With current market conditions and rate increases, we are reaching a point where many of us might see a payment reset on variable rate Mortgages with static payments.

Feel free to reach out to discuss your options and where you stand

647 901-7948
info@modomortgages.ca

The Bank of Canada today (Sep 7, 2022) increased its target for the overnight rate to 3.25% from 2.5%.

This means for those of you with Variable rate Mortgages, rates would increase by 0.75%
This translates to an approximate monthly increase of $39 per $100,000 Mortgage balance.
So if you have a Mortgage balance of $500,000, this would mean an increase of around $195 per month.

Also note that if you have a Variable rate with static payments, your payments will remain the same, however the interest portion of that payment would increase.

However, depending on your lender, you might have reached a point where you might need to increase payments, or pay a lump sum amount. Make sure you reach out to your lender to understand where you stand.
If you have an Adjustable rate, this means your payments would increase, while preserving the original principal/interest ratio and Amortization (years to pay off your Mortgage)

There are eight announcements per year.
Next announcement is on Wednesday Oct 26, 2022

Variable rates are linked to the Bank Of Canada overnight rate. The Governing Council remains resolute in its commitment to price stability and will continue to take action as required to achieve the 2% inflation target.
Fixed rates on the other hand are linked to the bond market, which has already been on the rise since last year.
Please feel free to reach out for further information pertaining to your specific Mortgage situation.

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Wednesday Sept 7th @ 7pm FINANCIAL LITERACY TALK
Target Audience: Everyone, especially new to investing and looking to learn about personal finance tips

FREE and bring ANY questions

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The Bank of Canada today increased its target for the overnight rate to 1% from 0.5%.
This means for those of you with Variable rate Mortgages, rates would increase by 0.5%
This translates to an approximate monthly increase of $26 per $100,000 Mortgage balance.
So if you have a Mortgage balance of $500,000, this would mean an increase of around $130 per month.

Also note that you if you have a Variable rate with static payments, your payments will remain the same, however the interest portion of that payment would increase.
Static payments are offered by lenders such as TD and HSBC.

There are eight announcements per year.
Next announcement is on Wednesday Jun 1, 2022

Variable rates are linked to the Bank Of Canada overnight rate. The timing and pace of further increases in the policy rate, will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target.

Fixed rates on the other hand are linked to the bond market, which has already been on the rise since last year.
Please feel free to reach out for further information pertaining to your specific Mortgage situation.

647 901-7948
info@modomortgages.ca
https://calendly.com/info-36037/30min?month=2022-04

Feel free to reach out
647 901-7918
info@modomortgages.ca
https://calendly.com/info-36037/30min?month=2022-03

Download My Mortgage Toolbox App and find out how much you qualify for.
Plus many more features to help you on your journey!

https://www.dlcapp.ca/app/mohamed-mahmoud?lang=en

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Purchasing a home with less than 20% down means you will need default insurance. This amount is calculated based on your loan-to-value ratio (mortgage loan amount divided by the purchase price).

Typically:
5% or minimum down payment: Premium = 4% of Mortgage amount

10% down payment: Premium = 3.1% of Mortgage amount

15% down payment: Premium = 2.8% of Mortgage amount

20% down payment: Mortgage default insurance usually not mandatory

The insurance premium is typically added to your regular mortgage payment meaning there are no out of pocket expenses. If preferred, the premium can also be paid as a single lump sum.

There are Monoline lenders who specialize in Mortgages. These types of lenders do not have branches and can be accessed through a Mortgage Broker. They have competitive products that can sometimes be better than your average bank and do not have any additional fees tied to them.

Check out My Mortgage Toolbox
This handy, consumer-friendly tool will help you determine your Mortgage payments, affordability, income required to qualify and even the closing costs!

Click here to download now!