Happy Holidays

This year we sponsored a contest on CFRB 1010. We asked listeners to tell us why their family memebers should be flown back to Toronto for the Holidays. Want to listen to the ad? Here is what it sounded like when we did the giveaway. We hope that everyone enjoys the holidays surrounded by their… Continue reading Happy Holidays

The Canadian Dollar and Your Mortgage

    Strong Housing Market and Weak Canadian Dollar. If you gain any comfort in knowing that the Canadian Dollar is strong you will probably have a stressful year in 2014. The Bank of Canada may be working behind the scenes to get the Canadian Dollar weaker relative to the US Dollar. A weaker Canadian… Continue reading The Canadian Dollar and Your Mortgage

Not All Variable Rates Are Created Equal.

Yorkshire Pig

So… You want to get a Variable Rate Mortgage. Be careful, some of the offers out there right now will end up costing you a lot more than you think. Rates on Variable Rate Mortgages are currently ranging from 2.4% (0.60% below Prime) to 2.7% (0.30% below Prime). The difference between the lowest rate available… Continue reading Not All Variable Rates Are Created Equal.

Competition in the Canadian Mortgage industry

Isolated coins in jar with saving label.

The following is a summary of some important points we have drawn from the above article which was produced by the Bank of Canada. It is important to note that this article was produced with the intent of identifying ways that Bank of Canada’s monetary policy would have a greater impact on Canadians. In short,… Continue reading Competition in the Canadian Mortgage industry

Balance Sheet vs. Non Balance Sheet

Four business people arguing and gesturing around a table

A “Balance Sheet Lender” is any chartered bank in Canada. They are referred to as “Balance Sheet Lenders” because they hold your mortgage on their books as an asset. These Lenders can only increase the value of their asset (your mortgage) by increasing the spread between their cost of funds and the rate at which… Continue reading Balance Sheet vs. Non Balance Sheet

Is The Bank of Canada hinting that we should go Variable?

Mother and daughter playing with piggy bank

Is the Bank of Canada hinting that we should all have Variable Rate Mortgages? Did you read our last newsletter?. The Bank of Canada speaks a little differently than we do, so let me translate. First, they said it by dropping one line that was in all of their reports over the past few years:… Continue reading Is The Bank of Canada hinting that we should go Variable?

Take the Variable Rate

Businesswoman lying with her head on the table beside laptop

Variable Rate Mortgages (VRM’s) are gaining in popularity in Canada, and with good reason. Five year fixed rates have been hovering around 3.5% for the past several months and Canadians are starting to see the benefits of a nice low rate locked at prime – 0.5%. Canada’s Prime Rate is at 3% right now, and… Continue reading Take the Variable Rate

CMHC Announces it will be Rationing Mortgage Backed Securities

Yesterday we posted an article on our Facebook page discussing the next attempt to slow down Canada’s housing market. The Government of Canada, through its wholly owned Crown Corporation CMHC, has decided to begin limiting the dollar amount of mortgages Canada’s Mortgage Lenders will be able to have guaranteed by the Canadian Government. This newsletter… Continue reading CMHC Announces it will be Rationing Mortgage Backed Securities

Head Winds and Tail Winds; look where you want to go.

Woman holding airplane in hand.

Factors that will affect mortgage rates in the short and medium term. When my Father was teaching my Brother and me how to drive he had some great words of wisdom that I can relate to our economy. I thought it might be fun to look at what is keeping our economy driving safely on… Continue reading Head Winds and Tail Winds; look where you want to go.

Minister of Finance’s involvement in the Canadian Mortgage Market

Yesterday Marcus Tzaferis appeared on CP24 to discuss the Minister of Finance’s involvement in the Canadian Mortgage Market. Consumers seem to be a little worried that the Minister’s tinkering could increase mortgage rates. Fortunately low rates are still available through Mortgage Brokers across Canada. Have a look at the video here. If you or someone… Continue reading Minister of Finance’s involvement in the Canadian Mortgage Market