24 May

Mortgage Brokers Warn About New Refinancing Rules…

General

Posted by: Cory Kline

Canada’s mortgage brokers are warning the banking regulator that its proposed mortgage underwriting rules could result in people losing their homes. 

The brokers are concerned about a number of the potential rules, but the one that worries them most outlines what banks would have to do when a consumer wants to renew or refinance their mortgage.

 

The proposed rules suggest that banks recheck areas such as employment status, current income and the current value of the home for renewals and refinancing.

 

“This would be a significant, significant change,” says Jim Murphy, the head of the Canadian Association of Accredited Mortgage Professionals (CAAMP).

 

 

Click here for complete details in the Globe and Mail.

 

If you are considering refinancing your mortagage in the near future please give me a call, I will help you to create a FREE mortgage plan.

 

Today’s Refinance Rates…

3 year fixed: 2.94%

5 year fixed: 3.19%

10 year fixed: 3.89%

Free Down Payment: 4.73%

Variable: 2.85%

-Cory Kline (Mortgage Advisor at Neighbourhood Dominion Lending Centres)

Cory@ndlc.ca or 705-794-1283

10 May

Cory’s Mortgage Market Comment

General

Posted by: Cory Kline

With instability of the current European elections, we have seen the bond rate drop slightly. With so much European uncertainty there is potential to see the bond rate stay in this lower range.
The low bond rate creates our low interest market.  
Keep in mind 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.

 

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

Are Canadians Prepared For Higher Interest Rates?

General

Posted by: Cory Kline

• With the Bank of Canada recently signalling that interest rates may rise sooner than many were anticipating, the question becomes how well-prepared Canadians are for higher rates?

• Over the medium-term, interest rates will likely rise at least 2 percentage points and there is no doubt that a significant minority of Canadian households will be at-risk when this occurs.

• There have been some preliminary signs that Canadians have begun to hunker down and/or protect themselves from interest rate increases. Household consumer credit growth has slowed to a substantial degree.

• Interest rates are set to rise at a gradual pace and the ability of consumers to fix into low interest rates now imply that the impact of higher rates may be felt over a number of years.

• These developments give credence to our expectation that the imbalances in the housing market and in the household debt-to-income ratio will unwind over time rather than in a precipitous fashion. At the same time, however, medium-term prospects for consumer spending remain limited.

If you have any questions as to what this means to your current mortgage plan, we are always here to help you with unbiased advice.

Contact Cory Kline at 705-794-1283 or cory@ndlc.ca

Mortgage Advisor at Neighbourhood Dominion Lending Centres

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.

22 Mar

Market Update….

General

Posted by: Cory Kline

The past week saw bond rates hit a new high for 2012. They have moved up approximately 30 basis points the last 2 weeks. There is a chance of a rate increase on fixed rate mortgages at any time. Overall rates continue to be extremely low. 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 at 3.00%

The next meeting of the Bank of Canada is on April 17th, 2012.

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

-Cory Kline

 

 

15 Dec

It Can Pay to Break Out of Your Mortgage…

General

Posted by: Cory Kline

With mortgage rates still hovering near historic lows, chances are you’ve considered breaking your current mortgage and renewing now before rates rise any further.

Perhaps you want to free up cash for such things as renovations, travel or putting towards your children’s education? Or maybe you want to pay down debt or pay your mortgage off faster?

If you’ve thought about breaking your mortgage and taking advantage of these historically low rates, feel free to give me a call to discuss your options.

In some cases, the penalty can be quite substantial if you aren’t very far into your mortgage term, but we can determine if breaking your mortgage now will benefit you long term.

People often assume the penalty for breaking a mortgage amounts to three months’ interest payments so, when they crunch the numbers, it doesn’t seem so bad. In most cases, however, the penalty is the greater of three months’ interest or the interest rate differential (IRD).

The IRD is the difference between the interest rate on your mortgage contract and today’s rate, which is the rate at which the lender can relend the money. And with rates so low these days, the IRD tends to be greater than three months’ interest. Because this is a way for banks to recuperate any losses, for some people, breaking and renegotiating at a lower rate without careful planning can mean they come out no further ahead.

Keep in mind, however, that penalties vary from lender to lender and there are different penalties for different types of mortgages. In addition, the size of your down payment and whether you opted for a “cash back” mortgage can influence penalties.

While breaking a mortgage and paying penalties based on the IRD can result in a break-even proposition in the short term, if you look at the big picture, you’ll see that the true savings are long term – as we know that rates will be higher in the years to come. Your current goal is to secure a long-term rate commitment before it’s too late, and here lies the significant future savings.

As always, if you have questions about breaking your mortgage to secure a lower rate, or about your mortgage in general, we are here to help!
 

-Cory Kline

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