30 Apr

Save BIG by Shopping at Renewal Time

General

Posted by: Cory Kline

While most Canadians spend a lot of time and effort in shopping for an initial mortgage, the same is generally not the case when looking at mortgage term renewals. Omitting proper consideration at the time of renewal costs Canadians thousands of extra dollars every year.

It’s important to never accept the first rate offer that your existing lender sends to you in the mail around renewal time. Without any negotiation, simply signing up for the market rate on a renewal will unnecessarily cost you a lot of extra money on your mortgage.
 
It would be my pleasure to have the lenders competing for your mortgage business at renewal time to ensure you receive the best mortgage options and rate catered to your specific needs. After all, just because a lender had the best available product or rate for you when you obtained a mortgage one, three or five years ago does not mean the same holds true in today’s market.
 
With products and rates changing on an ongoing basis, you can’t possibly know what the best offering is for your unique situation without having me – a mortgage professional – do some investigating on your behalf.
 
It’s my job to look at every rate and product change from each lender – including banks, trust companies and credit unions – every morning to ensure I find the best deals for my clients. I also have the inside scoop on specials available through dozens of lenders thanks to the large volume of business I fund through these lenders each year.
 
Often times, your existing lender will send a highball renewal rate to their existing clients in the hopes that you’ll simply sign the renewal form and send it back. Your best bet is to come to me prior to your renewal date or forward the lender’s renewal offer to me before signing anything. That way, you can rest assure you’re getting the best possible mortgage product and rate that suits both your current and future mortgage needs.
 
-Cory Kline, Mortgage Advisor at Neighbourhood Dominion Lending Centres, 705-794-1283 or Cory@ndlc.ca
 
30 Apr

3 Reasons to Consider a 10-Year Term Mortgage

General

Posted by: Cory Kline

The 10-year fixed-rate mortgage has generated renewed interest lately as borrowers look to lock in for the long term and enjoy the security and peace of mind this brings.

With mortgage rates at all-time lows, it turns out that fashion isn’t the only thing that comes back into style! In fact, 10-year fixed mortgage rates have never looked so tempting.
Following are three key reasons to consider a 10-year mortgage term:
1. After five years, you only have to pay three months’ interest to get out of the mortgage. This is currently the lowest penalty available for a fixed rate – much more attractive than facing a much higher interest rate differential (IRD) penalty!
2. If you’re on a fixed income, taking advantage of a longer term fixed-rate mortgage can definitely be beneficial. Currently, with our historically low interest rates, a five-year fixed rate has been around 3.19%-3.59% range and 10-year is around 3.89%. So, if after five years rates have risen to 4.6% or higher (which is very likely), you would have been ahead taking the current 10-year at 3.89%. Instead of guessing how much longer rates will remain at historic lows, if you’re on a fixed income, you know you’ll be paying the same rate for 10 years
Chances are, after 10 years are up, you’ll be in better shape financially and have more equity in your home.
3. You don’t need the equity out of your home for your next purchase as you can buy again with a 5% down payment. For instance, if you purchase with 5% down, your property would have to go up more than 25% for you to get equity to use as a down payment for a second home, which is not likely in five years. But, you can turn your current condo into a rental and buy your next home with 5% down (with a combination of savings or a gift). Rental mortgages usually require a 20% down payment, whereas primary residences typically require just 5% down. Purchasing a condo to live in until you’re ready to buy another home, and then renting out the condo, is a great way to become a real estate investor without having to come up with a 20% down payment.
The return of the solid 10-year means you have options. It may not be the best option for everyone, and the market may change in a few months to make it less attractive. Let me show you how all the products apply to your specific situation to ensure you receive the best product and rate to meet your unique needs.
As always, if you have questions about mortgage terms, or other mortgage-related questions, I am always here to help you with unbiased advice.
 

-Cory Kline(Mortgage Advisor at Neighbourhood Dominion Lending Centres) 705-794-1283 or cory@ndlc.ca

26 Apr

Mortgage Market Comment…

General

Posted by: Cory Kline

Mortgage rates remained unchanged over the past week. The bond rate has been creeping up and hit a new high for 2012. There has been a great deal of news in the different media’s recently, about the potential for higher rates during 2012.
Last Friday at a industry conference, Genworth Canada predicted slight increases (around 50 basis points) in both variable and fixed rates by the end of this year.
We still have 2 lenders offering 10 year funds at 3.89%. A wonderful option for those concerned with future rates. 

 

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.0% or more, we should explore the merits of refinancing to a lower rate. 

Contact us for a free, no obligation review. Spending a few minutes could save you thousands of dollars.

Bank prime is 3.00%

The next meeting of the Bank of Canada is on June 5, 2012.

 

-Cory Kline, cory@ndlc.ca 

P.S. If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.

 

19 Apr

Cory’s Market Comment…

General

Posted by: Cory Kline

As expected there was no change in the Bank of Canada this past week. They certainly set the stage for some possible increases in the future. The bond rate remained flat the past 7 days, therefore no changes in the fixed term mortgage rates.

We still have 2 lenders offering 10 year funds at 3.89%. An excellent option for those concerned with future rates.

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.0% or more, we should explore the merits of refinancing to a lower rate.

Bank prime is 3.00%

 The next meeting of the Bank of Canada is on June 5, 2012.

– Cory Kline, “Trusted mortgage advise”,  Neighbourhood Dominion Lending Centres, cory@ndlc.ca or 705-794-1283

P.S. If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.

 

17 Apr

Bank of Canada Announcement

General

Posted by: Cory Kline

Bank of Canada Maintains Overnight Rate Target at 1%                             

The Bank of Canada maintained its target rate. It is worth reading the final paragraph(below) as it mentions possible withdrawal of “monetary policy stimulus”, meaning rate hikes are possible in the near future. “Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. In light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target over the medium term. The timing and degree of any such withdrawal will be weighed carefully against domestic and global economic developments”

Click link for the full article: http://www.bankofcanada.ca/2012/04/press-releases/fad-press-release-2012-04-17/

The next Bank of Canada Announcement is scheduled for June 5, 2012.

Bank prime is 3.00%

-Cory
P.S. If you have any questions as to what this means to your mortgage, we are always here to help you with unbiased advice.