A mortgage broker’s job comes with its share of uncomfortable moments. Telling a client that you can’t provide them with the appraisal they just paid for is one of them. It’s an issue that comes up time and again, but one that’s frequently misunderstood. Appraisers and brokers cannot simply hand over appraisals to clients, despite the client being […]
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Three Big Mortgage Complaints
I read this article and it’s bang on with a few main concerns I’ve noticed and seen in my lengthy career as an independent mortgage broker. I’ll touch on two up front.Penalties: The banks have penalties anywhere from 3-5 times higher than the non banks we use. Here’s the best illustration. Pre-approvals: Since pre-approvals are […]
No change at the Bank of Canada today
The Central bank has released its latest rate decision. The Bank of Canada said Wednesday it will maintain its target for the overnight rate at ½%. “The global economy is progressing largely as the Bank anticipated in its January Monetary Policy Report. Financial market volatility, reflecting heightened concerns about economic momentum, appears to be abating,” […]
Mortgage penalty differences
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 […]