Kelli Flynn Mortgages
510 800 Broadmoor BLVD T8A 4Y6 Sherwood Park, AB, Canada

More changes coming? An increase to the stress test rate will reduce mortgage borrowing capacity further.

WHAT AFFECTS MORTGAGE RATES? Government policies to protect the economy during the pandemic resulted in exceptionally low mortgage rates for both fixed- and variable-rate mortgages. As we start moving towards recovery, fixed rates have started to edge upwards. The prime rate, which variable rates are based on, has not increased. So why did fixed go up but not variable? Let's look at the mechanics of both. How are variable rates set?... The chartered banks set the prime lending rate (the rate they offer their best customers). They base their decisions on the Bank of Canada's overnight rate because that's the rate that influences their own borrowing. There are approximately eight times a year the Bank of Canada makes rate announcements. Variable mortgage rates and lines of credit move in conjunction with the prime lending rate, with most lenders currently offering variables at prime minus a certain percentage. The Bank of Canada in their most recent announcement did not increase the overnight rate and did not mention when they foresee the need to increase rates. How are fixed rates set? Fixed-rate mortgages are a little different. Banks predominantly use Government of Canada bonds to raise money for fixed-rate mortgages. In the bond market, interest rates can fluctuate more often since they're subject to the changing moods of traders and bond investors as they try to figure out how fast the economy will grow and where inflation is headed. That's why you watch the bond market for clues on where fixed mortgage rates will go next. Recently the yield for 5-year government bonds went up, causing fixed mortgage rates to follow suit. Why are there so many different mortgage rates? Fixed and variable are not the only factors affecting rates. There are rate premiums for certain situations i.e., rental properties, 30-year amortizations. There are different rates for insured, insurable and uninsured mortgages. Rock-bottom online rates often come with restrictions and high penalties. The rate you qualify for can be very different from what your neighbor got. That's why it is so important to get in touch for unbiased professional advice when you need to determine the best mortgage and rate applicable to your situation, whether it's for a purchase, renewal, or refinance. Knowledge is power! This chart clearly shows just how low rates are on a historical basis.

For so many this will be a very different tax year. Good information to help you navigate it all here - https://www.ctvnews.ca//everything-you-need-to-know-about-

Mortgage rates tend to track moves in the bond market with a lag. Canada's five-year yield has more-than doubled since the start of the year, briefly trading above 1% last Friday, as investors bet that the rollout of COVID-19 vaccines would boost economic activity.

At 56 per cent, Alberta records Canada’s highest home ownership rate among those aged 25 to 35, of which 24 per cent purchased a home since mid-March of last year.

Did you buy your first home in 2020? Don't forget to take advantage of the First Time Home Buyer Tax Credit! Are you ready to purchase your first home? Curious to learn more about the other incentives available to First Time Home Buyers? Lets chat! ... 780.235.3881 See more

Understanding mortgage rates and what factors influence them will help you make the best choice when negotiating your mortgage. Is a fixed rate mortgage or a variable rate mortgage best for you? Let’s chat!

When bond yields go up (which we saw last week) mortgage rates ultimately follow. Fixed rates have been at some of the lowest levels we've ever seen. If you need a mortgage within the next 4 months, get a rate hold now. It doesn't cost you anything to grab on to today's amazing rates!

Feeling grateful today. A surprise delivery from INVIS. Grateful for all of my clients, referral partners, family & friends. Without your trust & valued referrals this wouldn’t be possible. ... From my heart, Thank you.

With rates holding at all time lows the expectation of a busy spring market stands. Happy to help you finance your new home. Let’s chat!

Could Mortgage Rates Rise Sooner Than Expected?

The RRSP contribution deadline is March 1. With the federal government's Home Buyers' Plan (HBP), first-time buyers can use up to $35,000 of their RRSP savings ($70,000 for a couple) to help finance their downpayment. If you have contribution room, you can contribute your savings up to the $35,000 but not more than your contribution limit, and then withdraw the money after 90 days (as per the program’s requirements) so it is available for your downpayment. The tax refund yo...u receive increases the funds you have available for your downpayment! You need to contribute before the March 1st deadline for the 2020 tax year to get this boost for spring! Have questions on how the HBP works? Get in touch!

An annual mortgage checkup is an important steppingstone for long-term success. It will help make sure you’ve: determined if you can take advantage of today’...s ultra-low pandemic rates; looked at maximizing your mortgage principal reduction; consolidated debt for one manageable payment, improved cash flow, and interest savings (if you have enough equity); and, accessed the lowest-cost funds for large looming expenses. Make sure your mortgage incorporates what may be ahead: it could pay big dividends and is the best way to get you where you’re going in your financial future. Book a consultation with your Mortgage Broker today!

Here’s to new opportunities, abundant health and happiness for all.

Working from home as a result of COVID? You may be eligible for a tax credit.

Wishing you all a happy, safe & healthy holiday season. Hoping that 2021 will bring us all together again. http://imx7.com/holidayvideo2020/en.asp?a=9XGRGMJS5

Everything you need to know about mortgage down payments in Canada. Flex down (Borrowed Down Payment) options are still available. https://www.huffingtonpost.ca//mortgage-down-payments_ca_5