Carson Berens-Frattini

Mortgage rates continue to fall to record lows With mortgage rates on a constant decline in the first half of 2020, some discount lenders are offering 1-5 yea...r fixed rates at under 2.00%. Caution through the COVID-19 pandemic has caused Canada’s 5-year bond yield to hit a record low, dragging mortgage rates down with it. CAN I GET A BETTER RATE? To exit your current mortgage, you will have to pay a prepayment penalty. The size of the penalty depends on the term and principal remaining. You could be on the hook for other fees as well such as: - an administration fee - an appraisal fee - a reinvestment fee - a registration fee - a fee to remove a charge on your current mortgage SHOULD I INVEST AT THESE RATES? Historically, there’s never been a better time to secure a new home mortgage. If your family is in a secure financial position post COVID-19, you should sit down with your mortgage agent to gather a pre-approval. Time to know what your budget is before you start shopping! SHOULD I REFINANCE? Without a mortgage-to-mortgage analysis by a mortgage agent, you’ll never know if it’s the right decision! A successful refinance of your mortgage could save you thousands. Generally, you should consider refinancing if: - interest rates drop below your current rate - you’re towards the end of your current mortgage and planning to stay in the current home long-term - your closing/transfer penalties are low Already have a mortgage? Can you refinance? If so, should you? Give us a call (705-805-9055) or send us a message to speak with a team member today.

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CMHC recently announced that as of July 1 they will be tightening their underwriting guidelines which will have a huge impact on buying power for Canadians. In Canada we have 3 companies that provide mortgage insurance for those who need to buy with less than 20% down. CMHC is the most popular because they are government owned, but Genworth and Canada Guaranty announced they will not follow CMHC in tightening their policy. This is one more reason why it is so important to work with a mortgage broker who can give you options.

Changes Announced for Canadian Mortgage Insurance The Canada Mortgage and Housing Corporation announced tighter guidelines for applicants to qualify for mortga...ge insurance. Effective July 1, new applicants will be affected by the following changes: - A minimum credit score of 680 for at least one borrower - Affordability calculations have been changed that can reduce your desired purchase price by 10-12% - Reducing the total debt allowed per household by reducing the Total Debt Service Ratio from 44% to 42% - Non-traditional sources of down payment will no longer be treated as equity for insurance purposes It’s important to note that these changes only affect insurance through CMHC and not Canada Guaranty or Genworth. More news to come from them if they will also adopt these changes. Questions on how these changes affect you? Send us a message!

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