Tag Archives: Current interest rate

Mortgage Rates for Dec 15, 2015 — By Peter Paley

                                             

Peter Paley - Your Home and Mortgage Peter Paley

 

Come visit Realtor Rosalie Drysdale Website each week for my weekly Mortgage Rates.

 
Whether you are looking to purchase, refinance, or renew, we can help you decide whether a fixed or variable-rate mortgage will work best for your situation. Call today!
 
At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.
 
We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

3.14%

3.10%

1 YEAR

2.89%

2.29%

2 YEARS

2.84%

2.24%

3 YEARS

3.39%

2.34%

4 YEARS

3.89%

2.54%

5 YEARS

4.64%

2.74%

7 YEARS

5.30%

3.44%

10 YEARS

6.10%

3.89%

Rates are subject to change without notice. OAC E&OE

Prime Rate

2.70%

5 yr variable

2.30%

Looking at Purchasing that New Home, Needing a Mortgage,

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

Contact Peter Paley at Invis Mortgage

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

10 mortgage mistakes to avoid

If you’re thinking about getting a new mortgage or making changes to your existing one, avoid these costly mortgage mistakes

Financing a home is a process most borrowers only go through a few times in their life. We know from experience it isn’t easy to stay on top of all the of the ins and outs of the financing requirements with all of the changes being mandated by the government over the past few years and potentially more changes being suggested. If you’re thinking about getting a new mortgage in the near future, or making a change to the financing you already have, below you will find ten things that should help you avoid costly mortgage mistakes.

10 of the biggest mortgage mistakes to avoid

1. Not reviewing your condo documents

 

Most condo buyers don’t understand all of the documentation provided by the seller and should defer to their real estate lawyer to explain the pertinent details or at the very least, their realtor if experienced in condo’s. If possible, take the time to read through the minutes of the last year’s meetings of the condo association prior to removing your purchase agreement condo document conditions. These minutes provide not only details about the financial health of your condo fund, but also happenings around your complex too such as what unit is hosting loud parties or who isn’t picking up after their dog . You will also be able to see if there are any upcoming renovations required or more importantly, whether there will be any special assessments due to limited funds accumulated in the condo reserve fund. A special assessment could result in cash out of your pocket, so do ensure you are clear on what is in your condo documents before committing to purchasing the property.

 

2. Choose the right professional for you

 

Your home will likely be one of the largest debts you will ever have so it’s important to ensure you are getting proper guidance about all of the products and services available to you before you make a commitment. Ask friends and family for referrals and if you are looking online, be sure to read any of the online reviews posted about that person. If you aren’t comfortable with the advice or opinions of any of the professional involved in the home buying process, don’t be afraid to get a second opinion. A trustworthy professional should send you in the right direction even if you are just making a preliminary inquiry and I don’t believe you should have to provide a detailed credit application if you’re just looking for general information. That can wait until you are 100% ready to proceed and know exactly who you want to work with. Nothing wrong with being upfront and honest in stating you are still in the “shopping” stage of who you want to work with. Once you are comfortable that you have found the right person for you, then be prepared to provide extensive details about your financial position along with supporting documentation.

 

3. Paying attention to the wrong details

 

Rate is important, yes, but so are the payout penalties, the pre-payment privileges and the actual monthly payment amount. When it comes to borrowing a large amount, like a mortgage, it is imperative you read the fine print of all documents before you sign on the dotted line. Take the time to go through all the details with your mortgage professional and ensure you have a thorough understanding of the commitment you’re making.

 

4. Ignoring your credit

 

I can’t stress enough how important a good credit rating is. Not only does it qualify you for best rates on everything from car loans, credit cards, and mortgages, even landlords are looking at your credit before renting you a place. Ask for a credit consultation from a qualified professional, by that I mean, if you want to get a mortgage, talk to a mortgage professional about how your credit needs to look in order for you to qualify for a mortgage at best rates. If you are not there yet, ask what you need to do and make a plan that you can commit to. If your credit needs extensive rehabilitation, determine your end goal and talk to a professional that shares that vision. You can obtain your credit rating by visiting Equifax.ca.

