A “guarantor” is someone who guarantees the repayment of a borrower’s mortgage if that borrower is unable to repay the loan. Typically, a guarantor is used in situations where the buyer lacks sufficient income to qualify for the value of the loan.  Adding a guarantor can help secure an approval as this lowers the lender’s […]

As expected, the Bank of Canada–satisfied with the sharp decline in recent inflation pressure–raised the policy rate by only 25 bps to 4.5%. Forecasting that inflation will return to roughly 3.0% later this year and to the target of 2% in 2024 is subject to considerable uncertainty. The Bank acknowledges that recent economic growth in […]

Choosing between a fixed and a variable rate mortgage requires a bit of thought.  Both have advantages but there are significant differences between the two.   Variable Rate Mortgages A variable rate mortgage has an interest rate that can fluctuate over time, while a fixed rate mortgage has an interest rate that remains the same throughout […]

In lending, there is no question too basic, the details are important, and those details are not always the most intuitive.  Amortization is one of the key elements of a mortgage used to purchase or finance property you already own.  Knowing how amortization works can help you make informed decisions whether you are planning on […]

Five steps to incorporate as you make your financial plan for 2023. Understand your loan agreements. Your mortgage may have features you can take advantage of, such as making pre-payments to help you save on interest.  Most allow for changes to payment frequency to help you save interest as well.  While you’re at it, why […]

One of the biggest benefits to purchasing your own home is the ability to build equity in your property. This equity can come in handy for renovations, investments, purchasing other property through refinancing or taking out additional loans such as a second mortgage. What is a second mortgage? A second mortgage is an additional or […]

The Bank of Canada Hiked Rates The Full 50 bps The Governing Council of the Bank of Canada raised its target for the overnight policy rate by 50 basis points today to 4.25% and signalled that the Council would “consider whether the policy interest rate needs to rise further to bring supply and demand back into […]

Planning to Sell Your Property. Whether you are upsizing or downsizing, or selling a rental property, there are a few things to keep in mind throughout the process: Is Your Mortgage Really Portable? Porting a mortgage involves porting the terms of your existing mortgage to the new property to avoid a penalty and to maintain […]

Funding Retirement – Your Property Can Help. Aside from potential income from renting out part or all of a property, mortgages can supplement income in retirement.  While it’s true qualifying for a mortgage can change as we age, a bit of planning up front can help, just before leaving your prime earning years.  If you […]

 The Market, What’s to Come, Mortgage Options and Opportunities With this year’s steep increases in interest rates, and as the real estate market has slowed, most are wondering when things will begin to normalize.  What caused these conditions?  What’s to come as we move ahead? And what choices and opportunities might we have today as […]