Categories for Mortgage Rate Tips

Rate Hike Mortgage Strategy

“It does look as though [rate] cuts have done their job.” That was Bank of Canada chief Stephen Poloz in a CNBC interview today. It was the second time he’s provided this “forward guidance,” and it’s about the closest thing you’ll hear to him saying “rates are headed up — soon.” Poloz’s statement was “the final straw” for BMO. It triggered a change in...

The (Ir)relevancy of 5-Year Posted Rates

Big bank posted mortgage rates are like sticker prices on new boats. Almost nobody pays them. Today’s typical 5-year posted rate is 4.64%. Were you to get stuck paying this joke of a mortgage rate, it would cost you $10,394 more interest every five years, for every $100,000 of mortgage. That’s compared to the average street rate, which is almost 220 basis points lower at 2.45%. Posted rates have...

Mortgage Complaint? Who You Gonna Call?

We’ve all heard this line before: “A mortgage is probably the largest financial commitment you’ll make in your lifetime.” So what happens when the process goes sour? Who’s got your back? People run into mortgage service problems all the time. The three most common grievances relate to penalties, portability caveats and pre-approvals. (Source: OBSI’s 2016 annual report) Fortunately, several organizations across the country are equipped...

Fixed or Variable Rate Mortgage? The Decision Checklist

Almost every mortgage shopper has the same question at some point, especially when rates are surging or diving: “Should I Lock in My Mortgage Rate?” Answer this correctly and you’ll save thousands in interest. Pick the wrong rate type, and it could cost you just as much. Seemingly everyone’s got an opinion on fixed or variable rates. But unless they’ve taken the time...

Credit Scores Determine Your Mortgage Amount

By Chantal Chapman, Special to RateSpy If you’re a homebuyer with a down payment less than 20%, you’re now subject to Canada’s new mortgage rules. As a prospective purchaser, you probably want to know where you stand. Here’s a quick rundown… The biggest change you’ll face is the government’s new “stress test.” It forces insured borrowers to prove they can afford...

Negotiate Your Mortgage Rate: A Few Tips

It doesn’t matter what you’re buying. If there’s a salesperson involved, the price is almost always negotiable. That goes for mortgages too, so here’s some intel on how to win a better deal on your next one. Step #1 First off, understand what you have to gain. Spending an hour of your time to save 10 basis points (0.10%) off your rate is worth...

Brokers Enforcing Cancellation Fees

If you’re considering using a mortgage broker for an approval and backing out at the last minute, check your contract first. It could cost you otherwise. One recent borrower learned this the expensive way after ditching his mortgage broker and going with another. He did so after the first broker, lender and lawyer expended considerable effort to secure his approval and close the mortgage under time constraints....

Mortgage Penalty Calculators

If you’ve ever broken your mortgage early, you know that figuring out the mortgage prepayment charge, or “penalty” as it’s commonly known, can be a hassle. Until recently, mortgagors wanting to sell their home or refinance with another lender before maturity had to jump through hoops to get an accurate penalty quote. They typically had to call their lender and listen to a sales pitch as the lender tried...

The Fallacy of “Must Go Up”

You really should lock in your mortgage. Rates are historically low and they have to go up…eventually. Sound familiar? It may well be one of the costliest fallacies in today’s mortgage market. It’s kind of like saying stocks have to fall because the market is already up 200%. Or home prices must drop because they’re up 80% in just a...

All About Discretionary Rate Estimates…

If you look at RateSpy’s lowest rates for the Big 6 banks you’ll generally notice three things: 1)  They refer to “discretionary rates” at the banks 2)  They are estimates 3)  They are usually the same for all six banks. Though it doesn’t seem obvious, there is method in this approach. The explanation starts with the mortgage pricing strategy used by major...