Date Posted: December 10, 2018
Bank of Canada rates remained at 1.75% at the recent announcement last week. The job report was also released and we are seeing the lowest unemployment rate since 1976. Generally, when this type of report is released, the bond market will generally increase. However, this time, the bond market actually decreased slightly; meanwhile mortgage rates have remained stagnant. Expectations for next year are looking at two to four increases to the Bank of Canada rates.
With the changes in the mortgage and real estate industries it is important for those working in the field to be committed and full-time in order to ensure they are well abreast of the changes and impacts that they can have on their clients. When it comes to the technology part of the transactions, it is important to know and trust your Brokers and ensure you are aware of what they are requesting of you. If in doubt, always contact your Broker before signing or sending information.
When it comes to getting a pre-approval, you are able to hold a rate for 120 days. Banks and lenders tend to add a premium to these rates, once you have a property you make an offer on then it comes time to work with your Mortgage Broker to get the best rate and product for you. The pre-approval gives you a worst case scenario, closer to closing there may be something better out there. You have the right to shop for your mortgage despite what some banks may have consumers believe.
When it comes to penalty calculations, the banks use the posted rates versus the discount rates to come up with the penalty for customers whereas the non-bank lenders will use the actual rates to calculate the penalty which results in a much lower figure.