15 Dec

How To Maximize Your Cash Flow While Increasing Your Net Worth By Having a Mortgage Plan By: Kevin Bay

General

Posted by: David MacRae

Interest rates are only one of many features that should be looked at when you are applying for a mortgage. But all things being equal, the interest rate may be more important than you think.

I was reviewing mortgage options with a client and the only thing they were interested in was the mortgage rate. There was no concern about all the other conditions that could end up being quite costly and since I could only offer him what he considered a small reduction, the client said “the bank’s rate was only a little higher and I feel more comfortable leaving everything I have with my bank for such a small difference.” What was the difference? I will get to that in a minute.

 
12 Dec

Mortgage Changes – Oh How Times Have Changed By: Geoff Lee

General

Posted by: David MacRae

 

With the recent changes to the mortgage rules in Canada, we take a moment to look back at the evolution of the mortgage, and to highlight these new changes and what they mean.

LOOKING BACK

BEFORE 2008

During this time, lending and mortgages were much more laid back! There was 100% financing available, 40 year amortizations, cash back mortgages 95% refinancing, 5% down payment required for rental properties, and qualifications for FIXED terms under 5 years and VARIABLE mortgages at discounted contract rate. There was also NO LIMIT for your GROSS DEBT SERVICING (GDS) if your credit was strong enough. Relaxed lending guidelines when debt servicing secured and unsecured lines of credits and heating costs for non subject and subject properties.

 

 

16 Nov

What Happened With Prime? By: Dustan Woodhouse

General

Posted by: David MacRae

Did Prime go up?
No.

Did my Variable rate mortgage rate change?
No, not unless your variable rate mortgage is with TD.

So the Bank of Canada did not raise rates?
No, in fact they are more likely to lower rates than increase them.

But TD raised rates?
Yes, but only by 0.15% and only for variable rate mortgage holders.

If you are a TDCT client in a variable rate mortgage at TD then read on…