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Some lenders take it a step further and align the compounding period with your payment frequency. Choose biweekly payments? They compound interest biweekly. Weekly payments? You guessed it — weekly compounding. While the cost difference here is smaller than the jump from semi-annual to monthly compounding, it still adds up over time. Most borrowers don’t even realize it’s happening.

Since the Bank of Canada’s aggressive rate hikes in 2022, variable rate mortgages became as popular as flip flops in a snowstorm. Given that the prime rate had increased faster than anyone expected, the Bank of Canada included, very few could stomach the risk. Variable rate mortgages came with

Many clients tell us they’re waiting for the next Bank of Canada rate announcement before locking in a fixed mortgage rate. However, it’s important to understand that fixed rates don’t move in tandem with the Bank of Canada’s rate. In fact, they can sometimes move in the opposite direction.

If you locked in your mortgage during the latter half of 2023 or the first half of 2024, there’s an exciting opportunity to potentially save thousands of dollars by switching to a lower rate mid-term. Many of my clients have saved between $5,000 and $10,000 by making the move—and

When it comes to managing your mortgage, understanding prepayment privileges can make a significant difference in how quickly you can pay down your loan. These privileges are often represented by numbers like 10/10 or 20/20, but what do they really mean? Let’s break it down and explore how these

If your mortgage renewal is approaching, you might be facing higher payments due to increased interest rates. Most mortgage holders had to qualify for their mortgage based on a higher "stress test" rate. This means they had to

When you select your mortgage product, you’re entering into a contractual agreement with the lender for a specific closed term. Should you find yourself needing to return the mortgage early, you’re essentially breaching your contract with the lender. Consequently, the lender will then impose a penalty for breaking it

The mortgage arrangement process can seem simple and effortless, or it can become exhausting with one document requirement after another.

I’m sure you’ve seen all the TV commercials on reverse mortgages, which is basically a way to take equity out of your home without any income, and without ever having to make a single mortgage payment.

Reverse mortgages are generally available to those aged 55 or

The Bank of Canada is expected to start cutting their rate as soon as April 10th of this year. While it’s not certain, it sounds promising. The big six banks are all forecasting cuts between 1.00% and 1.75% by the end of this year, followed by further cuts in

If you've been keeping even a casual eye on the mortgage market, you're likely aware of the chatter about potential rate drops to come at some point this year. Naturally, we all aim for the best deal, seeking to lock in the lowest possible rate. In a market where rates

Trying to time your entry into the homebuying market is a bit like trying to hop onto a merry-go-round that’s spinning just a tad too fast. You want to get on without getting dizzy, or worse, flung into a nearby bush. With mortgage rates soaring, it’s no surprise that many

It’s only natural that a mortgage lender will want to see your ID. After all, they are lending you several hundred thousand dollars, if not more. For the most part, providing ID is just a formality. However, there are times when something as simple as ID can create problems with

Purchasing a new home is an exciting time, but that excitement can turn to unwanted stress if you wait too long to get your financing in order. Applying for a mortgage involves a process with multiple parties involved:

 

Mortgage professional

Mortgage terminology can get confusing at times, so it’s not uncommon for people to misunderstand the terms. Often someone will say they want to refinance their mortgage when they are really looking to transfer it. Or transfer it when they are looking to port it. It can get confusing at

When considering purchasing a home, one of the key factors to consider is the mortgage you can qualify for.  Mortgage qualification depends on several factors, including your financial situation and the prevailing interest rates. In today’s blog, I’m going to explore how changes in mortgage rates have affected your qualifying

If your goal is to pay your mortgage off as quickly as possible, you may be inclined to request a shorter amortization. After all, you’ll become mortgage-free faster by choosing a 25 year amortization instead a 30 year, right? 

Not necessarily.

In

A HELOC, or Home Equity Line Of Credit, is a simply a line of credit that is registered against your home. It can also be referred to as a SLOC (Secured Line Of Credit). It allows you to draw equity out of your home when you need it. 

