Mortgage Intelligence

Oshawa's Mortgage News Desk!


Leave a comment

What is the Qualifying Rate?

In 2010 the Department of Finance introduced the Qualifying Rate to assess borrower eligibility and ensure that potential borrowers can maintain their payments should rates begin to rise. The qualifying rate is a 5-year rate published every week by the Bank of Canada, and will be higher than your actual contract rate. The Bank of Canada surveys the six major banks’ posted 5-year fixed rates every Wednesday and uses a mode average of those rates to set the official benchmark.

As a result, your lender is required to use this rate to calculate debt service ratios when reviewing mortgage applications for all insured mortgages. Prior to October, 2016, this financial “stress test” was applicable for fixed-rate mortgages with terms of 1 to 4 years and all variable-rate mortgages. Now, it also applies to fixed-rate insured mortgages of 5 years or longer, and some conventional mortgages.

Although we can find you a much better mortgage rate – you’ll still need to show you can maintain your mortgage using the higher qualifying rate. While you must “qualify” at this higher rate, your actual payments will be based on your lower mortgage contract rate.

Our goal is to provide expert advice, education and resources that homebuyers need. It’s important that you understand the terms you agree to when making what is likely your biggest purchase decision. Want to learn more about the qualifying rate and how it applies to you? Contact the team at MiMortgage.ca now. We’re here to help you!


Leave a comment

Ten great reasons to use a mortgage broker

DB15036_financialconcepts_62023960For many Canadians, mortgage payments are their single biggest expense. Yet most don’t shop around and compare to ensure they are getting the best mortgage rate and terms available in their circumstances, which can cost them tens of thousands of dollars over the term of their mortgage. So don’t make that same mistake! Here are 10 reasons why you need a mortgage broker working for you:

  1. Choice.  We work with a wide range of lenders, including major banks, credit unions, and other national, regional and private lenders will instantly become accessible to you, ensuring that your specific needs are matched to the right mortgage.
  2. Great rates. Get money in your pocket by taking advantage of Mortgage Intelligence’s clout with lenders. Our stellar reputation and longstanding experience allows us to negotiate great rates and access limited time specials.
  3. A focused expert.  A mortgage is a very significant financial event. That’s why you want someone who is highly specialized in mortgages and focused solely on your needs. You will get advice that will make a significant difference in your financial life.
  4. Independence & objectivity.  We work for you, not the lender.
  5. Solutions when you need them.  We can assist with funding for bank turndowns, the self-employed, past credit problems, etc. There are mortgages for almost any situation and we know them all.
  6. Save time. Everything relating to your mortgage can be managed around your busy schedule.
  7. Service, service, service. We will be with you every step of the way, to answer all your questions, outline your best options, and efficiently guide you through the process.
  8. Ongoing support.  Our services don’t stop after the mortgage closes. We will stay in touch with you for the term of your mortgage with advice and opportunities.
  9. No cost (oac). The winning lender pays compensation for the services and solution provided, which means no fees for you in the vast majority of cases.
  10. Your satisfaction.  Our goal is to ensure that you are so completely satisfied with your mortgage experience that you will be happy to refer us to your family, friends and colleagues.

Thinking of homeownership, renewals or refinancing? It’s worth having that conversation with the team at MiMortgage.ca to find out your options.


Leave a comment

Get the best mortgage rate: Five Tips to “financial fitness”

financial-fitness

Image by courtsey of towpathcu.com

When the time is right for you to buy a home, make sure you are financially fit and eligible for the best possible mortgage rates. Here are our top five tips to boost your “financial fitness”:

1.     Whip it. Whip your credit rating into shape: pay your bills on time… every time.  Keep your oldest credit card for its history, and make sure it is always paid on time. Try not to apply for new credit.

2.     Follow the 33% rule. Never run up a credit card or line of credit past 33% of its available limit. If you’ve got a $3000 limit, then $1000 is your absolute ceiling.

3.     Cash is king. Gather up the maximum downpayment possible. The more money you put down on a home, the better.

4.     Be prepared. Put together a file folder with the following: pay stubs, or proof of self-employment income, list of debts and assets, and current bank statements. We can advise what documents you will need.

5.     Start a dialogue. Talk to an expert at MiMortgage.ca about your plans. Find out if you can pre-qualify, and ask about how you might qualify for the best possible rate.

The process of qualifying for a mortgage begins long before you decide to buy a home! But if you make a plan to improve your financial fitness… you’ll have no shortage of lenders willing to compete for your business. Contact us now to get on the right path to financial fitness!


Leave a comment

Best Rate vs. Lowest Rate

The Difference May Cost You A Lot!

The best rate for any given borrower may not at first glance be the lowest rates. A prime example of that is BMO’s rate special of 2.99% last year. The web was filled with promos for the special but no one was pointing out all the restrictions that the mortgage held.

Mortgage professional offer options form many lenders and a good mortgage agent will have sound knowledge to back up their advice. Some will criticize the old axiom, the lowest rate is not always the best rate” but it is often true.

mortgage-ratesThere are many Rate sites on the web but remember that they really don’t offer any advice. They show only those rates that a company want to use to get you to contact them.

When shopping for a mortgage you’ll want to know what the rate is, what the prepayment privileges allow, and is there a sale clause in the mortgage. What that means is, do you have to sell the house in order to make changes the mortgage?

 It’s so important because technically it removes you ability to refinance you mortgage during the term. Something that lenders never talk about when offering the rock bottom rate.

The best advice you can get is telling your mortgage professional what you hope to do achieve during the term of your mortgage. Sure you want the best rate but do you want to prepay the mortgage, or is it your goal to increase the payments each year? By how much? How will the penalty be charged should you sell or refinance. There’s a huge difference between a 3 month interest penalty and Interest rate Differential, but you my also want to ask, “is the penalty calculated on the posted or the discounted rate”? Once again the end cost could far outweigh any savings on rate.

Be a wise consumer. Shop where there is maximum choice and look to a mortgage expert for advice on your personal situation. Mortgages unlike clothing are not One Size Fits All!

See all our great rates: https://mimortgage.wordpress.com/rates/


Leave a comment

US Government Shutdown Creates Lower Interest Rates In Canada

Canadians Benefit From The Stalemate South Of The Border.

Nervous investors are looking at Bonds as a safer place for their investments and when they buy more of them that drives down the price. The net effect for us is that if Bond yields are down generally fixed interest rates follow.

We’ve seen historically low rates for almost 3 years now and the US Government shutdown is likely going to create an environment of continued concern, therefore continued lower borrowing rates for Canadians.

As in the past few years the prospect of lower rates means higher housing prices so lets not jump for joy just yet!  When the Finance Minister  Jim Flaherty thought housing was too expensive in the past several years, he made it harder to qualify for a mortgage in Canada. Every silver lining seems to have its cloud.

Lower Interest rates

See the full article on the Huffington Post site.

How do you feel the tightening of mortgage guidelines has affected your ability to buy a home?