You might have seen the headline “HSBC crushes mortgage records with 0.99% variable rate”. No doubt about it, this is a great rate. However, it’s not for everybody. It is important to remember, like most deals, there are some restrictions. Among other things this offering is limited to high-ratio mortgages with a downpayment of less than 20 per cent. The reality is a higher interest rate may apply for non-owner-occupied properties, amortizations greater than 25 years and other exceptions to standard lending guidelines.Continue reading “Because not everyone fits into the same box”
Some years ago, I did a study on the benefits and disadvantages of online shopping. Sure, you can order food from your favourite restaurant, buy a new set of earbuds, book a hotel or flight… but can you get a mortgage online without speaking with your banker or mortgage broker?
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.
After years of seeing countless articles and posts about interest rates, housing affordability issues, mortgage stress tests disqualifying some people from being able to buy, higher personal debt levels, does it still make sense to buy a home?
Yes! There is positive news. You can still buy a home. And you can still qualify for a mortgage.
Canada Mortgage and Housing Corporation released The State of Homebuying in Canada report on November 15, 2019, with a few key findings, including this headline.
The annual State of Homebuying in Canada report noted that 56% of all purchasers were first time buyers in 2018. This dropped to 47% in 2019.
The tightening of mortgage rules which has been taking place over the last 4 years is certainly having an effect. The never ending rule changes were intended to slow home sales and prices. But like most government interventions, its had the opposite effect.Continue reading “Significant decrease in first time home buyers in 2019”