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How the Mortgage Market Works

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  In Canada, mortgage rates are set by the major financial institutions, in a “follow-the-leader” manner, with one of them, usually a major bank, taking the “leader” role. All major financial institutions earn a large part of their income on the “spread”, which is the difference between loan/ mortgage rates they charge to borrowers and the rates they pay to depositors/ investors for an equivalent term. In this section, the basic “cause and effect” factors behind these mortgage rate movements are discussed in greater depth. How the Bond Market Affects Mortgage Rates The Government of Canada, and all major nations, finance their activities and accumulated deficits, by issuing “bonds”. In the US they are known as “Treasuries” and in the UK “Gilts”. The duration and interest rate paid on new issues of these bonds depends upon the financial strategy of the Government in power. The accumulated outstanding amounts of these bond issues, past and present, is known as “the National Deb...
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Assuming a Mortgage

  If the buyer of a property in Ontario takes over the conditions of the seller’s mortgage (the amount owing for the remaining term at the existing rate), this is called assumption of the mortgage. As a BUYER, you need to look at this carefully. In some cases, it will work in your favor, especially if the high ratio insurance premium has already been paid. The first thing you have to do is to find out the details of the mortgage you could be taking over – what is the amount of the mortgage remaining? What is the interest rate and when is the renewal date (the date the rate ends)? How much time is remaining in the amortization? You need to make sure that the mortgage amount is enough for your needs and that the rate you are assuming is comparable to (or better than) current rates for the same length of time. You also need to consider the conditions of the mortgage contract – you may find it contains conditions you don’t like. If interest rates have been going up, then assumi...
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Private Mortgage

  At some point during the purchasing process your mortgage broker will need to complete a mortgage application on your behalf. The following information will be needed for each applicant and any guarantors. ·          Full name and date of birth ·          Address and postal code, how long you have lived there ·          Previous address and how long you lived there ·          Social Insurance Number ·          Number of dependents ·          Home and work phone number ·          Name and address of employer ·          How long you have worked there and your present position ·          Your gross annual income...
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11 Steps to Buying a Home

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  We have established criteria for the performance of our senior mortgage agents that most in the industry consider as the pinnacle of professional conduct. Quick responses to your mortgage needs, complete explanations of mortgage details and structuring a complicated financing package are all part of the home financing transaction of today. Our agents have years of mortgage experience, are renowned for high levels of customer service and have an in depth knowledge of the mortgage industry. They are well equipped to provide you with the all the information you need to make an informed decision to satisfy your mortgage needs. ·          Private Mortgage ·         Best Mortgage Rate ·         Mortgage Broker ·         Low Rate Mortgage ·         Refinances ·       ...
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