 

5. Not getting a pre-approval

 

There’s nothing worse than putting in an offer on a home and then not qualifying for the financing.  Avoid the disappointment by getting a pre-approval. And further to that, when rates are on the rise it makes sense to get an interest rate held for you for up to 120 days.  Do be advised even if you are pre-approved, you still need to get the property and supporting documentation approved by your lender as well as the insurance company if you are putting down less than 20% of the purchase price and require a “high ratio” mortgage.

 

6. Don’t throw out your important documents

 

If you plan on applying for any financing soon, be prepared to provide documentation confirming the details you stated on your credit application. Most importantly, income documents such as pay stubs, or tax returns and Notice of Assessments. Also important are any documents that have to do with your credit. If you’ve cleared up any derogatory credit such as collections or judgments, always keep the documents confirming that in case your credit report isn’t updated by the time you want to apply for a new loan. By having these documents on hand and accessible, you avoid having to track the paperwork down at a later date.

 

7.  Avoid excessive transferring between bank accounts

 

There are a few ways to obtain a downpayment in order to purchase your new home and this tip applies when you are saving up your own downpayment. Under the Canadian Anti-Money Laundering Act you are asked for confirmation the downpayment is from your own resources. To do that, you need to provide a 60 to 90-day history of the funds to show they have accumulated over that period of time, or have simply been in your possession for at least that period of time and not just all deposited at once. Be aware if you are moving money around between various accounts, you will be asked for transaction histories from ALL of your accounts.

If you are unable to provide sufficient supporting documentation for any larger deposits, those funds MAY NOT be used towards your downpayment. If you are unsure, do disclose ALL details of where your downpayment is coming from to the mortgage professional prior to proceeding with your home purchase.

 

8. Over-estimating your income

 

One of the most important requirements of obtaining a mortgage approval is the qualifying income. Before you begin the process of applying for mortgage financing, make sure your mortgage professional is fully informed of exactly how you earn your income. This is especially important when you are self-employed, paid bonuses or overtime, on contract or paid by commission. This will ensure your personal information is accurate from the get-go and there will be no unpleasant news after you believed your mortgage would be approved.

 

9. Low appraisal value

 

An appraisal may be required when you are purchasing a home or considering a mortgage refinance. An appraisal confirms the value of the home by comparing it to recently sold similar homes in the area. If the appraised value does not support the purchase price or estimated value of the home, your mortgage approval could be reduced or withdrawn, or in the case of a purchase, if you still want to proceed a larger downpayment may be required if the seller is not prepared to negotiate. If you do have any questions or concerns about the value of the subject home prior to proceeding with financing, talk to your mortgage professional about an automatic evaluation in lieu of an appraisal, as some lenders are now offering that option.

 

10. Tight timelines

 

A mortgage, like home buying is a process and should not be rushed. This is a big commitment that is going to impact the lifestyle you lead and you should avoid getting pressured into making quick decisions without being fully aware of all the financing options available these days. In order to not jeopardize your physical health and well being with unneeded stress, we suggest you have ample time to remove financing conditions for a new home purchase if at all possible ; and given there are a lot of other parties involved in the mortgage registration process it is also advisable to set a reasonable closing date to ensure you can actually close on the possession date. Include a chat about timeline expecations when you’re going through the preliminary process with your Mortgage Professional. This will allow you to shop smart come time to house hunt. If you’re mortgage is up for renewal soon, it’s not a bad idea to get a head start on the search for a better option, if there is one available.

 

Getting approved for a mortgage can be quite stressful, however, educating yourself on the mortgage process and knowing what to expect can prepare you for any situation that arises. I hope this article will act as a prevention checklist for you to ensure your bases are covered and set up for a home run.  As always, I recommend you contact your favourite mortgage professional to ask any specific questions you may have about your own mortgage options in order to ensure you’re getting accurate information that applies to you.

