I am so happy to announce that I will be having a new website I am designing! What a learning curve I can tell you – I had someone plug in the theme to use and help with some charts and pictures but I am happy to say I have been the one to put it mostly together!
I think however I will stick to Mortgage Building vs Web Building! lol, I am way better at the former than the latter that is true. Speaking of mortgages, as you already know the Bank of Canada has already left the overnight rate as is… so what does that mean for you? The lenders are still offering stable rates with nothing really going up to high or down to low… rates have been pretty consistant. The thing that has not remained steady are mortgage products. Most lenders have now all followed suit in regards to using a 3% payment caculation on all unsecured lines of credit and credit cards vs using the provable payment. This makes things I find tight for First Time Buyers when looking at what they qualify for. For example a $10,000 line of credit costs about $25/month where as now to qualify for the mortgage I have to use a $300 payment to qualify…see the difference? For larger unsecured line and credit cards this changes the playing field quite a lot. I am also seeing a change for my first time investment clients, with changing an owner occupied property into a rental property – as the prior 80% offset for rental monies has dropped to 50% with a majority of lenders – unless you are declaring it on your T1 Generals. When if so, the 80% stands as a usable off set.
Where I am seeing lenders step up is in the offers for Transfer/Switch mortgages, and covering a lot of the standard fees that come part and parcel of moving your mortgage! So you are able to get a great rate, great mortgage product (even moving the dreaded Collateral Charged Mortgage), and cost you nothing in transfer costs to the new lender upon renewal! Saving a few $100 or even $1000 can be helpful especially when everything else seems to be going up in price. But more so it is a great way to not feel married to your bank anymore! You do not have to have a messy divorce now to be able to unshackle yourself from your current lender at renewal time!