Mortgage Jordan

03/30/2023

07/19/2022

Out of office alert - see y’all next week ✌🏼

07/14/2022

Inflation in Canada is higher and more persistent than the Bank expected in its April Monetary Policy Report (MPR), and will likely remain around 8% in the next few months. While global factors such as the war in Ukraine and ongoing supply disruptions have been the biggest drivers, domestic price pressures from excess demand are becoming more prominent.

Should you be looking at locking in? While everyone's situation is different, I would highly advise you to discuss your options with your mortgage agent or broker before locking in. Ensure you are not spending more during your term, to save a few $$ right now.
If you have any questions, or would like a complimentary review of your mortgage scenario, please reach out.

07/05/2022

I am feeling pretty tired and anxious today, so here is a picture of my beautiful pup Maya!
Maya will be 10 years old on November 8th. She’s a Siberian husky, and the sweetest little princess you will ever meet. She likes long walks on the beach, and sleeping on the pillows she stole from my bed. Stay tuned for more maya updates!

06/29/2022

🚨 New listing 🚨

06/27/2022

What is the overnight lending rate?

It has a profound effect on a country’s entire economy. The overnight rate, often referred to as the key policy interest rate, is the interest rate banks charge one another to borrow money in order to maintain federally mandated cash reserve requirements.
Any change in the overnight rate will have seismic effects in the economy. A lowering rate, like we saw in 2020-2021, frees up the spigot of money by making interest rates in all manner of loans cheaper. Businesses expand, homebuyers buy, and stock markets generally rise.
Conversely, a rate hike, which turns down the flow of money through the economy to prevent inflation, generally slows things down and depresses the stock prices of most publicly traded companies. Banks, who can rake in more revenue by collecting higher interest rates on loans, are one of the few exceptions.
The bank of Canada meets 8 times per year to decide if the overnight lending rate will lower, stay the same, or increase.

06/25/2022

As promised, a photo of my husky, Maya. Happy Saturday!

06/23/2022

Let’s talk down payment. Typically, the minimum amount needed is 5%. Anything less than 20% down is considered an insured mortgage, also called a high ratio mortgage. This means the client is responsible for paying the mortgage insurance (protection for the lender). This is included in the mortgage, so you don’t have to pay the costs out of pocket up front. If you put 20% down or more, the lender covers the insurance premium. This is called a conventional mortgage.
Which one is the better option? Well, the more achievable goal for most is 5% down (plus closing costs, which lenders want to see 1.5% of purchase price). The market is moving way too quickly to try and wait until you have 20% to avoid the insurance premium. The difference in value within even one year could be hundreds of thousands of dollars. Don’t wait!

06/21/2022

From all accounts, floating-rate mortgages continue to outsell 5-year fixed terms.
Come June 22, however, more people will be questioning their faith in variables. That’s when we’ll receive May inflation data, and it should be enough to give over-leveraged borrowers the chills.

Projecting which mortgage will win over five years can be hard when the market is priced to reflect expected changes. You’re usually better off focusing on factors you know, like the applicant’s financial situation and tolerance for payment risk. That includes the borrower’s five-year plan, their prepayment likelihood (given prepayment penalty differences), and so on.

06/20/2022

Did you know? 5-year fixed rates move with 5-year bond yields. Canadian yields are determined by all sorts of factors, but essentially the 5-year yield reflects the average expected Bank of Canada overnight rate over the next half-decade, plus a term premium.

A term premium is simply the extra yield investors demand for the risk of locking up their money for five years.

That is to say, the bond market—which discounts more information about future rates than we could fathom—is telling us the overnight rate will top out roughly in the mid-3% range.

Is the bond market wrong a lot? Heck, ya. But it’s less wrong than the experts you see on TV or in the papers.