Found 4 blog entries tagged as interest rate.

Qualifying, renewing, refinancing, oh my! Mortgages can feel confusing sometimes. Luckily, it’s not always as complicated as it seems. If you’re feeling overwhelmed, there’s an abundance of resources in place to help you, including the expert advice of your REALTOR®! 

Let’s break down the process of refinancing your mortgage—what it means, when it happens, and why. 

A row of colourful Victorian- style homesImage via Pexels

What is refinancing?

Simply put, refinancing your mortgage is the process of breaking your current mortgage agreement and starting a new one. It’s essentially a “restart” button you can press to change your mortgage terms—including its length, rate type (fixed or variable), and your monthly payment amounts. You can change your lender, or stick with your current one.…

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First-Time Home Buyer Incentive

Over the last two years, a new trend has formed in many parts of the Canadian real estate market: investors accounting for a considerable portion of the broader housing sector.

Indeed, with many investors purchasing single-family homes, acquiring townhomes and scooping up condominium suites, a chance at home ownership has become a challenge for many first-time homebuyers. Moreover, in an environment with little supply, the competition for residential properties was exacerbated by individuals or corporations adding to their vast inventory of homes.

Public policymakers have tried to intervene, but industry experts maintain that the only real solution is to build more housing. Until then, it seems that the Bank of Canada’s…

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variable rate mortgage

For a long time, it was a common ideology that a variable rate mortgage was ideal when purchasing a home. The thought process was based on the theory that if the rate drops, you’ll be able to reap the benefits of lower interest payments as opposed to someone who is in a fixed-rate mortgage.

Before we get into the nitty-gritty of it, let’s review how interest rates impact a mortgage and the difference between a fixed-rate and a variable-rate mortgage.

Interest rates are determined by the Bank of Canada and often reflect the state of the economy. When the economy is strong, interest rates are high. This means that borrowing money would cost more, but you should receive a higher payout on your investments. When the economy…

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What size of mortgage can I afford

When purchasing a house, most people need a loan be able to afford the home. These loans are called mortgages. A mortgage is a legal agreement where a bank or other lender loans money and charges interest in exchange for taking the title of the borrower’s property. Upon repayment of the debt, the borrower owns the property.

In Canada, to purchase a home, the buyer must first save up a down payment for the home. The minimum amount required is five per cent of the purchase price up to $500,000; 10 per cent of the portion between $500,000 and $999,999; and 20 per cent for the amount above $1,000,000. As well, if the down payment is less than 20 per cent of the purchase price, the buyer must also purchase mortgage loan…

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