penalties can add up to… these are real numbers.   And guess what?  This isn’t some unknown bank or small lender.. These are coming from the BIG SIX BANKS.!!

Here’s a little known stat…. “Canadians change their mortgage every 3 years, on average”.  Ask anyone that’s owned a home before.  Chances are, they’ve had to deal with a mortgage penalty at some point..  and for most of them, it’s an embarrassing subject.   After all, who wants to admit to being the victim?  Check out the stats… Continue reading “Mortgage penalty calculations.. More important than the interest rate.”

Posted 5 Comments on Variable rate is out, Fixed rates are in…. But, which term…? Interest rates

Variable rate is out, Fixed rates are in…. But, which term…?

Variable rate mortgageFor more than a decade, I’ve been recommending Variable rate mortgages, as the product of choice. My clients have saved $thousands.  It’s been a great 11 year run..   But now, the strategy has changed slightly.   Read on, to see my newest recommendations..

QUICK VARIABLE RATE HISTORY.

First, you need to understand the history..  Variable rate had lots of pluses.   It had a lower rate of interest, the penalty can never go over 3 months interest, and you have the option to lock into a Fixed rate at any time.

Being in a Variable meant paying lower rates.  In fact, the difference, compared with Fixed rates, ranged between 1.00% and 3.00%.  This translated to several $$thousand in less interest each year. Continue reading “Variable rate is out, Fixed rates are in…. But, which term…?”

Posted 1 Comment on Attn: Firstline mortgage clients… beware CIBC brand renewal offer! Bank News

Attn: Firstline mortgage clients… beware CIBC brand renewal offer!

FirstlinecibcIn June 2012, CIBC announced they would close Firstline Mortgages. All existing Firstline mortgage clients would be offered a CIBC brand mortgage renewal.

Hey, did anybody catch that?  “…..offered a CIBC brand mortgage renewal.”   This means your Firstline mortgage CANNOT be renewed into a Firstline brand because the brand is being discontinued.

In fact, in 2015, CIBC was sending all upcoming renewals a ‘Special CIBC Early Renewal Rate Offer’.  My first piece of advice…If you get this, don’t sign it without reviewing with your Mortgage Broker.   Continue reading “Attn: Firstline mortgage clients… beware CIBC brand renewal offer!”

Posted Mortgage News

Higher minimum down payment coming.. relax, it’s just political posturing.

Bill MorneauAs expected, and as I had predicted back on October 21st, the Federal govt made their first major announcement last week.  All new govts want to make a major announcement early… It shows they are doing something….So, here it is.

The new Federal Minister of Finance, Bill Morneau, broke the news on Friday.   A change to the minimum down payment rules.   That’s right, the minimum down payment to buy a house is going up…. well, sort of… Okay, that’s the headline … but now, keep reading for the real facts.   Here’s a link to The Star’s article by Susan Pigg quoting yours truly…. Continue reading “Higher minimum down payment coming.. relax, it’s just political posturing.”