It is no big secret that a recession is all but inevitable at this point. The sharp and rapid rate increases from the Bank of Canada in 2022 were far greater than anyone expected. This alone had the R word written all over it. To add fuel to the recessionary

Given the significant increases to mortgage rates over the past year, it may go without saying that many are feeling the pinch. Particularly those in variable rate mortgages and those with mortgages coming up for renewal. Seeing your payment increase by hundreds (or more) per month can be

Rising mortgage rates are a concern to many. Particularly those who are in variable rate mortgages with an adjustable payment (ARM), or for those who have a mortgage that is coming up for renewal. While everyone had to pass the mortgage stress test to ensure they would

It’s hard to imagine that a 2.49% mortgage rate was considered high just one year ago. We became spoiled with the pandemic driven sub-2% rates available during the latter half of 2020 and the majority of 2021.

When the real estate market peaked in February 2022,

Whether you’re a first-time home buyer or a home buying veteran, mortgage terminology can be confusing and it’s not uncommon for terms to be misused. It can be difficult enough going through the different options to determine the best mortgage for you.  Let alone, trying to get the mortgage

All mortgages are not created equal, and making the wrong choice can end up being a costly or frustrating decision. This is exactly why you should never choose a mortgage based on rate alone. Trying to save a few hundred dollars per year on rate can sometimes end up

When purchasing a new property, you can generally count in it to close on time. Sure, there are some rare exceptions, but they are indeed rare.  

Purchasing is one thing, but what about closing a new mortgage when transferring to another lender at time of

There are many decisions to make when arranging a new mortgage. Whether to go with a fixed or variable, amortization period, payment frequency, and term length.

Prior to mortgage rule changes that came into effect on November 30, 2016, short term mortgages usually came with

One of the most common questions I get is whether it’s better to go with a fixed or a variable rate mortgage. History has shown variable to win out over fixed more than 80% of the time, but considering that prime rate has already increased by 3.00% with more increases

If you are in a true variable rate mortgage, your payment will remain unchanged for the term. This can give peace of mind to many as it guarantees a predictable cash flow each month. When the rate increases, then a larger portion of that payment will be applied to

While starting or growing a family can be an exciting time, it represents a big change in your life. It can also bring on new challenges such as additional expenses and reduced income. As income is one of the main components of mortgage qualification, many wonder if going on maternity

Contrary to popular belief, lenders are not making hundreds of thousands of dollars off your mortgage. You might think that they are laughing all the way to the bank when they increase their rates, but this is not the case. This is because mortgage lenders don’t make their money on

If you’re like most homebuyers, you got preapproved to find out how much you will qualify for prior to shopping for your new home.  Having a solid preapproval in place can give you the reassurance and peace of mind in knowing that you can put in unconditional offers

If you are worried about rising mortgage rates than you are not alone. Fixed mortgage rates have increased by more than 3% since September 2021. Prime rate has increased by 1.25% since March with more rate increases on their way.

All in all, prime rate

One of the biggest mistakes that people make when their mortgage is coming up for renewal is to re-sign with their current lender without looking into other options. It’s super easy as you just need to sign the form and send it back to the bank.

Mortgage rates are always a hot topic of conversation, especially when they are on the move. As fixed mortgage rates have increased by more than 2% since September 2021, the topic is now hotter than ever.

The rapidly increasing rates are leading many to start looking

With real estate prices as high as they are, qualifying for the required mortgage can be challenging for many people. One advantage to using a mortgage broker is that we have options with big banks, as well as many other mortgage lenders. Some with more flexible guidelines that may

There are many things to consider when choosing between a fixed or variable rate mortgage. As of recently, you can add the mortgage amount you qualify for to that list.   

This is something that is relatively new.

