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Posted Interest rates

BMO’s 2.99% No Frills mortgage is back… and so is our warning to stay away from it!

thumbs downBmo wide So you’re shopping for a mortgage… and you see 2.99% advertised by BMO.. and you think, Wow, that’s a great rate!!… but is it really that great?   And is it really a great mortgage product?

Well, first, what if I told you there was a lower rate out there?   And what if I told you there was a lower rate without the restrictions and limitations of BMO’s NO FRILLS mortgage?

Ok, now that I got your attention, let’s continue…We saw this same product and rate advertised last year, in January 2012.   BMO promoted their NO FRILLS, oops,  I’m sorry, they want us to call it a ‘low-rate’ mortgage (guess that sounds better).   There was a buzz in the air.  My phone rang off the hook and my inbox was full of emails asking what this was all about. Continue reading “BMO’s 2.99% No Frills mortgage is back… and so is our warning to stay away from it!”

Posted Interest rates

Does 10 yr fixed rates make sense now?…

percentageFixed rates are still low…  and a question I seem to get asked more often these days is, “when does it make sense to take a 10 year fixed rate?”  And the answer, for me, is almost never.

Today, you can find a good 10 yr fixed rate under 3.70%.   That’s a historical low rate for a 10 yr term.   When you hear ‘record low’, it’s worth taking a look.

THE GOOD:

  • peace of mind… there is something to be said for knowing what your payments will be for the next 10 years.   It’s like buying insurance.
  • we are at historical low 10 year rates.
  • if you paid your mortgage out after the 5 year mark, your penalty is capped at 3 months interest (a hidden provision in our mortgage laws…. I’m sure the Bankers are trying to get this removed too). Continue reading “Does 10 yr fixed rates make sense now?…”
Posted 1 Comment on Personal Debt level concerns are overblown according to Equifax stats. Consumer Debt

Personal Debt level concerns are overblown according to Equifax stats.

Equifaxdebt amination So here we go again.. More stats that show our personal debt levels aren’t out of control… That’s right, I said ‘aren’t’ out of control.  Equifax Canada says our defaults are at record low levels and we are paying off our debts faster.   This doesn’t come as any surprise to me.   Anyone that’s followed my posts knows that I have questioned all the popular articles telling us we are not managing our debts responsibly.

You’ve seen the reports… ‘Personal debts at record high levels’…..’Personal Debt crisis’.     We’ve been hammered with the same headlines for the past few years.  I just wasn’t seeing this with my readers or my clients… I kept seeing consumers wanting  to take advantage of these record low interest rates to invest or improve their homes (why is that a bad thing?).   That’s not bad debt in my opinion… that’s good debt.. And now we have some stats to back up what I have experienced. Continue reading “Personal Debt level concerns are overblown according to Equifax stats.”

Posted 13 Comments on Canada vs the world…debt level comparison study. Case study

Canada vs the world…debt level comparison study.

debt Hey, here’s an interesting stat that should make us Canadians feel good…. Our Federal govt keeps telling us to slow our personal debt levels… maybe they should start balancing their own books…  I remember when, in 1997, the Feds actually balanced the budget and even made a surplus.   Remember that?    In fact, from 1997 to 2008, the Feds reduced our national debt from $563billion to $458billion.  We seemed to be heading in the right direction.

Then the U.S. sub-prime mortgage crisis hit and the Feds starting spending in an attempt to avoid a major recession.   So far, it’s worked.  Our economy has performed pretty well when compared with most other countries.   But our National Debt level has now surpassed the $600billion mark for the first time ever.   How concerned should we really be?   Is our national debt level really that high?    I decided to compare out debt with a handful of other countries to see how we stacked up….

NOW FOR THE GOOD NEWS

Continue reading “Canada vs the world…debt level comparison study.”

Posted 4 Comments on CBC Marketplace exposes TD’s collateral mortgage Case study

CBC Marketplace exposes TD’s collateral mortgage

TDhandcuffs FINALLY!!!!!   A major TV news program calls out TD Canada Trust’s collateral mortgage.  CBC Marketplace aired an episode called ‘Busting the Banks’ on January 25th.  Hey, it’s only taken 2 years but who’s counting??… Lol!    If you want to skip to the video link, just click here and scroll to the 8:00 min mark. (by the way, I should point out my contributions to this episode. I was contacted by the producers of CBC Marketplace for my opinions and advice during the filming of this episode….over the past 3 months, I assisted with some of the research. Hope you find the info useful).

During the program, CBC took a hidden camera into a TD branch….the reporter posed as a potential mortgage borrower….   Only when questioned for the 4th time did the TD banker disclose their mortgage was a collateral charge….  but they didn’t seem to explain the difference between a conventional mortgage and a collateral mortgage… The Banker only agreed that the collateral charge was a disadvantage. Continue reading “CBC Marketplace exposes TD’s collateral mortgage”