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Posted May 28, 2013 Interest rates

5 yr Bond yields up significantly.. expect fixed rates to go up..!

5 yr Govt of Canada bond yields are up over 30bps in May. We should expect fixed mortgage rates to increase if they hold at this level. If you are thinking of buying, refinancing or if your mortgage is coming up for renewal, I suggest you contact your mortgage broker and get some rates held. This could be the beginning of the long-awaited mortgage rate hikes.

There is another chart you should look at if you want to see where Fixed mortgage rates are headed over the next 6 months. The 2 year Govt of Canada bond yields are a good 6 month indicator of where rates are going…. and this chart shows the 2 year bond yields jumped over 25bps in May.

We’ll report any changes as they get announced.

Your best interest is my only interest.

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted May 13, 2013 Bank News

Fixed mortgage rates could move up this week.

Guess I shouldn’t have talked about the record low interest rates last week… Today, 2 small lenders increased their fixed mortgage rates and another Lender warned of a potential increase coming sometime this week. What’s driving the higher rates? A jump in the 5 year bond yields. Fixed mortgage rates are directly affected by the Govt of Canada bond yield.

With bond yields jumping 20 basis points in the past 1o days, it’s only logical to assume mortgage rates will go up. click here to see bond yields. But hey, with interest rates at record low levels, it’s no reason to panic. Rates are still great…. if you want to protect yourself against a possible increase, get a rate hold… it’s free and there’s no obligation. Most Lenders will hold rates for 120 days..

Need help to get a rate hold? Call me. I can help.

Your best interest is my only interest.

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted May 10, 2013 Money saving tips

Mortgage rates hit all-time lows….it all adds up to record savings too.

Mortgage rates are still low… In fact, they are at record lows… 5 year fixed rates for qualify products can be found at 2.89%… some No Frills products are at 2.79% (stay away from these products).. Put another way, for every $100,000 of mortgage you borrower, your payment is $468/mth.

Compare this with the average 5 year fixed rate for the past 25 years being over 7.00% and you have huge potential savings. That same $100,000 mortgage would cost you $700/mth… That’s a $232/mth difference. No wonder more Canadians are buying homes, buying rental properties or tapping into their equity to invest. Continue reading “Mortgage rates hit all-time lows….it all adds up to record savings too.”

Posted May 8, 2013 Bank News

More BIG SIX BANK penalty nightmares… when will Canadians learn to look elsewhere for their mortgage?

Here’s a great article from The Star’s Ellen Roseman on mortgage penalty nightmares. She shares just a few stories out of the dozens she’s received over the past little while. There is no reasonable justification for charging borrowers these inflated penalties… If you think your immune from these penalties, think again.

Notice the name of the Banks that are mentioned in her article… Yes, part of the BIG SIX club… Don’t get lulled into believing that dealing with a BIG SIX BANK offers some sort of immunity from higher penalty charges… The experiences of these borrowers and countless others proves otherwise…

I’ve been getting more calls and comments on this recently… $10,000, $15,000, $20,000 in penalties. How is it that the smaller Lenders can offer the same or better interest rates, and not charge these inflated penalties? The BIG SIX BANKS reported a record $30billion combined profit in 2012…!! Doesn’t make any sense, does it? And yet, it continues…

Remember, there are several other Lenders that don’t calculate their penalties with the same inflated formula… Seek advice from a mortgage broker… get another opinion… There are better options and I have access to them! It’s no secret…. I’m happy to share this info to anyone that wants it.

Come on Federal govt… do something to stop this madness and protect Canadians from this gouging!

Your best interest is my only interest!

As always, I welcome your comments, calls and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted April 29, 20137 Comments Case study

So-called “Best Rate sites” are put to the test with shocking results.

There’s been a surge of ‘Best Rate’ sites popping up… Chances are, you’ve probably seen one or more of their online ads… You know the ones…‘shopping’ for the Best mortgage rates in Canada’ and ‘comparing Canada’s mortgage brokers for the best rate”. It does sound great… and it seems to be getting lots of attention… Even the media are covering and quoting these sites… And although I like that these sites promote how Mortgage Brokers can offer great rates, I’ve noticed some disturbing trends that you need to watch out for.

“I JUST WANT THE BEST RATE”

You say you want the ‘best rate’? Really? Or do you want to pay the least amount of money on your mortgage? I’ll bet it’s the latter. Make no mistake, these two things are very different and I’ll prove it. But let’s face it, the rate gets everyone’s attention.. Most people don’t want to hear anything beyond that.. until they get burned for $$thousands on the mortgage later on.

Now what if I told you that 80% of my clients were paying a rate of 1.35% during 2009 and 2010, would that get your attention? Of course. And it’s true. 80% of my clients were in a Variable Rate mortgage based on my recommendations….and almost all of them didn’t panic and lock into a fixed rate (like the BIG SIX BANKS wanted them to)…they stayed in those products based on my specific advice recommending they not lock into a Fixed rate…. That’s called being in the right product at the right time. My average client saved $6,000 during that time. Continue reading “So-called “Best Rate sites” are put to the test with shocking results.”