You do not have to choose between fixed or variable. You can choose both! Advanceable mortgages allow you to slice and dice a mortgage into multiple components of varying terms and rates. For example, you can have three loan components, one as a variable, one as a fixed rate, and the third as an interest-only […]
An interest-only payment on a loan is often lower than an interest and principal payment. If you want to ease up the impacts of rising rates on your cash flow and budget, paying an interest payment would be lighter on your pocket. Having said this, you must be conscious of how long you want to […]
Although the rates are rising, the cost of secured debts such as mortgages and lines of credit remains relatively cheap within the bigger scheme of things. One option to create capacity within your budget is to replace expensive debt with cheaper debt. Let’s say you have a car loan with a monthly payment of $1200, […]
If you have two loans of the same amount—one at a lower rate but shorter amortization and the other at a higher rate but longer amortization—you will see that your payment on the first loan would be higher. Having said that, your interest savings would be bigger because you are paying off the loan over […]
A few lenders on the street offer a capped variable rate option. Under that option, as the prime rate that impacts variable rate rises, your monthly mortgage payment stays the same, the percentage of payment that goes toward principal declines, and the percentage of payment that goes toward interest increases. This is a good option […]
Tip #1: Don’t let the fear and the noise surrounding us these days make you rush into locking a 5 year fixed rate mortgage.
As you may have heard us say many times, variable rates mortgages have a lot of advantages for investors. Variable rate mortgages are usually much easier and cheaper to break, and therefore offer flexibility real estate investors need. Fixed rate mortgages on the other hand tend to be more costly to break. So really watch […]
I am sure you have all heard of the BoC announcement today!… No one saw those extra 25 basis points coming, but of course, it’s been loud and clear that they are planning to increase rates, so from that respect, no one is surprised. I am not going to offer you predictions on where the […]