The 2.99% 5 year fixed rate specials have ended and we are back to just low rates.

3.19%   5 year term fixed rate
2.79%   3 year term fixed rate (60 day closing special)

2.90%   5 year term variable rate (prime of 3.00% minus 0.10%)
3.50%   Open variable rate (prime of 3.00% plus 0.50%)



 

How can I get the lowest mortgage payment?

• The longest amortization (repayment period) available on a CMHC insured mortgage is 30 years.
• The longest amortization available on a conventional mortgage (20% or more down payment) is 40 years.
• You can pay as low as "interest only" on a Home Equity Line of Credit (HELOC).  This is the lowest possible repayment amount.

What mortgage repayment options are available?

• Most banks and other lenders have the same payment and pre-payment options.  There are very few differences.
• Your clients can pay their mortgage payments monthly, twice a month, every two weeks or every week.  These options are for the convenience of your client in order to match mortgage payments to pay days.  There isn't much difference between these options as regards paying off the mortgage more quickly.
• The payment option which does make a big difference is the bi-weekly (every two weeks) "accelerated or rapid" payment.  With this option your client pays 1/2 of a monthly payment every two weeks which results in 13 monthly payments over a 12 month period.  The extra monthly payment is applied to reduce the mortgage principal which saves interest over the life of the mortgage.
• Most banks and other lenders offer a annual pre-payment of up to 15% of the original mortgage amount without penalty.  Some lenders offer up to 20%.  An additional option is to increase your regular payment amount by up to 15% annually or double your payment once a year with the additional payment going to reduce your mortgage amount and saving interest.

Can I get out of my high rate mortgage?

• Fixed rate mortgages charge a 3 month interest rate penalty or rate differential (whichever is greatest). 
• A 3 month interest penalty on a $250,000 mortgage at a rate of 3.39% would be $2,119 plus a $200 discharge fee.  
• The rate differential penalty will apply when the rate on your client's current mortgage is higher than the rate the lender would currently lend at for a term similar to the term remaining on your client's mortgage.  This will result in a penalty of more than 3 months interest.
• A rate differential penalty basically means that your client will not save interest by paying off the existing mortgage and paying the penalty.   Effectively your client will be pre-paying the interest they want to save.
• If your client is selling their current home and buying a new one, the current mortgage can be "ported" to the new home without a penalty since the rate will remain the same.  The mortgage can be increased and the term extended which will result in a lowering of the current interest rate.

I have 20% or more down payment but I can't prove income.  Can I get a mortgage?

• The simple answer isno, not at a reasonable interest rate.  The Three criteria for mortgage qualification are Income, Credit and Down Payment.  The least important criteria is down payment; good credit is expected and provable income is most important.
• The one exception to having provable income is if your client is self-employed and can prove that the business was registered 2 or more years ago.  Less than 2 years in business, the rate will be higher.
• If a client is new to Canada (less than 3 years), has landed immigrant status and is starting a business, the down payment would have to be 50% or 35% with an additional (over and above the 35% down payment) 2 years mortgage payments and property tax in a bank account.

Can I buy a home with no down payment?

• Yes, the mortgage interest rate will be the posted rate so the payments will be higher, the credit must be good and the income qualification will require a higher than normal income.

I want to buy a second property.  What are the requirements?

• Minimum down payment 20%
• Very good incomeas very little of the rental income will be considered for qualification purposes and your clients home mortgage, property tax and other payments will be included in the qualification.

What fees are involved in obtaining a mortgage?

·  Usually an appraisal fee if your client has 20% or more down payment.

·  A CMHC high ratio insurance fee is added to the mortgage amount if your client has a down payment between 5% and 19% of the purchase price.  No appraisal fee when there is CMHC insurance.  GST is charged on the CMHC insurance fee amount (8% of the CMHC fee).Brokerage fees are seldom charged on mortgages that qualify for the best rates.  A lender fee or a brokerage fee could be charged on non prime

LIFE IS GOOD .......NO MATTER WHAT YOUR CIRCUMSTANCES ARE

In the worldof yes or no, where simplicity and honesty reside, if you ask the question......Is life good?.......the answer can only be yes.

Our circumstances that change from day to day, week to week or even yearly should not reflect on or change this answer in any way.

Many of us facechallenging obstacles and new growth that we didn't see coming or that appears to be overwhelming. We should never forget the answer to the question.....Is life good? YES....it is.

Some of us worry and think way too much into the future. While it is wise to be aware of what is coming up and its consequences, let us not forget to return to the moment where realty is awaiting us and where answers that we need..... NOWcan be found.

I rememberreading about people jumping out of windows when the Stock market crashed back in 1929 or 1930. My wife thought, that is stupid.....you can always go out and make more money. But to end your life???????

There aretimes when things look, sound, and feel bad. No doubt about it. That is when I let go and lay my will down. There is a point where a person has done all they can, and the rest is up to the powers that be.

Remember thefamous statement...THIS TOO SHALL PASS...boy, have I got a lot of mileage out of that one.

Life.....nature and its wonders. the stars and the blue skies, the sights and sounds of running water and the sea crashing on the shores, beautiful sunsets and hoot owls calling to each other trying to find a mate all scream and agree that life is good.....very good.

Life is tobe lived...and not in your mind only or in you emotions. But in the fullness of all you possess. Time is a precious commodity too.... as we cannot recapture what we spent unwisely in the world of time.

If you area mature individual, then you get to say the following.....I made it this far. There where times when things looked bad. But somehow, I made it. I will contiue to make it if that is what it takes.......

If you areyoung and just starting out, behold how many before you have prospered, learned, and had their fair share of calamities...but they are still here and so will you be. What one person can do, another can do.....

You will get a job, you will recover from an aliment, friends and family love you, the day is upon us, the planet is full of positivity anyouhave been invited to participate in it.

Is there roomfor improvements? Are we all still learning? Is not the journey one of wonder and awe? One thing remains certain and true.....................