For months we’ve been warned by “experts” that rates are sure to shoot up. That the Bank of Canada will change their tune based on the state of the economy. That by year’s end, we’ll be well on our way to pre-pandemic rates that will make anyone with a variable rate mortgage regret ever buying a home.
It’s December. None of that has happened.
Continue reading “Surprise, Surprise: No Rate Hike From Bank of Canada”
You might have heard some sensationalist news stories over the past year about Canadian homeowners over-borrowing. With the employment rate so low, and mortgage debt so high, how could Canadians possibly keep up with their payments? Headlines spewed dire warnings that once payment deferrals expired, borrowers would default in droves.
Except that isn’t what happened at all.
Continue reading “Despite Uncertainty, Canadians Are Keeping Up With Mortgage Payments”
“Save up to $3,000 on heating and cooling”
“No monthly payments for 3 months”
“No interest for 6 months”
Sound familiar? You’ve probably seen tons of offers like these on flyers and emails from your utility company. It sounds great on the surface. You can save some money, lock in low monthly payments, and avoid spending thousands of dollars at once on a furnace or air conditioner.
If it all sounds too good to be true, it’s because it is.
Continue reading “How Financing a Furnace Can Affect Your Mortgage”
In 2009 and 2010, for the first time ever we saw mortgage rates under 2.00%. That’s right, if you were in a variable rate mortgage, you had a rate under 2.00%. We were coming off the catastrophic US sub-prime mortgage crisis. The financial US scam that cost the world trillions of dollars in lost pensions and investments. Tens of thousands of people lost everything they had. It was horrible. While we, in Canada, were largely untouched. We weren’t smarter, we were just lucky not to be exposed to the subprime mortgages to the extent the rest of the world was. As they say, Canada is five years behind the US, and in this case, we got lucky.
That said, let’s get back to mortgage rates and fast forward to 2020.
Continue reading “Navigate through these uncharted waters in 2020”
NEW HISTORICAL LOW MORTGAGE RATE MILESTONE REACHED.
Last week, we saw a 5 year fixed rate mortgage at under 2.00%. That’s right… 1.99%. If you qualified, the rate applied to purchases where the mortgage is Canada Housing and Mortgage Corporation (CMHC) insured and paid for by the client. But that rate didn’t last long and that offer is over. I know, things move fast.
But let’s get back to current rate offers. We are in uncharted waters, again. 11 years ago, we were coming out of the US sub-prime mortgage crisis… does anyone remember that? Back then, the stock markets crashed, just like this year, they recovered, just like this year, but interest rates remained low for many years. In fact, they remained at or near 3.00% for the next 11 years.
The message here is this…. there will be small moments in time when interest rates will be extra low… this is one of those times. If you have a mortgage, get a review done! Find out if it makes sense to refinance or early renew or to break your current mortgage, pay a penalty and lock into today’s low rates. Speak with an UNBIASED PROFESSIONAL. Speak with an experienced mortgage broker. You have nothing to lose and everything to gain.
Here are some examples of people that paid a penalty and still saved between $9k and $26k.
Steve Garganis: 416-224-0114; firstname.lastname@example.org
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.