CategoryMortgage Products

Posted March 30, 20165 Comments Interest rates

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

For 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 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 April 1, 2015 Mortgage News

RBC announces ’employee pricing for mortgages’.. and it’s April Fools day.

RBC is coming out with their employee pricing program for mortgages… yet again. And like last year’s promotion, it deserves a closer look.. or at least some exposure.

Last year, the program promised to “break through the clutter of price wars within the mortgage marketplace”, to quote Sean Amato-Gauci, Senior VP at RBC. It was a twist on the auto industry.

And like last year, they aren’t putting their actual interest rate isn’t going to be advertised in any print. They are hoping Consumers will be intrigued enough to call or walk into a branch to get the actual rate. Well, I’ll save you the suspense. Rumors say it could be as low as 2.69% for a 5 yr fixed rate product. Hey, that’s a good rate. It’s a competitive rate. But it’s not the best mortgage out there! Check out these facts… Continue reading “RBC announces ’employee pricing for mortgages’.. and it’s April Fools day.”

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!”