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  #251  
Old 2020-04-30, 08:45 AM
MortgageGuy MortgageGuy is offline
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Default current mortgage rate update :) April 30th

So rates have started to slip back from the increases we saw when the Covid19 impacted our lives. In the beginning the banks were unsure of the risks that may be coming from lost jobs and the logistics of trying to have employees work in the new world remotely, and the actual cost of borrowed funds went up for them. Recently, with systems in place the logistics of doing business being figured out we have seen current drops.
Current rates as of today...
If closing with in 45 days(around May 15th), best rate for a 5 yr fixed, insured(less than 20% down payment) mortgage would be 2.39%.
If closing within 120 days, again insured, the rate would be 2.54%.

If 20% down payment, closing within 120 days, best 5 yr fixed rate would be 2.74%

VERY important to ensure you have salary and most recent pay stub up front when applying for a mortgage. If laid off, I am unable to use your income.
Lenders are fearful of the job losses and and how it will impact future closings. They are actually checking employment again days before closing to ensure if employment is still active and have the right to not fund the mortgage if clients are not working. Scary times that way...
You can see complete rates and terms here... www.mortgagemoney.ca
I'm getting old and forgetful if you havn't got an update here in a week or to and you need rates, drop me a quick poke by email at dan@mortgagemoney.ca and it will remind me to come back and update.
I wish everyone well, and stay safe,
Dan
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Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
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Last edited by MortgageGuy; 2020-04-30 at 08:47 AM. Reason: update...
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  #252  
Old 2020-05-06, 05:49 PM
MortgageGuy MortgageGuy is offline
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Default May 6th rate update...

Current rates as of today...
If closing with in 45 days, best rate for a 5 yr fixed, insured(less than 20% down payment) mortgage would be 2.39%.
If closing within 120 days, again insured, the rate would be 2.44%.

If 20% down payment, closing within 120 days, best 5 yr fixed rate would be 2.74%
If 35% down payment, closing within 120 days, best 5 yr fixed rate would be
2.54%

VERY important to ensure you have salary and most recent pay stub up front when applying for a mortgage. If laid off, NO ONE is able to use your income.
Lenders are fearful of the job losses and and how it will impact future closings. They are actually checking employment again days before closing to ensure if employment is still active and have the right to not fund the mortgage if clients are not working. Scary times that way...

You can see complete rates and terms here... www.mortgagemoney.ca
I wish everyone well, and stay safe,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #253  
Old 2020-05-27, 12:12 PM
MortgageGuy MortgageGuy is offline
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Default May 27th Mortgage Rate Update

So we have seen a slow but steady decline in mortgage rates since we have settled into this COVID19 nightmare, so hopefully as things normalize a little. we will also see an increase in the amount of resale inventory which has been lacking for some time(even before COVID hit). It is this lack of resale inventory that has made it so difficult and scary to buy a home for home buyers. Multiple offers on properties and a need for offers to be made without conditions takes all the fun out of home buying.

Current rates as of today...

If closing within 120 days, insured(less than 20% down payment, the rate would be 2.34%.
If 20% down payment, closing within 120 days, best 5 yr fixed rate would be 2.69%
If 35% down payment, closing within 120 days, best 5 yr fixed rate would be
2.34%
For a complete list of rates and terms go to
www.mortgagemoney.ca

Lenders are still asking for income confirmation up front on a mortgage submission. So get you ducks(documents ) in order if looking at purchasing a home.
Feel free to call or write anytime for personal questions.

Have a great week,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #254  
Old 2020-06-05, 11:12 AM
MortgageGuy MortgageGuy is offline
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Default New CMHC guidlines to take effect July 1st, and rate update!

Yikes, effective July 1st, CMHC adding further restrictions to borrower qualifying

https://www.cmhc-schl.gc.ca/en/media...e-2d8bf03a5279

This will impact negatively, those purchasing a home with less than 20% down payment. It is not known whether or not the private insurers, Genworth and Canada Guaranty will follow their lead. Time will tell.
Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to our standard requirements of 35/42;(currently are 39/44)
Establish minimum credit score of 680(currently is 600) for at least one borrower; and
Non-traditional sources of down payment that increase indebtedness will no longer be treated as equity for insurance purposes.

