Tagmortgage penalty calculation

Posted January 16, 2020 Mortgage Products

When a Second Mortgage makes good financial sense.

Quick, what’s the first thing that comes to mind when you think of “second mortgages”? For some, it could be that shady-looking character in a smoke-filled pool hall… guys with gold chains and a baseball bat nearby. Maybe you’re thinking of someone in financial trouble? Or, perhaps it’s just someone who doesn’t want to pay outrageous costs and penalties to refinance their existing mortgage.

The mere mention of second mortgages conjures up all sorts of images. Most of them, negative. For many, a second mortgage can be a last-resort solution during a financial crisis. For several others, it can be an opportunity to save money. That’s right, to save money.

Sure, second mortgages carry a higher interest rate than first mortgages, but they can also serve a purpose. One of those purposes can be to save you money. Yup, I said it again. There are some new trends emerging with today’s new mortgage products that are forcing consumers to seek other options. Two of these trends are INFLATED PREPAYMENT PENALTIES and NO FRILLS MORTGAGES! Continue reading “When a Second Mortgage makes good financial sense.”

Posted May 3, 2018 Bank News

TD & RBC raised the POSTED rate… but not their REAL rates

Much has been written about last week’s Posted rate hikes by TD and RBC. Don’t panic! This is just their posted rate – it’s not the actual rate they give to clients.

I do, however, think we’ll see a minimal rate hike in the coming weeks due to five-year Government of Canada bond yields increasing slightly. Fixed rates are priced closely to bond yields.

Continue reading “TD & RBC raised the POSTED rate… but not their REAL rates”

Posted March 1, 2018 Consumer Debt

Considering a Second Mortgage? It can save you money!

Quick, what’s the first thing that comes to mind when you think of “second mortgages”? For some it could be that shady-looking character in a smoke-filled pool hall… guys with gold chains and a baseball bat nearby. Maybe you’re thinking of someone in financial trouble? Or, perhaps it’s just someone who doesn’t want to pay outrageous costs and penalties to refinance their existing mortgage.

The mere mention of second mortgages conjures up all sort of images. Most of them, negative. For many, a second mortgage can be a last-resort solution during a financial crisis. For several others, it can be an opportunity to save money. That’s right, to save money.

Sure, second mortgages carry a higher interest rate than first mortgages, but they can also serve a purpose. One of those purposes can be to save you money. Yup, I said it again. There are some new trends emerging with today’s new mortgage products that are forcing consumers to seek other options. Two of these trends are INFLATED PREPAYMENT PENALTIES and NO FRILLS MORTGAGES! Continue reading “Considering a Second Mortgage? It can save you money!”

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 March 14, 2015 Debt

Historical low mortgage rates mean RECORD HIGH penalties for BIG SIX BANK clients!

Mortgage penalty calculations continue to mystify Canadian consumers. For years, I’ve posted numerous articles on penalties… how they affect us… how they are calculated…..why you need to understand them.. and most importantly, HOW TO AVOID THEM!!

Today, I’ll give you explicit details on the great mortgage penalty mystery…

I’ve shared dozens of horror stories about average Canadians being hit with mortgage penalties of $12,000, $15,000, $20,000, $30,000 and more. These examples aren’t from some obscure small financial institution. It’s your BIG SIX BANK. Yet, the attitude from Consumers is that it won’t or doesn’t affect them….until it’s too late.

I’ve also shared the solution on how to avoid this… and I’m going to share that with you once again.. If you want to know how to avoid monster penalties, then take a few minutes and read this.. It could save you untold $$thousands…. Continue reading “Historical low mortgage rates mean RECORD HIGH penalties for BIG SIX BANK clients!”