John Homem - Your Trusted Mortgage Agent

05/08/2022

One day a year isn’t enough to celebrate motherhood and everything our moms do for us. To all the moms out there… Happy Mothers Day!

05/08/2022

04/22/2022

Earth has always given us every comfort and necessity of life. It takes care of everyone like a mother and we must also protect it and care for it in the best way.

Happy Earth Day! 🌍🌎🌏

04/17/2022

The spirit of Easter is all about hope, love, and joyful living. May you and your loved ones have a blessed day; Happy Easter!

04/14/2022

So the Bank of Canada raised the overnight rate yesterday by 0.50%. Today, Lenders are raising the Prime Rate by 0.5% - effecting Variable Rate Mortgages and Lines of Credit.

DON'T PANIC!

The impact to your Variable Rate Mortgage payment is just under $25/mth for every $100k in mortgage balance.

If you are panicking, let's have a chat! I'll educate you about options and show you some strategies to minimize the impact of any future interest rate increase to prime

04/13/2022

The Bank of Canada (BOC) has increased the Overnight Rate by 0.50% 🚀

What does that mean?

- The Prime Rate is increasing by 0.50% to 3.2%

Who does this impact and at what cost?

- Anyone with a variable rate mortgage or line of credit.

- For every $100k owed on a mortgage, your mortgage payment may increase by approximately $26/mth.

Why did the BOC raise the rate by 0.5%

- This is meant to cool inflation, currently at 5.7%. With the Economy growing by 4.25%, and unemployment at 5.3%, at its lowest since 1976, inflation is above the 2% inflation target, therefore an increase is needed to help cool the economy and decrease the inflation rate.

Should I switch from a Variable Rate Mortgage to a Fixed Rate Mortgage?

- With Fixed Rate Mortgages at a higher level than variable rate mortgages, there are still reasons to stay with a Variable Rate Mortgage.

- Everyone's situation is different, so speak to your Mortgage Professional to see what's the best route to take.

Better yet, Let's chat! DM or call 📞 416-566-6562

03/20/2022

💐🌷💐 🌷Spring has sprung! 🌷💐🌷

Here's to lots of warm and sunny days to come!

03/17/2022

"May you have all the happiness and luck that life can hold—and at the end of your rainbows ay you find a pot of gold." - Happy St. Patrick's Day! 🍀💚

03/08/2022

To all the incredible women in the world, shine on, not just today but every single day. Happy Women's Day

03/03/2022

What happened?

Yesterday the Bank of Canada (BOC) increased the Overnight Rate by 0.25%, in turn, Financial Institutions increased the Prime Rate by 0.25% on Variable Rate Mortgages, loans, and Lines of Credit. Prime Today is 2.7%.

What is the Rate on a Variable Rate Mortgage?

Closed Variable Rate Mortgages offer discounts of roughly 1.00% off Prime, but the discount may be more or less, depending on your financing situation. Therefore variable rate mortgages are roughly 1.7%.

Are Variable Rate Mortgages still a good option?

With 5 yr fixed rate mortgages ranging around 2.8 - 3.3%, a Variable Rate Mortgage may be a better option, if you set up the mortgage payment to be based on the 5yr Fixed. You'll be paying the same as a 5yr fixed, but more of your payment will be going towards principle, paying your mortgage down faster and protecting yourself from future interest rate increases.

Questions?! Direct Message or Call/Text 416-566-6562

03/02/2022

The Bank of Canada (BOC) has announced the overnight rate will increase to 0.50%, from 0.25% due to first-quarter growth "... looking more solid than previously projected."

Looking ahead, the BOC expects that "As the economy continues to expand and inflation pressures remain elevated ... interest rates will need to rise further"

To achieve lower inflation, many economists are projecting an additional 0.75% increase to the overnight rate this year. Study tuned as the next BOC meeting is on April 13th

What does this mean to you?

If you have a variable rate mortgage, this 0.25% increase in rate means your mortgage payment may increase by roughly $12/mth for every $100k in mortgage balance.

Expect your rate to increase by 0.75% by the end of the year.

Should you lock into a fixed rate mortgage?

This depends on your financial situation, but there are reasons to stay variable. With 5 year fixed rate mortgages range between 3.00-3.3% - if you have a variable rate mortgage, switching to a fixed would increase your mortgage rate and payment, without paying down your mortgage any faster. Instead, consider raising your payment on your variable rate mortgage to be based on a 5yr fixed mortgage, this way you'll be over paying on your mortgage payment, helping offset future increases to your rate, and in the meantime will be paying your mortgage off quicker.

If you have a variable rate mortgage, and not sure what to do, let's chat and explore what's the best based on your circumstances; DM or call/text 416-566-6562

02/21/2022

Family is like branches on a tree: our lives may grow in different directions but our roots still stay as one. Happy Family Day!