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
Canada: Residential sales reached a new record in September
Seasonally adjusted home sales rose 0.9% in September to a monthly record of 56,422 units. Sales in Ontario missed Augusts record by a hair due to a 5.3% monthly decline in Toronto. Records were nonetheless registered in Ottawa and Hamilton. In the Province of Quebec, sales were at a record level in the Quebec CMA and in Gatineau, and close to August records in Montreal. In B.C., transactions reached a record outside the three main markets of Vancouver, Fraser Valley and Victoria. There were also sales records in Nova Scotia and New Brunswick. The active-listings-to-sales ratio indicates that the Canadian home resale market was favorable to sellers in Ontario Quebec, the Maritimes Provinces and marginally so in B.C. The market was balanced in the four other provinces.
PROMISES, PROMISES AND MORE PROMISES
Canadas Parliament re-convened today with a ceremonial Speech from the Throne delivered by the Governor General.
Canadas continued response to the COVID-19 pandemic took centre-stage, while providing a lens for a plethora of broader promises: an extension of the wage subsidy, expanded employment insurance, investments in childcare, reaffirmed commitments to universal pharmacare, and green infrastructure investments among many others.
Given the exhaustive list of priorities, this Speech is unlikely to bring the minority government down as it provides plenty of hooks for negotiations in the lead-up to a Fall update where details will be laid out.
It clearly signals more fiscal spending ahead for Canada leaving the question not if but how much. But this was largely channeled ahead, so the market reaction has been mutedor more likely, it is eclipsed by broader US and global developments.
There is little beyond lip service by way of fiscal restraint. This will be left to the Finance Minister to make inevitable trade-offs in her first budget this Fall, particularly as she may need to reserve some firepower for second waves.
Source: Scotiabank https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.fiscal-policy.fiscal-pulse.federal.federal-budget-analysis.federal-throne-speech--september-23--2020-.html