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Posted Interest rates

Rates usually drop leading up to a Federal election!

Election 2015History 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 1 Comment on Hey, what happened to the BMO “Low Rate Mortgage”? Interest rates

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

Bmo wideRemember 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 2 Comments on BIG SIX BANKS aren’t passing along the Bank of Canada rate cut to consumers? Bank News

BIG SIX BANKS aren’t passing along the Bank of Canada rate cut to consumers?

banksters monopolyToday, the actual BANK PRIME rate should be 2.50%, not 2.70%.   What am I talking about?… follow me on this and let’s see if this makes sense.

It’s been a few weeks since the Bank of Canada cut the rate.  I’ve been waiting to see how this would play out… First, let’s get the terminology clear.    Bank of Canada overnight rate, or Key rate as it’s referred to, directly affects the Retail Bank Prime rate and Variable rate mortgages.   This does not have a direct impact on fixed rate mortgages.

Last January, the Bank of Canada Governor, Stephen Poloz, surprised most economists and financial experts when he cut the rate by 0.25% (well, not all experts, I called for a rate cut just a week earlier).
Continue reading “BIG SIX BANKS aren’t passing along the Bank of Canada rate cut to consumers?”

Posted Real Estate news

Rogers Communications shutting down Zoocasa.com on June 22, 2015

zoocasa  They launched back in 2008 in a beta version.  In 2011, they began offering property valuations through Zoopraisal.  And in the coming years, they provided the public with property sales data.   Surprisingly, Rogers Communications announced they will close the site as of June 22nd, 2015.

There is much speculation about why Rogers would close this online real estate site.  This was not some small business.  This site had a huge following and was ranked number 1181 in top websites in Canada…  That may not sound impressive, but that’s actually incredibly high.   Remax.ca is ranked #484, Royallepage.ca is #535, Sutton.com (Sutton Group) is just #3559… according to Alexa rankings. Continue reading “Rogers Communications shutting down Zoocasa.com on June 22, 2015”

Posted 1 Comment on Down payment verification… a quick checklist to ensure your purchase goes smoothly. Mortgage Tips

Down payment verification… a quick checklist to ensure your purchase goes smoothly.

CanadianBillsWhat you need to know about your downpayment.

You’ve got your downpayment and you’re ready to go. Congratulations! Soon, you’ll need to verify that downpayment for your mortgage approval. It’s required by all lenders to protect against fraud and to prove that you are not borrowing your downpayment, which changes your lending ratios and potential approval.

Here’s how to prepare:

  1. Provide a 3-month history of any bank account(s) where you have been assembling your downpayment. It’s critical that your name is linked to the account; some internet print outs don’t show a name.
  2. If you had any large deposits, show its source i.e. if you sold your car, show a copy of the bill of sale. If you transferred money in from another account, bring the records for that account too. Continue reading “Down payment verification… a quick checklist to ensure your purchase goes smoothly.”