For the past

One of the most common mortgage questions is whether to go with a fixed or a variable rate. Some mortgage professionals will advise to always go variable, however, this is not the best choice for everyone. While variable rate mortgages have historically outperformed fixed from a cost savings perspective, there

Whenever there is talk about the Bank of Canada increasing rates, many start to wonder if they should convert their variable rate mortgage into a fixed. Some will automatically fear the worst which can lead to panic resulting in them making a move that they might later regret. “My neighbour

Out of everything we can control in our lives, rising mortgage rates are not one of them. We do however have control over how we respond to them. Sure, you could sit back and ride out the storm. But there might be actions you can take to minimize the effect

Whether you are a first time homebuyer, or someone who has been through the process many times before, purchasing a new home can be an exciting experience. The excitement can however turn into a nightmare, so it’s important that you have an understanding of how the mortgage approval process works.

One of the most common questions we get from our clients is whether they should be choosing a fixed or variable rate mortgage. With all the talk about rising rates, it can be enough to scare anyone into locking into the certainty of a fixed rate. I’m hearing more

Finding the ideal home can be challenging, if not impossible, especially in a hot real estate market. You might find a home where you love the layout, but the kitchen and bathrooms haven’t been updated for fifty years. Sure, that psychedelic wallpaper, and vintage cabinetry might have been quite the

Anyone following the mortgage market is aware that fixed mortgage rates have been increasing since early October. While they have stabilized for now, it’s possible that we could see further increases in coming months.

As mortgage payments will increase with rates, this will also reduce

When purchasing a resale property, the closing date is a straightforward concept. It’s simply the date that the ownership is transferred from the seller to the buyer. Where it becomes more complex is when purchasing a pre-construction condo, as there is not just one closing date, but two. The first

Variable rate mortgages have come out over fixed rates more than 80% of the time over the last 40 plus years. Those are pretty good odds, but that doesn’t mean that things can’t change.

Even with recent increases to fixed mortgage rates, they are still among the lowest in history. Rates this low are not typical, and not close to anything we would expect to see in a healthy economy. Remember, It took a pandemic to bring them down to

Income confirmation is a crucial part of the mortgage approval process as it assures lenders that the borrower has the capacity to repay the loan. It doesn’t matter how large your down payment is, or how much equity you have in your property. Mortgage lenders are required to confirm that the borrower’s debt

One of the most commonly misunderstood terms used in the mortgage industry is biweekly payments. The confusion comes from there being two options. Biweekly and accelerated biweekly. When most people use the term biweekly, they are referring to accelerated biweekly. However, many may not even reailze that there is also a non-accelerated version. 

Unless you’re new to the world of mortgages, you’re likely aware that the minimum down payment to avoid mortgage default insurance is 20%. What many may not be aware of is that a down payment of greater than 20% down payment will sometimes be required.

When shopping for mortgage rates, most people gravitate towards 5 year terms, as this is what has become ‘standard’. This doesn’t mean a 5 year term is right for everyone, and in some cases, a shorter term mortgage can make more sense. There used to be a time when shorter term mortgages carried

As the name implies, the application is an online form that you complete when you are applying for a mortgage. It’s basically a collection of information, which gives the lender a snapsnot of your financial picture. Most of the application will be self-explanitory. I don’t need to tell you out to fill out your name

Mortgage terms can range anywhere from one to ten years, with the most common being five years. At the end of your term, your mortgage is due and payable. This doesn’t mean you have to fork out hundreds of thousands in cash, although that is one of your options should you have

Whether you’re a first time homebuyer, or you’re a seasoned veteran, many will go straight to their bank for their mortgage, without ever considering other options. I receive regular inquiries from potential clients who have said they’ve never used a mortgage broker before. I’ve even had one who told me that using a

Your credit score is important. Very important. In fact, it can have a significant impact on the rate you’re quoted. It could also mean the difference between qualifying for a mortgage, or not qualifying at all. As long as you maintain healthy credit however, then you would be eligible to receive the lowest

