Mike Cara
Find the Right Mortgage in Peterborough & the Kawarthas: Expert Broker for All Credit Situations
Choosing the right mortgage broker is crucial, and experience matters. Mike Cara, your Local Trusted Mortgage Broker serving Peterborough and the Kawarthas, brings over 30 years of finance expertise to help clients that most other brokers cannot help. We are a full-service mortgage business dedicated to arranging financing for all credit types, including credit scores from 400 to 900. Our comprehensive mortgage services include mortgage renewals, debt consolidation to improve your financial health, accessing equity through home loans, refinancing your existing mortgage, assisting first-time homebuyers, navigating mortgage needs during divorce or separation, specialized mortgage programs for self-employed individuals and Agri-farm businesses, construction financing, solutions for bad credit mortgages, private lending options, and alternative mortgage solutions. We strive to secure some of the lowest interest rates available in Ontario. Get personalized mortgage advice in your area.
Rest assured, I am a licensed and insured Mortgage Broker with Northwood Mortgage Ltd. Brokerage, a member of the Verico Mortgage Brokers Network, a reputable institution regulated by the Financial Services Regulatory Authority of Ontario (FSRA) under license number 10349. These affiliations reflect my commitment to the industry’s highest standards of professionalism and ethics, ensuring you receive the best possible outcome.
Need personalized mortgage advice in Peterborough and Central Ontario?
Your Mortgage Advocate,
Mike Cara, Mortgage Broker in Peterborough, Ontario
BLOG / NEWS Updates
Fixed Mortgage Rates Are Moving Up — But Don't Chase the Lowest Rate
Fixed Mortgage Rates Are Moving Up — But Don't Chase the Lowest Rate
If you've been watching mortgage rates recently, you may have noticed that fixed mortgage rates are under upward pressure again.
For many homeowners and homebuyers, that can be confusing.
The Bank of Canada doesn't have to increase its policy rate for fixed mortgage rates to move higher. Fixed mortgage pricing is influenced by several factors, including conditions in Canada's bond market.
And when bond yields rise quickly, mortgage lenders can respond by increasing fixed rates.
For borrowers in Peterborough and across Ontario, that creates an understandable reaction:
“Rates are going up. I need to find the lowest rate before they go any higher.”
But that's exactly when it's important not to lose sight of the mortgage attached to that rate.
Fixed and Variable Rates Don't Move the Same Way
One of the biggest misconceptions about mortgage rates is that the Bank of Canada controls them all directly.
It doesn't.
The Bank of Canada's policy rate has a strong influence on variable-rate borrowing. Fixed mortgage pricing is influenced more heavily by bond-market conditions, lender funding costs, competition and other market factors.
That's why fixed mortgage rates can increase even when the Bank of Canada hasn't announced a rate increase.
For consumers, the important lesson is simple:
Mortgage rates can move quickly—and not always for the reason you hear about in the news.
Should You Rush to Grab the Lowest Rate?
A rising-rate environment makes a competitive mortgage rate especially important.
But competitive and lowest aren't necessarily the same thing.
Consider two mortgages.
One has a slightly lower rate.
The other costs a little more each month but provides better prepayment privileges, a more favourable penalty calculation, portability or greater flexibility.
Which mortgage is better?
You can't answer that question from the rate alone.
The Penalty Could Matter More Than a Few Basis Points
This is something mortgage shoppers frequently overlook.
Most people don't take a five-year mortgage expecting to break it.
But life happens.
You might sell your home, relocate, refinance, consolidate debt, separate from your spouse or simply need a different mortgage before your existing term expires.
If you break a closed mortgage, a prepayment penalty may apply.
The Financial Consumer Agency of Canada warns that mortgage prepayment penalties can cost thousands of dollars, and the way they're calculated varies among lenders. (Canada)
Suddenly, saving a few dollars each month with a marginally lower rate may not look like such a bargain.
That's why I like to say:
Ask about the exit before you enter the mortgage.
Prepayment Privileges Have Value Too
Now consider the opposite situation.
Maybe you receive an inheritance, bonus or additional income and want to put a large lump sum against your mortgage.
Can you?
Mortgage prepayment privileges vary among lenders. Depending on the mortgage contract, you may be able to increase regular payments or make lump-sum payments without triggering a penalty, subject to specific limits. (Canada)
If paying your mortgage down aggressively is part of your financial strategy, those provisions matter.
Again, the advertised rate doesn't tell you that.
What Happens if You Move?
Portability is another feature worth understanding.
