Is it time to lock into a fixed-rate mortgage?

It’s one of the most agonizing decisions homeowners make: Do you go fixed or variable? Mortgage, that is. The decision could end up costing – or saving – big bucks on what is often the single biggest purchase many will make. Research shows that, in the past, a variable-rate mortgage has been cheaper than a […]

Bid your mortgage goodbye

With today’s low mortgage rates, now is a good time to look at ways to pay off your mortgage more quickly. Fixed versus variable savings, at a glance With a base scenario of a $300,000, 25-year amortization, five-year fixed-rate mortgage at 3.45 per cent and a monthly payment of $1,496.23, if you: – Pay $100 […]

Fixed Rate Mortgages Closing the Gap on Historically Favoured Variable Rate: BMO Economics

BMO Economics report presents both sides of fixed vs. variable debate While historic trends favour variable, the current interest rate environment makes it a much closer call than ever BMO recommends Canadian home buyers ‘stress test’ their mortgage based on a higher interest rate TORONTO, September 9, 2011 – With interest rates hovering near record lows, many Canadians […]

RBC Signals That VRMs Too Costly

RBC, the nation’s biggest mortgage lender, has cut its variable rate discount by 0.20 percentage points. The change is effective tomorrow. That lifts its advertised variable rate from 2.35% (prime – 0.65%) to 2.55% (prime – 0.45%). Given that lenders travel in packs, it’s likely that some other banks and non-banks will follow suit and reduce their […]

Home ownership trumps renting in personal finance stakes

Owning the roof over your head should still be a goal for most Canadians as paying rent is like paying someone else’s mortgage, experts say. The Bank of Canada gave its clearest signal so far this week that interest rates are set to rise, while a growing number of real estate watchers and some economists […]

The mortgage game With rates predicted to rise, should you lock in, or take a risk and how much should first timers spend?

With anticipated interest rate increases on the horizon, many homeowners are wondering whether to lock debt such as mortgages and secured lines of credit into a fixed-rate mortgage or stay variable. Even some who are mortgage free are concerned with how rate increases will impact secured lines of credit, the financing of vacation homes and […]

Why Canadian mortgage rates are on a roller coaster

If there’s one question being kicked around the barbecue more than any other this summer, it’s probably this: should I lock in my variable rate mortgage? But with interest rates bouncing around, to the point where they make a mortgage-rate chart look more like the diagram of a rollercoaster, homeowners can be forgiven if they […]

RBC Boosts Fixed Mortgage Rates

Fixed rates are on the rise, following a dramatic 35 basis point rebound in the 5-year bond yield (which leads 5-year fixed rates). RBC has announced rate increases ranging from 0.10 percentage points on a 1-year fixed to 0.15 on a 5-year fixed. The changes take effect tomorrow. This doesn’t mean it’s time to panic. Today’s move means […]

IRD Penalty Comparison Rates

The much-unlovedInterest rate differential (IRD) penalty is a mystery to most of the natural born population. People loathe it, largely because they don’t understand it. We continually come across folks who read their entire mortgage contract and are still confused by the IRD calculation. Fortunately, federal disclosure guidelines are on their way later this year. […]

3 ways to deal with rising mortgage rates

By Moshe Milevsky Here we go, again. The economy is generating more jobs, a handful of banks raise mortgage rates and all of a sudden you’re being advised to lock-in your mortgage before the bank doors slam shut. In fact, some say you’d better hurry-up and buy a house now before mortgage rates go so […]

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