One thing that we all have in common is that we want the lowest mortgage rate. Rate shopping is not as easy as it used to be as rates can vary depending on your situation. A mortgage lender can have as many as five different 5 year fixed mortgage rates available (or even more),

Until last week, the Bank of Canada was firm on their stance in maintaining their overnight rate until sometime in 2023. They have since shifted their position and are now planning to increase their rate in the second half of 2022. The reason is due to our economy performing significantly better than their original

There are many mortgage professionals who have a specific stance when advising their clients on the choice between fixed and variable rate mortgages. There are some who always recommend variable, while others might always recommend a fixed rate. This is often due to their own feelings, beliefs, and risk tolerance, which is what forms

By the end of the first quarter of 2020, discounts on variable rate mortgages have all but disappeared. During the last financial crisis in 2008, the discounts on variable rate mortgages were replaced with premiums, with most lenders priced at prime +0.75% to prime +1.00%.  Due to extreme economic uncertainty and

Whether you’re a first time homebuyer, or a seasoned home buying pro, purchasing a new home can be an exciting time. Once your offer has been accepted, the next step is to get your mortgage in place.  This process can seem quick and easy, or it can become long and drawn out,

People will often ask if a mortgage is with an A or B lender, however few are aware of what these terms mean. The big banks will often refer to themselves as A lenders (which they are) with all others being B lenders in attempt to make themselves sound superior.

The truth is that this has

With mortgage rates reaching new historical lows, pretty much everyone in a fixed rate mortgage is paying a much higher rate than what’s available in today’s market. With 5 year fixed mortgage rates now as low as 1.49%*, you may be wondering if

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If you are like most, the first question that you’ll ask a mortgage professional is “what is your best mortgage rate.” While rate is a highly important component, there several other important factors that need to be considered when shopping for a mortgage. Contrary to popular belief,

Many people request a 25 year amortization because it’s considered standard, without much other thought. They may associate a 30 year amortization with paying more interest, and that it will take an additional 5 years to have their mortgage paid off in full. This is not necessarily the

It’s not a secret that a credit check will impact your score, but is this something that you should be worrying about when applying for a mortgage? Let’s look into this a bit further to give you a better idea of how much of an impact a check will have

There are many people, both mortgage professionals and borrowers alike, who will swear that variable rate mortgages are always the way to go. Their reasoning is that variable rate mortgages have historically beat out fixed rates, or that variable rate mortgages have always worked out for them in the past.

Everybody’s situation can be a little

With all the pent-up demand for real estate, and with mortgage rates at record lows, the Greater Toronto real estate market is hot. We have been getting more requests for pre-approvals than any other time in the past. It seems as though all of a sudden, everyone

Whether you are a first-time homebuyer, or if you have been through the process multiple times before, buying a new home can be an exciting time! Regardless of your experience level, the first step in the process will be to reach out to a mortgage professional to get pre-approved.

New job opportunities can be exciting!  They typically offer a higher income, and more potential for growth.  But what happens if you’ve purchased a new home and are offered a new job prior to closing on your new home?
This is not an uncommon situation. 
Should you find yourself

Anytime you replace your current mortgage with a new one you are refinancing. This is not to be confused with switching your mortgage, which is when you are simply transferring your existing mortgage balance to a new lender, while keeping your remaining amortization intact.

What’s the difference?

Switching involves keeping your mortgage balance and remaining amortization

A common goal for many mortgage borrowers is to get their mortgage paid off as soon as they can.

Who doesn’t want to be mortgage-free?

Pretty much all mortgages come with prepayment privileges, regardless of the lender. They are not created equal, however, so it’s important for you to have a good understanding of how your lender’s

The most common term length for a mortgage is five years, and this is typically the first option quoted by banks and brokers alike. 
But is the five-year term really what is best for you?
A few years ago, shorter-term mortgages carried lower rates than longer terms. When mortgage

When mortgage regulations changed on November 30, 2016, mortgage borrowers were required to pass a stress test in order to qualify for a mortgage.  This meant that anyone applying for a mortgage would need to qualify based on the higher of the benchmark rate set by the Bank of Canada, or 2%

Amortization is something that many mortgage borrowers do not put much thought into.  The ‘standard’ amortization is 25 years, and this is what most mortgages are approved with.
 
