Why we’ve locked in to a 10-year mortgage

Our new home in Scarborough is a detached, three-bedroom side-split that cost nearly $560,000.  We borrowed nearly $515,000 to buy it,  a sum  that makes me queasy. With the help of a mortgage broker, we chose a 30-year mortgage from ING Direct, and locked-in to a 10-year term at an interest rate of 3.99 per […]

Give me a break on my mortgage break fee!

By lesleyscorgieMetro Canada I recently sold my house and have decided to get a new mortgage through a mortgage broker rather than my bank. So, I met with my bank last week to discuss the transaction and learned that the cost to break my existing mortgage is nearly $5,000! Hogwash! For $5,000 I could take a […]

Mark Carney repeats that the Bank of Canada may have to raise rates

OTTAWA — Bank of Canada Governor Mark Carney has said again that the bank may have to raise interest rates to keep inflation in check as Canada’s economic recovery advances. “Given the smaller output gap, given the slightly firmer underlying inflation, the possibility of withdrawal of some degree of the considerable monetary stimulus that is […]

Why you need to pay off your debt NOW

For debtors, today’s historically low interest rates have constituted somewhat of a fool’s paradise. Central banks around the world, including Canada’s, have kept interest rates as close to zero as possible. But if we thought we could keep our boat forever afloat on this sea of low rates, there are many lining up to convince […]

Paying off your mortgage early can cost you

Paying off your mortgage early seems like great financial planning since you’re freeing up money that can be put towards savings. But discharging a mortgage early can mean a prepayment penalty because the bank loses money. If you had a two-year term and paid the mortgage in full after 16 months, the bank is out eight months […]

Why mortgage penalties are so hard to understand

By Peggy Mackenzie If you want to break your mortgage, there are two ways to calculate the penalty. One uses three months’ interest and the other uses the Interest Rate Differential (IRD).  The bottom line is that with either method, if you want to take advantage of lower interest rates, it’s going to cost you. […]

5 reasons why a fixed-rate mortgage could be your best bet

It’s a decision that millions of Canadian homeowners struggle with repeatedly during their time as homeowners: Do they choose the security of a fixed-rate mortgage, or opt for the flexibility (and usually lower cost) of a variable rate and hope that rates don’t spike higher? But right now, conditions in the mortgage market mean homeowners […]

Mortgage-Free Eventually: RBC Poll Finds Majority of Canadians Hope to Pay Off Their Homes by Retirement

A third of older Canadians with a mortgage will carry debt into their 70’s Half of Canadians think interest rates will stay the same in the next year TORONTO, November 17, 2011— Nearly three-quarters (72 per cent) of Canadians with a mortgage hope to bemortgage-free by the time they reach age 65, but one-third (33 per cent) […]

B.C. lawyer tackles CIBC over mortgages

Garry Marr, Financial Post · Oct. 21, 2011 You just made the largest purchase of your life based on borrowing more than you ever have before. Are you really going to bother reading that 25-page contract with all the rules on your mortgage? The answer is usually no. The truth is you should. The ambiguity in […]

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 […]

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