There is, among many other things, one major reason why using an independent mortgage broker and a non-bank mortgage product, is far superior; how they calculate mortgage penalties when paying out your mortgage early. I took some time this week to create a small graph below to illustrate it as easy as I could. Now of […]
Top 5 Questions To Ask Your Mortgage Lender
1. How the penalties are calculated if I break my mortgage early? Specifically, ask what rate they use to calculate the “interest rate differential”. Typically, if the lender has “posted rates” they use these to calculate the penalty. If this is the case, the penalty can be 3, 4 or even 5 times higher than […]
Negative Amortization
Negative amortization is a situation where your mortgage payment is not enough to cover the interest due. The interest then builds up and your total principal owing increases instead of shrinking. Negative amortization can occur when you have a fixed-payment variable-rate mortgage and prime rate rises. When considering a variable product you should always consider one that […]
5 C’s Of Mortgage Lending
Collateral – The property itself that you are hoping to purchase. Capital – Where is your down payment coming from? At a minimum, you need 5% down for a “high ratio” insured mortgage or a “conventional” mortgage with 20% down. This money can come from your own resources or can be gifted from a family […]
DLC Buys Mortgage Architects
Canada’s mortgage behemoths have long been the likes of RBC, TD and Scotiabank. But as of today, they have stiffer competition: Dominion Lending Centres (DLC). After months of negotiation, DLC has won the bidding for Mortgage Architects (MA), one of Canada’s top national superbrokers with 1,287 mortgage agents and brokers. That now gives DLC’s three […]