Check here for the latest articles by Averbach Mortgages
Fixed-rate mortgage better for first-timers
The Canadian-mortgage drama needs a Greek chorus, those Athenians the ancient playwrights used to comment and explain and emend the drama, here the meaning of borrowed money priced at a 50-year low.
The first observation this chorus might make:
Three out of four first-time homebuyers in Canada probably don't know how good the news is.
A mortgage insurer, the multi-national Genworth organization, is the source of that conclusion.
It reports that in a recent test of Canadian first-time homebuyer knowledge of mortgages and homebuying terms and concepts only 25 per cent of the participants correctly answered more than seven out of 10 questions; fewer than one per cent answered all 10 questions correctly.
Mortgage Specialist Says Low Interest Rates Come at High Cost
Canadian homeowners being lured in by low interest rates could end up paying more in the long run, specialists say. Earlier this week Canadian homeowners rejoiced as interest rates plummeted to a 50-year record low. While the rates are good for the interim, mortgage specialists say taking a variable rate today comes with a higher level of risk than in the past.
Trying to negotiate a mortgage?
Shopping for a mortgage in Canada has changed. New mortgage features and options are being introduced every day. Knowing what's right for you and how much to pay has become increasingly complicated. Maybe that's why more than one in four Canadian mortgages are now negotiated by mortgage consultants. Gone are the days of the stigma attached to mortgage brokers where they are only used for the self-employed, poor credit or income challenged. These days, Canadians go to mortgage consultants to get the best rates, pre-payment options, investment advice and to learn how to pay their mortgage off faster. Best of all, it’s free!
Averbach Mortgages Leading Lending Partner MERIX Comments on Changes to Government Guaranteed Mortgages
There has been lots of discussion in the news about the recent changes to government guaranteed mortgages announced by the Minister of Finance.
However we believe the majority of Canadians do not understand what exactly it means to remove the “government guarantee” from some of these lending programs.