Christine Buemann Mortgage Broker

You may have heard that Investors Group has recently offered a 3 year variable rate at Prime – 1.01% (1.99% for now). Although this definitely could be a good deal for some, it is important to consider the fine print before getting wrapped up in the rate. Here are a few points to consider: ·          It is a collateral mortgage which makes switching from IG very challenging after the 3 year term is up. Typically you will need to refinance in order to get out of these mortgages which means you will need at least 20% equity in your home. If you cannot switch or refinance, you will be subject to IG’s mortgage rates at the time of renewal which are typically higher than the industry standard ·          It is a variable rate mortgage which means it (along with your mortgage payment) will fluctuate with prime rate. They do give you the option to “lock in” your rate which essentially means you can convert it to a fixed rate mortgage however you are again subject to their fixed rates whic

The Bank of Canada lowered their Qualifying Rate to 4.79% effective today. The Qualifying Rate is used for qualifying variable rate mortgages as well as terms with less than 5 years. Please refer to my previous blog posting on how a lower qualifying rate can benefit consumers.    I met with a manger from Genworth last week regarding their programs as well as the recent CMHC announcement and changes (see this post for information on changes). He has confirmed that although they understand the reasons behind CMHC’s changes, they will not be following suit. Canada Guaranty has also confirmed that they will not be implementing the same changes as CMHC to their “Low Doc Advantage” program for self-employed borrowers however they will be increasing their premiums for this particular program. As most people have heard, the maximum amortization for insured mortgages is now 25 years.   In order to avoid default insurance, you have to put at least 20% down. What many people aren’t