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Are Longer Cheaper Mortgages Worth It?

Posted onJanuary 27/2020By

The appeal of a longer mortgage may seem palpable, but when contemplating whether it is a choice move, the fine points demand valid consideration. On the surface, borrowers will seek mortgages as long as 40 years for the benefit of a lower monthly payment, but what does broadening out your loan truly convey? There is always a concession of sorts when it comes to negotiating lower monthly payments, and so it is vital to determine if such longer mortgages are essentially worth it. The notable boost in lenders offering longer-term mortgages has been expeditious and is steadily ascending. Analyzing such type of commitment, coupled with assessing your individual needs, will be a distinct advantage to make the most desirable judgment. Currently, the quintessential term length has a defined principle and interest rate of five years in which, after that period, new terms warrant mediation. The integrated length of the mortgage,…

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The Truth: Why Mortgage Rates in Canada Are Cheap

Posted onJanuary 20/2020By

Although rapid skyrocketing home prices seem to be indicative of a Canadian real estate market, inversely high-interest rates are not. This hasn’t always been the case; instead, it is a new phenomenon that boasts the lowest fees in years, and it commands our attention. The National Bank reports that falling mortgage rates have made monthly carrying costs facile for borrowers, and additionally, the rates since the year’s onset continue to drop. Comprehending the decline is crucial to determine what your game plan will ultimately be when deciding to purchase a home, and whether to commit to either a fixed or variable mortgage rate. There is a substantial correlation between the mortgage market and the bond market, consequently, directly prompting interest rates to become affected. Anyone securing a mortgage on an original purchase or renewal today has a pivotal financial advantage. Banks, along with alternate lenders, safeguard the money to be…

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Canadian Interest Rates on Hold Tells a Unique Mortgage Narrative

Posted onJanuary 13/2020By

For Canadian borrowers, when the Bank of Canada (BoC) adheres to a resolute policy rate, it seems nothing short of advantageous. With this in mind, it’s imperative to establish what this authentically represents. High-interest rates are indicative of a healthy and robust economy, whereas lower fees are an incentive to stimulate spending in what is a more inefficient fiscal climate. It’s all about power. For over a year, the Bank of Canada has retained its key interest rate on hold, telling of a unique mortgage narrative that affects you. Canada, unlike its international counterparts, has been tenacious by taking fiscal control and keeping interest rates on hold. Intensified trade disaccord between the United States and China, as well as low global interest rates, have spawned ambivalence, creating a burden on the global economy. The U.S. is a crucial export market for Canadian goods and thus consequently affecting not merely our…

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Getting It Straight: Conforming Loans vs. Non-Conforming Loans

Posted onJanuary 06/2020By

Although mortgage translations are less than obvious, it’s palpable that most Canadians demand an elevated level of clarification when it comes to the pivotal commitment. A genuine comprehension of mortgage systems is trying enough, and when combined with deciphering a plethora of terminology, the task to many seems daunting. One strong example is distinguishing conforming loans from non-conforming loans. Getting it straight, once and for all, is vital. Conforming Loans A conforming loan is indicative of loan limit restrictions and, simultaneously, a number of unique preconditions are enforced. The Federal National Mortgage Association (FNMA or Fannie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) are government-sponsored entities that prompt and administer the market for home loans. These agencies have definitive protocols and decrees that mortgages must observe. Statutes describe and define maximum loan amounts, advisable properties, preconditions for down payments, and credit stipulations to name a few.…

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