PLEASE. . Exercise care before jumping into "new" 2.99 Percent mortgages

[Carlotta]

Our mortgage allows for 15% increase in payments per year plus we can double as many payments as we would like. It also allows for 15% lump sum per year (15% of the original principal... not 15% of the remaining principal). It is also portable and transferable.

[MortgageQueen]

Our mortgage allows for 15% increase in payments per year plus we can double as many payments as we would like. It also allows for 15% lump sum per year (15% of the original principal... not 15% of the remaining principal). It is also portable and transferable.

That's very good Carlotta. I bet you have a great rate too!

[MortgageQueen]

I asked my broker and he said my variable rate is compounded semi-annually. Is there something I'm misunderstanding?

Sorry sweet sparrow if I freaked you out. . . the Majority of variable interest mortgages are calculated monthly. There are 3 or 4 that do it semi-annual. If memory serves me ING, Scotia and National? But ING has been making changes lately, so not 100 percent sure on them.

[Carlotta]

That's very good Carlotta. I bet you have a great rate too!

Yes we do. It's 6 bps below prime... so 2.4 %. 5 yr vrm

[poppleton]

You're right when you say that "usually" it's allowed Once per calendar year. . .BUT. . . . this is a perfect example why you should use a broker.
Somebody that wanted to increase/pay down quicker and at their convenience need to be matched to a Lender that will allow all this.

Most Lenders count on the fact that the average Cdn. will NOT remember the "anniversary date" or will not have the discipline to save for that "once a year" opportunity.
But if your the kind of person that let's say. . gets occasional Big commission checks or whatever, you want to be "permitted" to put that on your mortgage.
A broker can match you to a Lender that permits that.

That's just one scenario of a "type" of client. Everyone is individual and unique and should be matched to a Lender that can be as useful as possible to THEM. . not the other way around. After all, a Broker's service is FREE. .why wouldn't you?
Ok. . .stepping off my soapbox now. .sorry for the lecture! Lol

Great advice! We went through a broker and got a fantastic rate (prime minus .65), plus we can increase our payments as we like and do lump sums whenever we want (and as many per year as we want) up to 20% of the original principle. If we can continue at our current rate, we'll own our home in 2016. I can't wait

[MortgageQueen]

Great advice! We went through a broker and got a fantastic rate (prime minus .65), plus we can increase our payments as we like and do lump sums whenever we want (and as many per year as we want) up to 20% of the original principle. If we can continue at our current rate, we'll own our home in 2016. I can't wait

WOW! Keep up the good work!!. . .and don't forget to tell your friends about your awesome broker. .

[coley3]

Wow all this math. I don't remember all the stats of mine. Just know originally we got a 25 year mortgage. On pace to pay it off in 18 years instead of 25. Hoping to get it down to 16 years altogether. That is about the best we can do as I am a stay at home mom of 3. But you guys have piqued my interest so am going to phone tomorrow and get some details. Thanks.

[ashedfc]

Mortgage lending tightens for self-employed, immigrants
It’s going to be tougher for the self employed, new immigrants and higher-risk borrowers to get a mortgage as concerns continue to mount over the state of Canada’s housing market.
http://www.moneyville.ca/article/112...housing-market

This should have been done long time back, so the house prices shouldn't have escalated to this current proportion.....

[MortgageQueen]

I have to disagree on the tightening of Self-employed. This country is built on the backs of self-employed and I think they should be given every consideration. Even as it stands NOW, they often have to pay slightly higher rates.
I think the self-employed standards are finally reasonably fair. Too bad.