Nodas Know Mortgages

12/02/2023

A wonderful rainy night at the VanDusen Festival of Lights🎄.

11/17/2023

It’s a tail waggingly beautiful day here in PoCo today ❤️

11/01/2023

It’s a Yoshi world and we just live in it ❤️❤️

07/12/2023

They did it again! Variable / Adjustable rate mortgages, HELOC’s, LOC’s are all some of the things that will be effected by this rate increase.

I know my HELOC payment is feeling the pressure from all these moves for sure. If you have any questions or want to explore some options please feel free to reach out.

12/08/2022

In a move to fight inflation, the Bank of Canada (BoC) increased its key interest rate by 50 basis points to 4.25% on Wednesday, December 7, 2022.

This is the seventh time this year that interest rates have gone up, and from what it sounds like, this isn’t going to be the last time we see another rate increase.

“Inflation is still too high, and short-term inflation expectations remain elevated. The longer that consumers and businesses expect inflation to be above the target, the greater the risk that elevated inflation becomes entrenched.” – Statement from the BoC.

Many economists predict that there will likely be another rate increase of .25% sometime in the new year.

How Does This Increase Affect My Mortgage?

Anyone with a variable-rate mortgage, home equity line of credit (HELOC), or looking to renew their mortgage will immediately see their mortgage payments increase.

On a $500,000 mortgage amortized over 25 years, your monthly payments would be:

An interest rate of 5.5% = $2,908.02/month
An interest rate of 6.0% = $3109.33/month
An interest rate of 6.5% = $3,349.12/month

What You Need to Know

*The BoC’s 50 basis points increase will affect you if you have a variable-rate mortgage, HELOC, or are renewing your mortgage.
*If you have a fixed-rate mortgage, you won’t be affected.
*If you’ve been considering buying an income property, now is the time.

11/10/2022

09/09/2022

Good Morning!

What is a trigger rate, does it affect me, and should I care?

If you have a variable rate mortgage or know someone with one, you’ll want to care.

What’s happening?

If you stay up to date with our emails and content (make sure you’re following us on IG too!), then you’ll be well aware of the interest rate changes that have been made by the Bank of Canada (BoC).

We want to make sure you feel confident and up to date with future changes too. Which is why we’re going to give you some guidance today on a few RE terms you might be hearing more about soon, if you haven’t already.

The terms you’ll hear in the not-so-distant future are trigger rates and trigger points, alongside variable and adjustable rate mortgages.

What should I know?

*Variable Rate Mortgages (VRM) – If the prime changes, the rates change to reflect it. Interest rate changes don’t typically change your mortgage payment.
*Adjustable Rate Mortgage (ARM) – If the prime changes, the rates change to reflect it. The difference is that your mortgage payment will change as interest rates change.
*Trigger Rate – If interest rates rise to the point that your agreed interest and principal rates won’t cover the added charge, interest is deferred, and the total cost of your mortgage (principal balance) can increase until it hits the trigger point.
*Trigger Point – If the total cost of your mortgage (including deferred interest) exceeds the original agreed amount, then your lender will inform you and ask you to do one of three things.

1.Make a lump-sum payment.
2.Increase the agreed principal and interest.
3.Convert to a fixed rate mortgage.

What borrowers are affected?

Around 15% of the variable rate mortgages in Canada (taken between March 2020 – March 2022) are in a group that will likely hit their trigger rates this fall, and possibly see payment increases.

This is thanks to a mixture of two things. The recent interest rate increases by the BoC combined with the prime rate drops of March 2020. These drops have provided people with lower mortgage payments and lower trigger rates over the past couple of years. However, it’s also meant that this group has quickly reached their trigger rate now too.

What should I do next?

If you’re reading this and think you might be in this group, don’t panic. Instead, contact us for support. We can advise you on the best options to take before your mortgage payment has the chance to increase.

If you have questions, please reach out. Our main priority in uncertain times is to continue supporting you as you navigate your mortgage.

Stay Healthy and have a great Friday!

09/01/2022

If CIBC economists are right, the Bank of Canada's expected rate hike next week will be its last of this rate-hike cycle.

07/25/2022

Some positive news for the fixed rates 😁

Bond yields dove over 30 basis points on Friday as economic worries start to replace inflation concerns.

04/13/2022

The Bank of Canada has raised its key interest rate by half a percentage point to 1% from 0.5%. This is the first half-point hike in more than two decades.

Russia’s ongoing invasion of Ukraine is causing new economic uncertainty. Price spikes in commodities and supply chain disruptions are the primary factors of the substantial upward revision to the Bank’s outlook on inflation.

With the economy moving into excess demand and inflation persisting well above target, the timing and pace of further increases in the policy rate will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target.

Please reach out to us with any questions or concerns and have a wonderful Wednesday.

04/01/2022

Bond yields are up again, which means rates are probably going to move. We have not received notice of any more rate change yet this mrning , but if the bond market keeps going the way it is, I see more rate increases on the horizon.

If you're looking to buy, refinance or have a maturity coming up in the next 120 days I strongly reccomed that you get a rate hold in place asap, to protect against those increases.