Current 5 yr fixed rate, for an insured purchase is 2.34%
Current 5 yr fixed rate, with 20% down payment is 2.64%
Current 5 yr fixed rate, with 35% down payment is 2.34%
all above rates can be held for 120 days
Best variable rate still Prime less .25% or 2.20% today
See www.mortgagemoney.ca for complete terms and rates
Have a great weekend,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #255  
Old 2020-07-15, 03:13 PM
MortgageGuy MortgageGuy is offline
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Default Refinancing and increased home values..

I was asked the following question from an Ottawa member...
Hi Dan,
We are thinking to refinance giving that houses prices are on the rise. Do you recommend this now? We would like to own a second property and used the current home equity for the down payment; we’re 3 year into 5 year commitment with A lender/bank.
Thanks![/QUOTE]

See my answer below...
Hi Alsh,
You have two questions, is now a good time to refinance, the answer is yes as we now have the lowest rates in history at this time. Your second question I think though is, is this a good time to borrow against your home to buy a 2nd home for investment with all borrowed money, and that I don't have an answer to.

On one hand you are thrilled with the appreciation of your existing residence, but on the other hand for that same reason, should you be jumping into an over heated housing market with no cash of your own, to buy an investment property? I would be leery of doing that no differently than would I be in borrowing against my home(my future nest egg) to buy stocks... I wouldn't do it. But that is my personal thoughts where as many people are thinking and doing as you are considering.
Let the buyer beware when borrowing against your residence for investment.
If I had the 20% down payment you need to purchase an investment property, I might consider it, but to borrow 100% of the purchase, I wouldn't do it, especially in COVID times.
If you stop and think for a moment, its almost insanity to think that home prices are going up in leaps and bounds during such a world wide crisis? And that crisis could be far from over and homes could at some point slip back.
Forgetting Covid, we have had likely 15 years of increasing home prices, at some point they have to settle, the question is only when. But that answer is any ones guess.
Good luck with your decisions!

But back to your question regarding refinancing, I would certainly be doing that now to consolidate high interest credit card and line of credit debt.
These debts set up with min interest only payments are a noose around your neck, and cheap house mortgage rates make this a great time to pay off this debt, and cut up some credit cards!
Have a great week,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #256  
Old 2020-07-15, 03:19 PM
MortgageGuy MortgageGuy is offline
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Default July 15th Mortgage rate update...

So our mortgage rates continue to slip lower. Incredible never before seen rates if you are looking at purchasing a home today.
July 1st has come and gone where CMHC has cut back qualifying ratios that make it harder to buy a home, BUT we havn’t skipped a beat as the private insurers, Genworth and Canada Guaranty have kept the old 39% GDS and 44% TDS qualifying ratios, so we are simply not using CMHC at this time.

Current mortgage rates are as follows…
Current 5 yr fixed rate, for an insured purchase is 2.04%
Current 5 yr fixed rate, with 20% down payment is 2.39%
Current 5 yr fixed rate, with 35% down payment is 2.14%
all above rates can be held for 120 days
Best variable rate still Prime less .55% or 1.90% today for an insured purchase.
See https://mortgagemoney.ca/best-mortgage-rates/ for complete terms and mortgage rates.
The Bank of Canada Rate held steady again today...
https://www.bankofcanada.ca/2020/07/...se-2020-07-15/
with no sign of rising rates in the near future.
Have a great day,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #257  
Old 2020-08-12, 09:52 AM
MortgageGuy MortgageGuy is offline
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Default August 12th Best Mortgage Rates...

No change in mortgage rates since last week.

Mortgage rates are as follows…Current 5 yr fixed rate, for an insured purchase is 1.99%
Current 5 yr fixed rate, with 20% down payment is now 2.19%
Current 5 yr fixed rate, with 35% down payment is now 2.09%
all above rates can be held for 120 days
Best variable rate still Prime less .49 or 1.99% today for an insured purchase.
See https://mortgagemoney.ca/best-mortgage-rates/ for complete terms and mortgage rates.

The current Stress test rate is still at 4.94% even with the 5 yr fixed rates as low as they are now. But it looks like a rate reduction is in the near future...
https://www.citynews1130.com/2020/08...ar-record-low/

Anything will help with the continued home price increases in Ottawa, squeezing out what people can qualify for.

