Welcome to a new way of getting a mortgage! My job is to work with your realtor and lawyer to make the mortgage process as straightfoward and stress-free as possible.
I bring over 10 years of experience in finance to the job, having started my career in Europe and Asia as an Investment Banker before returning to Canada in 2011 to become a Mortgage Agent.
I was raised in Kingston and attended Queen's University, graduating with a Bachelor of Commerce Honours degree in 2003. Both my father and brother work as Mortgage Agents and together we form the Matthey Mortgage Team, with a combined 60+ years of mortgage and finance experience.
5 Things You Need to Know about Investors Group’s 1.99% Mortgage
Investors Groups 3 year variable mortage at Prime 1.01% captured a great deal of attention this week. The fact is, this mortgage could be right for some borrowers, as long as they fully understand the terms and conditions. For a $250,000 mortgage, the interest savings versus a 5-year variable rate are approximately $3,000 over 3 years, which is pretty compelling.
Here are 5 things you should consider about IGs 1.99% Mortgage Deal:
Be very certain that you will not need to refinance within the term. You cannot refinance or add to this mortgage unless you sell your home and pay a penalty. So if there is a risk that your financial circumstances could change (loss of income, retirement, financial assistance for a child in post-secondary education, etc.) this may not be the right product for you.
Ensure that the 3.75% monthly payment is affordable payments are based on this much higher rate although your mortgage interest is 1.99%. This is a higher monthly payment than almost any other 3 or 5-year mortgage out there.
Understand what the penalty could be if you do sell your home. The penalty for this mortgage is not clearly stated on the website, which could mean it is pricier than the market average. Most likely it is 3 months interest based on the 3.75% interest rate, which is more expensive than the majority of variable rate mortgage penalties out there.
Check that you qualify at the qualifying rate of 4.79%. Yes thats right. The interest rate is 1.99%, the payments are based on 3.75% but you must qualify for this mortgage at the Bank of Canada qualifying rate of 4.79%. Talk about confusing!
Understand the fees you could be charged at renewal if you do not renew with Investors Group. They are likely to offer to renew you at their rates, but currently their 5 year fixed rate special offer is 3.35% and 5-year variable is 2.75% or Prime 0.25%. These rates are above market, and if you choose to leave Investors Group it is likely you will have to pay upwards of $1,300 in legal and appraisal fees to switch to another Lender. This is due to the way that Investors Group will register this mortgage, making it harder for you to switch without paying fees.
In summary, weigh the interest savings versus the potential fees and costs before you make your decision. Dont be afraid to ask questions to your banker or mortgage broker asking them to clearly define the penalties, fees and special conditions of any mortgage that you enter into. The rate can be a great deal paying thousands more in penalty or fees may wipe out that gain.
Feel free to give me a call or send an email with any questions.
Mortgage Agent, Lic: #M12001008
613 893 4139
Scotiabank: Why Canada needs to focus on ways to encourage more home building
The recent run-up in housing prices, and the attendant worries about affordability and accessibility, have many stakeholders scrambling to find quick solutions. While understandable, those approaches are likely to have only minimal impacts on Canadas housing situation and its consequences for people looking for a reasonably priced place to live. Focusing on interest rate policy or macroprudential instruments, such as stricter mortgage stress tests, draws attention away from the underlying cause of the problem: the inability of supply to meet demand. Put simply, this country doesnt build enough housing. We should not be surprised by this. Canada has increased immigration dramatically in recent years to tremendous benefit to the economy, but we failed to pro-actively address the housing challenges the consequent population boom was sure to bring. Policy efforts must focus far more on anticipatory, collaborative, multistakeholder and very specific solutions to the housing situation rather than on the short-term and ultimately ineffective macroprudential Band-Aids applied in recent years. Scotiabank Economics is publishing research this week looking at the increase in Canadas housing stock relative to the increase in population over the past several years to get a sense of how effective we have been in creating new units. The numbers are not encouraging. One way to look at it is by using the ratio of new housing to population growth. By that measure, construction has been well below its historical average since mid-2017. That is perhaps not surprising, given that Canada has seen an immigration-fuelled population boom since 2015. In the three years leading up to the COVID-19 pandemic, population grew nearly twice as fast as new housing units were being built. That ratio improved somewhat with the COVID-related stall in immigration, but it is likely to reverse course once immigration returns to planned levels.
Dan Rees is group head, Canadian banking at the Bank of Nova Scotia. Jean-Franois Perrault is Scotiabanks chief economist
Two-thirds of Canadians were asset resilient in the year prior to the pandemic
Just over two-thirds (67.1%) of Canadians were asset resilient for at least three months in 2019, up from 63.6% in 1999.
Over these two decades, several factors contributed to the overall rate of asset resilience. For one thing, Canadians held more liquid assets at the end of the period. Median person-adjusted household liquid assets rose from $6,300 in 1999 to $10,700 in 2019. Canadians were also slightly older, on averagethe median age of Canadians increased from 36.4 years to 40.8 years. Family income has also been rising since 1999, and asset resilience is associated with higher income. The median person-adjusted, household after-tax income of Canadians increased by one-third (+34.9%), rising from $37,300 in 1999 to $50,300 in 2019, while the share of Canadians below the LIM-AT edged down from 12.4% to 12.1%.