Jonah Wright - HRM Mortgages

04/09/2024

11/09/2021

With the potential for Bank of Canada increases to the benchmark rate in 2022, some are wondering whether they should lock in their variable mortgage and go fixed.

A key question to consider is - why pay more money than you have to? It will take several prime rate increases for variable rates to be on par with a fixed rate, and you are likely better off sticking with your original strategy of focusing on payment vs. rate.

But if it’s going to keep you awake at night, then talk to your Mortgage Broker about your conversion options. Remember though, you should be confident you’ll stay in a 5-year fixed mortgage for the entire term. Breaking a fixed mortgage can result in some onerous penalties. If you aren’t sure you’ll stay in the mortgage for 5 years, the interest rate risk of a variable mortgage may be a better option than the penalty risk of breaking a fixed mortgage.

Talk to your Mortgage Broker for advice based on a review of your situation.

10/27/2021

The Bank of Canada announced today that it will continue to hold the overnight rate steady, noting that the recovery continues to require extraordinary monetary policy support “due to ongoing excess capacity”. In addition, “The Bank is ending quantitative easing (QE) and moving into the reinvestment phase, during which it will purchase Government of Canada bonds solely to replace maturing bonds.”

Worsening inflation pressures owing to global supply chain bottlenecks, labour shortages and rising energy costs will likely force the Bank of Canada to begin raising interest rates in the second half of 2022. Canada's inflation rate moved to 4.4% recently, driven by high gas prices, soaring housing costs and rising food prices and this is well above the Bank of Canada’s target rate of 2% that it had hoped to maintain.

The next rate-setting day is December 8th, 2021.

08/18/2021

How much downpayment do you need and where can you source it?

If your home will be owner-occupied, then you need 5% down for the first $500,000 of the purchase price, and 10% for any amount over $500,000 up to $999,999. If the purchase price is $1,000,000 or more, the minimum down is 20%.

Not surprisingly most homebuyers access their savings and equity. Increasingly, homebuyers are turning to their RRSPs and financial gifts from family. If you have any questions about using your RRSPs or what's involved in a financial gift, get in touch with your Mortgage Broker. Getting advice early is a key part of the homebuying process!

03/23/2021

So many reasons to choose a Mortgage Broker over your Bank!

Asking a Bank which mortgage you should get is like going to a Ford dealership and asking which car you should buy! When you have choice, you can be confident you got the best rate and mortgage for your situation.

Professional advice is also key in today's changing marketplace, as is convenience and getting out of the box solutions when needed.