A portable mortgage may allow you to take the existing mortgage balance, interest rate and terms to another property, subject to the lender's requirements.
That can potentially help avoid the cost of breaking an existing mortgage when you sell and buy another home. (Canada)
If there's a reasonable possibility you'll move during the term, that's worth knowing before you sign.
Compare the Mortgage Behind the Rate
None of this means mortgage rates aren't important.
They absolutely are.
When you're borrowing hundreds of thousands of dollars, even a relatively small difference in interest rate can affect your payments and interest costs.
The Financial Consumer Agency of Canada specifically recommends shopping around for the best interest rate—but it also tells consumers to consider mortgage flexibility and the potential future cost of breaking the contract. (Canada)
Those aren't contradictory ideas.
They're the right way to shop for a mortgage.
You want:
A competitive rate + an appropriate mortgage.
Not:
The lowest advertised rate regardless of the terms.
The First Lender Matters
Different lenders have different rates, qualification guidelines, products, penalties and lending niches.
That's why my approach is to understand the complete application before deciding where it belongs.
Income. Credit. Property. Equity. Debt. Future plans.
Then we can identify appropriate lenders and compare their mortgage options.
Only then does comparing rates become truly meaningful.
Because the lender offering the lowest advertised rate isn't much help if that mortgage doesn't fit your application—or your plans.
Looking for a Mortgage in Peterborough?
With fixed mortgage rates moving again, now is a good time to understand your options—particularly if you're buying a home, approaching a mortgage renewal or considering refinancing.
Don't panic because rates are moving.
And don't choose a mortgage based on one number.
Understand the market.
Understand the mortgage.
Then compare the rate.
Because the objective isn't simply:
“Get me the lowest rate.”
It's:
“Help me get a competitive rate on the right mortgage.”
Your Mortgage Advocate,
Mortgage Broker | Peterborough & Central Ontario
Over 30 Years of Excellence in Finance
705-775-7878
Why Choosing a Mortgage Broker Is About More Than Finding the Lowest Rate
Why Choosing a Mortgage Broker Is About More Than Finding the Lowest Rate
When looking for a mortgage, one of the first questions many borrowers ask is:
“What's your best rate?”
It's an understandable question. Nobody wants to pay more interest than necessary.
But after more than 30 years in finance, I've learned that the lowest advertised mortgage rate doesn't necessarily mean the lowest-cost—or most appropriate—mortgage.
A Mortgage Is More Than an Interest Rate
Consider two lenders offering similar rates.
One mortgage might provide generous prepayment privileges, reasonable penalties and portability if you move.
Another could have more restrictive terms that become expensive if you sell, refinance or need to change the mortgage before maturity.
The interest rates may look almost identical.
The financial outcomes may not be.
When comparing mortgages, Ontario's mortgage regulator, FSRA, recommends looking at factors including the mortgage term, amortization, fixed or variable rate, prepayment privileges, portability, penalties and fees.
That's why I believe borrowers should shop for the mortgage, not simply the rate.
What Does a Mortgage Broker Actually Do?
A mortgage broker acts as an intermediary between borrowers and mortgage lenders.
Unlike dealing directly with a single financial institution, a mortgage brokerage may have access to multiple lenders and mortgage products.
That can be particularly valuable because every lender doesn't evaluate borrowers in exactly the same way.
A borrower might be:
- traditionally employed;
- self-employed;
- buying a first home;
- refinancing;
- purchasing an investment property;
- consolidating debt;
- rebuilding credit; or
- looking for an alternative mortgage solution.
The lender that works well for one borrower may be completely inappropriate for another.
The First Lender Matters
One of the most important parts of mortgage brokering happens before the application is submitted.
A broker needs to understand the complete application:
Income. Credit. Debt. Down payment. Property. Employment. Objectives.
Only then can the broker determine which lender or lending program may be appropriate.
Simply submitting the application everywhere isn't a strategy.
Selecting the appropriate lender from the beginning is.
Experience Becomes Particularly Important When Things Aren't Perfect
Straightforward mortgage applications are relatively easy.
The value of experience often becomes apparent when something isn't straightforward.
Perhaps you're self-employed and your taxable income doesn't accurately reflect the strength of your business.
Perhaps your credit was damaged by a temporary financial problem.
Maybe your bank declined your application.
Perhaps you're separating from your spouse and want to keep the family home.
Or maybe you're refinancing several high-interest debts into your home financing.
These aren't necessarily situations where the answer can be found on a mortgage-rate comparison page.
They require understanding the borrower's entire financial situation.
