Changes, Changes and More Changes

Without question, the past few months in the mortgage industry have been challenging. There have been numerous changes that have completely altered the mortgage lending landscape. Here is a summary of the changes we have seen: 1) Stress Test: As of October 17th, all...

Important Mortgage Changes

As you may have heard by now, the government introduced some important changes this week that will have a fairly significant impact on the mortgage industry going forward. The changes were not expected and seem to have come out of nowhere, with little consultation from industry representatives.

While there were a few major changes, there is one in particular that has been highlighted and will have the greatest impact on the everyday homebuyer.

The Value of a Good Mortgage Broker

We are often asked to explain why a client should choose to work with a Mortgage Broker (versus their bank, credit union, etc.). The simple answer (the one that we’ve all heard) is that a mortgage broker offers a variety of mortgage products from multiple lenders and banks, whereas other financial institutions only offer their individual mortgage product. More choice means the client has access to more products, better interest rates, and a solution that better fits their needs.

The Importance of Credit

Your credit score is a key element when applying for a mortgage. It is very important that you take care of your credit from the day you get your first credit card. Small credit issues can haunt people when trying to apply for a mortgage, even if those issues were years ago.

Here are a few tips to help ensure you maintain a clean credit profile:

Mortgage Prepayment Privileges

One of the biggest mistakes homeowners can make is not taking advantage of the prepayment privileges associated with their mortgage. Most mortgage lenders will allow you the following privileges to pay down your mortgage quicker:

– Increase your mortgage payments by up to 20% each year
– Make lump sum payments up to 20% of the original mortgage balance each year

Variable Rate Mortgages

There have been two overnight rate cuts by the Bank of Canada so far this year. In total, the overnight rate has dropped by .50% (two cuts of .25%). The major banks have passed on some of those savings to customers by reducing the prime rate from 3.0% to 2.70% (two...

Request A Call

Whether you are looking for a mortgage or just dependable mortgage advice, we're here to help! Submit this form and we will call you back at YOUR convenience!

The Mortgage Professionals Kingston Office
777 Blackburn Mews West
Kingston, Ontario
K7P 2N5

Jeff: 613-453-3663
Mitch: 613-328-6647
Fax: 613-384-4047

mitch@mtgprof.com
jeff@mtgprof.com

Write A Review