Category Archives: Mortgage & Rates

TD Canada Trust has jumped into the fray in offering borrowers a rock-bottom mortgage rate, announcing Thursday a four-year fixed interest rate of 2.99 per cent. The move by the division of Toronto-Dominion Bank follows Bank of Montreal, which on Wednesday said it would drop its five-year mortgage rate to 2.99 per cent, a cut of half a percentage point. TD’s new rate represents a cut of nearly half a percentage point, from 3.39 per cent. Other lenders are expected to make similar moves, so they do not lose market share to their rivals. In January, several lenders cut their rates to these historic low rates, but the deals lasted for only a few weeks, and by early February the rates were moved back significantly. BMO said its low rate is in place until March 28. TD has set a …

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Scotiabank has joined the race for a bigger chunk of the mortgage market, announcing that it will offer a discounted mortgage rate that brings it in step with other big Canadian banks. The bank says it will offer a four-year mortgage charging 2.99 per cent interest per year. Most of its major Canadian competitors announced similar promotions earlier this week. On Thursday, TD Bank, Royal Bank and CIBC all announced special four-year mortgages charging 2.99 per cent interest per year. Bank of Montreal on Wednesday said it would offer a five-year mortgage at 2.99 per cent until March 28. A similar promotion in January set off a race to the bottom with some of BMO’s biggest competitors. The new low rates came as Bank of Canada governor Mark Carney said the No. 1 risk to the Canadian economy continues to …

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Another portion of the property ownership puzzle is the payment frequency options. Depending on your cash flow, the amount of each payment and the number of payments per year, a property owner can save significant money in interest paid over the term of the loan. Listed below are some of the options available. Monthly The most common frequency type is the monthly payment option. With a monthly payment, the payment is typically due exactly one month from the day on which your mortgage started. In many cases; however, the actual due date can be changed to a more memorable or convenient date such as the 1st or 15th of the month. Semi-Monthly With a semi-monthly option, the buyer makes two payments per month. Generally, the payments would be due on the 1st and 16th. This option allows you to make …

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The first thing you’ll need to decide if you are going to buy a home is how much you can afford to borrow. The interest and mortgage types play an important role in determining your ability to repay the loan. Changes to the term can help reduce monthly payment but will also drive up the costs of the interest. You should not rely solely on the mortgage lender to determine what loan amount is reasonable for you. In addition to the mortgage terms and rates, the potential buyer should also consider their personal situation and possible worst case scenarios to ensure that the best financial decision is made. Income Your capacity to repay the loan amount is directly tied to your personal income. If you are married, you’ll want to consider whether both your incomes are necessary to make the …

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In addition to the interest type, the mortgage type or term of the mortgage can have a significant impact on the amount of your monthly payment as well as the amount of interest you will pay on the principal. The term, or length of time over which a loan is paid back, can vary from as little as six months to as long as fifteen to twenty years. Once the end of the term is reached, the mortgage can be renegotiated if the buyer choses. There are two common types of mortgages “open” and “closed” which are explained below. Open Mortgage An open mortgage means that the loan can be paid back partially or in full without incurring any penalties. The mortgage can also be renegotiated if market conditions or your financial situation shift. Although an open mortgage provides more …

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As you look further into making your purchase decision, you’ll notice that there are some terms that are being thrown at you with which you may or may not be familiar. Typically, agents and brokers will use terms such as “fixed rate”, “variable rate”, and “protected (or capped) variable rate” to describe the types of interest rates available. As a potential buyer you should become familiar with these terms as making the rate choice can have a significant impact on your financial future. Included below are the basic definitions and explanations of each of these types. Fixed Rate A fixed rate means that your interest rate remains the same (fixed) for the entire term (duration) of the loan. Generally, this means the percentage of interest will be a little higher since the lending institution may be losing money in the …

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No matter which province or territory you reside in, finding the best mortgage rate can save you thousands of dollars. Obviously, there are not many people who can purchase property without taking out a home loan. Taking out a home loan lets you buy, live in and/or use a home without needing to come up with the full dollar amount at the time of purchase. Usually the amount of the loan is equal to the majority of the home’s worth, but the downfall of this is that you will be required to pay interest on the loan. Most lenders insist on a down payment, i.e., a payment equal to a portion of the property’s worth. For instance, if a home is worth $200,000 and the buyer would need to make a down payment of 10%. This would equal a $20,000 …

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