Ask Questions
When interviewing a mortgage broker, don't be afraid to ask:
- Why are you recommending this lender?
- What other options did you consider?
- What happens if I sell before maturity?
- What are my prepayment privileges?
- How is the penalty calculated?
- What fees could apply?
- Are there restrictions I should know about?
- What are the risks?
- How are you compensated?
Your mortgage professional should be able to explain the answers in plain language.
Mortgage Brokers Are Becoming More Popular
CMHC's 2024 Mortgage Consumer Survey found that mortgage-broker use increased from 43% in 2023 to 48% in 2024.
First-time homebuyers, refinancers, newcomers and consumers in Ontario and British Columbia were among those more likely to use mortgage brokers.
That doesn't mean everyone needs a broker.
It does demonstrate that many Canadians see value in having someone help them navigate lender and mortgage choices.
Looking for a Mortgage Broker in Peterborough?
Mike Cara brings more than 30 years of finance experience to helping homebuyers and homeowners understand their mortgage options.
Whether you're buying, renewing, refinancing, self-employed, consolidating debt or dealing with a mortgage situation that doesn't fit neatly into a bank's traditional lending guidelines, the objective is the same:
Understand the complete situation first. Then determine the mortgage strategy.
Because when you're financing hundreds of thousands of dollars, the question shouldn't only be:
“What's the lowest rate?”
A better question is:
“What's the right mortgage for me?”
Your mortgage advocate,
Mortgage Broker in Peterborough and Central Ontario
705-775-7878
Government Programs for First-Time Homebuyers in Peterborough, ON
Several government programs can assist first-time homebuyers in Peterborough, Ontario, at both the federal and provincial levels, as well as some local initiatives.
Federal Programs:
- Home Buyers' Plan (HBP): This program allows you to withdraw up to $60,000 (as of Budget 2024, applicable to withdrawals after April 16, 2024) from your Registered Retirement Savings Plan (RRSP) tax-free to buy or build a first home. If you're buying with a partner, each person can withdraw up to $60,000 for a total of $120,000. You typically have 15 years to repay the amount.
- First Home Savings Account (FHSA): This relatively new registered account allows first-time homebuyers to save up to $40,000 tax-free for a down payment, with an annual contribution limit of $8,000. Unlike the HBP, no repayment is required.
- First-Time Home Buyers' Tax Credit (HBTC): This is a non-refundable tax credit of up to $1,500 that can be claimed on your income tax return in the year you purchase a home. It helps offset closing costs.
- GST/HST New Housing Rebate: If you're purchasing a newly built home or substantially renovating an existing one, you may be eligible for a rebate of a portion of the GST or the federal part of the HST paid on the home.
Provincial Programs (Ontario):
- Ontario Land Transfer Tax Refund for First-Time Homebuyers: When you purchase a property in Ontario, you pay a Land Transfer Tax (LTT). As a first-time homebuyer, you are eligible for a rebate of up to $4,000 on this tax. This can cover the LTT entirely for homes priced up to approximately $368,000.
- Affordable Home Ownership Program: While availability can vary, some provincial initiatives aim to help low- to moderate-income individuals and families with a forgivable loan for a portion of the down payment. You'd need to check with local housing authorities or social services for current availability and eligibility in Peterborough.
Local/Community Initiatives (Peterborough specific):
- City of Peterborough - Homeownership Assistance Loan Program: This program has been noted as currently closed, but it's worth checking the City of Peterborough's website for any updates or similar programs that may open in the future.
- Habitat for Humanity Peterborough & Kawartha Region: Habitat for Humanity partners with individuals and families to help them achieve affordable homeownership through a unique solution that often involves "sweat equity" (volunteer hours). They have specific eligibility criteria, including income thresholds, and may have upcoming projects in Peterborough.
- Métis Nation of Ontario (MNO) Home Buyers Contribution (HBC) Program: For eligible MNO citizens, this program can contribute up to 15% of the home's purchase price (to a maximum of $50,000) as a no-payment loan registered as a second mortgage.
Important Considerations for First-Time Homebuyers:
- Eligibility Requirements: Each program has specific eligibility criteria regarding income, residency status, whether you've owned a home before, and the type of property. Always review these carefully.
- Mortgage Pre-Approval: Before actively searching for a home, it's highly recommended to get pre-approved for a mortgage. This will give you a clear idea of your budget.
- Financial Advice: Consult with a mortgage broker, financial advisor, or real estate agent to understand which programs you may qualify for and how to best utilize them for your specific situation.
It's crucial to research the most up-to-date information on these programs as details and availability can change.
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