Back to: October 2019


What is The Best Mortgage Rate?
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A 1.9% online rate will definitely attract attention! But the cheapest is not always best. Once the fine print is read, many will find they don't qualify, and often there are restrictions that could really cost homeowners in the long run. 

That low rate may be for quick close mortgages only i.e. closing within 60 days, or for those who have less than 20% down in which case mortgage default insurance is required to protect the lender. If you put 20% or more down, you don't need mortgage default insurance, but your rate will be higher because the lender doesn't have that protection. And that low rate definitely won't be for refinances or other situations like investment properties.

Rate is only part of a successful mortgage strategy. On a $500,000 mortgage, a rate difference of 0.1% only equates to a difference in payments of about $300 a year. The right mortgage privileges can save you much more than that. That's why you need to look deeper.

Mortgage contracts are full of devilish details that make winners and losers of Canadian homebuyers. Rates are just the lure. Often, the lower the rate, the bigger the catch. Sometimes a cut-rate mortgage comes with higher fees, penalties, or restrictive terms, which could prove more costly over the long term than a slightly higher-rate mortgage with flexible terms.

To get you the best mortgage for your situation, some of the things we'll look at include:

- The fee to break your mortgage. This is huge: there can be substantial differences between lenders. Remember life happens. If there's even a chance you'll need to break your mortgage, going with a lender that has reasonable fees can save you thousands.

- Prepayment privileges: those options that can help you pound down your debt by increasing your payments and/or putting down lump sums so you can save thousands in interest and shave years off your mortgage.

Important mortgage privileges don't fit in a rate ad. But be assured, this is where the rubber hits the road in building the right mortgage. If you found yourself looking at low online rates? Do all of the research you can to make sure you understand the fine print.  

 

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With Compliments of

Michele Vyge-Fraser
Real Estate Agent/ Associate Broker/ CNE®


Red Door Realty
1314 Martello Road
Chapter House
Halifax, Nova Scotia,
T: 902-830-6397
NovaScotiaRealEstate@gmail.com
www.RedDoorRealty.ca

Hello,
Well, the light seems to finally be blinking at the end of this tunnel! With a little more perseverance and luck we may be back to a kind of test run 'new normal' within a few weeks! What a time this is. So much has been learned about ourselves, our communities, our province, our country and the world. I am ever hopeful that the positive outcomes will outweigh the negatives as time goes on. The tragedies, the deaths, the sickness and the challenges will clearly never be forgotten. The 'why's' will hopefully be met with more answers to help dull the sadness for so many people. The fortunate ones, which thankfully includes many of us, especially in Nova Scotia thanks to our amazing government, healthcare and service workers, dedication and leadership, I think will come out of this with a renewed sense of responsibility to find ways to show and live our gratitude. Ever the optimist, I believe that the possibilities are endless and exciting! Please continue to stay safe, healthy and well. Looking forward to seeing you again soon!
With Sincere Gratitude,
Michele



NATIONAL MORTGAGE RATES
Term Posted
Rates*
Best
Rates*
6 Months 3.34% 3.30%
1 Year 3.59% 3.04%
2 Years 3.74% 2.89%
3 Years 3.89% 2.79%
4 Years 3.95% 2.95%
5 Years 5.34% 2.69%
7 Years 5.80% 2.99%
10 Years 6.10% 3.04%
Variable Rate 2.90%
Prime Rate ** 3.95%
*last updated: Feb 18,2020


www.RedDoorRealty.ca

Halifax Mortgage Specialist Bruce Lusby 

(902) 210-0515

http://mortgageweb.ca/BruceLusby

Halifax, Nova Scotia - updated Oct 6, 2015

Variable:

5yr @ Prime - .65% (2.05%)

HELOC @ Prime +.25% (2.95%)

Fixed:
1yr 2.29%
2yr 2.09%
3yr 2.24%
4yr 2.54%
5yr 2.54%
6yr 3.39%
7yr 3.44%
10yr 3.84%

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The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.