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So what is this popular strategy? As the name tells us, it is the method by which you take out a five year fixed rate home loan (hypotheque) and then when that mortgage comes due, you renew with another five year fixed term mortgage. If you ask a bank about interest rates, they will give you the five year fixed term rate, without even asking what kind of mortgage you are looking for. Related Article Tags: , , , , , , , , ,
A borrower may think that it is the bank that is controlling what his interest rate on his home loan will be. The bank is really only reacting to the influences in the economic arena that determine mortgage interest rates:
- Variable rates are determined by the prime rate - pret hypothecaire.
- Fixed rates are determined by the bond market. Related Article Tags: , , , , ,
Mortgage brokers (courtier hypothecaire) make their salary by the fees they are paid. Their primary interest is to serve their clients and build up a reputation so that their business will expand based on recommendations. Related Article Tags: , , , , , , , , ,
There is a more important issue to look at. Instead of solely relying on obtaining the lowest interest rate, a mortgage borrower should be concentrating on following the correct "mortgage strategy". There are various mortgage strategies that one can follow, from fixed to floating rate loans (taux hypothecaires), balloon loans or prime rate based loans. Related Article Tags: , , , , , , , , ,
Despite monthly notices that the mortgage is in arrears, it is surprising how many people are caught off guard when they find out they are headed towards foreclosure. They delay the inevitable, or they spend time trying to get the funds to pay. Learn the steps to a foreclosure and you will see when the situation is getting bad. Related Article Tags: , ,
An open mortgage (pret hypothecaire) can be a goodmortgage tool that can prevent high early payout penalties. It should, however, only be considered if the chances are very high that the mortgage will be paid out in the next 12 months. If the mortgage is not expected to be paid off within that time frame (13 months or more) it is more advantageous to take the fixed rate home loan and pay the payout penalty. Related Article Tags: , , , , ,
There is a mortgage strategy called "the Smith Maneuver" that helps you achieve all of these goals, all at the same time - taux hypothécaire.
This kind of mortgage strategy is named for its developer, Fraser Smith. Mr. Smith is a financial planner in British Colombia who developed this interesting strategy a few years ago. I was lucky enough to be one of three mortgage consultants from Quebec to meet Mr. Smith when he spoke on this topic in Toronto. Related Article Tags: , , , , ,
Want to save money on your mortgage (hypotheque)? What you really need is a good home loan strategy. Consulting a mortgage consultant (courtier hypothecaire) can make you save up to 20 times more over the entire life of the home loan. Related Article Tags: , , , , , , , , ,
Description
The mortgage strategy for "less than perfect credit" takes place in 3 or 4 stages. The purpose is to obtain an average interest rate over 15 or 25 years which is as low as possible - taux hypothecaire. Related Article Tags: , , , , , ,
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