As expected the Bank of Canada increased it’s policy interest rate this morning by 50 basis points: Bank of Canada increases policy interest rate by 50 basis points, continues quantitative tightening - Bank of Canada. This rate increase puts the policy rate at 3.75%, the first time it’s been at this rate since 2008. This is concerning for many regarding their mortgage payments. Wo...

Last week the Bank of Canada announced that the plan to keep the interest rate close to zero until 2023. (See article). Mortgage rates also remain low. This has sparked a discussion amongst some friends regarding mortgage rates and the idea of changing mortgages and the benefits of having a fixed or variable mortgage. I was asked for my opinion on the matter. The fact is that I am not a mor...

Consider the benefits of a non-traditional (collateral mortgage) as opposed to the traditional mortgage options. TRADITIONAL Slow start Payments in the first 5 to 7 years are mostly interest. Speed limit Financial institution limits how quickly you can pay off the principal. For example, fixed percentage or limit on lump sum payments. Payments don't equal paydown Even lump sum pay...