AD Mortgage
1986 Avenue Road M5M4A4 Toronto, ON, Canada

Fixed mortgage vs Variable mortgage. Which is better? There is no definitive answer to this as the rates are constantly changing. However, statistics have shown that over the course of history, variable mortgages have outperformed the fixed mortgages. That being said, it all depends on the economic environment at the point in time when you are entering the market. If the spread is large enough (the difference in rate) between the fixed and variable and the variable is consi...derably lower, people might elect to go variable as they are comfortable with the lowest rate. Keep in mind, that as the name suggests, a variable mortgage can change in real time and your rate can increase when the central bank increases the prime rate. On the flip side, it can also decrease in real time should they reduce the prime rate. As it stands today, many people are getting the variable rate mortgage as it is providing them with the lowest rate, while at the same time, the general belief is that the Bank of Canada has no incentive to raise their prime rate for the foreseeable future. Does anyone have a crystal ball and know for certain? No. But we can all look at the current economic uncertainty brought on by covid-19 and can make an educated guess that central banks won’t be looking to increase people’s debt burdens for quite some time. Should you be looking for help with being ore-approved, obtaining a mortgage or improving upon your current mortgage, please don’t hesitate to get in touch!

During this unprecedented time when there is so much uncertainty around every corner, many people need to become more tactical with their finances. . . While there are a few industries that have actually thrived from Covid-19, these are certainly a minority, whereas most have been left with growing financial pressure. .... . While you can’t control Covid-19 or whether or not your business / job will get up and running, my advice to people is to make the best of what you CAN control. By this, I mean you should focus on saving and reducing debt wherever possible. . . Reduce your credit card debt, consolidate if possible, and be conscious of your rates on all your products so that you can look at other vehicles with more favourable rates that reduce your monthly debts. If you have a mortgage and are carrying balances on credit cards, why pay extremely high interest rates on carrying a credit card balance when you can actually include those debts into your mortgage at the lowest rate and can save a bundle? These are simple and tactical moves that can result in a lot of money kept in your pocket. . . People’s mortgages tend to be their single largest monthly obligation, so in terms of trying to unlock what could potentially be their largest savings, I strongly advise to look hard at your rate and speak to someone like myself who can provide you with free advice as to whether it makes sense for you. . . Since Covid-19 came along, I have been extremely busy with people breaking their current mortgages in favour of a new mortgage at a much lower rate. Together we analyzed what their penalty would be to break their current mortgage as well as what their savings would be by switching to a new mortgage. If the savings outweighed the penalties, it was an easy decision. In today’s economic environment and with people having more free time than they ever had previously, I would say that it’s certainly worth taking a few minutes to explore the potential of saving thousands of dollars. . . If you would like to analyze your current mortgage and debts and explore the savings you can unlock, please don’t hesitate to reach out at any time! See more

An explanation of what’s happening With the blindsiding of the Covid-19 outbreak, the world’s economies have come to a grinding halt. This will inevitably negatively impact all industries. When hearing the news of the governments in Canada and around the world lowering their benchmark rates, what does this actually mean?... Most people misunderstand and assume the mortgages rates have gone to zero but this actually is not the case. What’s really happening is this... Economies of the world are supported by credit. Whether it’s a credit card, a line of credit, a home equity line of credit, a small business loan or other credit facilities; they are all based off the prime rate. Individuals and businesses heavily depend on credit as it allows them to survive and grow by enabling them to have access to capital when they don’t have the cash in hand. In an event like the unprecedented one we are experiencing around the world presently, monetary policy authorities are doing everything in their power to try and give relief to everyone. How do they achieve this? By lowering their benchmark rates. By doing so, they are collectively reducing the debt burden of all the aforementioned credit vehicles. In addition to these, there are also variable rate mortgages which also fluctuate off the prime rates. However, many people instantly think that ALL mortgages are going down. This is false. While we experienced a window quite recently of dropping fixed rates, the banks have all aggressively started to raise their fixed rate mortgage prices as they need to counter balance the fact that they have had to reduce all of their variable products. So when you hear in the news that governments are lowering their benchmarks or prime is changing, you now understand what they a trying to do and what products this is affecting. Should you need help with your mortgage or are looking to purchase real estate, feel free to reach out.