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Mark Herman – Calgary Mortgage Broker

Calgary Mortgage News

The Calgary Mortgage News blog is a news blog focused on delivering content related to the Calgary and Canadian Mortgage market.
Top Calgary Mortgage Broker

Updates to CMHC First Time Buyer Incentive Program

July 4, 2019 Mortgage Rules 2 Comments

In March the federal government unveiled changes to the budget that included an interesting opportunity for prospective first time home buyers through an enticing program that they called a “shared equity mortgage”. This program could see Canada’s housing agency (CMHC) kicking in up to 10% of the purchase price of a home if certain conditions are met, therefore bringing down the mortgage load and monthly payment for first time home buyers. Read More

EXPLAINER: Why & Where Inflation and Canadian Mortgage Interest Rates

August 9, 2021 Bank rates, economy, Most Popular Posts
Top Calgary Mortgage Broker Q: What is going on with INFLATION and where are the mortgage INTEREST RATES going to go?
Best answer I have seen yet is below … it still makes the 5-year fixed the better option right now (for most people)
Mortgage Mark Herman, Top Calgary Mortgage Broker
The Bank of Canada is not making its next rate announcement until September. That has market watchers looking to other indicators as they attempt to foresee what is coming for the economy and interest rates.

The latest significant news was good, but modest. Canada’s unemployment rate dipped to 7.5% with the creation of 94,000 jobs in July. Most of those are full-time and in the private sector.

Employment levels are linked to inflation, which is a key factor watched by the Bank of Canada in setting interest rate policy which, in turn, can affect mortgage rates. Read More

How to Get a Home Loan When You Own a Home-Based Business

July 23, 2021 Calgary mortgage

AND NOW A GUEST ARTICLE BUY Derek Goodman …

How to Get a Home Loan When You Own a Home-Based Business

When your home-based business starts to grow, this is a good thing. But what if it’s growing so much that you need to purchase a larger home? This can get tricky because applying for a home loan when you own your own business is sometimes a little harder than when you are employed by a company. But don’t let this dissuade you! It is perfectly possible for a small business owner to apply for — and get approved for — a home loan. Here are some of the ways you can improve your chances. Read More

Post-Covid Home Demand to Continue – Data

July 13, 2021 Calgary mortgage

What is everyone doing with the money they saved during Covid?

  • Eating out, travel, debt reduction and BUYING HOMES!
  • Mortgage rates are low and home prices are close to 2005 levels!

Mortgage Mark Herman, Top Calgary Alberta Mortgage Broker

Latest Bank of Canada Survey:

As COVID-19 continues to be pushed down in Canada, consumer spending is expected to go up.  The latest survey by the Bank of Canada suggests that will lead to an even greater demand for homes. Read More

inflation and Canadain mortgages

Inflation & Mortgage Interest Rates

April 5, 2021 Bank rates, Calgary mortgage, economy
Here is the near term expectations of mortgage interest rates. Short version:
  • 5 Year fixed are going up and never getting back down to where they are now.
  • Variables are also great – right now they are Prime – 1% or 2.45% – 1% = 1.45%, and as below, should stay there until 2023! Almost 20 more months!
Both of these are awesome options right now.
Mortgage Mark Herman, Top Calgary Alberta mortgage broker for 1st time home buyers
THE DATA:

Bond traders believe inflation is going to be rising over the coming months and have been demanding increased bond yields.  That has led to increasing interest rates for bonds and, consequently, increasing rates for the fixed-rate mortgages that are funded by those bonds. Read More

2021: here Are Mortgage Rates Going?

March 17, 2021 Bank rates, mortgage rates
This is the million-dollar question.

With so much unknown in our economy and real estate markets, there is one sure thing – interest rates are on the move upwards. BUT, this is only fixed rates.
Variable rates remain at all-time lows. Fixed rates have increased by approximately 30bps (.30%) over the last couple of weeks.

Why is it that only fixed rates are increasing? Fixed rates are based on the bond yield market. As bond yields increase, eventually, so do the fixed rates. There has been pressure building in the bond yield market for awhile now and it was only a matter of time. Whereas, variable rates are dictated by the Bank of Canada (BOC) and based on many things including the health of our economy and consumer debt load coupled with what upside/downside there would be if they change the prime lending rate – currently set at 2.45%.

Variable rates are holding firm and we’ve been told publicly from the BOC that they won’t look at the increase until 2023.

What does that mean for variable rates?

Variable-rate discounts remain low and so does the prime lending rate of 2.45%. When you factor in the low discounts with the low prime lending rate, variable rates are very, very attractive. If we believe the BOC, the prime lending rate of 2.45% will remain the same until 2023 but the discount from lenders may change. If you have a current variable rate mortgage you are good, your discount is locked in.

Currently, the BOC prime lending rate is 2.45%. If you have a variable rate mortgage, you either have a discount or premium added to this rate. Ie. Prime (2.45%) – 1% (discount rate) = 1.45%. If you have a premium added to that prime rate then we really need to talk because there is an opportunity to save some money.

As the BOC moves the prime lending rate of 2.45%, your discount stays locked in for the term (typically 5 years). So if the prime lending rate moves to 2.70% and your variable discount is 1%, your new interest rate is 1.70%.

If you want to secure a fixed rate before they increase even more, please reach out to lock in a rate hold.

If you want to see if we can save you money on your current variable rate mortgage, please let me know and I’ll run some numbers.

Either way, we as Canadians are in a great spot from a mortgage rate perspective. Money is still cheap and it will be for the foreseeable future.

Please let me know if I can help in any way.

Mortgage Mark Herman

403-681-4376

$47,000 Payout Penalty

December 4, 2020 Calgary mortgage

“Talk to a mortgage broker before you get a mortgage; even if it is at your own bank” says Mark Herman, Top Calgary mortgage broker.

In this case the bank loved this guy’s money, and did not listen to what he wanted. Now he has a $47,000 payout penalty. Read More