Tag Archives: Mortgage Refinancing

Draft Guidelines: Residential Mortgage Underwriting Practices and Procedures

More stringent mortgage qualifications are on the way. On Tuesday, the Office of the Superintendent of Financial Institutions in Canada released draft recommendations that would impact Canada’s banks and other federally regulated lenders.

The 18 page document contained a slew of information, the majority of which make complete sense. However, there’s still great cause for concern in the financial sphere. According to this document, the OSFI is proposing a swift implementation that could shake the system off its foundations. One reputable mortgage source described the OSFI’s recommendations as a “policy-initiated free-fall”.

While we encourage home hunters to review the entire document (available via this link), here’s what best rate mortgage hunters need to know. Continue reading →

Changes Coming for Mortgage Penalties

One of the easiest ways to ensure you’re getting the best mortgage rate around is to renegotiate your financing terms when interest rates are low. Which is great… except for one small problem: penalties. Banks are notorious for slapping borrowers with hefty penalties, especially those who are looking to wiggle their way out of a long-term fixed rate deal.

It used to be that borrowers could anticipate a penalty charge that amounted to approximately three months’ worth of interest at their current rate. Today, most lenders charge a penalty that is based on three factors:

  1. The current and past interest rates
  2. The outstanding balance
  3. The number of months left in the mortgage term

This is knowns as the Mortgage Rate Differential (IRD). Unfortunately for homeowners in search of a best rate mortgage, the IRD is now significantly higher than in the past thanks to rock-bottom interest rates. Continue reading →

Why Now is a Good Time to Buy

Thinking about buying a home? Well, stop thinking and start looking. The stars have aligned in the Canadian real estate market, creating what many in the industry are calling “the perfect storm” of market potential. From condos to single-family homes, now’s the time to lock in a mortgage rate and enter the world of real estate investing. Continue reading →

Why Aren’t More Canadian’s Using a Mortgage Broker?

Sound financial advice is key for any property purchase. Mortgage brokers in particular are expected to provide house hunters with personal assistance throughout the buying process. Data from a recent report shows that Canadian mortgage brokers are living up to these expectations, providing their customers with a highly positive purchasing experience.

So why aren’t more people working with a mortgage broker? Continue reading →

How to Break Your Mortgage Without Breaking the Bank

Interest rates are low, and from the looks of things, should remain stable well into 2012. If you’re currently paying out the nose because you’re locked into a fixed-rate mortgage, now could be a good time to break your mortgage and refinance your rate. Unfortunately, trying to break a mortgage before your term is up can be a nightmare experience. The penalties for bailing early can be high, so don’t be rash with your decision. Consult with a mortgage broker before you dive in head first. Continue reading →