CategoryMortgage Tips

Posted May 26, 2016 Debt

I have 2.39% for 5 yrs fixed available…but I wont sell it.

It’s true. I have access to this great rate. It’s around 0.20% lower than the best rate today. And you won’t see me recommending it to my clients.

That’s right, I’m recommending they don’t take it.

Why? It’s simple. No, I don’t want my clients paying more on their mortgage. I want to see them PAY LESS to own their homes. This is one of those products that carries an inflated prepayment penalty. Should the homeowner need to get out of their mortgage early, they will be hammered with a ridiculous exit cost. We’re talking 10, 12, even 16 months worth of interest penalty.

Statistics clearly show we are paying or changing our mortgages every 3 years. So, chances are, you will have to pay this penalty. On a $300,000 mortgage, your penalty could be $9,000 or more. Compared with $1,943. That’s a $7,000 difference.

That 0.20% savings on the rate equals $600 per year.. You still think that 2.39% rate is great??

The next time you hear or see something that sounds too good to be true, it probably is. If you aren’t sure, call me or an experienced Mortgage Broker for unbiased advice.

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 25, 20162 Comments Money saving tips

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

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 February 16, 20161 Comment Bank News

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

In 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 January 17, 2016 Consumer Debt

Credit Card hangover? Make 2016 a painless year….

We’re well into January… and right about now, some of us are avoiding the mail for fear of seeing those holiday bills! Ok, so besides avoiding the mail, what’s the best way to tackle those debts?

Here’s some helpful ‘did you know’ questions… Enjoy! Continue reading “Credit Card hangover? Make 2016 a painless year….”

Posted November 10, 20152 Comments Consumer Debt

Mortgage cost today is $1380/mth for every $300k… and sharing high net worth secrets.

Fixed mortgage rates went up this week on the wholesale market. Only about a 0.10% increase… We are still way below 3.00% for 5 yr fixed rates. Hey, that’s pretty good! (watch for the media to blow it out of proportion soon.. they seem to love feeding on negativity).

Thought I’d share some quick numbers.. Did you know that a $300k mortgage will still carry for $1380/mth? And that’s with a 25 yr amortization. If we go to a 30 year amort, the payment drops to $1221/mth.

Let’s increase the mortgage to $400k.. payments are $1840/mth and $1628/mth for a 25 and 30 year amortization, respectively. Hey, these are still incredibly low mortgage rates. Anything under 4.00% should be considered a gift. (I’ll get into what Canada’s wealthy are doing in a few moments) Continue reading “Mortgage cost today is $1380/mth for every $300k… and sharing high net worth secrets.”