Tag Archives: Bank of Canda

Bank Or Broker?

Who should you consult for your mortgage pre-approval?

Handle your mortgage like every other major purchase– that is, be sure you make the effort to compare rates and shop around. Not every Canadian mortgage rate is the same.

Bank Rates

When you visit a bank, it’s worth bearing in mind that their loan officers are paid to sell you their products. They will do whatever is required of them to keep you from considering other options.

Mortgage Broker

A mortgage broker is a self-employed agent who works only for you. They are qualified professionals that will help you find the most effective mortgage rate for your unique situation. They compare products from a variety of banks and specialty lenders, and arrange the best low mortgage rate for your needs. The broker works for you, the customer, and most importantly, they are completely free. The lenders pay brokers once they close the mortgage deal.

More Reasons Why Mortgage Brokers Are a Great Choice

  • Protect Your Credit Score
    • Brokers help to protect your credit rating by only pulling one credit report and using it for all lenders.
  • Give You Expert Information
  • Save You Money
    • A good mortgage broker can offer tips on how to save money on interest while managing to keep your low mortgage rate payments reasonably priced.

Bank vs. Broker

Which ones suits your needs better– bank or broker?

Types of Mortgages

There are a variety of mortgage products available on the market. Typically, mortgages fall under one of the following three categories, open, closed or convertible. A mortgage broker will help you understand the various options.

Make your mortgage hunt less troublesome– contact a mortgage broker today.

What You Need to Know About the New NHA MBS Policies

Last Friday, the Canada Mortgage and Housing Corporation issued a statement announcing another round of mortgage restrictions, this time concerning limits on new National Housing Act Mortgage-Backed Securities (NHA MBS). The statement, which was sent to banks, credit unions, and other mortgage lenders, outlined new restrictions that would limit lenders to a maximum of $350-million new guarantees, the amount of “market NHA MBS”, that can be guarenteed by CMHC for the month of August. The restrictions come at a time when housing prices are still near record highs. Continue reading →

No Change in Bank of Canada Rate

While the Canadian economy continues to grow at a slower pace than expected, last week’s release from the Bank of Canada wasn’t all doom and gloom. Consumer debt and the housing market finally appear to beĀ stabilizingĀ here in the Great White North, at the same time debt concerns in the United States and Europe have begun to dissipate.

As such, the message was clear from Bank of Canada Governor Mark Carney last Wednesday – interest rates aren’t going anywhere anytime soon. Continue reading →

Housing Slow Down Has Started

The future of Canada’s housing market rests in the hands of the nation’s buyers, or at least that’s what the latest housing stats would have us believe. Signs are everywhere that Canada’s once red-hot real estate market is about to freeze over, thanks to a combination of tighter mortgage rules and increasing consumer debt levels. Not only are home sales grinding to a hault, the long-booming prices are finally starting to drop.

Granted, sales always slow down as the seasons change and the temperature drops. Only time will tell whether or not spring will bring a much needed renewal to a reeling market. Continue reading →

Could Interest Rates Go Lower?

Interest rates have no where to go but up, right?

Maybe, but maybe not. Bank of Canada governor Mark Carney signalled last Tuesday that he’s still looking to raise the cost of borrowing “over time,” however, it appears to be an empty threat. The overnight rate has remained unchanged for months as Canadian home hunters continue to take advantage of a stable 1 percent borrowing rate.

In fact, some lenders are even considering dropping their mortgage rates below the current record lows. Rob McLister, editor of Canadian Mortgage Trends was quoted in the Financial Post insisting there is “no question rates [could] go potentially lower.”

While the prime rate tracks the overnight lending rate, it doesn’t limit how low banks can actually go with their mortgage products. Many mortgage brokers are also willing to cut their commission in order to buy down rates as they compete against larger lending source. If you’re currently on the market for a great rate, consider this: there are plenty of fix-year, fixed-rate closed mortgages available at 2.99 percent. Continue reading →