For now, the daysof sub-2% everyday mortgage rates areofficiallyover. Wednesdaymorning’s slightly surprising 1/4-point Bank of Canada hike was the nail in that coffin. The ensuing 1/4-point bump in prime rate will push all remaining mortgage rates above the psychologically key 2% threshold. By next week, the lowest rates shouldjump roughly as follows: Insured variable rates: From 1.89% to 2.14%+ Uninsuredvariable...
Lenders wantto make sureyou can afford higher mortgage payments if interest rates soar. So does the government. That’s why regulators created the mortgage qualifying rate (MQR) — a.k.a., “benchmark qualifying rate,” “benchmark interest rate” or “Bank of Canada qualifying rate.” The MQR is the interest rate most commonlyused to “stress test” mortgage borrowers. Stress testing is the process of calculating...
“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 headedup — soon.” Poloz’s statement was “the final straw” forBMO. It triggered a change in...
Big bank posted mortgage rates arelike sticker priceson new boats. Almost nobody pays them. Today’stypical5-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 tothe averagestreetrate, which is almost 220 basis points lower at2.45%. Posted rates have...
We’ve all heard this line before: “A mortgage is probablythe largest financial commitmentyou’ll makein 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 2016annual report) Fortunately, severalorganizations across the country are equipped...
Almost every mortgage shopper has thesame question at some point,especiallywhen 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...
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 insuredborrowers to prove they can afford...
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 wina betterdeal 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 yourrate is worth...
If you’re considering using amortgage broker for an approval andbacking out at the last minute, check your contract first. It couldcost you otherwise. One recent borrower learned this the expensiveway after ditching his mortgage broker and going with another. He did soafter the first broker, lender and lawyer expended considerable effortto secure hisapproval and close the mortgage under time constraints....
If you’ve everbroken your mortgage early, you know that figuring out the mortgage prepayment charge, or “penalty”as it’s commonlyknown, can bea hassle. Until recently, mortgagorswanting to sell their home or refinance with another lender before maturity had to jump through hoops to get an accurate penalty quote. Theytypicallyhadto call their lender and listen to asales pitch as the lender tried...
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