Rates as of June 11, 2009
Fixed Rate Mortgages
6 month convertible 4.75%
1 year open 6.55%
1 year closed 2.75%
2 year closed 3.70%
3 year closed 3.70%
4 year closed 4.09%
5 year closed 4.19%
7 year closed 5.50%
Variable Rate Mortgages
5 year closed - Prime* +.40%
5 year open - Prime* +1.00%
Home Equity Line Of Credit
Please call for product availability and rates.
Information from sources deemed to be reliable. Product availability and borrower qualification apply.
*Prime = 2.25%
Some lenders have increased to 4.39% for 5 Year money!
Global West Mortgages
First Time Home Buyers Checklist - Part 2!!
5. Once you find your new home, an Offer is written and forwarded to the Mortgage Broker for processing along with a copy of the MLS sheet.
A clause that the purchaser obtain financing approval is included in the offer, normally allowing for 10 business days to obtain such.
6. The Mortgage Broker will present this offer and MLS sheet to the lender!
The lender will review the deal and property, and will provide a Mortgage Commitment that outlines all paperwork needed to complete, the terms and conditions of the approval, and CMHC/GE Insurance if applicable.
7. Once the Commitment is received, the Mortgage Broker will detail all requirements needed to fulfill the lender requests, and where signatures are needed.
It is at this time payment structure, (ie: bi-weekly), length of amortization for the mortgage, and payments are finalized.
8. All the paperwork is presented along with a signed Commitment and Pre-Authorized Payment Form to the lender for final approval.
Income, downpayment, lawyer info are all presented tot he lender for review.
9. Once the lender signs off on all paperwork, he "financing condition can be removed from the offer, and it becomes a FIRM sale! Mortgage Instructions are then sent to the lawyer of your choice, detailing what is to be registered on the title of the new home, your name, mortgage amount, etc. We do have some recommendations for legal help.
10. 7-14 days prior to possession date, the lawyer will call you in for signing of documents.
At this time you present the remainder of the downpayment NOT covered with the original deposit given plus legal costs, and sign all the pertinent mortgage documents needed for the lender to hold title of the property until the mortgage is paid for in full.
11. Day of possession, you will do a Walk through with the Realtor of the property.
The walk through is an important part of the closing of a purchase, one must make sure it is in the same condition as when purchased, and you will receive the keys to your new home.
I hope this has been helpful to those of you who have never purchase before, if you have any questions, feel free to call us at 1-888-541-2366.
Interest Rate Differential!!
Over the past few months we in the industry have heard of very large penalties arising from the payout of existing mortgages. These mortgages were at a higher rate of course, and consumers were trying to get out of the higher terms and cash in on the lowest rates we have ever seen for mortgages!
Many people found that paying out their mortgage was not going to be so easy, and that the "3 month interest" penalty they had thought applied to their mortgage in fact "did not", and that the bank had conceived this NEW penalty calculation, the :interest rate differential: and that calculation was producing penalties anywhere from $5,000 to as high as $27,000 for one of my clients!
The result was an outcry, and many people left holding the bag, especially if they did not check this penalty amount before proceeding to sell or refinance! How did this "Interest Rate Differential" come to pass?
It was always there! We have just been in a market that had very stable rates for quite some time now, and a rate decrease of this nature has not been experienced for many years! All mortgage documents state, if you read the fine print, that the prepayment of a mortgage is fine, but subject to the GREATER of 3 months interest or interest rate differential. Trouble is, nobody explains this when signing the mortgage contract!
It also used to be the case that if you had a mortgage insured by CMHC, and it was past the three-year
mark, you could pay three months' interest to get out. But in 1999, CMHC pulled the plug on the long standing prepayment privilege that included an OPEN period after 3 years for only the 3 months interest penalty, and made it a "non-mandatory requirement."
Lenders are now free to either honor the old CMHC position or impose their normal prepayment
penalty policy on CMHC-insured mortgages through out out the term. You do not have to guess which route they took!
Real estate lawyer and consumer advocate Alan Silverstein was shocked to hear about the new
rules in March 2000. Here's what he said in the Toronto Star.
Who are the big winners? Banks, trust companies and other CMHC-approved lenders,
empowered to siphon larger prepayment penalties from Canadians.
I'm not aware of any public consultation on these new rules, or any dialogue with
consumers or consumer advocates. Why not?
I'm not sure what irritates me more: CMHC's regressive new policy, or the clandestine
way it was introduced. This is why the majority of people are unaware of the penalties they face, needless to say it was not well advertised!!!!
To all Realtors, be careful and get back to sending out Mortgage Verification forms please!!