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Tagrecord low interest rates

It’s September, sharpen your pencils!

Sharpen pencil

It’s September…and as green turns to gold we return refreshed to the rhythm of our daily routines. It’s our seasonal cue. Autumn is the perfect time to “get back to business” with a fresh look at your finances. Maybe you spent a little extra on that summer vacation, or the little home reno job that grew. That’s okay. Get out your calculator and get back on track.

TAKE ADVANTAGE OF RECORD LOW RATES!

Mortgage rates have hovered around historic lows for longer than anyone thought they would or could. That’s created a golden moment of opportunity for Canadian homeowners. In fact, the right mortgage can build your wealth… and save you thousands of dollars.

Thinking about a cottage or investment property? Wondering if it’s the right time to expand your space… or find a new one? Looking at ways to reduce your debt? Talk to an experienced Mortgage Broker.  A good broker will provide a free, no-obligation review of your situation – wherever you are in your current mortgage journey.

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

$22,500 savings by breaking mortgage and getting into today’s low rates!

break your mortgage A few weeks ago, I posted an article about one of my readers that had the potential to save $15,000 by breaking the mortgage and getting into a new 5 year fixed rate.   This was a net savings.  The actual savings was just over $20,000 less the penalty of $5,000.

This week, we had an even bigger savings.  My clients are in a 10 yr term at 3.59%, with a $710,000 balance and 8 yrs to go.   The penalty to break is $6500.   The savings is $29,000.   Result is a net savings of $22,500.   Wow!  $22,500 savings over the next 5 years!  That’s $4500/ year in savings! 

This type of savings opportunity is extremely rare.  I’ve only seen this level of savings a few times before.  We can thank the record low interest rates for that.

If you are in a mortgage with a rate that’s above 3.20%, then you could be missing an opportunity to save $$thousands.  You should at least consult with a Mortgage Broker to do the math.   Remember, I haven’t even listed the lower rate product options available, such as Variable rate, or a 3 year fixed rate.   It’s worth looking into.

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

Rate shopping sites…tested again.. and failed again.

which mortgageA few years ago, I published a study on Rate shopping sites.   These sites were gaining popularity with consumers as a  place to go if you wanted to get the best rates.  And they attracted a lot of attention.

You know the sites… they have catchy ads like ‘shopping for the Best Mortgage rates in Canada’ or ‘comparing Canada’s mortgage brokers for the best rates’.  
Hey, who doesn’t want the best rate?  These ads work. Canadians were clicking these links to get more info.

Sounds great, right? Yet, it’s not.  
Continue reading “Rate shopping sites…tested again.. and failed again.”

Mortgage Rates hit Record lows again!

record low rates This isn’t 2010, 11, 12, 13 or even 2014…  It’s 2015, and once again, we are making this announcement.  5 year Fixed Mortgage rates are an new all-time lows!  Today, you can get a 5 yr fixed rate for 2.79%, even 2.74%, with some conditions.  (and by the way, yes, I am seeing slightly lower rates advertised, and I have access to these, but I won’t recommend these to my clients as they contain inferior terms, limited privileges, product restrictions and inflated prepayment penalty calculations… I won’t promote these.)

Just 2 years ago, the Federal Minister of Finance’s office picked up the phone, and called a Bank because they were advertising a 5 yr fixed rate at 2.99%.    The federal govt was concerned that the record low rate, at the time, would promote more consumer spending and make the already hot real estate market, even hotter. Continue reading “Mortgage Rates hit Record lows again!”

$15,000 savings by breaking his mortgage early and getting into today’s low rates.

break your mortgage  Look, I don’t advocate paying penalties, however, if there is an obvious savings to be had, then you have to do it.   We’ve reached a point where interest rates are so low, it’s worth a review.  Here are some recent experiences with real people…. Enjoy.

I had one of my readers contact me about breaking his mortgage…  His current mortgage with a good lender.. a Non-bank lender..  his rate is 3.59%.   He took a 10 yr term last year.  Balance was over $500k.  So with 9 yrs remaining, we reviewed his options.

This was a no brainer.  Penalty to get out was under $5,000 (lucky he was with a non-BIG SIX BANK). But the savings over the next 5 yrs would be $20,500.   His net savings is $15,000.    Would you I recommend he break the mortgage?  Absolutely! Continue reading “$15,000 savings by breaking his mortgage early and getting into today’s low rates.”

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