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