Anyhow, with lowest mortgage rates in history, it at least is something to smile about.
Feel free to reach out to me by email or phone if personally specific questions.
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
Reply With Quote
  #258  
Old 2020-08-14, 10:10 AM
MortgageGuy MortgageGuy is offline
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Default Stress test rate and weekend rates ;)

So bank of Canada has reset (reduced) the qualifying Stress test rate as of yesterday. Now sitting at 4.79%.
Every little bit helps!
https://www.cbc.ca/news/business/mor...test-1.5684685
The article is an interesting read with some history on the Stress test rate.
Slight drops in rates on some terms.
Pre-approvals being done at 5 yr fixed 2.19%
Best 5 yr fixed rate is 1.99% for an insured purchase.
2.04% for a 65% advance.
2.19% for a 80% advance mortgage.
For complete list of rates and terms go to
https://mortgagemoney.ca/best-mortgage-rates/
Have a great weekend,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #259  
Old 2020-09-28, 10:55 AM
MortgageGuy MortgageGuy is offline
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Default mortgage rate update Sept 28th

Realize it has been a long time since posting, I call it Covid time as it just seems like the year is flying by! Sorry about the long delay in answering..
So to first Perditions question...
When anyone purchases with less that 20% down payment, the borrower has to pay an insurance premium through Canada Mortgage and Housing(CMHC, the insurer). On a $500K purchase with 5% down payment, the insurance premium added to the mortgage would be $19,000.. ya I know YIKES...
that insurance premium guarantees the lender(bank) lending the money, that if the borrower defaults on the mortgage, CMHC will pay the bank back any loss they incur in disposing of the property after taking it from the borrower.
So in the banks eyes, a guarantee of never losing a penny on the mortgage, thus they offer a better rate than to someone who has more than 20% down payment. Because with 20% down or more, the bank doesn't have that guarantee, and could be exposed to a loss if the borrower defaults on the mortgage.
AND NO, it is never worth putting in less than 20% down(when you have more than 20% available) just to get the better rate.

2ndly, NO I would also never wait till I saved the 20% down payment before purchasing if you foresee not being able to have twenty % down for a long time...

Generally speaking MOST borrowers 1st time around never have the 20% down payment, thus the reason CMHC years ago..... came up with the insured program allowing a purchase with less than 20% down to buy a home.

Best rates available today that I know of are...

Best 5 yr fixed rate is 1.75% for an insured purchase.
1.89% for a 65% advance.
2.04% for a 80% advance purchase mortgage.
For complete list of rates and terms go to
https://mortgagemoney.ca/best-mortgage-rates/
As always, rate isn't everything, Collateral mortgages, restrictive sales clauses... be SURE of what you are signing up for with ANY mortgage you take.
Have a great week,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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  #260  
Old Yesterday, 02:54 PM
MortgageGuy MortgageGuy is offline
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Default Oct 28th Mortgage rate update...

Slight drop in insured pre-approval and purchase rates this week.
Still at all time lows, the 5 yr fixed rate for an insured purchase(less than 20% down payment) is at 1.60% (90 day closing)
1.69% for a 120 days closing.

Pre-approvals being done at 5 yr fixed 1.99%
Best 5 yr fixed rate with more than 20% down payment…
1.84% for a 65% advance.
1.89% for a 80% advance mortgage.
Best other insured rates…120 day closings
1 yr 1.74%
3 yr 1.74%
Variable 1.75% (Prime -.70)
For complete list of rates and terms go to
https://mortgagemoney.ca/best-mortgage-rates/

Deferred Mortgage Update…
RBC analysts have advised that approx. 11% of Canadian Bank mortgages are under a payment deferral program, and that up to 1 in 5 mortgages are likely to go into default. If 20% of mortgages under deferral eventually become delinquent in Canada, this equates to a mortgage delinquency rate of 2.3% which is almost 4 times higher than the peak Canadian mortgage delinquency rate over the past 30 years.” Fortunately, the banking sector appears sufficiently prepared for this eventuality, the RBC analysts said.

House prices are still crazy in Ottawa, just saw a purchase of an existing condo town house listed at $369,000 that sold for $463,000. Where does it end???

Anyhow hope everyone is well and having a great week,
Dan
__________________
Dan Faubert
Ottawa-Carleton Mortgage Inc.
Brokerage Licence # 10419
dan@mortgagemoney.ca
www.mortgagemoney.ca
https://www.fb.com/OttawaMortgageMoney
"Great Mortgage Rates"

613-222-2624 anytime
Off 613-563-5070
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