But is 25 years right for you?
The lowest rates are generally found with amortizations of 25 years and under. Any

There are so many options when trying to choose a mortgage that is best for you. The most common question is whether to choose fixed or variable.  However, one that is less common is regarding the length of your mortgage term.
The 5-year fixed mortgage has become standard, but

With the gap between 5 and 10 year fixed mortgages narrowing, more and more people are starting to consider 10 year fixed mortgages.  After all, mortgage rates are still quite low by historical standards. While short term outlook is for rates to continue to decline, long term outlook is for them

Clients often tell me that they are only interested in having a mortgage through one of the big banks.  The first question I’ll ask in this situation is simply… ‘Why?’
Everyone has their own ‘why’, but usually, the answers are fairly similar. It’s usually due to some sort of false belief

One of the most common questions clients ask me each day is whether to go with a fixed, or variable rate mortgage. The correct answer can vary depending on market conditions, as well as the spread between fixed and variable. As of now, the spread between fixed and variable is closer than

Just because you have a past bankruptcy, it doesn’t mean that you won’t qualify for a mortgage. You can still purchase a home with a down payment as low as 5%, and can still be offered the lowest rates on the market. 
Your bankruptcy will have to have been discharged for a

You need a new mortgage and after contemplating whether to go fixed or variable, you have chosen that a variable rate mortgage is right for you. But are all variable rate mortgages equal?  Definitely not!  In fact, you could be comparing two seemingly similar variable rate mortgages, yet one will

It’s the age-old question. Do I go fixed? Or is variable rate the better option? There are many that believe that variable is the better choice. All the time, and for every person. But is this really true?
Everyone has different tastes, needs, goals, interests and ambitions. So if we are

5 year fixed mortgage rates have now risen by approximately 1.5% since late 2016. Rising rates mean higher payments, and higher payments mean that you will qualify for a lower mortgage amount. On top of higher rates, everyone now has to pass a ‘stress test’, which lowers your qualified amount further.

You are now 3 years into your 5-year fixed mortgage.  Your family is growing and your current home no longer suits your needs.  You’ve found a new home that would be perfect for you and your family!  So what do you do with your mortgage?
You’ve checked with

It doesn't matter where you look these days, there is talk about rising mortgage rates.  Prime rate has already increased by 1.5% since July 2017, with further increases expected.  The next interest rate announcement by the Bank of Canada will be on December 5th, 2018.  Prime rate is expected to remain unchanged on this date,

What most people will do when it comes to renewing their mortgage is simply sign the renewal documents and send them back to their bank, without so much as doing a Google search to see if what they are being quoted is accurate. While this might be unbelievable to some, this is how

While it’s great to have a high credit score, there is a lot more to your credit bureau than just score. It’s possible that you could have a high score, yet still be declined for a mortgage based on credit. 
But why?
The purpose of the credit bureau is to

I have people coming to me regularly saying they would like to add a Home Equity Line of Credit (HELOC) to their mortgage.  The first thing I’ll usually ask is the reason for needing it.   While having it’s advantages, adding a HELOC to your mortgage also

Toronto mortgage - Paul Meredith

As a mortgage broker Toronto, I am always looking out for my clients in the best possible way. Whether it’s refinancing, renewing or purchasing a home, a mortgage is a big deal.

If you’re serious about purchasing a home, there’s a good chance that you are going to get a pre-approval from

In an industry as competitive and busy as the mortgage industry you are likely going to find it a little challenging to locate a good Toronto mortgage broker.

How exactly do you know if that broker is a good one or not, though?

There are many brokers on the market who will all vouch they are the