Many people are unaware the Big-6 banks, and all the banks you can walk into, calculate the payout penalties at much higher amounts than mortgage broker lenders.
The cost of how penalties are calculated is even more concerning when fixed-mortgage rates stay flat or rise slightly over an extended period – exactly what is happening right now.
Payout penalties – how the Big-6 banks get you, Example 1Bank rates, payout penalties
Below is a great example of how the Big-6 banks get you on an early mortgage payout.
“The rate is the rate, but the details are the details!” said Grandma Herman.
Top Alberta mortgage broker for home purchases and mortgage renewals
Grandma always said, “The price is the price, but the details are the details!”
There are discounted and restricted mortgage rates out there but they do not share the details of their disadvantages up front with you.
- Restricted or Limited Products / Bait & Switch
People will not even sign a 3 year cell- phone contact any more but they will try to save $15 a month on a restricted mortgage; which could cost them $30,000 as a payout penalty – BUYER BEWARE is what the regulators say.
I love this article from the Globe as it explains why rates are going up a bit and what expectaions are for the near term.
Call for a rate hold if you are thinking of buying in the next 4 months!
“Borrowers who use a mortgage broker pay less …,” Bank of Canada.
See our reviews here: https://www.markherman.ca/CustomerREVIEWS.ubr
TD does collateral registrations and also look at everything you do on line. Not only do they love your money, they also love your data!
Stop trusting the big banks and talk to a mortgage broker to protect your data and your money.
This is just in from TD Economics, a .75% Prime rate increase is expected to be phased in – probably in 1/4% increases – starting in July 2017 and being fully in by December.
The rates they show below are for corporate rates, consumer rates are a bit higher.
Wages and home prices are sticky – economically speaking. No one wants to work for less than they did yesterday or sell their home for less either. So the prices hold.
Today, any busy real estate agent will tell you the home market for anything less than $450 – 500k is moving quickly if priced correctly. $500 – 750k is slower and above $750k is very slow. This all makes perfect economic sense.
All recessions are tough – but the sky is not falling. Below is one of the better articles we have seen on why this one will not be that bad.
Mortgage Mark Herman,
Calgary Alberta mortgage broker for home purchase and mortgage renewal.
Only two recessions in Calgary since 1987 and both more severe than 2015 forecastMario Toneguzzi, Calgary Herald
Published on: September 28, 2015 | Last Updated: September 28, 2015 3:42 PM MDT
While Calgary’s economy has been sluggish this year and most experts are forecasting a recession, it will be a mild one compared with what the city has gone through in the past.
This short version of the article should provide some confidence that the sky is not falling in Calgary and we will recover.
Mortgage Mark Herman, Best Calgary mortgage broker for home purchases and mortgage renewals
This bite of an article is as interesting and as funny as US interest rate increase articles can be.
See why it is better to have your mortgage broker follow this stuff for you then to read it yourself!