 

For all of your mortgage needs, contact the Mortgagegirl at 780.433.8412 or email info@mortgagegirl.ca. Stay in the loop by following us on Twitter @mortgagegirlca.

Source: Jackie Woodward Mortgage Broker

 

Message from Realtor Rosalie Drysdale

 

If you live in the Edmonton Alberta area and are needing a mortgage to purchase or refinance your property. Call Jackie Woodward

 

If this Mortgage Information is providing you interest and are needing a mortgage broker in Winnipeg Manitoba, Please Call me Rosalie Drysdale and I will help you find the mortgage broker that will work with you to get the best rate .

Thinking of Buying a Home ? Contact Niverville Credit Union

Thinking of Buying a Home ?

 

 
Looking for a New Mortgage , Renewing your Mortgage
 
Contact Niverville Credit Union Logo
 
Darryl Rempel — Commercial Account Manager
 
62 Main Street, Box 430
Niverville, Manitoba, R0A 1E0
Phone : 204 388 4747
Fax: 204 388 9970
Winnipeg Direct: 895 2000
 
Website: http://www.nivervillecu.mb.ca/index.php
Email: info@nivervillecu.mb.ca
 
Niverville Credit Union

Mortgage Rates for March 30, 2015 — By Peter Paley

                                            
Peter Paley - Your Home and Mortgage Peter Paley

Come visit Realtor Rosalie Drysdale Website each week for my weekly Mortgage Rates.

Whether you are looking to purchase, refinance, or renew, we can help you decide whether a fixed or variable-rate mortgage will work best for your situation. Call today!

At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

3.14%

3.10%

1 YEAR

2.99%

2.69%

2 YEARS

2.94%

2.24%

3 YEARS

3.44%

2.44%

4 YEARS

3.94%

2.54%

5 YEARS

4.79%

2.73%

7 YEARS

6.04%

3.39%

10 YEARS

6.50%

3.84%

Rates are subject to change without notice. OAC E&OE

Prime Rate

2.85%

5 yr variable

2.20%

Looking at Purchasing that New Home, Needing a Mortgage,

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

Contact Peter Paley at Invis Mortgage

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

Should you switch your mortgage ?

Canada finds itself in uncharted territory with historically low interest rates. This has a lot of people wondering if it is worthwhile trying to get out of their existing mortgage and converting into one with a lower interest rate.
 
We wish we could give you an easy answer and say yes – but unfortunately, it is a case-by-case situation. Yes, rates are historically low and yes you can, in many instances, lower your mortgage payments significantly by converting your current mortgage. But in doing so, you will be faced with what the banks call a ‘pre- payment penalty.’
 

Pre-payment penalties

 
Banks create pre-payment penalties to recoup the money they expect to lose by renegotiating your arrangement. Borrowers have to remember that when you sign a mortgage, you’re essentially entering into a ‘contract’ with the bank. You are contractually obligating yourself to pay ‘x’ dollars a month over the next ‘x’ number of years. (Our mortgage calculator can give you a more specific figure). In essence, your mortgage payment contract represents an ‘annuity’ or payment stream to a bank which it in turn can sell to a third party investor. This is particularly true for non-traditional banks which ‘securitize’ their funds through the market. So when you come along and decide you want to renegotiate this contract, the bank has to calculate how much it stands to lose in the process and then create a pre-payment penalty to offset the loss.
 
This penalty can range from three months worth of interest to a much higher amount based on what is called the ‘interest rate differential’ or IRD. The IRD can be a complicated calculation and differs from bank to bank, but in essence it simply calculates the differential between what you were going to pay if you continued with your current mortgage versus what the bank can resell that money for in the current market.
 
