TagMortgage penalties

Posted October 19, 2016 Case study

Mortgage brief…Is it worth changing your mortgage today?

Mortgage rates have never been lower. Should you break your current mortgage to take advantage of the lower rates? The answer is ‘yes’ and ‘no’.

YES….if the penalty to break your mortgage is less than the potential savings. We are seeing many opportunities today where it PAYS to break your mortgage and get into today’s lower rates.

EXAMPLE for one client.. Existing mortgage is $275,000. The existing rate is 2.99% with 3 years to go. The penalty to exit is $3500. The current 3 year rate is 2.24%. Gross savings is $5602. Net savings is $2102.

NO… if the penalty to break your mortgage is less than the potential savings. EXAMPLE.. Penalty is $6500 and Gross savings is $5602. Net loss is $898.

YES… if you think interest rates are going to be much higher in the next few years, you may still want to bite the bullet, pay the penalty and lock into a longer term fixed rate mortgage. Everyone is different and has different needs, risk tolerances, plans. This is a personal choice.

I’ve seen examples of both situations. You could save money by breaking your mortgage. The best advice is to speak with an experienced Mortgage Broker. Get an UNBIASED opinion.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted April 25, 20162 Comments Money saving tips

Mortgage penalty calculations.. More important than the interest rate.

WHY ISN’T ANYONE TALKING ABOUT THIS?

You bought a home… you need a mortgage.. what’s the first question you ask your Banker? “what’s your best interest rate?”. And the second question is usually, “what product should I choose?”.

Almost no one asks about Mortgage Penalties or how they are calculated. After all, how often does anyone have to pay a penalty, right? WRONG! $10,000, $20,000, $30,000 and higher. This is how much penalties can add up to… these are real numbers. And guess what? This isn’t some unknown bank or small lender.. These are coming from the BIG SIX BANKS.!!

Here’s a little known stat…. “Canadians change their mortgage every 3 years, on average”. Ask anyone that’s owned a home before. Chances are, they’ve had to deal with a mortgage penalty at some point.. and for most of them, it’s an embarrassing subject. After all, who wants to admit to being the victim? Check out the stats… Continue reading “Mortgage penalty calculations.. More important than the interest rate.”

Posted January 4, 20161 Comment Bank News

BIG SIX BANKs report obscene RECORD $34billion in profits for 2015…and still complaining!

It’s that time of the year again.. The Banks have to report their annual profits.. And no surprise, the BIG SIX BANKS are at it again..

RBC reported a $10billion annual profit for 2015. This is the first time a Canadian company reported an annual $10billion profit. Yet, at the same time, they are crying the blues and warning of troubled times ahead. (uh, that’s the same speech they’ve made for the past 10 years.. here’s a 2013 headline). GIVE ME A BREAK!!! Canadians aren’t buying it anymore..

Check out the obscene profits pulled in by the rest of the BIG SIX BANKS..

Continue reading “BIG SIX BANKs report obscene RECORD $34billion in profits for 2015…and still complaining!”

Posted September 17, 201511 Comments Money saving tips

These 3 clients broke their mortgages, paid a penalty, and still saved between $9,000 and $26,000!

Fixed mortgage rates are at an all-time low. If you have a mortgage that is over 3.09%, then you should consider breaking it, paying the penalty and getting into today’s lower rates.

That’s short answer… the full answer is a little more complex but, it’s really just simple math. If the savings is greater than the cost to break, then the answer is obvious. You should do it! I’ll give you some real life examples of clients that could be savings huge $$s today if they paid their mortgage and the penalty and went into a new lower rate mortgage…. check out these success stories….
Continue reading “These 3 clients broke their mortgages, paid a penalty, and still saved between $9,000 and $26,000!”

Posted May 27, 2015 Real Estate news

Trump’s George Ross says Canada’s Housing market is undervalued….

George Ross is Donald Trump’s Executive VP. He’s Trump’s senior advisor and has worked with Trump for 30 years. You’ve probably seen him on TV on ‘The Apprentice’. This week, he was quoted as saying Canada’s real estate market is undervalued, not overvalued. That’s quite the opposite of what the so-called experts have been saying for 8 or 9 years. (by the way, where are those experts now?)

If you listen to his interview, he makes some good points. Office properties have more upward potential than residential properties. But the residential market follows the Office or commercial market. He also says that buying a house for a quick flip isn’t a good strategy. It may sound good on the TV shows, but it’s a risky game to play. Mr. Ross says more fortunes have been lost in real estate than have been made. Continue reading “Trump’s George Ross says Canada’s Housing market is undervalued….”