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Is it time to go Variable?
Find out what some experts are saying...

Many industry and economic insiders were pointing to 3-4 more rate hikes in the next 18 months. The central bank’s recent change of heart has many believing we will only see one more hike in the near future and likely not until the spring. As a mortgage broker in Cambridge for almost 30 years now I am never quick to jump on one band wagon or another. There are just too many variables to consider and many times what is said in press releases vs what actually occurs are two very different things. The price and distribution of Canadian Oil, for example, wasn’t expected to be this much of a concern to the Canadian Economy as it has turned out

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7 steps to get the best mortgage renewal
With 47 per cent of homeowners scheduled to renew their mortgages this year, 2018 is a year of change for lots of Canadians. Here are the top 8 things you can do to get the best renewal:

1. Pull out your mortgage renewal now, and start early. When you are proactive instead of reactive you can see if there is anything on your credit score or lifestyle that we can modify to ensure you are positioned for the best renewal. You are only in a position to do this when you start early- in the last year of your mortgage you will have the most amount of options available. For example, there can be an inaccuracy in your credit report or you may be considering an income/job change that would impact your options. We can look at timing accordingly for you. 2. Most people think the best rate is the best renewal – WRONG. The terms are

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New mortgage rules decoded
How new mortgage rules affect you

This week, OSFI (Office of the Superintendent of Financial Institutions….the rule makers ) announced that effective January 1, 2018 the new Residential Mortgage Underwriting Practices and Procedures (Guidelines Bill B-20) will be applied to all Federally Regulated Lenders. The changes to the guidelines are focused on • the minimum qualifying rate for uninsured mortgages • expectations around loan-to-value (LTV) frameworks and limits • restrictions to transactions designed to work around those LTV limits. What the above means in layman’s terms is the following: OSFI STRESS TESTING WILL APPLY TO ALL CONVENTIONAL MORTGAGES (those with a down payment higher than 20%) The new guidelines will require that all conventional mortgages will have to undergo stress testing. Stress testing means that the

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Beyond the Rate: The “Self-Employed” Question

This is the second post in a new blog series, Beyond the Rate, in which our team will use detailed examples to show you why you need be thinking about more factors in your mortgage search than just locking down the best interest rate. “What rate did you get?” is a hot-topic question right after a home is purchased. A low rate seems to mean mortgage victory. And when you’re considering your options, it may seem like a no-brainer: the one with the lowest rate should be the winner, right? It’s time to challenge that assumption. Let’s do that by looking at a situation that affects many Canadians: the case of the self-employed. If you’re self-employed, it can be downright

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Beyond the Rate: Mortgage Penalties

This is the first post in a new blog series, Beyond the Rate, in which our team will use detailed examples to show you why you need be thinking about more factors in your mortgage search than just locking down the best interest rate. A mortgage is more than just a loan. It could be the key to securing a home for you and your family. Or, it might be a way of refinancing your home to start the business you’ve always been dreaming of. Maybe it’s an option that you’re considering to help you deal with unexpected debts – because you never know what kind of curve balls life might throw in your direction. No matter how you say

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What are the penalties if you cancel early?

Most people feel their job is secure, their relationship is in great shape, and that they won’t need to move. And so they agree to crippling penalties if they choose to break their mortgage contract before its expiry date.

New mortgage rules change the game

In October 2016, the Canadian government announced sweeping changes to mortgage applications , aimed at protecting the financial security of Canadians, while supporting the long term stability of the housing market in Canada. The key changes are: Tighter insurance rules – when a home buyer has less than 20% down, the mortgage must be insured. This insurance provides security to the lender in the event of home buyer default. Stringent rules previously applied only to “high ratio” (lowest down payment) mortgages now apply to all insured mortgages. Stress Tests – banks pre-approve mortgage amounts based on the home’s carrying costs not exceeding a certain percentage of a buyer’s income. New “stress tests” on insured mortgages establish this amount based on the Bank of

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Are you signing a collateral mortgage?

We are experiencing the lowest interest rates in Canadian history. Although the cost of a house or condo is higher than ever, it has never cost us less to finance one. And so, banks are aggressively marketing low mortgage rates. As homeowners, we feel like we’re the winners – it’s a race to the bottom, and we’re happy to watch it happen. But amidst all of the low rate fanfare, we need to remember that banks are profit-focused corporations. If rates are lower, their profits on those mortgages are lower. Therefore, other strategies must be employed if banks are to meet the expectations of their shareholders. Borrowers who switch lenders at renewal time have always been a threat to banks. Therefore, they

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