For example, if you have three years left on your current five-year mortgage at 5.79% and you find a better deal with a different lender, your current bank will take the balance of the money owing, determine what rate they can sell that for in today’s market (for example, a three-year term at 4.5%) and then calculate your penalty based on the ‘deemed lost revenue.’ Again, this will be done on a case-by-case basis, and in some circumstances where it is a large mortgage with a lot of time left, the IRD penalty can be significant.
 

Worth switching?

 
In many instances, it is still worth paying the penalty because the lower rate creates a significant savings, but again, it is case by case.
 
It is important to note that when we talk about interest rates, there are two different types of ‘rates’ – floating (variable) and fixed. The variable rate mortgage (VRM) is priced based on the prime rate, and the prime rate is affected by the Bank of Canada decisions. Currently, the prime rate is below 3% and is expected to stay there for the balance of 2009. Alternatively, the fixed rate mortgage is priced based on the bond yield. The bond yield is not tied directly to the Bank of Canada and can have more fluctuations.
 
Today’s market environment presents an excellent opportunity for anyone who is currently in a fixed rate mortgage over 5% with a few years still remaining to switch to a variable rate mortgage below 3.5%. What is particularly intriguing is that there is strong speculation that the bond yields have room to soften over the coming months, which will result in a further lowering of the long-term rates. The key point for borrowers to remember, when trying to compare apples to apples, is that a variable rate by definition is ‘floating’. In other words, you may look at the current prime rate and think it’s fantastic, but remember – prime will not stay that low for five years. It will fluctuate with the market and rise once the Bank of Canada shifts its focus back to inflation.
 
However, this doesn’t mean that converting to a variable mortgage today has to represent a risk. Virtually all variable rate mortgages (VRMs) allow you to convert to a fixed rate mortgage at no cost at any point in your mortgage term. If predictions hold true, we may very well see the long-term rates hit historic lows within the next year. This will present investors with the opportunity to take a VRM today and get immediate savings over your current fixed-rate mortgage, and then convert into a fixed-rate product (typically locked in at three years) within the next year if they come down any lower – thus locking in your savings.
 
Of course, everything comes down to the amount of the penalty, and there will definitely be situations where it makes no sense to pay a high fee to switch. Other property owners may be concerned about having to pay the penalty upfront. Even if you do stand to save $20,000 on your mortgage over the next four years, what if you don’t have an extra $10,000 available to pay the penalty today? If you find yourself in that situation, simply capitalize your penalty into your new mortgage – in other words, add the amount of the penalty onto your new mortgage.
 
Let’s say, for example, the penalty on your existing mortgage is $10,000, and you don’t have that kind of cash kicking around. In many cases, the rates are so low that even if you increased your mortgage by another $10,000 (to cover the cost of the penalty), both your monthly payments and the balance at the end of the term would be lower. If you can afford to keep your payments at their current level, adding the penalty to the new mortgage and lowering the rate will invariably lower the balance at the end of term and may shave years off your mortgage. The only caution with capitalizing your mortgage penalty is that if you switch lenders and change the actual dollar amount on the loan, you may have to have the mortgage re-registered at land titles, and this will trigger legal fees. But again, it may well be worth it.
 

What to do next?

 
The bottom line is that with rates this low, it is well worth analyzing your current mortgage to determine if you’re in a position to consider switching. The first step is to call your current lender and ask them how much the penalty would be if you sold your house and paid off the mortgage today.
 
If you were to perform such an analysis and investigate the options with a broker, they would need the following information:

  • Amount of your penalty
  • Balance of your mortgage
  • Current interest rate
  • Current term and how much time is remaining on that term
  • Current monthly payments
  • Balance owing at the end of your current term

So, take the time to determine this information, and at least have the discussion. It’s worth a quick call. You never know – it could save you a lot of money.
 
Peter Kinch is a mortgage broker in Port Moody, BC and author of The Mortgage Minute and co-author of 97 Tips for Canadian Real Estate Investors.
 
Source: WhichMortgage.ca